Author: Rob Scott

Passionate about People and Technology - how the two co-create value

9 Exciting Trends and Opportunities in HR for 2019

Grateful to  Orlando Imperatore : Flickr 2018

Toss away the crystal ball!  Of course there is no rational way to ‘predict’ what will be important for HR leaders and business execs in 2019. In almost every case, each organisation is on a unique journey of people transformation, technical empowerment, culture mind-shift or simple operational improvements.

So my list is a collection of stuff which I’ve happened to engaged HR and other leaders about in the last 12 months and which was being considered for future plans. Perhaps only 1 is of interest to you, maybe all 9 – It doesn’t really matter. 

Here we go! and in no particular order

  1. PA – Personal Analytics 
    • HR Analytics has become an important tool for supporting organisational decision making around people. But it tends to support the employer more than the employee. As we see Employee Engagement, Happiness and changes in the Workforce and Workplace take center stage, there is a gaping hole around providing individuals with Personal Analytics in order for them to make better personal and business related decision within a continually fast-paced and constantly changing work environment.
  2. Trust
    • As we see new technologies such as Chat-bots, Robotic Process Automation, Machine learning Algorithms, Personal data-sharing and Tracking cozying up next to  human workers, the trust relationship which underpins so many things in our organisations is being diluted. The need is not just about building trust in technologies which are performing ‘human-like’ tasks or gathering our data, but effectively managing the implications for functions such as HR who have custodianship over some of these new-age tools. 
  3. Non-Exec Talent Coach 
    • Executive coaching is a mature offering, but as the nature of work and the variety of relationships between an organisation and a worker develop  ( I don’t want to say employee, because many are not technically that), the need for Independent Development Coaches at  lower levels, and which is not funded by the employer is being sought. Some of this demand exists because younger talented individuals do not want to mirror the behavior of current leaders (Think about many current Bank Leaders…. not a good model to follow), but want to become the best version of themselves without company influence.
  4. Beyond Engagement
    •  I’ve never been a fan of culture or engagement surveys – statistically they are full of errors and often based on pop-psychology. However listening with ‘Data Ears’ is becoming more relevant. In other words understand the mood of the company, or Engagement levels (Customer or Employee) or Happiness levels by analyzing the data trail left by employees, customers, your supply chain seems far more reliable and less prone to typical survey inaccuracies. 
  5. Personal Data Repository
    • One of my favorites. I’ve been engaging on this topic for a number of years. But with the changing workforce landscape, the growing contingent and gig enthronements, workers want the ability to store their own work history (think mini HR system), including Learning records, Pay and Benefit data, Performance scores, basic biographics, Job and Position history. They want control over their own data, and the ability to share it and withdraw it easily with an employer. This is not your typical Linkedin profile BTW. Big opportunity for HR Software vendors.
  6. Communication
    • Not necessarily new, but becoming an area of focus again as organisations get lost if their digital and technology transformation activities. Humans are irrational, make mistakes and are not perfect. Technology, with all its benefits, has the ability to create sterile and perfect environments, which are not conducive to human productivity or happiness. Making sure we don’t capitulate our responsibility to communicate to machines/technology is important. 
  7. The Science of HR 
    •  HR is actually a lot more complex that most people realize. Often the individual HR activities are not complex (some can be though), but ensuring there is alignment across a multitude of interrelated HR activities is where the real complexity lies, and where things often go wrong. Underpinning all HR decisions is the level of HR Maturity. When HR activities are not executed based on the Maturity level, you typically get Executive despondency towards HR or frustrated HR leadership. 
  8. Instant answers to HR Tech
    • The fast-paced and continuously changing work environments are demanding HR and IT leaders make quick, but informed HR Technology buying decisions. Gone of the days that it takes 4-8 months to do a traditional RFP, only to discover the new SaaS tools you were considering have significantly changed. There are some great services, analysts and tools available to speed up these decisions.
  9. HR Operating Model Change 
    • Many organisations are realizing the traditional Dave Ulrich HR operating model needs some adaptation. Not a radical change (as it is mostly still working), but a focus change to ensure the operating model can support ‘speed and agility’ needs of modern organisations. Changes include the ‘Business Partner’ reaching into the customer and supply chain world, the ‘Centre of Excellence’ (CoE) becoming a Networking Management Function and the ‘Shared Service Centre’ transforming into a Digital Data Centre.

