Work smarter, win faster, perform better
HR Directors are being challenged, not just to cut the cost of running their own function, but to find ways of improving corporate performance as a whole, through innovation and efficiency gains. They are not alone in this. Other function heads, from IT to procurement and beyond, are being given the same challenge.
THE CHALLENGE OF COMPLEXITY
HR now routinely has to manage flexible, scalable workforces, containing many people who are not permanent employees. They must provide an environment that permits productivity and collaboration, while keeping the corporate culture intact, delivering against strict performance targets and helping to keep the business secure.
ENTERING AN ON-DEMAND WORLD
Before HR can make its move into the Cloud, however, there are a few issues to
be resolved, including:
- The need to integrate services provided by many different vendors.
- Deciding on what can be securely sourced on the public Cloud (at very low cost), on “community Clouds” (mid-price) or kept onsite (at a higher price).
- Changing workforce behaviour so that employees are able to use a self-service approach without loss of efficiency.
- Making sure that a drive for the lowest-cost approach to sourcing does not also lead to a lowest common denominator approach to business outcomes.
QUICK WINS FOR TRANSFORMATIONAL CHANGE
We recognise that investment in transformational change needs to be paid for by short-term improvements: by quick wins, in other words. Achieving fast performance improvements will:
- Build confidence in business leadership about the change agenda, giving them the ability to invest in success.
- Save money for reinvestment elsewhere.
- Act as a first step on a longer transformation journey (which means that even the most short-term first steps must be appropriate for the long-term strategic agenda).
Where transformational outsourcing is concerned, the quickest wins are to be found in a fast move to on-demand services. Step one in the transformation process, therefore, is to...
- Carry out a fast health check and diagnostic review of existing HR services.
- Build a cost-benefit report to identify potential ROI, risks and timing for implementation.
- Create a business case, with performance targets, for the initial first steps towards an
on-demand approach.
- Monitor performance and establish lessons learned for future development.
WHERE NEXT?
We believe that different forms of outsourcing can and will co-exist and, in fact, be mutually supportive. In the drive to achieve a step-change in flexibility, cost-efficiency and collaborative working, HR Directors need to understand all of the diverse tools available and use them in an intelligent, pragmatic away to deliver the benefits their business needs.
On-demand, pay-as-you-go services will enable fast improvements to cost base and thus form the natural starting point for long-term change. Access to innovation, emerging technologies and specialist skills, however, are to be found in longer-term, BPO partnerships. The key is to stay open to all the rich possibilities that the outsource world currently offers and be both creative and flexible in using these options.
