HR OPERATING MODELS FIT FOR THE FUTURE OF WORK AND AI

I do not blame you if you feel that everything is changing at breakneck speed for HR! It really is. The question is: What does this all mean for the HR function and for the Operating model? And by the way, do you even have one? (FACT: About half of HR functions I talk to have NO HR operating or HR interaction model defined that informs their structure).

I thought I would consult Gemini (previously Bard) this time before adding my own research and thoughts. Here is my prompt:

I am an HR Director overwhelmed by the seismic changes brought on by the future of work and AI, What are the new HR Operating models that I need to consider to ensure that my function stays relevant?

And here is the answer:

Here are some new HR operating models you can consider:

1. Evolving Archetypes:

• Ulrich+:?Builds on the traditional Business Partner model,?emphasizing strategic HR,?data analytics,?and talent management expertise.
• Agile:?Focuses on rapid experimentation and adaptability,?with cross-functional teams and iterative processes.
• EX-driven:?Prioritizes employee experience (EX) throughout the employee lifecycle,?using data and feedback to design personalized experiences.
• Leader-led:?Empowers line managers to handle HR tasks,?with HR providing coaching and support.
• Machine-powered:?Leverages AI and automation for administrative tasks,?freeing HR professionals for strategic work.

NOTE FROM ME: This comes from McKinsey.

2. Emerging Models:

• People Value Chain Model:?Views HR as a value chain creating value for individuals,?teams,?and the organization.
• HR as a Platform:?Provides HR services as modular,?integrated,?and accessible applications for employees and managers.
• Shared Services Model:?Centralizes administrative HR tasks for efficiency and consistency.
• Hub and Spoke Model:?Combines centralized expertise with localized support for specific business needs.

3. Key Considerations:

• Your organization's size, structure, and industry:?Different models fit different contexts.
• Your business goals and challenges:?Choose a model that supports your strategic priorities.
• Your employees' needs and preferences:?Consider their expectations for technology,?flexibility,?and personalization.
• Your current HR capabilities and resources:?Assess your strengths and weaknesses before making changes.

Josh Bersin provides us with a new HR Operating System in 2024 called Systemic HR. Below is a summary of the shifts he proposes. I strongly support his idea of HR focusing on Problems not Programs. AIHR calls this from silo’s to solutions.

Let me add my own research and thoughts. I believe you need to do the work of developing your target operating and interaction models for YOUR groups of employees and stakeholders and enable the model with the level of budget and resources you can allocate. You will also have to move at the pace where you can deliver both to current urgent needs AND transform to the future model.

The key shift is from inward looking and process focused to focusing in business outcomes. I see people teams very much as GROWTH DRIVERS In business today and NOT SUPPORT OR ENABLING functions. The capabilities and experience of employees are too important to not have a critical strategic driver. Yes, HR has not been transformed or invested in adequately to transition to this new role in most instances.

So where to start... I always start the process with what the target operating model needs to look like. Who are the “customer” (employee) segments we are delivering to? What services are we delivering to them? What are the critical capabilities (skills, systems, AI) we need to deliver the right experience? on their journey to them?

Then we need to figure out, how are we going to deliver this? This is our target interaction model. Via chatbot? Via a call centre?, Via a person? We need to map the experience and processes and decide what the level of interaction will be and whether it will differ by persona/customer/employee group? What would a tiered service look like?

?Tier 0 could be manager/employee/candidate self service and bots

Tier 1 could be manager help desk

Tier 2 could be partners in the business

Tier 2 could be working with a Centre of Expertise

Once you understand your target operating and interaction models, you can compare it with your current models and develop a transition plan. You also have to work out your new “ways of working” to bring these models to life – are you going to set up cross-HR function work teams for key priorities and move them in agile ways between projects? Are you going to have a team like ING that drives end to end HR operations in teams along the employee journey? What methods of service design and project delivery will you use? Human Centred design, Kanban?

Finally, it is important to enable this journey with Analytics, AI and Digital technology to ensure that the human interaction is more meaningful and leads to better problem solving and innovation. And if you cannot build your own people analytics team, there are some wonderful new analytics as a service providers out there that can help.

This is very exciting for HR. Yes we need to spend money on technology and we need to spend time and money on reskilling and upskilling, but the upside is a workforce that is engaged, capable, high performing and agile.

Only once we have freed up our talented HR professionals with AI, automation and Analytics and equipped them with future-ready skills, will they be able to take up the meaningful, customer-centric and strategic role that will drive sustainable business outcomes. And transforming to this model is URGENT.

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