That’s it!. And why not 10 I hear you ask, no reason, I only had 9 to share. Whats the point of making stuff up 🙂  

In Search of Imperfection

written for InsideHR

People leaders need to get the balance between technology, environments and human irrationality right in an increasingly digital world, writes Rob Scott, who explains that there are a number of considerations in optimising employee performance in the process

I recently attended a presentation by Alexander Kjerulf, the Chief Happiness Officer at Danish company Woohoo Inc. He makes the point that we very often, but incorrectly assume employees are happy at work when they have job satisfaction. According to Kjerulf, job satisfaction is what we “think” about our jobs, while happiness is what we “feel” about our jobs and work environment.

The employee performance conundrum
This was timely as I have been engaging with several leading-edge clients who are struggling to find appropriate ways of improving their employee performance and engagement levels. These companies have all the great benefits and perks such as free food, zone-out pods, wellness programs and gym membership which attract talent, they have tier-1 HR technology and collaboration tools, use and explore automation, robotics and AI to augment employee capability and remove humans from work which is done better by machines. Wow, everyone should be happy, satisfied and engaged. But they’re not.

Josh Bersin, a leading global HR technology analyst cites challenges with engagement, productivity and employee experience as one of four forces disrupting organisations today. In his presentation A Wild New World of HR Technology, he alludes to the lack of employee performance and productivity improvement, overwhelmed employees and marginal improvements in employee engagement despite all the great technology we continually introduce into our lives and workplaces.

“Wow, everyone should be happy, satisfied and engaged. But they’re not”

Why leaders need to empower people to improve employee performance
For several years, I’ve been driving the point that effective digital work environments are not about throwing more technology at people and problems. Unless you empower people to do more with the technology in a modified human behavioural way, you are likely to create the challenges Josh Bersin highlights.

Furthermore, as people leaders, it’s important that we figuratively step back to see the broader technical environments we are busy creating – not just from a software and apps perspective, but inclusive of the steel, concrete, glass, noise, space and technical gadgetry we combine to form our “happy” work environments.

Often these environments are created to serve rationality and optimisation but can unintentionally become “technology concentration camps” – an environment which is perfectly rational, but dreadfully unliveable.

In my view, we have become singularly focused on building environments and supporting processes using modern and emerging technical assets in order to attract, retain, engage and develop people. But we have overlooked the potential mismatch between these creations and the fact that people are not perfectly rational and don’t operate well in sterile, passionless environments.

Don’t misunderstand me, I’m a technology fan – it underpins our human desire to constantly progress and improve. However, we should realise as human beings, we are at our happiest when we can be irrational, make mistakes, share emotions, be spontaneous, indulge in passions, seek out the mysterious and have faith.

Allowing employees to be human
It was the French writer Ellul who said “The eighteenth and nineteenth centuries made an enormous error in misunderstanding this aspect of human nature and presumed to exorcise all that was not rational.”

“As human beings, we are at our happiest when we can be irrational, make mistakes, share emotions, be spontaneous, indulge in passions, seek out the mysterious and have faith”

As we evolve our digital work environments, shifting tasks to robotics and AI away from human jobs which we are not good at, are less accurate at, or are slow to do in comparison to technology, we will be left with a ‘perfectly optimised’ human worker, but perhaps not a happy or engaged one. The ‘perfect’ technology environment may be producing the opposite effects of employee performance, happiness, engagement and productivity.

