7 Steps for a successful HR transformation

13 aug

According to Mckinsey, 70% of digital transformations do not achieve the intended results. From this we can conclude that there is more to a digital transformation, than just the selection and implementation of innovative technologies.

Innovative technologies enable HR to set up processes more efficiently, effectively and objectively, allowing HR to exert more influence on the business. However, we at Unfurl are convinced that these technologies cannot be separated from the organization and its people. By this we mean that there must be a connection between the technology and the employees, and that this connection should be of added value for the organization. In practice, unfortunately, we often see that this connection is still lacking. We often hear or see the following:

HR technology does not meet the needs of employees. Also, employees often do not see the added value of the tooling, as a result of which the tool is hardly used.
The HR technology does not meet the wishes and expectations of the organization, which means that the tool does not realise the desired added value.
No digital HR strategy was devised beforehand, with the result that various separate tools are not connected to each other. The result of this is that the desired objective analyses are lacking.

Based on our experience, we are happy to share a number of steps that are important in a digital HR transformation. By following these steps it will be possible for your organization to achieve a complementary relationship between innovative technologies and your employees, which is of added value to the business. This will form the success formula within the 'new normal'.

1. Brainstorming

Organizations can make a good start by asking themselves some basic questions. These questions can be compared to making a packing list. Before you start on a big trip, it is important to make a good inventory of what is required for a successful departure. A digital transformation is a big journey for the entire organization. It is therefore important for all stakeholders to take stock of how they view the upcoming journey. The following questions can be of added value:

Why do we have to transform?
What does a successful transformation look like for us?
Do we have the right skills and resources inhouse?
Are we aware of the challenges?
Is the organization ready for the changes?

2. Focus on mindset & culture

So digital transformation is not so much about technology but more about people. It all starts with the individual mindset of the management and the workforce. Preferably a growth mindset, with which individuals embrace the opportunities for change and innovation that a digital transformation brings. From this individual mindset, you can build your corporate culture as an organization. Today's digital world requires a corporate culture that is open to constant adaptation and actively works with this. If this culture is not yet present within your organization, it is important to invest in it first. A digital transformation will only be successful if your employees are open to the opportunities it brings with it and are willing to actively work with it. This is necessary because a digital transformation requires a different way of working. It requires a change in behaviour. And a behavioural change can only be realised if someone is motivated to take up this challenge.

3. Focus on the workforce

A digital transformation can lead to a shift in required skills. Using more technology is only effective if you combine it with the right human skills. Here lies a challenge for HR to identify which skills are crucial for the organization of the future and to identify which skills the workforce currently has. From this inventory, HR can conclude whether there is a gap between the current and required skills. It may seem counterintuitive in the midst of a global crisis, but this is the time for companies to increase their learning budgets and focus on training so that the skills and roles of employees fit the 'new normal'.

4. Develop a digital strategy for HR

The digital revolution is changing the role of HR. This includes deepening and broadening the collaboration between HR and other industries, and a greater focus on stimulating organisational objectives through the strategic use of technology. The development of a digital HR strategy begins by going deeper into business priorities and determining the extent to which current systems and processes support the organization. This allows HR to determine the extent to which these systems and processes are in line with strengthening the objectives of the organization. In order to build an effective digital strategy and successfully participate in the new digital economy, HR should:

Make a switch in mindset
HR should start to understand that they should not only hold a serving function within the organization, but that they can function as a strategic partner. A strategic partner in the field of all human aspects within the organization, which ensures that the maximum is obtained from the human capital. With the result that the business flourishes.
Work objectively
Often there is still a judgement about HR that they work subjectively. HR itself can change this judgement by starting to work in a research-oriented way. HR needs to analyse to what extent its own way of working contributes to the organization's objectives, in order to subsequently improve processes and, where possible, provide a technological upgrade.
Understand the added value of technology
HR can work more efficiently and effectively through the use of technology. With the time this frees up, HR could investigate how they can get the most out of their human capital. Once again, technology is an effective tool that allows HR to make the most of human capital. Ultimately, HR can use all these technologies for data collection, enabling them to generate analyses and act as a reliable strategic partner. This allows HR to make decisions and apply interventions based on data, rather than subjective assessments.

The above points can help HR to build a framework for developing a digital strategy for change initiatives and to realise the transition of HR within the organization.

