Tuesday, February 24, 2015

Digital Master Tuning XXXXVI: How to Build A Digital HR

 People are the most critical thing that differentiates one organization from another.
The main function of HR does not change, to manage the most invaluable asset in their organization -People. HR mandate has been and still seems to be to staff the company's positions with the best available talent in the best possible conditions of costs and delays, and to make sure it manages attrition at a rate that is consistent with the company's HR fundamentals. Although many HRs have a very good understanding of technology and how it can impact their operations, most of them are at their tipping point for radical digital transformation. What’s the focal point and which challenge they have to overcome for transforming their organizations as a Digital Master?

The strong digital leadership is a catalyzer for digital transformation. Even if we assume that HR could definitely transform itself if its mastery of technology and how it affects both individual ways of working and organization was deeper, it would have to have an executive mandate to do that. And this is the mandate that should challenge and enrich in the coming years as the impact of technology on the nature and the volume of employment unfolds. Technology gives HR professionals the possibility to go back and work on issues such as human capital (the ownership of a company), executive talent impact ratios, leadership vs communityship …

The HR folks need to live in the real business world with serious analytical abilities that support decision making. The problem is that many HR folks are still living in the industrial age with silo mindset, and in their comfort zone, not even realizing that they are no match for their management colleagues who all come to meetings with state of the art systems supporting their decisions. But it's not just HR. Technology adoption by varying functions in organizations across all sectors is still not speedy enough to adapt to the changes. Digital HR shall strive to have clear understanding of what the organization needs in terms of people outcomes; both in terms of filling positions (recruiting/talent acquisition) and in terms of employee results (talent management). Once you understand those things beyond just surface, you can go "mine" for the data, to analyze the talent pipeline or predict the talent trend, and measure it in a meaningful way to the business. For example, the employee engagement and how to unleash talent potential is where HR could really collect and apply data for gaining insight and even prescribe the certain level of talent solution.   

Technology is only a tool, not a goal in itself: HR leaders need to be clear on why you need digial technology (social, analytics, etc) and, more than anything else, what for? if this is to better know the employees, their talents, their gaps that need to be overcome, their career aspirations..., great; if not, it is just another overload of data that will be completely useless, because you always need human intelligence to de-crypt and analyze your data in order to make it a real management tool. Graphs, charts or any other general analysis only will not make HR a strategic partner, unless a transformation of data into information and then its interpretation in a specific context (the business insight) is being done. Still, if you have this sexy new technology and you don't know how to analyze the data to understand what is causing the variations in the data, then you just have stacks of graphs and charts that won't tell a cohesive story. So HR people must understand the businesses you support to the depth of what product/service is provided, to what customer, and how that product/service is used or benefits that customer. When you get to the level to be able to talk about these business imperatives in a knowledgeable and comfortable level, then you will know exactly what data/technology you will need to have to support and measure the business results.

The customized tool and tailored system helps shape digital HR. One of the major issues is your willingness to let the design and application of the technology drive what you use it for. So HR must have the clear vision, the thorough understanding of the data/metrics to collect, and the willingness to work closely with IT in their attempt to find the right software/systems - one that drives collaboration, not isolation. It will improve efficiency, effectiveness and even agility by creating a conversation-driven, employee-owned performance and talent management system.

People are still the most invaluable asset of business, which need to be managed effectively; and the second valuable asset of business -Data needs to be well managed as well in order to unleash talent potential and improve business productivity. Hence, HR has to work closely with IT and other departments for upgrading the tailored technology system and solutions, laser focus on the ultimate business goals, treat their talent people not just as a cost or resource; but as asset and capital to invest in, in order to run a digital HR, a smart HR and a highly mature HR.  

Digitalization is like a flywheel, and Digital Masters are the one riding above it. Surf more Information about Digital Master:

Digital Master Kindle Version Book Order URL


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