creating value with digital hr
TRANSCRIPT
Transform to the power of digital
Creating Value with Digital HR Sharing insights
Jan Brouwer, SVP HR Transformation
Stockholm – November 5th, 2015
Copyright © 2015 Capgemini Consulting. All rights reserved.
Digital HR enables organizations in reaching their vision to deliver a digital organization and connectivity on a global scale
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Focus on Digital
Global Business is a global ecosystem and the
organization uses scale to create synergies
Local All Business is Local oriented: Customers,
Brands, Services and regulatory & commercial environments.
Connecting The organization connects people to people,
people to communities, and people to information.
Empower They empower their people through the
existing business model
Key questions to answer Typical Vision & Current Digital Transformations
questions at organizations
The organization believes that Digital can deliver significant benefits to their organization
How to enforce the organization with HR to setup a digital culture- and management style that drives the digital
transformation
How to attract, retain and grow digital talent on a global scale
How to make HR a digital best practice case for the organization showing the cost efficiency- and employee
benefits that it can bring
Trends in HR Which opportunities need to be captured
Copyright © 2015 Capgemini Consulting. All rights reserved.
Key HR Trends Europa
Leadership development and employee engagement are the key HR trends in Europe, given the current challenges faced in terms of demographic shifts and talent shortages
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Global HR Trends and Challenges
European HR Trends and Challenges
Key sectors - Challenges
Global HR Challenges Global HR Trends
Globally, the key factors resulting in challenges for the HR are: - Demographic shift - Technology Shift - Globalization - Social, political and regulatory shifts
Though some of these factors pose challenges to the HR in Europe, the current economic scenario poses are major challenge in terms of cost and productivity - Pressure on cost reduction - Managing productivity and profitability - Demographic shifts - Talent Shortage
Europe HR Challenges Europe HR Trends
0 10 20 30 40 50 60
Training
Workforce planning/talent …
Performance management
Leadership development
Engagement/retention
0 10 20 30 40 50 60
Workforce planning …
Succession planning
Performance management
Engagement/retention
Leadership development
HR Challenges & Trends
Decreasing STEM graduates
Ageing workforce
Employee turnover
Shortage of workforce
Retaining and recruiting top talent
Incorporating regulatory changes
Digital skill gaps
Employee turnover
Manufacturing Retail Financial Services Telecom Sectors
Source: Capgemini Consulting: HR Trends July 2014
Copyright © 2015 Capgemini Consulting. All rights reserved.
Driven by changing business demands and enabled by digitalization the operating model of HR needs to change
Operational HR design trends
HR Organizational challenges
Locally based while supporting a global organization Lowering cost and improving added value Being data driven and employee focused Partner of the business while being ahead of business
Providing standardized services and personal service Enabling digital transformation while going though digital
transformation
The HR business partner role
HR business partners on all levels in organization
No HR business partners
Functional expertise
Center of expertise on every HR area
New CoE’s
Commodity activities
Own shared service centers
Digital
Focus on centralization of commodity HR activities Moving from outsourcing to Self-service for all
standardized transactional processes to reach the ‘digital’ stage
Automation of the HRBP operational role Based on analytics CoE’s develop new policies and
tools and advice the business managers directly
Development from HR specialists focused on functional areas to combined centers of expertise with other functional areas (e.g. finance) focused on situations (e.g. mergers and acquisitions)
Organizational trends
Copyright © 2015 Capgemini Consulting. All rights reserved.
Key digital trends across all HR functions
Digital is paving it’s way in Talent Acquisition, Organization Development, Engagement and Operations which are the major cornerstones of a successful HR foundation
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Hiring Strategy
Campus Relationship
Channel Management
Branding
Vendor Management
New Hire Touch Point
Training
Performance Management
Career Development
Leadership Development
Communication
Energizing Fun
Employee Development
Coaching Employees
Retention Programs
Compensation Management
R&R Programs
C & B Implémentation
Increase in usage of technology as a means of marketing
Integrated search and use of talent networks to enhance candidate sourcing
Advent of mobile technology and app based products enabling talent acquisition
Use of micro sites and videos to enhance candidate experience
Increase in investment towards SaaS in HR
Shift in HR from operational to strategic function through embedded analytics
Influx of mobile and decentralized employees
Use of social media to measure employee influence
Increasing use of gamification in leadership development
Shift towards “facilitated talent mobility strategy”
Using Accelerated Learning Methodologies in Training
Shift from training to integrated capability development
Tren
ds
HR
Pill
ars
Talent Acquisition Compensation & Benefits Engagements Talent Management
Source: Capgemini Consulting-Using Digital Tools to Unlock HR’s True Potential
Creating value with Digital HR Our Point of View
Copyright © 2015 Capgemini Consulting. All rights reserved.