Our challenge as people leaders is to get the balance between technology, our environments and human irrationality right – building the perfect ‘imperfect’ environment is the goal. Those that succeed will be the attractive organisations of the future, sought out by talented people.

3 key insights: employee performance in the digital world

  • Our digital work environments are increasingly becoming optimised and rational, driven by technology. But when we put humans, who are not perfectly rational, into these environments, we are impacting engagement and happiness.
  • We have an abundance of technology in our personal and work lives, yet evidence suggests that employee performance, human productivity and engagement has only marginally improved.
  • Our desire to remain competitive organisations has necessitated leveraging modern technologies and shifting human tasks to machines and AI. Organisations who understand how to optimise, but at the same time not dehumanise will be the successful companies of the future.

Time to turn the Ulrich Model into a Digital Delivery Model

Written by Rob Scott for Inside HR

The Ulrich model of HR delivery has been the cornerstone framework of HR for the past 20 years, but in light of the newly emerging digital world, modern HR must adapt to become agile and remain effective, says Rob Scott

There is no denying that all of us are on a digital transformation journey. Our work environments and operating models are feeling the strain of being caught between more traditional business operating models and the newer, agile demands of techno-digital environments. Deciding whether to toss out the old approach or focus on a more evolutionary adaptation of your existing ways can be a daunting decision to make for HR leaders.

The Ulrich model of HR delivery, developed by Professor David Ulrich 20 years ago, has been a solid guiding framework in full or part for most HR functions globally. And even though the model has been contested over the years, the building blocks of the model; HR Shared Service Centres (SSC) for administration, Centres of Excellence (CoE’s) for content expertise and the HR Business Partner (HRBP) for business alignment, have worked – so why change something that ‘ain’t broke’?

The underlying design principle of the Ulrich model has been about effective and streamlined connectivity between the elements of HR and business operations and strategy. It was built on assumptions that were pre-digital age. But the digital work environment has introduced new technologies such as Robotic Process Automation, Cognitive computing, Artificial Intelligence (AI), new thinking styles such as Design Thinking, Evidence-based decisions supported by deep-dive Data Analytics as well as a deluge of demographic, ethics and loyalty impacts. As HR professionals, the worse thing we can do is bury our heads in the sand and fall prey to the Normalcy Bias, believing things will always function the way things normally function. We need to consider how a digital environment is changing the way the workforce is empowered, interacts and connects.

“The Ulrich model as a framework is still a relevant HR operating model, but the transition from the old roles to the new ones is an important adjustment required to support digital work environments”

In a Digital world, HR must respond and adapt quickly to changes which impact your business, whether that be through external competitiveness or internal innovation. This will require the roles of the HRBP, SSC and CoE to transform into ‘early warning’ detectors and predictors which can seamlessly morph into problem-solving guru’s and inform the creation of relevant and unique HR solutions. How should these roles change?

HR Business Partner » Alignment Agent

Modern HR technology, digital and automation tools fully empower line managers to be effective in hiring, managing and developing their staff. It’s time to get beyond playing the quasi-admin role for line managers. The Alignment Agent is externally focussed around your organisation’s supply chain and customers, ensuring HR solutions are adding customer-focussed value in line with business strategies and advising line managers and executives on required changes. The new Alignment Agent is seeking out business issues from a people perspective and doing problem-solving with data analytics.

Shared Service Centre » Analytics Engine Room   

As Automation and Robotic Processing takes over administrative tasks and AI replaces more complex HR admin tasks, the admin centre becomes obsolete but is reborn as an Analytics Engine Room that supports business problem solving and provides predictive capability to business leaders. Their outcomes inform future HR solutions. The future SSC employee is a data scientist or analyst. The engine room is not HR centric only, but can be part of a broader analytics entity or could be an outsourced service.

