How can HR unleash discretionary results from ERP implementation and create sustainable value?

How can HR unleash discretionary results from ERP implementation and create sustainable value

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HR is the integral part of an organization and should be positioning itself as profit centre by achieving a higher return on its corporate investments, both financially and socially.

It is often the case that process owners will champion the ERP initiative and HR subject matter experts to re-engineer the business flows by comparing "as-is" vs. "to-be" so to capitalise on the technological advantage and managing change. Apart from the system built-in leading practices, HR neglects to consider the complementary elements outside the box. Critical attributes for a sustainable solution are:

Organisational Development

The short and long term HR strategies and system implications

To facilitate growth, business must set clear goals towards efficiencies and effectiveness in its transformation roadmap. It is expected that HR assumes a key role in shaping the organisation's capabilities that drive performance. Hence, the market is flooded with programmes promising the panacea for building a winning team, for instance High-performance Culture, Talent Acquisition, and Succession Planning. See model for internal factors tying in a high performance organisation.

Defining success is the foremost task, just as having a competency framework to construct the essence of human capital. It is of great importance that key success factors, tangible and measurable, are bottomline focused to improve Revenue and Cost. Likewise the competency framework embraces qualities that affect performance be adhered to and monitored across the HR value chain, from resourcing, placement, learning & development, compensation & rewards to retainment. Transparency and timely information is crucial. Emerging Dashboards portal projecting the traffic lights graphical view make ease of Management by Facts for discerning managers. In addition to this visualisation, the ability to further study the workforce composition will support talent utilisation, skill gaps analysis, and training needs assessment. Doing more for less!

Change through Leadership

Corporate culture a fresh prospective

To avoid the "old wine in new bottle" phenomenon, management at C level must spearhead changing the way people work. Say Organisation A promotes employee autonomy - meaning individuals are empowered to go above and beyond expectations. If the norm for employees planning timeoff is to check with co-workers for clashes and to chat with manager beforehand, then the requirement for a system generated request pending approval has become redundant. Why not leave the decision to the employee, and work with the system for rule-based validation. Resources are too scarce for non-value added activities. Best case scenario is for manager to receive a FYI notification when a request is made, an Alert when exception handling is demanded. Workforce availability to depict the divisional absence calendar will boost staff satisfaction and productivity should it be widely accessible.

Employees are told to own their performance management and continuous learning. Some might complain lack of career progression due to stagnant staff turnover. Why not let them form their own virtual team on special projects to deliver significant results; and recognition be reinforced by Pay for Performance. A well executed Mobility policy creates an agile workforce responding quickly to changing markets.

The values people live and breathe shape the organisational culture. A bold change with below-par performers will certainly fail. HR should rethink its organisation development strategy for a good start.

HRiS Model

HR needs to firmly place themselves as leaders making a difference. Their strategic new role is to offer distinctive value to the business by harnessing technology to enhance human capital management.

The mandate for HRiS is strongly driven by five building blocks.

Organisational Development activities to support cultural change - a competitive edge that to be materialised through defined HR Strategies, the Vision of Success, and Scorecard Metrics for daily intelligence.

The HRiS Model articulates key components for system optimisation, bearing better organisational outcomes.

Change is a journey! Ensure you gain the most out of it.

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