HR needs to become digital to attract, retain and engage talent in a digital world
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- Job seekers are increasingly using digital channels and devices to search for jobs.
- An organization’s presence across digital channels has a strong impact on job seeker preferences
- Crowd sourcing enhances the accuracy of performance assessments by offering richer insights into an employee’s performance, which in turn enables a fairer appraisal
- Digital technologies help organizations close the talent gap faster
- Digital technologies enhances the efficiency of recruitment processes
- There is a strong need for organizations to overhaul existing performance management processes and align them more closely with employee aspirations and entitlements. Since 45% of HR leaders believe annual performance reviews are not an accurate appraisal of an employee’s work
- A strong employer brand plays a critical role in attracting and retaining talent in a competitive marketplace
- Companies have to compete for the best talent with new categories of players
- The talent war is manifest across the entire organization
- Critical leadership skills among the employees need to be build internally to retain the high performers
- Gamification boosts employee learning and development to successfully build critical leadership skills among its employees
Digital HR challenges Digital enablers for HR
Recruitment
Employer brand
Performance management
Learning & development
Copyright © 2015 Capgemini Consulting. All rights reserved.
Creating value with digital HR is based on several elements that collectively determines the success of the organization enabled by analytics
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Leadership & culture
o What is the impact of digital transformation on leadership style and corporate culture
o What elements should be strengthened , and how do you ensure that this is translated into concrete working arrangements ?
Operating Model
o What is the HR Digital service portfolio that you are delivering to the internal customers
o How do you organize around the digital service portfolio including the supporting IT architecture
o How to optimize synergies but retain focus?
HR Standardization & Digitalization o HR should move towards standardization and
digitalization in the functional, low value adding areas in order to become a more strategic business partner
Competences o Does the organization have access to all necessary
digital skills and competencies concerning mobile, analytics , and social creation?
o What kind of skills are you going to source or outsource
Source: Capgemini Consulting-MIT Analysis – The Digital Talent Gap – Developing Skills for Today’s Digital Organizations
Our Vision on Digital Organizations
Necessary elements for effective digital HR enabled by analytics
HR analytics
Copyright © 2015 Capgemini Consulting. All rights reserved.
Competences
Realizing the organizations’ digital ambitions requires specific digital competences concerning mobile, social , creative and analytics
What competencies are already in the house, which to develop or what to buy or hire ?
Which types of collaboration or cooperation are interesting?
What does this mean for the HR strategy?
Successful digital organizations are able to organize the right mobile, social , creative and analytics skills
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Source: Capgemini Consulting-MIT Analysis – The Digital Talent Gap – Developing Skills for Today’s Digital Organizations
Technical Talent
Strong Understanding of Business Drivers
Knowledge of Technical
Underpinnings
Business Professional
Creative
Analytics Social
Mobile
Clusters
CAPGEMINI’S DIGITAL SKILLS FRAMEWORK
Mobile Platform / UI design , technical knowledge, application development , cloud services and information security
Social Brand strategy , social and community management , online etiquette and customer service and PR
Creative Art direction , multi-channel design , copyright management, digital asset management
Analyticss Collect , analyze and interpret large amounts of data
“55% of Digital transformations fail due to lack of proper exertise” – MIT
Our Vision on Digital Organizations
With our Digital competence analysis we map missing digital skills in a short time
Copyright © 2015 Capgemini Consulting. All rights reserved.
An optimal organizational structure represents the digital vision and ambition of the organization
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Operating model
The top-level organizational structure should be a derivative of the online ambitions and goals
Based on the current and desired situation , we determine the optimal transition path , including any intermediate forms
Next we detail the different functional areas and roles based on the current organization and digital competences
Digital Operating model archetypes
“digital is just a new channel”
“Digital is an integral part of the business”
“the business is driven by digital”
Digital as seperate department Digital as expertise Digital as strategic capability
Our Vision on Digital Organizations
“Organize the team in the department that is experiencing the greatest impact of the digital transformation”
We have best practices that we use to accelerate the choice of organization
Copyright © 2015 Capgemini Consulting. All rights reserved.
