Saturday, April 20, 2013

BPM Talent Touch: How to Create Strategic Value in HR with BPM

HR function usually works behind the scenes, often seen as cost centers only, as they usually are facilitators, not owners, and they also over focus on record-keeping, transactions and life-cycle processes, how should HR function use an empirical approach, creating strategic value in HR with BPM, to deliver a unique and differentiated people management strategy that is closely aligned with the company’s strategy?

1.  Ensuring HR Processes Bring Actual Value to the Overall Business 

If HR wants to be a strategic partner, BPM is a great way to free their time from transactional processing and add value to the enterprise.
  • First of all, HR 2.0 need well define both strategic goal & process and tactical tasks, perhaps HR 1.0 over focuses on administrative side of talent management, from BPM perspective, besides bottom up approach (automate logistic process), more critically, how to perceive people 2.0 from top down, to well align talent with corporate strategy. 
  • The importance of HR to define its customers, understand their needs, and then to create processes that contribute to its customers' success -- many of HR processes were created to meet its own needs vs. those of its customers’ needs. HR strategic bases and measurement control should focus on the interrelationships between processes and alignment with strategic objectives. 
  • Digitization has a direct impact on the way companies manage talent and their performance. Performance management systems and HR processes are gradually moving away from a static, unidirectional, and time-bound avatar to a more dynamic, continuous, and interactive state. with improved transparency, goal tracking, real-time feedback, which result in the adoption of digital and social recruiting, performance management systems.  

2. HR Involvement in Company Image & Branding 

Another interesting point is company image/branding and HR involvement. Having a hiring process that is clear for everyone (managers, recruiters AND candidates) is very important as well. Having a BPM tool is very helpful and enables the process to be much smoother!

  • Optimize Candidate Experience:  HR has a great role to play, being the first contact a potential future employee has with the company. This is what being call candidate experience.  This greatly improves the image of the company and those people will speak positively about it to others, no matter weather they work for you or not. 
  • Streamline HR with BPM to Sharpen Business Image: It is the end to end process and how each process interrelates to each other that is the key to strengthen talent link. Focused on delivering streamlined best practices to HR departments through the use of a very powerful BPM system. Most HR departments - even at very large employers - have ill thought out, poorly defined, and seldom followed processes. This lack of definition leads to risks and a host of other problems. In addition - because process knowledge lies inside some HR staffers head - makes it very difficult and time consuming to get new HR staff up to speed. You can also see this fact in action with the number of expensive training sessions required to keep HR staff up to date when BPM could alleviate most of this training by providing universal BPM workflows to guide HR staff through complicated processes 
  • Soft Aspect (Image, brand, Reputation) Matching: HR need well blend hard practice with soft aspect, a powerful BPM will smoothen the effort. It is important to detect if the candidate is consistent with the values ​​of the company, usually expressed in the business model. It is important to detect whether the applicant meets the company in what being call soft aspects (image, brand, reputation). 

3. Strategic Base HR Metrics

Giving best practices to HR professional to define their metrics will help them breaking the subjective vision people usually have on them. It's about giving an answer to the common "What is HR doing?” 

  • HR strategic value and metrics:  Well define a set of metrics to answer questions such as:  "How to Get the HR you Need" – How’s on-boarding and recruitment processes? What about the process of annual reviews/evaluations? Is there strategic value to be found in automating/improving performance reviews? What metrics can be used to show ROI & strategic value of improved HR processes? Which processes bring the most strategic value, and what metrics will show it? 
  • Quality+Speed: This is a good metric for HR -- how did you do with Both Quality and Speed? This becomes HR's value-added to the business. It is a metric commonly used for HR which is called Time to hire. However, one must be careful to not put too much emphasis on how long it takes to recruit someone and focus on the quality of the hire. Sometimes, this one becomes challenging. The impact to the company when a position remains open can be staggering -- lost time to market, sales territory coverage, etc. Managers may become pressed to fill positions as quickly as possible, so it's doubly important for HR to establish a wide network of targeted resources with BPM to ensure a stream of top talent available to the company. 
  • Additionally, HR need to measure process performance and quality results and customer satisfaction (internal or external). Traditionally, measures are oriented in time, quality, quantity, cost. For example: indicators such as turnover, time processes, process duration, evaluating results, etc. That's fine, but it is not strategic view; for HR, the measurements should seek to measure the gaps between the competencies required and actual occupants, including the work environment and workers perceive their development within the organization and communication between the parties and finally the HR contributes directly to the image and reputation of the company (this being most important is related to socially responsible companies today). 
Therefore, HR must develop a deep understanding of the business, and the measures it proposes must be tied to business outcomes: the impact on customer service, the reduction in costs, the support of a specific new growth area, the increase in staff loyalty, the incentive and rewarding system to inspire innovation and so on, the metrics that define success in HR today will fundamentally change in near future.


Nice post with great details. I really appreciate you for sharing this nice info with us through this blog. Human capital research

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