Centre of Excellence » HR Solution Provider

The new CoE will still require deep-skilled and experienced HR practitioners who will remain the thought leaders for appropriate people practices. They will be responsible for developing and deploying solutions which are identified by the new Alignment Agent and use data-driven outcomes from the Analytics Engine Room to validate their solutions. Solutions are not always standardised and can be focussed on providing the best solution for a part of the business.

The Ulrich model as a framework is still a relevant HR operating model, but the transition from the old roles to the new ones is an important adjustment required to support digital work environments.  It requires forward thinking executives and HR leaders to recognize the different demands of a future workforce and workplace, and an acknowledgement that technology, applied in the right way, is empowering employees and workplaces to be super-agile, and achieve significantly more. HR must change.

Some takeaway messages

  • The classic Ulrich model of HR has been the cornerstone of HR delivery for most organisations. It’s a good model, but it needs to be aligned to the emerging digital work environment
  • Much of what HR Business Partners and HR Shared Services Centres do is administrative in nature. The available HR software, automation and AI tools now available will completely change how these mundane activities are done. The Ulrich-defined roles must adapt
  • The old HR Business Partner role needs to drop the line manager ‘hand-holding’ style of management – Modern HR tools make line managers completely self-sufficient
  • Shared Services as we know it will disappear as administrative tasks are automated or managed by AI. A major skill refocus is needed to change these entities into Analytic Engine Rooms

Saba buys Halogen

News out today (23 Feb)  that Saba Software will acquire Halogen Software for $293 million. So what will the new “SAB-o-GEN” baby look like? What are the Common genes, the Unique genes, and who has the Dominant ones. If you are a current client should you be prepared for ‘baby sitting’ while the infant grows up? Time will tell.

sabogen

HR heading for divorce battle over custody of Performance Management

divorceOriginally published by Inside HR 

The opportunity is ripe for HR to broaden its performance management definition and join forces with other performance management system owners within their organisations to establish a complete workforce performance framework, writes Rob Scott

A few years ago, HR functions would have been acknowledged as the custodian and owners of performance management together with the supporting technology. And if you went searching for a new performance management solution, you would struggle to find anything outside the HR technology vendor community.

But many would argue that traditional performance management has been less than successful in improving employee performance and business value over the last 50 years, and at most it was an annual or bi-annual exercise in HR process compliance by line managers and their subordinates. This naturally gave rise to alternate performance management solutions outside the HR framework.

Another trigger for change has been the move to the digital era. Modern technology has allowed the workforce to be increasingly mobile to the extent that jobs and location can be decoupled. The structure and nature of the workplace and workforce are radically transforming while the definition of an employee is largely irrelevant as more and more forms of “peripheral” work engagements are used. Contingent workers, “giggers”, freelancers, autonomous self-directed teams, agency workers, and outsourced/insourced teams are now part of the workforce fabric.

“Performance management can no longer be done in a standardised way, rather it must cater for the specific type of engagement relationship”

Generally the HR function hasn’t included these peripheral workers on their performance management radar, mainly because they are not permanent employees, are not linked to career or succession plans, are often not hired onto the core HR system, the performance process doesn’t cater for short-term activity or teams, or HR has no control or authority over their appointment. Most HR technology vendors have focussed their recent performance management software updates around the shift from rigid annual reviews of goals and objectives to tools that facilitate ongoing communication, coaching and mentoring of permanent employees. What they haven’t done is deal with effective measurement of and feedback to peripheral workers.

But away from HR’s eye’s other software systems, typically owned by operations, finance, marketing or procurement, tools such as Workforce Management (WFM), Contingent Workforce Management (CWM), accounts payable, freelance platforms, industry talent pools, social engagement platforms, social media platforms and others are actively geared to track performance against goals, assess quality, track activity through Internet of Things connectivity, provide team, company or individual feedback, and inform “re-hire” decisions.

