digital

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

CHATBOTS: the next frontier for HR software

14593777368_1edf8855e9_z

PHOTO CREDIT: brahim elmokaouim, FLICKR

You’ll be forgiven for thinking  Chatbots are new  technology, they’ve been around since the 1960’s in fact, but have been given a new lease of life with the recent developments in machine learning and artificial intelligence.

The word itself gives some hints as to what it does. “Chat” implies a form of informal communication and “bot” indicates the presence of robotics. In reality they are small software applications that automate tasks on your behalf over the internet and interact with you in a human-like way. Many of these tasks tend to be basic, repetitive and gimmicky , however we are seeing the emergence of  sophisticated business chatbots that learn and adjust their behaviour and response.

The way you interact with these bots is casual and in natural language.

Most of the major tech houses like Facebook, Google, Microsoft and Apple are actively developing these bots, and you’ve probably used some of them such as Siri (iPhone), or Cortana (Microsoft), Alexa (Amazon Echo) and a host of text based chatbots now found in tools like Skype and Slack. (On a side note let’s hope soon-to-be parents don’t start naming their babies with similar names – can you imagine the chaos in the home and future workplaces).

IMPACTS FOR HR TECHNOLOGY

The HR environment is a perfect breeding ground for chatbots. Many of the transactions and data requests performed by managers and employees are simple. A well-developed chatbot could remove the need to access the HR solution directly, replaced with a simple voice request or a text message or email to carry out the task on behalf of the employee. It could be quicker than logging into the ESS/MSS app and broaden the means of interacting with the HR system. Here are a few examples:

  • VOICE: “Hey Siri, what is my leave balance”
  • VOICE: “Hey Alexa, let my boss know I’m feeling unwell” 
  • VOICE: “Hey Bob, mail me a list of team members due to attend safety training”
  • TEXT: Send my Feb py advice
  • MAIL: Approve John’s training expenses for May

The above are examples of simple requests that would typically interrogate the HR system as if it were the real user. Things like security profiles and data access would be applied to the bot in the same fashion as the human user. In all likelihood these simple request would include logical follow-up questions based on the in-built artificial intelligence:

  • “You have 11.3 days of annual leave. You haven’t had any time off for 7 months, do you want to put in a request?”
  • “I’m sorry to hear you are not well…as it’s a Monday please ensure you obtain a doctors certificate”
  • “I’ve mailed you a list of team members attending safety training. Check in with Peter Smith, his record shows he doesn’t arrive 36% of the time”

RAMCO the Indian based Enterprise Software Vendor is providing their HR clients with e-mail communication to its HR system, citing speed as a primary motivator. They have a number of other tools in their other non-HR modules of similar ilk. Other vendors like ADP are building bots that automate HR tasks such as sending a job to a prospective hire and alerting employees to use up their annual leave.

The other likelihood is that Chatbots will be developed outside of the vendor products. There are a number of specialist platforms such as Kore who provide tools for bot self-development and others who provide existing libraries to commonly used systems.

Chatbots are unlikely to replace the need for slick end-user interfaces in the short term, but they are potential big cost savers from a vendor development perspective as well as for software licencing.

As chatbots become more proficient and operate like real assistants or concierge services, people will want to use them, creating a demand. Hopefully vendors and developers have their ears to the ground.

 

 

5 STEPS TO BOOSTING DIGITAL HR LITERACY & TRANSFORMATION

Upskilling and introducing new competencies into HR will help ensure digital transformation initiatives succeed, writes Rob Scott

Original article published by Inside HR Magazine (Feb 2016)

Given a digital workplace is undeniably the future we are rapidly heading towards, the skills any future employee will need to be effective and remain market-competitive is an important consideration for HR and talent managers. HR functions have had first-hand experience of resistance from executives to hand over strategic accountability, mainly because their business skills and acumen have been lacking.

The HR function is not immune to the disruption of modern technology; in fact, the advent of Cloud and SaaS technologies in the HR space is ahead of many other business functions. It’s an advantage that HR leaders should capitalise on to secure the relevance of the function in a digitally minded work environment.

Being digitally literate for HR is a prerequisite for the next wave of business transformation. So what are the competencies, knowledge areas and behaviours required to ensure HR professionals can deliver optimised future service? I have identified five focus areas, each of which houses a number of different subsets.
Digital HR literacy

1. Computer and platform literacy
This competency area is often mistaken as the equivalent of digital literacy. Rather, this skill set is a predecessor of digital and includes understanding how desktop PCs, laptops, smartphones and tablets work. This includes how these systems are best consumed and how they connect, and managing software applications. For many, these are skills associated with IT specialists. These skills are no longer an IT domain but have become general business skills which form a fundamental base to foster digital innovation and creativity.

2. Data design and ethics
These two components may seem like distant cousins, but how and what data we collect and derive is both a powerful business opportunity as well as one that borders on intrusion, invasion of privacy and manipulation. This skill set involves an understanding of other disciplines such as marketing and finance, as well as how things such as graphics, video, Internet of Things (IoT) feeds and other non-transactional data are integrated and designed to produce evidence-based outcomes.

3. Analytics
Analytic skills are closely aligned with data design and ethics. It’s far more than producing quality outputs, which is increasingly becoming a science in itself, and has a strong emphasis on ensuring the right information is being analysed and interpreted to inform business- and people-related decisions. Just as HR faced rebuke by becoming pseudo psychologists with off-the-shelf psychometric assessments, this skill set is embedded in formal data-science education.

4. Social intelligence
Social tools are ubiquitous and increasingly straddle our private and work lives. Understanding how search, content and social media work together requires technical understanding such as SEO as well as strategic alignment and tactical execution skills. Creating, observing and responding activities are reliant on a creative mindset, communication, writing and PR skills.

5. Innovative mindset
SaaS solutions as well as hardware are continuously being updated and improved, to the extent that new features are being “dropped” by the vendors every few months. Ignoring new features and capabilities for extended time periods is not a good strategy; rather, HR should embrace an agile and continuous improvement approach to its operating model. Skills relevant to support innovation include novel, critical & adaptive thinking, problem solving and design concepts.

Most seasoned HR professionals won’t fall into the “digital native” category, meaning that many of these concepts will be foreign and confronting. However, upskilling and introducing new competencies into the HR function will ensure digital transformation initiatives are executed with insight and purpose.

The scope of digital HR literacy

  • The next wave of business transformation will develop around the creation of a digital work ecosystem.
  • Being digitally literate is not the same as being computer literate. It’s about understanding the creation, consumption, management, manipulation and interpretation of information across multiple platforms to achieve business goals.
  • HR should capitalise on their lead in Cloud and SaaS technology deployments to further develop their digital skill sets and influence.
  • Some digital literacy skills – such as being computer literate – are general competencies; others such as data analysis are specialist skills supported by formal qualifications.
  • Digital skills should be spread across many HR roles, rather than thinking they are inherent in a single individual.