HOW HR AND FINANCE SHOULD WORK TOGETHER FOR BEST RESULTS

Transcription

1 GUIDE HOW HR AND FINANCE SHOULD WORK TOGETHER FOR BEST RESULTS MANAGING AND MEASURING HR AND ORGANIZATIONAL TRANSFORMATION nakisa.com

2 Table of Contents Table of contents 2 Executive summary 3 Organizational management is a team sport 4 Why CFOs should care about HR metrics 6 Keys to optimizing and sharing single-source-of-truth metrics 9 Establishing an organizational baseline 9 User-defined real-time dashboards 10 Flexible design and modeling of organizational scenarios 11 Storyboarding for presentations, evaluation and decision-making 11 Leveraging comprehensive technology for organizational optimization 12 About Nakisa 13 Copyright 2017 Nakisa Inc. 2

3 Executive Summary The focus of this guide is to help HR professionals, CFOs and corporate executives understand the importance of consistent sources of organizational management data and shared metrics that help to keep everyone on the same page and enhance overall understanding, measurement and decision making about the organization. Copyright 2017 Nakisa Inc. 3

4 OVERVIEW: Organizational Management is a Team Sport Managing today s complex organizations requires well-coordinated efforts by a team of key stakeholders from the front lines to the boardroom. HR professionals, line management, C-level executives and board members all have important roles to play in achieving success. As with any team effort, communication between the players is critical for success so that everyone is operating from the same playbook, shares the same information sources and can therefore align their decision-making and outcome measurement processes. Shown below are some of the key goals and objectives that drive the need for collaborative organizational design programs between CFOs and HR professionals. TO PROTECT YOUR INVESTMENT Economic hardship requiring immediate business intervention Recent mergers / acquisitions Growth strategies into new markets Changing markets / new products TO DOWNSIZE / WORKFORCE ADJUSTMENTS Shaping your business to meet financial realities Repositioning your business in the market Overcome recession or other widespread business decline. Handle competitive pressures or financial difficulties TO ENABLE CHANGE OF MANAGEMENT Changing direction of the business to meet market needs Advancing a business culture Entering new markets or changing product direction Copyright 2017 Nakisa Inc. 4

5 TO ADDRESS CRITICAL TALENT CHALLENGES Key talent is leaving Talent is being poached Attraction is difficult Lack of access to global resources Succession planning gaps Lack of visibility to actual talent capabilities TO ACCELERATE TRANSFORMATION Go to market faster Reduce time to revenue New strategies are not being executed Revenue is lagging expectations Young talent is lacking experience The following sections provide a closer look at why CFOs and top management should become more involved in understanding key HR metrics and how new enterprise-wide solutions for organizational management can keep everyone aligned and on the same page, with the same information, consistent metrics and a single-source-of-truth to effectively manage HR initiatives. Copyright 2017 Nakisa Inc. 5

6 Why CFOs Should Care about HR Metrics Although the Chief HR Officer (CHRO) and HR staff are typically the keepers of the playbook for human resources data and metrics, it is becoming increasingly important for Chief Financial Officers (CFOs) to take a more active role in working closely with HR on organizational management and transformation. While labor costs have always been one of the most substantial operating expenses for all companies, for much of history employees were considered only a cost to be controlled. Over recent years, a shift in thinking towards viewing employees as assets rather than just expenses has started a trend towards top management, HR departments and CFOs looking at new ways to measure and maximize Human Capital Management (HCM). In the book Proving the Value of HR: How and Why to Measure ROI, Dr. Jack J. Phillips and Dr. Patricia Pulliam Phillips, discuss the move towards more comprehensive HR metrics and address the concept of the triple bottom line as follows: Much attention has focused recently on the concept of the triple bottom line. Not only must an organization be successful financially, as demonstrated by traditional bottom-line measures, but it must also be successful with its employees and the external environment. The employee bottom line is not readily defined, but it typically translates into the organization having favorable work conditions, treating employees fairly and equitably, and compensating them adequately, while fully recognizing the potential and capabilities of employees in a diverse environment. This measure has stimulated many organizations to search for ways in which to monitor, measure, and even value the employee contribution. 6 Copyright 2017 Nakisa Inc. 6

7 Some of the key questions that CFOs are looking to answer through HR metrics include the following: Do we have a clear picture of the current organization Do we know where talent and organization vulnerabilities lie Do the actions of our organization align with our business strategy Are we building a sustainable talent roadmap Can we maximize retention and reduce the cost of turnover Does our HR technology facilitate a smooth, fast way to manage end-to-end HCM Are we engaging all key stakeholders from front-lines to boardroom in our HR strategies In their role of managing and controlling corporate financial activities, CFOs also need solutions that will help them evaluate and plan for the costs and savings associated with organizational change processes, such as reductions in force, mergers and acquisitions, reorganization projects, etc. This means CFOs need comprehensive HR software that can illuminate key issues such as: Tracking and quantifying productivity improvements and trends Correlating redistribution of work by position with hours saved and output levels Modeling alternative org structures, including costs, savings and productivity projections Determining costs of HR projects like organizational redesign, M&A integrations, etc. Evaluating spans of control and organizational efficiency

8 With many companies now embarking on digital and financial transformation initiatives, CFOs are at the center of exciting new technology-driven programs that are unifying operational and financial processes. By taking a proactive role in organizational transformation, in conjunction with HR leadership, CFOs are ideally positioned to help integrate and enhance human capital assets and processes to drive higher productivity and workforce sustainability. Copyright 2017 Nakisa Inc. 8