Over the next five years, the size of the peripheral workforce will continue its upward trajectory. Analysts generally expect this number to be as high as 40 per cent of the total workforce by 2020. Even today, most new jobs created in Australia are part-time. Irrespective of the employment type, managers still need to focus and align their workforce to achieve their organisational and business specific objectives in the most efficient way.

“Continuity, engagement, feedback, opportunity and development are the collective cornerstone of an employer value proposition”

Performance management can no longer be done in a standardised way, rather it must cater for the specific type of engagement relationship. Some employees will still require traditional cascading-goal performance management, others may need social goal-setting and peer review, while others simply need a star rating and re-hire indicator.

Performance management now has co-ownership. The opportunity is ripe for HR to broaden its performance management definition and join forces with other performance management system owners within their organisations to establish a complete workforce performance framework. Continuity, engagement, feedback, opportunity and development are the collective cornerstone of an employer value proposition – it will be hard to achieve or maintain this if close to half the workforce is not included in a performance framework.

5 key considerations for HR

  • HR departments are no longer the sole custodians of performance management solutions.
  • The shift towards the digital economy has given rise to a new type of workforce which is not bound by time, location or permanency. Their performance management needs are significantly different to permanent full-time employees.
  • Modern operations management, procurement, financial and marketing software solutions cater for relevant forms of performance management and feedback.
  • Organisations need a workforce performance framework which is underpinned by choice and appropriateness rather than a single standardised approach to management of performance.
  • As the contingent labour force increases as a percentage of total workforce, greater urgency is needed to build strong relationships with these teams and individuals through new performance management approaches and tools.

Why the CFO said HR was easy to learn

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Photo credit: Wei Xuan Seow – flickr

I recently co-facilitated a discussion forum between a group of CFO’s and CHRO’s on the importance of their relationship in building business value. During a question on what skills each other should build to understand the other role, an attending CFO said “It would be easy for a CFO to learn HR, but not the reverse”.

There was stunned silence from the room as the heat rose from the attending CHRO’s – they weren’t sure if they had just been told they were less capable, less intelligent or simply would never be considered an “equal” to the power and status of a CFO.

Was the CFO correct?

From the perspective of: CFO right or wrong?
Education and qualifications: Both roles are considered specialist functions which have underlying professional adherence. The CFO learns to comply, manage and manipulate a set of globally defined rules to legally reflect the financial value of their organization. The CHRO complies with medical ethical standards related to psychology and social science practices. Both qualifications are professionally recognized and offer advanced degrees to support this. WRONG
Complexity of the role. At the basic level, CFO’s take their guidance from GAAP and legislation in terms of how they execute the outcomes of their role. They are generally instrumental in guiding the organization in terms of maximising financial value, reducing and effectively managing cost, effective use of capital, maintaining investment community confidence through accurate reporting, analysing financial risk and proposing corrective actions. The CHRO has different complexities to deal with as “people” and society are well, people. Rules for people are less defined or prescriptive. CHRO’s who don’t operate as administrators can juggle 40+ different interrelated elements across people, process, organization, legislation, technology and governance to create business value through people. WRONG
Perception: The CFO is typically regarded as highly important, particularly for listed companies – mainly because their outputs reflect the success of the CEO and other executives, and the consequences of anything untoward in financial outputs could result in serious organizational and personal ramifications. In many organizations, HR is often perceived as an Administrative function with little clout at the C-Level. This is often true when HR has low levels of Maturity and spend most of their time executing operational transactions. In most cases this would be easy to learn. RIGHT

 

So the CFO was both right and wrong, but we should be cautious to blame the CFO for his views. We can assume that in this case, the HR leaders the CFO has interacted with have probably been of a lower maturity level, more administratively focused and had executive leadership who have yet to realize the importance and value of Human Capital  from a shareholder perspective.

For a CHRO or CFO to really learn each others jobs would not be easy. Yes, you could easily learn the stuff like administration and basic accounting, but the underlying knowledge is far more complex than meets the eye.

How does your CFO view HR?