A Roadmap to Strategic Human Capital Management

H C M A N D O R G A N I Z A T I O N A L T R A N S F O R M A T I O N

93%of organizations are transforming business models

or strategies.

2 3change projects fail.

Introduction N E A R LY 9 3 % O F O R G A N I Z AT I O N S

are transforming their business models and

strategies.1 Why? Because diverse forces like

market competition and customer demand

are forcing them to do things a new way.

The problem is that 70% of change initiatives

fail due to cultural resistance2 that undermines

large-scale, lasting change —resulting in

wasted time, money, and resources, along

with diminished morale. This roadmap shares

the steps that human resources (HR) leaders

can take to engage their workforce as active

participants in transformation initiatives.

1 KPMG Transformation Survey, Business Transformation and the Corporate Agenda, 20142 Kotter, Leading Change 1996/The McKinsey Quarterly, The Irrational Side of Change Management, 2009

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Effective change begins with understanding how the organization approaches transformation. More than 50% of companies change by continuously aligning business models with their overall strategy.3 Others embrace change that is more localized or focused on specific business processes and functional areas. Given that talent is a key contributor to the success of any change, it’s essential that HR take a leadership role in devising actionable change plans and following through on their execution.

Experienced HR leaders know that transformation initiatives often fail due to change fatigue. Too many initiatives without prioritization results in mixed signals that leave employees in a wait-and-see mode. To mitigate this risk, HR should engage in a consistent, 360-degree dialogue with everyone impacted by the change. True engagement means communicating openly with employees across all levels of the organization so they know why the business expects them to change and how transformation will affect their roles, career plans, and compensation. Ideally, employees should have a voice in the transformation process, so they become invested in the change and know exactly what they need to do to make it successful.

Collaborative technologies can help build consensus among stakeholders in the change planning process.

Mobile-friendly interactive portals and social collaboration tools can enable real-time employee engagement.

Acknowledge Your Approach to Transformation.

Communicate and Engage—Making the Business Case for Change.

T E C H N O L O G Y C O N S I D E R AT I O N S

T E C H N O L O G Y C O N S I D E R AT I O N S

K E Y Q U E S T I O N S

• How do HR transformation goals align with the organization’s strategic goals?

• How will the organization’s approach to change affect employees?

• What steps does HR need to take to successfully manage the change?

K E Y Q U E S T I O N S

• Who are the key stakeholders in the transformation?

• Does HR have all the input it needs to be management’s partner for success?

• What is the action plan for engaging with employees and having a meaningful dialogue about changes within the organization?

3 KPMG Transformation Survey, Business Transformation and the Corporate Agenda, 2014

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HR can help ensure successful change by playing a central role in synchronizing employees’ change-related workloads. For example, HR can help employees identify the necessary training for new jobs that stem from a change initiative. Careful planning and coordination, including a clear delineation of a beginning, middle, and end for the change, are also essential. Without these markers, employees can become uncertain and anxious about the future. The HR organization itself needs to be at the forefront of change, keeping all team members well-informed and feeling empowered to do their part in accelerating organizational transformation.

Project management software can be a powerful tool to keep individuals and teams in sync.

Prioritize Programs and Establish a Clear Beginning, Middle, and End.

T E C H N O L O G Y C O N S I D E R AT I O N S

K E Y Q U E S T I O N S

• Are there other change initiatives vying for people’s attention? How can you align with those efforts to foster coherence across change programs?

• What is the timeline for the change initiative?

• Have the beginning, end, and transition period been clearly defined and communicated to employees and other stakeholders?

A successful transformation frequently involves moving people into new roles, often with rapid shifts in career paths, training requirements, and compensation. HR systems need to become more agile in response. HR may want to include contractors and other short-term gig economy workers into the mix. These individuals, who are often critical to successful change, are sometimes left out of the process.

HR can leverage new human capital management (HCM) cloud solutions that enable a streamlined, flexible change process for systems supporting recruiting, performance management, compensation and benefits, and other key aspects of human resources.

Leverage Technology to Gain Greater HCM Flexibility.

T E C H N O L O G Y C O N S I D E R AT I O N S

K E Y Q U E S T I O N S

• How can technology help HR lead the change initiative?

• What technologies are currently available to move change forward?

• What solution capability gaps need to be addressed to better align transformation goals with overall business objectives?

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Nearly 84% of all respondents in a KPMG transformation survey said culture is critically important for successful change, but far fewer believe their companies do a good job of managing it.4 Culture can be thought of as the unwritten rules for how people interact and get things done in the organization. It strongly influences how a change will be implemented, regardless of what’s outlined in the change plan. As a result, organizations that have mastered change have built cultures that are able to evolve constantly. HR is well positioned to articulate the aspects of the organization’s culture that can make employees feel proud of the changes that need to occur—critical insights for a successful transformation.

Data analytics, including social mining, can be used to uncover areas of opportunity for facilitating change and potential issues that need to be addressed. They can yield critical insights into an organization’s cultural state of mind.

Tap into the Power of Culture.

T E C H N O L O G Y C O N S I D E R AT I O N S

K E Y Q U E S T I O N S

• Is the transformation viewed positively by employees, stakeholders, and customers?

• How can you address concerns and align incentives to motivate stakeholders, especially employees, to support the change?

• How can you leverage culture to give employees a sense of pride and investment in meaningful, sustainable change?

Sometimes, it’s the hallway conversations in a company that can make a significant difference in the outcome of a change program. Highly connected individuals are often at the heart of the change process, regardless of their official positions. HR is ideally suited to identify these spheres of influence and work with them as cultural change agents. Such informal networks are often your most effective resources in counteracting resistance to change.

Stakeholder maps that draw upon data from social networks and trending analysis can help identify the key influencers most likely to champion change.

Unleash the Power of Informal Influencers.

T E C H N O L O G Y C O N S I D E R AT I O N S

K E Y Q U E S T I O N S

• How will you leverage informal influencers to promote a change mindset?

• What incentives will you give them to participate?

• What messages and channels will they use to communicate with their peers?

4 KPMG Transformation Survey, Business Transformation and the Corporate Agenda, 2014

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HR is uniquely qualified to facilitate large-scale transformation by sending consistent signals through multiple communication channels to employees at every level of the organization. It is also critical to keep senior executives, including the CEO, informed of pressing workforce issues, while at the same time helping employees navigate the new reality. Both processes are essential to making change sustainable and scalable. Everyone, from middle management to the highest levels in the organization, should be aware of the confluence of HR considerations and cultural forces that can mean the difference between transformational success, or failure.

An end-to-end HCM cloud solution enables HR leaders to send unified communications and access one source of data to monitor the health of change programs, and make immediate improvements when necessary.

Manage Across the Organization to Foster Coherence and Engagement.

T E C H N O L O G Y C O N S I D E R AT I O N S

K E Y Q U E S T I O N S

• How will you engage seniorexecutives and middlemanagers to start actingin ways that support thechange?

• What strategies can youuse to ensure messagingcoherence across allcommunication channels?

• How will you get yourfrontline employees toembrace the changeso they can convey itpositively to customers?

Take the next step in effectively managing change.

Watch an informative webinar, Adapting to Today’s Changing HR Landscape.

To learn more about how Oracle Human Capital Management (HCM) Cloud can transform your HR organization, please visit oracle.com/hcm.

Copyright  ©  2015,  Oracle  and/or  its  affiliates.  All  rights  reserved.    |  

Adap?ng  to  Today’s    Changing  HR  Landscape  

AnneEe  Wellinghoff  Vice  President  HCM  Transforma?on  July,  21  2015  

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