The heart of the challenge is not size or scale; it’s the entire organizing strategy for HR—its operating model. Research indicates 75 percent of HR executives say that ensuring their operating model provides a competitive advantage is a major challenge. The result is often slow reaction times, a lack of innovation, and fragmented solutions that conflict with one another. Global business services that leverage shared service centers for global process efficiency and consistency is a foundational part of your HR transformation journey. As your operations evolve, Accenture has identified six HR operating models that help create and sustain more flexible and integrated HR capabilities. Each of these models is designed to suit different strategies, cultures and types of workforces.
Democratization of Talent Management
HR can leverage technology to better extend processes into the broader organization and embed talent management into the business. This empowers managers and employees to perform many processes themselves with less involvement from HR (e.g. recruiting, performance reviews, learning and personal career pathing).
Moving the HR Process to the Cloud
Standardized processes and integrated HR systems delivered via cloud solutions help to streamline multi-country HR operations, increase efficiency, lower operating and maintenance costs, and increase employee engagement giving access to HR processes through digitally advanced tools.
Global Scale of HR
Globalization issues will remain at the top of most C-suite executives’ strategic agendas. To keep the pace with continuous global challenges and increased competition, HR may also need to adopt new operating models reimagining its role as business partner.
HR executives sometimes struggle with operating models too inflexible to meet their needs or to keep pace with change. We help HR leaders understand their options to improve service effectiveness by efficiently managing pr ocesses through scalable, and performance-driven organizations, i.e., global business services. Once companies have an efficient services model, there are six operating models that leverage cloud-based delivery, collaboration technologies and analytics to enhance agility and competitiveness. We help clients determine the right operating model based on their business goals, company culture and specifications.
Just-in-Time HR Model – This model replaces Centers of Excellence (COEs) and business partners with a small cross-functional workforce effectiveness group. The model borrows from agile software development, open innovation and lean Six Sigma to deliver innovative, digitally enabled, integrated and adaptable solutions that are nimbly pulled from the business based on demand. This model is especially suited for volatile businesses and diverse workforces.
Professional Services Model – Center of Excellence and business partner roles are replaced with an internal HR consulting group that creates talent practices and advises various parts of the business. This model is particularly good for fast-changing businesses with globally integrated business models and a great deal of project work.
Talent segmented Model – Instead of having business partners assigned to business units, “talent segment representatives” can be more flexibly assigned to talent groupings. This model is ideal for organizations that compete on talent with highly diverse workforces that are seeking to boost workforce productivity and engagement by creating customized talent management practices without sacrificing control.
Crowdsourced Model – Borrowing from concepts of crowdsourcing, “co-created” products and services, and open source innovation, this model reconceives HR in light of new digital advances that empower employees to define their own talent practices. This model is especially appropriate for smaller, volatile organizations that compete on talent with more democratic cultures.
Lean HR Model – This model divides HR into three parts: shared services, a tiny corporate function with deep specialists and a small number of both centralized and localized planning and analysis experts. Here, HR departments are eliminated by pulling them apart, with pieces either being outsourced, automated by machines or placed in various parts of the business where they fit most naturally.
Federated/Decentralized Model – For businesses with fairly autonomous business units and that need to rapidly respond to the needs of local units, this model decentralizes business partners and Center of Excellence into business units. This model is beneficial for organizations focused on speed and intimacy rather than on efficiencies that can be achieved through scale.