Based on existing theory about Human Capital Analytics and levels of organizational maturity, and thousands of hours of our own primary research, these are the levels of maturity that we believe every business leader will need to move his or her organization through in the process of transforming the Human Resources organization into an empowered driver of business strategy.
Let’s take a look at the levels of Return on People Maturity, starting from the lowest level of administrative processes and moving to the highest level, where HR dictates strategic decisions based on data about the organization and the market – a discipline that we refer to as People Analytics:
1. Operational Provider
Traditional employee-focused Human Capital Management (HCM) is occasionally aligned with Line of Business. HR is a tactical, administrative, and human relations cost center that:
- Transacts basic HR services such as payroll and benefits.
- Enforces policies, compliance, and legal matters related to human resources.
- Provides “back office” administrative support to front line leaders.
2. Strategic Service Partner
Strategic enterprise-focused HCM serves organizational leadership as well as employees. It focuses on a value-driven approach for the “Front office” HR services provided directly to the business. Other characteristics may include:
- Scorecards, dashboards, and benchmarks are used to provide targets for specific improvements.
- HRBPs (Human Resource Business Partners) consult with business units to define and set compensation strategies, recruit sought-after talent, and coach leaders.
- Shared Service Centers consolidate and automate processes and enforce standards.
- Centers of Expertise ( COEs) exist to maximize efficiencies in targeted areas.
3. Integrated Enabler
Enterprise-focused HCM converges around talent integration. It creates a single view of Human Capital value for leadership and the workforce and helps the organization make the best business decisions. This includes:
- Effective data gathering, analysis, and reporting systems.
- Analysis of data to allow development of targeted initiatives to increase performance.
- Focus on root causation and solution mixes to drive employee behaviors and results.
- Talent management strategies and employee life cycle models.
- Integrated back office services, processes, and systems.
- Advanced shared services environment with Centers of Expertise.
- Effective analytics capabilities to interpret data.
4. Predictive Driver
Enterprise-driven predictive HCM anticipates changing market conditions and the company’s ability to leverage human capital to produce bottom line results. Predictive Drivers promote:
- Constant monitoring and data generation around market conditions that will place new Human Capital demands on the business.
- Continuous assessesment of the workforce against anticipated future demands.
- Advises the business about emerging trends that will affect its ability to perform optimally in the near and far term.
- Providing key Human Capital insights to the company.
Measured on its ability to help the company anticipate and supply enough skilled, engaged, and motivated employees to meet business needs and drive future business decisions.
5. Empowered Driver
Fully integrated continually improving Human Capital Management (HCM) in which HR:
- Regularly gathers data and provides trend information that is used for improvements and agile business adaptations.
- Is an integral business function through which the business optimizes the value it receives from its Human Capital assets.
These stages lay the groundwork to transform the HR function into a strategic player in the business. To request an assessment to find out where your organization fits into the maturity model, call us today at 616-935-1155 or email firstname.lastname@example.org.