The transition to digital asks for a different type of leadership and culture in order to be successful
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Leadership & Culture
Digital Successful organizations are distinguished by a high degree of open collaboration and breaking with traditional hierarchical management models and an obsession with the customer
How to get and keep the right people on board?
How to create a sense of need for change ?
How do you increase the rate of change ?
Digital Leadership and culture requirements
“77 % of digital transformations fail due to lack of a proper culture”- MIT
Digital Culture elements
Open
Creative
Innovative
Expressive
Collaborative
Team player
Agile
Authentic
CULTURE – is about values, attitudes, beliefs and behaviors that will help individuals perform as a group toward acceptance of the Digital Transformation
Digitale Leadership competences Enabler of autonomy
Agile decision maker
Connecting entrepreneur
Cultural aligner
Digital explorer
Innovative engager
Leader example
Customers enter the heart
of the organization
Greater reputational
risk
Digital is personal
Better decision making on big
data
Digital causes all at once
Way of working
is changing
From owning to sharing
Digital is always new
Our Vision on Digital Organizations
Key digital trends
We use our leadership competency framework in the design of the new way of working
Copyright © 2015 Capgemini Consulting. All rights reserved.
HR is moving towards standardization and digitalization in the functional, low value adding areas in order to become a more strategic business partner
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HR Process simplification
Customer focus via integrated Business Partners
Functional and operational HR processes and policies are standardized
Outsourced Payroll
One Cloud solution to support the manager in his People Management activities and to support analytics
Maximum use of self service
Use of mobile and social apps to support data entry at the source
Expertise clustering around business themes and not HR themes
HR Maturity Model
“standardize and digitalize the low value adding areas”
Our Vision on Digital Organizations
Opportunities for the organization
• Business driven (voice of costumer) definition of HR processes
• Define clear accountability and KPI’s for end-to-end processes that distinguish between cost and value driven
• Standardize processes for transactional work using re-usable process building blocks
• Drive self-service by defining integrated functional requirements via customer use-cases
• Define a agile HR organization build around key processes follow business changes
With our HR operating model framework and HR best-practice toolbox we will guide the design of the future proof HR organization
Copyright © 2015 Capgemini Consulting. All rights reserved.
Data Analytics and predictive modelling can add significant value to existing HR data and improve the company’s strategic advantage.
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HR data analytics
HR data analytics is an evidence-based approach to smarter decision making by tracking past employee activities to predict future outcomes.
It’s the application of sophisticated data acquisition and business analytics techniques to HR data with an aim of correlating business data and people data
HR is known to all too frequently rely on trust and relationships instead of data to support it.
The value of HR analytics
Can you imagine all people decisions taken at your organization are based upon HR analytics?
Our Vision on Digital HR
Data driven strategies will become an increasingly important point of competitive differentiation.
Level 1
Reporting analytics Inferential analytics
Traditional HR Analytics
Level 2
Predictive analytics Prescriptive analytics
Level 3 Level 4
Present focus
HR Analytics Maturity Model
Companies are shifting towards predictive and prescriptive analytics to gain foresights on their HR areas…
… but our experience reveals three root causes why it’s challenging to pave the way and make more value from HR Analytics.
HR Analytics initiatives not linked to corporate strategy
Analytic skills & information management not in place
Technology is a driver, but also a burden
1 2 3
More accurate and impactful input for people decision making on board level
More business relevant HR interventions
Performance improvement of HR function
Connect on a personal level to understand what people really care about
Copyright © 2015 Capgemini Consulting. All rights reserved.
Financial and Service quality benefits can be realized when Digital HR is implemented correctly
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Benefits
Since showcasing financial benefits is crucial for gaining key stakeholder buy-in it is important to identify and quantify all key costs and benefits of the Digital HR transformation
Qualitative benefits are equally important in gaining buy-in and support, these benefits should be documented and referenced throughout the entire Digital HR transformation
Digital HR Benefits
“Quantitative & Qualitative outcomes is an area frequently scrutinized in the HR space, however HR Transformations have clear and measurable value add for organizations ”- MIT
Digital HR Benefits
Financial benefits Consolidation of technologies
Legal Cost Reduction
Indirect savings from process improvements
HR Headcount reduction
HR Salary Reduction
Outsourcing
External Spend consolidation
Service Quality Benefits Enhanced HR impact on the Business
Lower cost and more effective service delivery model
Capability for global people management
Effective use of digital tools and streamlined technology
Source: Capgemini Consulting-Using Digital Tools to Unlock HR’s True Potential
With our proven approach we will track the benefits during the transformation