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GartnerforHR

PlaybookforIncreasing

HR’sStrategicImpact

©2022Gartner,Inc.and/oritsaffiliates.Allrightsreserved.CM_GBS_1819587

NewHRPriorities

MoreFlexible

andAgile

MoreStrategicallyAlignedWiththeBusiness

MoreOperationallyEfficient

Today’sfast-paced,ever-changingbusinesslandscaperequiresanevolvedapproachfromtheorganization—includinginternalfunctionssuchasHR.Thecombinedimpactofnewwaysofworking,changingemployeeexpectations,digitalizationandfastervelocityhasexposedthelimitsofthestandardthree-pillarHRoperatingmodel.

Only30%ofHRleadersbelievetheircurrentstructureallowsthemtoadapttochangingbusinesspriorities.Inresponse,chiefhumanresourcesofficers(CHROs)arelookingtorebuildfortheHRoperatingmodelofthefuture,onethatenablesHRtooperatewithagility,strategicalignmentwiththebusinessandoperationalefficiency.

Today’sGlobalLandscape

NewHybridWaysofWorking

Increasingly

ComplexStakeholderExpectations

NewDynamicTalentLandscape

NewAdoptionsofTechnologyand

Automation

FasterPaceof

Business

PlaybookforIncreasingHR’sStrategicImpact

NewGlobalChallengesAreShiftingHR’sTopPriorities

84%

Only

34%

Only

40%

ofHRfunctionshaverestructuredinthepasttwoyears,are

currentlyrestructuringorplantorestructureinthenexttwoyears.

ofHRleadersbelievetheircurrentHRstructureallowsHRto

adaptquickytochangingbusinesspriorities.

ofHRleadersbelievetheircurrentHRstructureseparates

transactionalandstrategicHRtasksappropriately.

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HeadofHR

PlaybookforIncreasingHR’sStrategicImpact

IntroducingtheHROperatingModeloftheFuture

CHROsareembracinganewHRoperatingmodelbydrivingfourimperatives:

1.BuildingarobustHRoperationsandservicedeliveryteam.Acentralized,dedicatedteam,ledbyanHRCOO,servesemployeesandmanagerswithinfrastructureandprocessestocarryoutday-to-dayHRoperations.

2.ReinventingtheHRbusinesspartner(HRBP)tobetobeastrategictalentleader.HRleadersalignwithspecificbusinessunitstoserveastheirdefactoCHRO,andpartnerwithbusinessleaderstoaddresstheunit’sstrategictalentpriorities.

3.CreatingadynamicpoolofHRproblemsolvers.TheheartoftheHRfunction,problemsolversapplyprojectmanagementandcriticalthinkingskillstoshort-termHR-relatedprojects.

4.Providingagilesupportwithnext-generationcentersofexcellence(COEs).

Asproblemsolversdelivertimelyagilesolutionsandtechnologymeetsemployeeneeds,COEswillbecomesmallerandbringoncontractors

andconsultantsasneededfordeepHRexpertise.

StrategicTalentLeaders

HRProblem-SolverPool

Next-GenerationCOEs

HRCOO

HROperationsandServiceDeliveryTeam

SharedServices

HumanCapitalIntelligence

PeopleRelationsManagers

HRTechnologyTeam

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PlaybookforIncreasingHR’sStrategicImpact

AchievingtheHROperatingModeloftheFuture

HRFunctionalMaturityMatrix

Higher

Operational

Efficiency

Lower

Higher

StrategicImpact

Operational

Excellence

HROperationalandStrategicMaturity

TheHROperatingModeloftheFuture

2

1

LowOperationalandStrategicMaturity

StrategicPartnershipWiththeBusiness

Lower

TheoptimalpathtoachievingtheHRoperatingmodelofthefutureinvolvesfirstupgradingHR’soperationalefficiency—whichfrees

resources,reducesduplicateeffortsandprovidesmorespaceforstrategicthinking—andthenincreasingHR’sstrategicimpact.ItwillbeeasiertoredesignrolesandintroducenewteamsafterHRhasamorestablefoundationforoperationalexcellenceinplace.

ThisplaybookfocusesonthesecondphaseofHRtransformation:increasingHR’sstrategicimpact.Seethefirstphase,PlaybookforUpgradingHR’sOperationalEfficiency,

here.

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1

RealignYourHRStrategy

4

ImplementanHRProblem-SolverPool

PlaybookforIncreasingHR’sStrategicImpact

FourAreastoIncreaseHR’sStrategicImpact

•EvaluateHR’seffectivenessagainstHR’sgoals.

