An HR Professional s Guide to Selecting an Organizational Design Solution

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1 GUIDE An HR Professional s Guide to Selecting an Organizational Design Solution 7 KEY FEATURES AND CAPABILITIES TO ENSURE SUCCESS nakisa.com

2 Table of Contents Riding the Digital Transformation Wave 4 Key Elements of an Effective Organizational Design Solution 6 1. Unification of HR Information within a Single-Source-of-Truth 6 2. Two-way Integration with a Full Range of HCM and Legacy HR Applications 7 3. Ubiquitous Cloud-based Access to Data and Analytics Functions 7 4. Agile User-Definable Interfaces, Dashboards and Report Generation 7 5. Advanced Modeling to Visualize, Analyze, and Evaluate Scenarios 8 6. Change-Management Functions to Handle Range of Growth or RIF Strategies 9 7. Streamlined Collaboration and Communication Between All Stakeholders 9 Summary 10 About Nakisa 10 2

3 The focus of this guide is to help HR professionals understand the key capabilities, features, and architectural characteristics that are necessary in an organizational design solution. The goal is to help human resources leadership guide their companies into the new realm of Digital Transformation, with enterprise-wide alignment of human capital with overall business strategies. 3

4 Riding the Digital Transformation Wave Although Digital Transformation has become a popular idea that has received a lot of attention in recent years, there is still some misunderstanding regarding exactly what it means and how to go about implementing related processes. Here s a short, useful working definition from CIO Magazine: Digital Transformation is application of digital capabilities to processes, products, and assets to improve efficiency, enhance customer value, manage risk, and uncover new monetization opportunities. Many companies have already embarked on Digital Transformation initiatives across their operational and financial processes, driven in large part by the need to be more efficient, agile and proactive in the face of increasingly global competition and rapidly evolving market opportunities. These efforts involve unification of various legacy data sources, ERP systems, and other applications, along with new data streams from mobile and Internet of Things (IoT), and other sources. One important area that is sometimes overlooked in the Digital Transformation landscape is the need to incorporate human resources and organizational information in Organizational Transformation initiatives that unify the use of human capital and improve the overall health of the enterprise. 4

5 A recent McKinsey report underscored the importance of centralizing data collection and access as critical elements for success in Digital Transformation: Organizations will need to address issues relating to core technology. For instance, they will need to design flexible, perpetually evolving enterprise architectures, with lightweight connections, that can support the development and deployment of new business capabilities. They will also need to develop agile data-management practices that is, centralizing the collection and storage of data and allowing employees across the company to access critical business information from multiple systems. Source: Toward an integrated technology operating model McKinsey, October 2017 The following sections provide a checklist of key characteristics that HR professionals should look for in a comprehensive organizational design solution that will not only enhance management of human capital but will also help align HR activities with global Digital Transformation initiatives. 5

6 Key Elements of an Effective Organizational Design Solution When it comes to enterprise-level organizational management and transformation initiatives, HR professionals face three main challenges: Visualizing the information from their HCM, ERP, and other systems Designing and modeling different scenarios Obtaining analytics that help them measure change efforts and transformation results, along with specific KPIs so they can guide their progress and keep improving To achieve these overall goals, HR leadership should pay attention to the following seven specific elements when evaluating and selecting a comprehensive organizational design solution. 1 Unification of HR Information within a Single-Source-of-Truth The first step toward success is taking inventory of all relevant information, including both detailed operational HR information and big-picture views. By bringing everything together in a unified database that serves as a single-source-of-truth with integrated analytics, a single platform for organizational design lays a solid foundation for understanding, accessing and modeling organizational information. 6

7 2 Two-way Integration with a Full Range of HCM and Legacy HR Applications An important characteristic related to the above singlesource-of-truth is the ability to communicate via two-way integration with the relevant HR applications (HCM, payroll, etc.). This eliminates the need to juggle multiple islands of information and makes it much more efficient to implement organizational changes by writing-back new scenarios to the operational HCM and ERP databases. INTEGRATION PROCESS 3 Ubiquitous Cloud-based Access to Data and Analytics Functions The third key element is the ability to provide fast, easy and secure access to the unified database for key stakeholders on an as-needed basis no matter where they are located or what type of device they are using. While centralized data management and access control is critical to safeguard privacy and sensitive org-change issues, it s also important for HR to have the ability to share access with relevant stakeholders so that everyone can see the same picture and participate in analysis of various change scenarios. 4 Agile User-Definable Interfaces, Dashboards and Report Generation In addition to accessing the unified database, authorized users should also be able to manipulate, analyze and display information in a variety of ways and create reports that focus on specific issues. The ability to create customized dashboards and reports by pulling different types of information from both the unified database and linked applications gives users the ability to visualize organizational issues, performance and opportunities, as well as to share those views with other authorized users. 7

8 5 Advanced Modeling to Visualize, Analyze, and Evaluate Scenarios The most important new features of modern Organizational Transformation applications provide the capability to easily visualize organizational factors, as well as to interactively model and visualize potential change scenarios. Organizational design solutions should enable visualization across a broad range of factors, such as talent assessments, vulnerabilities, spans of control, diversity, demographics, geographic locations, and others that are important to your organization. 8

9 6 Change-Management Functions to Handle Range of Growth or RIF Strategies Companies in today s globally competitive world pursue a variety of growth and reduction-in-force strategies, ranging from organic growth to merger and acquisition (M&A) activity. Organizational design solutions need to be flexible enough to model and analyze various internal strategies and complex multi-organization M&A combinations. The elements listed in steps 1 and 2 which address unification in a single-source-oftruth, and integration within a range of HCM/ ERP systems, are critical for quickly and coherently blending information from multiple organizations to model M&A scenarios. 7 Streamlined Collaboration and Communication Between All Stakeholders When dealing with any Organizational Transformation program, fostering a high level of collaboration and communication is vital for success. Regardless of how well thought-out plans are, the risk of failure increases significantly if the participants do not understand and buy into the findings and proposed actions. Using a comprehensive solution, with the characteristics outlined above, organizations can greatly increase the buy-in of stakeholders and thereby improve implementation efficiency and results. 9

10 Summary As overall Digital Transformation initiatives become more prevalent, companies around the world are radically improving and unifying their financial, operational, manufacturing, marketing, and sales processes to achieve new levels of agility, productivity, efficiency and overall business results. In some ways, this high-profile focus on other Digital Transformation opportunities runs the risk of overlooking the major benefits that can be achieved by applying similar transformative efforts in the Human Resources realm. It is incumbent on HR professionals to understand the opportunities for Organizational Transformation as outlined in this guide and to clearly communicate the potential benefits and process steps to management decision-makers. Proactively investing in advanced organizational design solutions will enable companies to ensure that organizational health is able to keep pace with other transformational programs, which enables broad-ranging enterprise-wide improvements to move ahead in unison on all fronts. About Nakisa, Inc. A global leader in enterprise business solutions for Organization Design 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 10