9 Keys to Optimizing and Sharing Single-Sourceof-Truth Metrics Establishing an Organizational Baseline The change process becomes more cumbersome, costly and risky when there exists a large gap between the required and actual organizational readiness. Preparing for change is critical for getting off to a good start and for ultimate success. Companies need comprehensive tools and structured analytics to help assess their leadership and organizational readiness for the change process. Know the current state Structural alignment Demographics Core analytics Talent vulnerability Strategic gaps Know the future state Align the human capital plan to the business strategy Place the right people in the right roles at the right time Once the current business model baseline has been created, the CFO and HR team can move ahead with defining the change process and Strategic Human Resource Plan to implement the desired changes. The following sections look at some of the key capabilities that should be part of a comprehensive organizational management platform to understand, monitor and measure the change process. Copyright 2017 Nakisa Inc. 9

10 User-Defined Real-Time Dashboards Integrated communication mechanisms are key to the successful teaming of the HR team and the CFO s finance group, as well as with other key stakeholders such as C-level staff and board members. The use of user-defined dashboards that draw real-time information from a single-sourceof-truth database are a key feature of an advanced comprehensive management solution that enables enterprise-wide collaboration on organizational improvement. TEMPLATE TOOLS Leadership competency review 360 o feedback assessment Two-way real-time communication between a core HCM system and a comprehensive organizational analytics platform can provide granular and aggregated visibility into all of the key metrics across an entire organization. Organization assessment Alignment against strategies Built-in templates and feedback tools enable stakeholders to tailor their dashboard to easily view the information that is most relevant for their role and to quickly create ad hoc reporting mechanisms for special situations. By leveraging the same shared data for analysis and decisions, all stakeholders can be more engaged and kept better informed of progress during the change process. Overview of business process Review of HR processes Vulnerability scan of an organization Assessment of gaps between org / talent and the business strategy If applicable, survey results on: Engagement Collaboration Effective meetings Communication Copyright 2017 Nakisa Inc. 10

11 Flexible Design and Modeling of Organizational Scenarios In the design step, the HR team and CFO s staff need tools for modeling multiple organizational scenarios to address business objectives from different vantage points. To get everyone s input, it is important to use a comprehensive solution that combines a unified information repository with a variety of analysis, visualization and modeling tools. Without the ability to easily look at and assess a variety of different options, the HR and finance teams run the risk of settling on a sub-optimal path that may not result in the best new organization. The key goals for the Design and Modeling process are to: a. Collaborate and decide on the best option(s) to achieve the organizational change goals b. Understand and quantify costs associated with different scenarios c. Share with decision makers and stakeholders d. Agree on improvement plans and implementation options Storyboarding for Presentations, Evaluation and Decision-Making Clearly communicating the various aspects of organization status and transformation is another key area that CFOs and HR leaders find very important. Stakeholders such as C-level executives, board members, departmental management, employee groups and others need to be kept informed of plans, progress and other issues on an ongoing basis. Storyboarding is a special capability that is built into the latest release of the Hanelly organizational management platform described in the next section. Essentially, storyboarding is a dynamic PowerPoint presentation capability that is integrated directly into the Hanelly application as part of the analytics and visualization functionality. It can be used to quickly and easily gather various views, data sources, dashboards, org charts, geographic locations, etc. and to organize the data into presentations that address specific topics. This capability provides an easy way for HR and finance staff to leverage the single-source-of-truth into clear and coherent communication materials for briefing top management, board members and other stakeholders. Copyright 2017 Nakisa Inc. 11

12 Leveraging Comprehensive Technology for Organizational Optimization Using a proven comprehensive platform that has been designed from the ground up to unify and integrate all organizational improvement challenges is key to helping HR departments, CFOs and other corporate leaders improve organization health and functioning. With more than ten years of development and enhancements based on real-world customer interaction, Hanelly has established itself as an industry leader for enterprise-class organizational optimization that combines all key functionalities within a powerful, agile and intuitive environment. As part of the newest release, the platform supports matrix organizational structures and dotted line reporting. This functionality allows users to design and view organizations from an operational, functional or legal perspective, which are key views for effective organizational transformation decision making. It also enables the users to view the organization geographically using a global employee map powered by Google. With enhanced dashboarding as well as prescriptive and predictive analytics, the software now offers users more powerful visibility and insights into the organization. In addition to addressing comprehensive organizational management functions, this approach provides an advanced, intuitive collaboration platform that enhances communication between HR, finance and top-level management to streamline decisions, improve metrics and enhance organizational health. Copyright 2017 Nakisa Inc. 12

13 Hanelly is a cloud-based software solution that enables companies to quickly understand their current organizational structures and visualize the potential impact of their decisions through HR analytics while supporting key HR initiatives. Learn more about Hanelly at nakisa.com/hanelly A global leader in enterprise business solutions for Organization Transformation and Accounting & Compliance, Nakisa delivers innovative, forward-thinking and robust human resource and financial management solutions that advance your business strategies. Nakisa serves 800+ enterprise customers and over 4 million subscribers in 24 industries. Nakisa is proud to work with some of the world s most renowned brands. Contact Information: NAKISA Inc. 733 Cathcart Montreal, Quebec Canada, H3B 1M6 Phone: +1 (514) info@nakisa.com 13 13