•EvaluateHR’seffectiveness

againstthegoalsofthebusiness.

•Refocusyourgoalsandestablishcriteriaforsuccessfulstrategy

execution.

ReimagineHRBPstoIncreaseStrategicPartnership

2

•Outlinestrategicallyfocused

HRBProlesandresponsibilities.

•AssessHRBPskills,abilitiesandinterests.

•Evolvestrategiccompetencies.

•ProvidestrategicHRBPswithtimeandsupportforstrategic

activities.

•FurtherseparateHRBP

responsibilitiesintodistinct,

specializedroles.

ProvideAgileSupportWithNext-GenerationCOEs

3

•Definethevaluepropositionfornext-generationCOEs.

•ReevaluateCOEactivitiesbasedonend-uservalue.

•UpdateCOEstaffingtodriveefficiencyandimpact.

•Useagilewaysofworkingtorunnext-generationCOEs.

•Determinetheobjectives,

parametersandstaffing

necessaryfortheteam.

•Definetheteam’sroles,

competenciesandsubjectmatterexpertiseneeds.

•Createaprojectcharterandprojectprioritizationmethod.

•Developtheteamandestablishpathwaysforskilldevelopment.

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1

PlaybookforIncreasingHR’sStrategicImpact

SampleActionstoRealignYourHRStrategy

EvaluateHR’seffectivenessagainst

HR’sgoals

BenchmarkyourHRstrategiceffectiveness

againstyourHRstrategygoals.ReviewHR’s

strengthsandweaknessesintalentplanning,

functionaleffectivenessandfunctionalstrategy.UsethisasabaselinetoidentifygapsbetweenthecurrentcapabilitiesoftheHRfunctionandwhatyouwanttoachieve.

Whyit’simportant

BenchmarkingHR’scurrentperformancerevealsareasofinefficiencyagainstHR’sstrategicgoals.Thisinitialbaselineprovidesabenchmarktolaterunderstandwherechangescanallowforgreaterstrategicimpactandcanalsobeusedtocreateasustainableroadmaptodrivegrowth.

EvaluateHR’seffectivenessagainstthegoalsofthebusiness

Evaluatethebusiness’sperspectiveofHR’s

strategicimpactandeffectivenessthrough

interviews,focusgroups,surveysormetrics.Determinetheproductofferings,investments,servicesandcapabilitiesthatwouldbesthelpachievebusinessobjectivesgoingforward.

Whyit’simportant

Understandingwhatthebusinessexpectsfrom

HRandcreatingalignmentbetweenorganizationalandfunctionalstrategicplansareessentialto

helpingthebusinessmeetitsgoals.Assessing

gapsinbusinessprioritiesandHRprioritieshelpsidentifyhigh-priorityimprovementareas.

Refocusyourgoalsandestablishcriteriaforsuccessfulstrategyexecution

Usethedatayou’vegatheredfromevaluatingHR’seffectivenessagainstHR’sowngoalsandthegoalsofthebusinesstoidentifyhigh-priorityservices

andrefocusyourgoalsondeliveringthose

services.SeektoclosethesegapsandevenconsiderrebuildingyourHRfunctionaroundthedeliveryoftheseservices.

Whyit’simportant

RefocusingHR’sdeliverycapabilitiesoncriticalserviceswillhelptheHRfunctionbecomemorestrategicallyalignedtoHR’sowngoalsandthegoalsofthebusiness.EstablishingclearcriteriaforsuccessfulstrategyexecutionhelpsHR

measureprogress,identifypotentialbottlenecksandfocuseffortstomaximizeperformance.

Note:Theabovearesamplerecommendedactions.Forthefulllist,contactyourGartnerrepresentative.

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PlaybookforIncreasingHR’sStrategicImpact

SampleActionstoReimagineHRBPstoIncreaseStrategicPartnership

OutlinestrategicallyfocusedHRBProlesandresponsibilities

Alignwhatitmeanstobe“strategic”withthegoals

yououtlinedintheprevioussection.Clarify

strategicrolesandresponsibilitiesforHRBPsbyusingexamplesencounteredintheirday-to-daywork,includingperformancemanagement,

traininganddevelopment,employeerelations,talentacquisitionandotherrelevantfields.

Whyit’simportant

ByunderstandingwhichHRBPactivitiesconstitute

strategicwork,HRleaderscandrivestrategic

impactbyhavingsomeoftheirHRBPsdevote

theirtimetomorestrategicendeavors.This

exercisewillhelpHRleadersandtheirHRBPsstayfocusedonwhat’smostimportanttodriving

strategicimpactandspecializingaccordingly.

