CEOs: Why HR Transformation for Digital Transformation is a must-have and how to succeed at it.

Let's face it. Digital is here.

With Elon Musk swinging in a million robocars next few year/s, there is no way the common man can evade the onset of the Robo-Digi Age. The first colony on Mars possibly sealing the new age in the next few years.... there is no coming back for business. Non digital models will recede like landline phones - still existing - but mostly obsolete. But you knew that .

Most businesses are already looking at Digital, many even fearing if they will survive its complete onslaught. Fairly so, since older organisation and newer ones will both be on the same turf, with one having the only advantage of disposable capital and hopefully loyal customers.

No surprise there then, as older businesses are investing more and more money into innovation labs, acquiring those newer companies that are willing to sell ( at least for now), possibly also networking and marketing - to come to the top of the new 'digital' space.

Yet, here is where they could still go wrong -

Why you may not last the Digital Age as a business?

1. Money cannot buy innovation.

Yes, you can supplement it for a while. But you wont be able to compete with the smaller and nimbler, on the rise entrepreneurs unless you begin to think like them. Go back to when you were a small company. Stop resting on your laurels and relook everything - specially why your teams stuck with you, took risks and innovated for you - look in rather than out first - and then supplement, where required.

2. Technology/ Business Model is not everything

Of course these are very very important but you know they are only one half of the picture. Sure the only one media cares about. Yet you as the head know better.

Your struggle including those to keep your employees engaged, your leadership pipeline aligned, plethora of incentives strategically designed - yet worked feebly on the actual ground - may have already showed you the symptoms of that by now. Pls dont ignore.

Technology can enable. Yet, if you let the servant become the master and the first thing to jump out is innovation, sustainability, creativity and good talent.

3. Old HR is obsolete. Passe.

There are very few organisations that actually do more than human administration through HR. HR is required to take better care of their employees, not just because companies like google, zappos are setting new precedents but also because newer entrepreneurs are too. The newer HR needs to be filled with people who are more on the ground checking the temperature than sitting in a cubicle themselves.

Major Issues with transforming HR.

Here's what I have heard from some of the stalwarts . We cannot transform HR meaningfully, because-

a. Money comes from business thought-process ( sorry , wrong - it comes from people) ,

b. Metrics comes from the stakeholders above ( deja vu - wrong again - employees are our largest stakeholders),

c. Review is quarterly and people growth needs time and doesn't fit well into it the balanced scorecard. ( sorry but just plain duh! fight for it. Isn't that our job desc?)

Mistakes you are possibly making while transforming your HR

a. Using Technology

Please stop using technology for all problems, specially at the human ones. Sure, integrating systems, optimizing and digitizing your HR model will help. Surely data analytics, employee chatbots are great. Lets continue to optimize that.

Yet lets not focus of the 'human' side yet again. Human problems need human connect, understanding of their concerns, their hopes, likes and dislikes. None of that is something even predictive AI can do ( yet). People get inspired by people, not systems. Please don't unlearn that.

b. Narrow view of HR

HR is cited to be performance management, talent management, compensation and the like. There is enough details into that. But, that is human administration, you ask. Where is people care? That is in the circle that says rewards and incentives, and oh, there is also diversity, parallel streams for people concerns, safety, ergonomic chairs and open offices..... Ah ok! :)

Come on folks, we want people to work for us, then let us work for the people first. And not to tick the checkbox or make the numbers look good ( nudged over a friday email). Show them time and again, if needed, that HR needs to be viewed and measured by a larger lense.

c. Ostrich Syndrome

Sure, Engagement , Innovation, Belongingness, Leadership creation is a tricky problem. Yet, does that mean we reach out to it in the last? After we, as an organisation, have tried everything else.

Meanwhile, we make the psychology of the people involved become further more rigid and distrustful as they see you jump to everything else except what hurts them really - beyond what they will share.

d. Keeping that change limited to HR

If the change is not impacting the 'way of doing business on the floor' , the employees will know it is another face lift. As good agile coaches say, address the lifestyle and not just the symptoms. If your HR transformation is not heeded by the business, crank up on them. Business needs to take care of their people or you may have business but not enough good talent to service it.

e. Designing for business benefit

Most of HR is designed from the business, for the business and by the business. All the while wondering why the employees doesn't like all that we do for them. As digital era itself is shouting out - design for the customer, closest to their needs, possibly with and by the customer. Think from the lens of the employee - what does he/she really want.

All the best ! As CXOs, Business Heads,Country Heads you probably already know what needs to be done. With lots of energy to make the tough deep end decisions, let go the old and herald in the new concepts....

Nidhi