In this month’s Jeitocast Karen Beaman interviews Mike Kent on change management, why it’s important, and why people should care about managing change. Mike talks about the key components of a change management program, who should be involved in the change management process, and who should manage the overall effort.
Thank you to those of you who commented on my previous post on this topic. Continuing this theme with one last look back to some of the lasting impacts of the 2008-2009 recession on the HR function, I offer three additional perspectives:
With the reduction in funds for new capital investments, organizations started looking closer at what they already had in place and how they could improve on it. While the vast majority of companies have systems in place for core HR, Benefits, and Payroll, most started looking at what additional processes could be automated or self-service-enabled in order to gain efficiencies and effectiveness, but mostly to reduce costs. Moving from transaction-oriented, organizations today are becoming process-oriented, meaning they are taking a holistic view of business activity and integrating processes across functions, such as pay-for-performance, development and succession planning, and staffing and workforce planning. While we still have ways to go, there is a definite movement toward process-oriented HR.
Talent Management has been the fastest growing area in the HR space for the last several years. Organizations are finally executing on what they have long maintained, that people are the most important asset. Gartner’s Jim Holincheck at IHRIM’s Global Forum in Chicago this past year reported that Talent Management grew ~7% through Q2 of 2009 while core HRMS revenues grew just ~4.5%. Clearly the HRMS market has matured while talent management is still in its infancy, but there is a definitive movement toward a more talent-focused HR approach and there will be no turning back. With a talent-focused approach, HR moves another step closer to becoming that elusive HR business partner.
The successful HR professional today, post-recession, is a hybrid developed out of varied experiences who realizes the need to be business-centric, metrics-minded, systems-savvy. While many HR professionals may be stuck in an administrative quagmire, unable to focus on more strategic issues due to a lack of tools and strategies to eliminate and automate much of the administrative backbone of HR, there are few who don’t realize the importance of business knowledge and financial acumen to be a successful strategic partner to the business. Business-centric means understanding the role that HR strategies and services play in driving business growth — sales, revenues, and profits.
Other ideas? What do you think has changed forever for HR as a result of the last two tumultuous years? I’d love to hear from you!
The end of the year is a time to look back and reflect on what we accomplished (or didn’t!) and look forward to what will be different (we hope!) in the new year. So here are three things that I think have changed for HR and HR systems during this rough, recessionary year — the worse economic year for business since the Great Depression. And I think these are lasting changes. While the recession will abate and the economy will slowly recover, I think these are some fundamental things that have changed for HR forever.
Unemployment reached its highest level in 26 years (November 6, 2009 New York Times). And while it’s not front page news anymore, organizations are still continuing to “rationalize and rightsize.” I think HR as a function was particularly hard-hit. Our continuing inability to justify the HR function as a value-added business partner has caught up with us. There seem to be as many VPs and Directors of HR out of work as there are real estate agents without houses to sell. Yet being lean is a good thing. It teaches us to work smarter and be more efficient and effective in everything we do.
This difficult economic year has taken its toll on the people left behind in the organization. Called the “survivor syndrome“, the people left behind have a whole new set of challenges they have to deal with. In most cases, they have to pick up additional responsibilities because the work doesn’t simply doesn’t go away when people leave. In other cases, they may have lost a close friend or ally at work. As a result, I think organizations have gotten meaner. At a recent HR Breakfast Club meeting participants said that their companies no longer feel any obligation to provide training or development opportunities for their employees. The feeling was that the employees should just be happy they have a job at all! Being mean is NOT a good thing. Environments where everyone looks out for their own self create anarchy and breed situations such as Enron. While it is definitely a cold hard world out there, as the economy rebounds and as companies must again compete for top talent, I believe (hope!) that this change will soften. While I believe that people are ultimately responsible for driving their own careers, organizations have a responsibility to support and develop their workforce to help individuals achieve their greatest potential — which study after study has shown, contributes to company performance — that means growth and profitability.
The sustainability movement accelerated considerably in the last decade as people are now realizing that the earth doesn’t have an endless supply of raw materials and as organizations are now learning about the savings that can be accomplished through more effective re-use of materials (e.g., recycling paper and printer cartridges). process automation (e.g., eliminating paper forms), and implementation of self-service strategies (e.g., eliminating duplicate paper forms with multiple signatures/approvals). The annual CedarCrestone Technology survey has consistently demonstrated that automation and self-service enablement can bring 25-75% savings, depending on the process. Becoming “greener” and providing more direct access through process automation is definitely a good thing!
So what lasting impacts do you think the recession has had or will have on HR, HR systems, and business in general? I look forward to hearing from you!
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