AssessHRBPskills,abilitiesand

interests

Conductsurveys,analyzecentralHRdataandhavecandidcareerconversationswithyour

currentpoolofHRBPsandHRgeneraliststodiagnosetheirskills,abilitiesandinterests.

ThinkaboutthefuturerolesyourHRBPscanmovetoward—morestrategicormore

operationalroles.

Whyit’simportant

AssessingHRBPskills,abilitiesandinterestsisthefirststeptomovingthemtonewHRroles.ForHRBPstotakeonmorestrategicroles,theyneedtoexpressinterestindoingsoandbeginunderstandingwhattoexpect.

Evolvestrategiccompetencies

AmongyourHRBPswhoarecapableofandwanttobecomemorestrategic,trainthemtodeveloptheirexpertiseindataandanalytics,technologyand

businessacumen.ProvideHRBPswithasingular,easy-to-findsourceofdataandanalytics,andtrainthemtounderstand,interpretandmakedecisionsbasedonthis.

Whyit’simportant

ProvidingtrainingtoHRBPswhoarecapable

andwanttobecomestrategictoupskilland

preparethemformorestrategicHRrolesmakesHRastrongerpartnerwiththebusiness.StrategicHRBPsneedtoeventuallybeentrustedbyHR

leadershiptothinkcriticallyandmakedifficulttalentdecisionsthatdrivetostrategicgoals.

Note:Theabovearesamplerecommendedactions.Forthefulllist,contactyourGartnerrepresentative.

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3

PlaybookforIncreasingHR’sStrategicImpact

SampleActionstoProvideAgileSupportWithNext-GenerationCOEs

Definethevaluepropositionfor

next-generationCOEs

Next-generationCOEsreflectanevolutioninhowHRdeliverseffectiveandefficientsubjectmatterexpertise.ConsiderhowyourCOEscancontinuetoprovidedeepHRexpertisewhileoperating

withmoreflexibility;thismaymeanflexingmorecontracted,externalworkandshrinkingthe

numberofdedicatedCOEstaff,aswellasinstillingnewforecastingmodelstohelpCOEresourcingbemoredynamicandwell-timed.

Whyit’simportant

Definingaclearvaluepropositionfornext-

generationCOEshelpsdemonstratehowHR

canaddressthesetwochallengesandpromotestakeholderbuy-in.ByscalingdownCOEsandmakingthemmoredynamicagainstuneven

demand,aswellascreatinggreaterrole

delineationandclarity,COEscanoperate

moreefficientlyandeffectively.

ReevaluateCOEactivitiesbasedon

end-uservalue

Applyacustomer-centriclenstoidentifyhigh-valueandlow-valueCOEtasks.Askendusers,“Whatismostimportanttoyou?”andassess

activitiesagainstthesevaluations.IfCOEtimespendisgreaterthanthevaluetocustomers,considereliminatingorautomatingthetask.

Whyit’simportant

UnderstandingCOEvalueandeffectivenesscanhelpinformareastooptimize,outsource,automateoreliminate.UsethisasabaselinetoinformyourCOEtransformation.

UpdateCOEstaffingtodriveefficiencyandimpact

TomakeCOEteamsleanerandmoreflexible,

reduceyourCOEstaffing.Someteammembers

canberedeployedtotheHRproblem-solverpool,orotherareaswithinorevenoutsideofHR.

EncouragetheheadofeachCOEtofindexternalsourcesofexpertisewherepossible,suchas

contractors,consultantsandotherexperts.

EvaluatecurrentCOEteamstoensuretheyhavetherightbalanceofspecialistskillsandexpertisetobeagile.

Whyit’simportant

Topromoteagilewaysofworking,COEteamsneedtobesourceddifferently;specifically,HRwillneedlessin-houseCOEsupportandmoreproblem

solvers.AsCOEsgrowsmallerandleaner,they

willrelymoreonexternalexpertise.Thisspecialistexpertisecanbeflexedtomeetfluctuating

demandandhelpensureHR’sCOEsareefficient.

Note:Theabovearesamplerecommendedactions.Forthefulllist,contactyourGartnerrepresentative.