5. Sweet spots for digital success

The basic approach to building a digital strategy for HR is strongly focused on investments in new technologies. Technologies that replace old processes with a digital execution and that help to optimize the HR function. However, it is important to think strategically about the first investments for a digital transformation. Especially in the beginning, it is important to reap success that increases the willingness to change throughout the organization. To find the sweet spots for digital success, HR can focus on the following points:

Organizational objectives
Look into what the organization wants to achieve in the short and long term. Take into account the most current developments. Then determine how HR can contribute to achieve these objectives.
Link to HR
Find out which HR processes are not running optimally and are eligible for improvement. Then consider how HR technology can set up these processes more efficiently and effectively.
Employee experience
When redesigning processes, it is important not to forget the employee experience. That is why you should talk to your employees beforehand. Make an inventory of what they need and how they experience the possible change.
Prioritize
Now bundle all the inventories together and set priorities. In doing so, it can be valuable to weigh up all possible changes in a priority matrix. Low hanging fruit is an interesting cluster. Possible changes with a high added value and a low investment are most welcome to start the transformation.
Setting goals:
If a priority has been set, it is valuable to set goals in advance. This allows progress to be monitored and adjustments to be made if necessary.

6. HR technology selection

If you are unfamiliar with the world of HR technology, you may be shocked by the offer. There are more than 300 suppliers on the Dutch market alone. From this enormous supply, you are looking for the tool that best fits your specific objectives, the situation of your organization, and that will be positively received by your employees. To help you on your way, we advise you to go through the next steps:

Step 1: Be guided by your goal
Once you have gone through the 'Sweet spots for digital success' section, you will have a priority with associated goals. These form the basis for a successful selection. Our most important advice when selecting HR technology is to keep these goals in mind at all times. What is the most important goal for which you are going to use the technology? Your goal determines what you should expect from a tool. And with this expectation you should keep the following question in mind: ''Will this technology give us the results I have in mind?''. This question is the toughest selection criteria. Possible other (functional) requirements and specifications are relevant for a later moment. Don't be seduced by a tool that all contains beautiful functionalities, but in essence does not do what the tooling is initially meant to do.

Step 2: Compare tools
Based on your objective(s) and established selection criteria, you can compare potential tools with each other. HR Tech Review offers a reliable overview of providers active on the Dutch market. From this overview you can draw up a list of potential tools that meet your objective(s) and selection criteria.
Step 3: Demo or trial
Although there are dozens of tools available for each area of HR, you will find that only 1-3 solutions match your objective(s) and selection criteria. Of this select group of potential tools, it is valuable to experience how they function. That is why it is important to request a demo or start a trial. This way you will get the most feeling and the best insight of the tool.
Step 4: Making a choice
Based on your experiences and the possible functionalities, you choose the most suitable tooling for your organization.

7. HR technology implementation

If the right technology is available, it may not be supported by the organization and its employees. As a result, the technology is pushed aside because the intended results have not been achieved. In such case the remaining question is: ''Was it due to the technology or to the employees that the intended result was not achieved''. You can buy almost any technology, but the ability to adapt to a more digital future depends on making your organization future-proof. That's why a comprehensive implementation of the tooling is extremely important.

At first sight, the implementation of HR technology seems easy. The tools always proclaim to be 'plug and play' and their application is completely user-friendly. However, we often see that practice is more unruly and that the technology is not used optimally due to a poor implementation. To prevent this, we at Unfurl always use the 4-P model:

Process
The use of tooling changes the process in question. That is why it is important to align the process in question with the implementation of the tooling. In order to realise this, it is valuable to first have a clear picture of what the current process looks like. Based on this, you will refocus the process so that it meets all the requirements of the tooling.
People
Next, it is crucial to focus on the employees. In the end, they are the ones who have to use the tool. That is why it is important to bring them along from the start, actively support them and train them in the use of the tooling.
Product
Choose between a phased roll-out approach or an all out roll-out approach. Based on our experience we advise to work 'lean' (design, test and evaluate). First use a test group to start the implementation. This allows you to identify areas for improvement before involving the entire organization in the new tool.
Progression
In order to achieve the desired result, it is important to take a critical look at the implementation process. It is valuable to continuously monitor, evaluate and implement improvements based on this.

The coronavirus puts HR in the spotlight

The coronavirus offers many organizations a glimpse into a future world. A world in which organizations were forced to transform themselves digitally from one moment to the next. Digital transformations are therefore not so much about technology, but more about people. Partly because of this, the role of HR is going to change. With innovative technologies, HR can set up processes more efficiently, effectively and objectively, allowing HR to exert more influence on the business. However, HR can only achieve this successfully if they first actively get to work on making the entire organization future-proof.

Are you ready to Unfurl?

In this blog we have shared with you a number of steps that are important in a digital HR transformation. By following these steps it will be possible for your organization to achieve a complementary relationship between innovative technologies and your employees, which is of added value to the business. This will form the success formula within the 'new normal'. Do these steps raise questions for you? If so, please share them with us. We would be happy to have a (digital) cup of coffee with you.