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PlaybookforIncreasingHR’sStrategicImpact

SampleActionstoImplementanHRProblem-SolverPool

Definetheteam’sroles,competenciesandsubjectmatterexpertiseneeds

Rolesmayincludeaheadoftheproblem-solver

pool,aprojectmanagementoffice,projectleaders,projectstaff,subjectmatterexpertsandpeople

managers.Staffworkingintheserolescan“double-hat”andcontinuetoworkintheirpreviousrole

concurrently.ProblemsolverscanbesourcedinternallyfromHR,externallywithanHR

backgroundorfromnon-HRbackgrounds.

Whyit’simportant

DefiningrolesandcompetenciesfortheHR

problem-solverpoolhelpsoutlineresponsibilitiesforassemblingprojectteams,aswellasprovides

compellingcareeropportunitiestodrive

engagement.

Developtheteamandestablish

pathwaysforskilldevelopment

BuildyourHRproblem-solverpoolfromboth

internalorexternalsourcesandfocusonadding

consultativeskillssuchasprojectmanagement,

teamworkandcommunication.Establishskills

developmentpathways,suchasaskillsinventory,tocultivateHRstaffskillsandfurthertheircareers.Keeptrackofemployeeskills,developmentareasandprojects.

Whyit’simportant

Sourcingmoregeneralconsultingorproject

managementskillstoyourHRproblem-solver

pool,asopposedtomoreHR-centricskills,mayseemcounterintuitivebutwillultimatelyleadtomorecriticalthinkersandcollaborativeteam

members,whocanlearnmoreaboutHRonthejob.TheycancomplementateamofHRsubjectmatterexpertsandprovidediverseviewpoints.

Createaprojectcharterandprojectprioritizationmethod

AnHRproblem-solverpoolhelpsdynamically

deployHRstafftovariousprojects.Beforecreatingthisgroup,considertheobjectives,parametersandstaffingneededfortheteam.

Whyit’simportant

TheseconsiderationswillhelpHRleadersplantheirHRproblem-solverpoolandprovidea

foundationforittogrowinthefuture.

Note:Theabovearesamplerecommendedactions.Forthefulllist,contactyourGartnerrepresentative.

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PlaybookforIncreasingHR’sStrategicImpact

HowGartnerIsHelpingHRLeadersAdaptandStayAhead

ThedecisionsHRleadersmaketodaycanimpacttheircompanybrandforthenextfiveyears.It’scriticaltohave

trustedsupport.Withourinsights,actionabletoolsandadvisory,wehelpHRleadersadapttheirstrategiesacross

avarietyofmission-criticalprioritiestosetuptheirorganizationforsuccess.

Livewebinars

andonline

learningevents

Casestudiesandbest

practices

Diagnosticsandbenchmarks

个A

Peer

connections

Guidesandtoolkits

Documentreviews

In-personevents

Expertinquiry

Expertresearch

ExampleofHRstrategyinitiativesupportasaGartnerclient:

Diagnosecurrentstate

•EvaluatetheeffectivenessofyourHR

functiontoprioritizeareasofdevelopmentusingtheHRScorediagnostic.

•Benchmarkyourorganization’sHR

investmentsinHRstaffingcost,

compensationandmoreusingthe

HRBudget&EfficiencyBenchmarks.

•Benchmark85keyHRmetricsontopics,suchasHRexpense,staffing,structure,

activities,workforcemeasures,functionalcostandcompensation.

Developyourplan

•DevelopanHRstrategyalignedtoyourorganization’soverallstrategyandgoals,with5StepstoBuildinganHRStrategy.

•Identifygapsbetweentheorganization’sbusinessobjectivesandHR’scurrent

capabilitiesusingtheGapAnalysisMatrixandInvestmentGuidanceTool.

•BuildaclearsummaryofyourHRstrategywiththecustomizable“HRStrategyonaPage”Template.

Executeanddrivechange

•Understandhowtomovebeyondthethree-pillaroperatingmodel,withTheHROperatingModeloftheFuture.

•IdentifyandcommunicateyourHRstrategytokeystakeholderswiththeStakeholder

CommunicationPlanningTemplate.

•DesignadashboardtosupportdecisionmakingbyreviewingandmodelingexamplesfromotherclientsintheHRDashboardLibrary.

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Research

TheEvolvingHRBPRoleintheHROperatingModeloftheFuture

CreateamoreefficientandflexibleHRfunction.

DownloadResearch

Actionable,

objectiveinsight

Exploretheseadditional

complimentaryresources

andtoolsforHRleaders:

Research

TheHROperatingModeloftheFuture

RethinkHR’sstructuretobemoreagile.

DownloadResearch

Alreadyaclient?

Getaccesstoevenmoreresourcesinyourclientportal.

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