One of the main tenets of this book is that successful HR transformation is achieved through the effective management of change. In order to do this, the principles and practice of change management must be an integral part of each element of the transformation, in particular through the adoption of a process consulting mindset. The development of the business case is no exception and in this final section, we explore the elements of change management that are particularly pertinent in business case development.
In business case development, it is important to identify who the main benefit owners are as they must buy in to the benefits predicted in the business case and will, therefore, be highly influential in driving the change to achieve those benefits. The mechanism for achieving that buy-in is their involvement in developing the business case so that it is something developed collaboratively rather than imposed.
The impact of HR transformation on both HR and the line managers in many cases goes to the very core of people's working lives, and therefore taking the opportunity to involve individuals from these groups in the business case development process will begin to lay the foundations for them embracing the changes that HR transformation will bring and reducing resistance. However, gaining the 'buy-in' of stakeholders is not a one-off activity. Maintaining the 'buy-in' of stakeholder groups across the organisation is an ongoing task. This task also has to be a collaborative process where stakeholders are able to shape and influence the benefits that will be delivered. Imposing the business case will only entrench resistance.
Through this process of involvement, it is useful to identify change sponsors and change leaders. They are the people who are going to play key roles in implementing HR transformation within the organisation, and will occupy a range of roles throughout the business rather than being members of the programme team itself. It is vital to get them involved in the development of the business case so that, by the implementation phase, they are fully engaged and able to demonstrate their understanding of the impacts of change to their functions and to the wider business.
Change sponsors provide 'public' support — both in their actions and in what they say. Sponsors must be capable of representing the transformation to colleagues in a convincing way. They are usually in senior roles, and as such often provide staff and resources to support the change within the business. They must demonstrate 'publicly' that they buy in to the consequences of the change proposed in the business case, and often members of the programme team will support and coach the change sponsors in the execution of their role.
As you cascade further through the organisation, you will identify change leaders who are usually part of the change sponsors' organisations and who are in a position to help drive the change within their areas. Change leaders will be in a variety of roles, for example, business partners or line managers, but they will all be respected by their colleagues and be working at the local level. If they can be identified and involved in the business case, they will be able to work with you in moving from planning towards implementation from their positions at the heart of the business. The role of change leaders and the relationship between sponsors the organisation is illustrated in Figure 1.
Here are some practical approaches to involving HR and line managers in developing the business case that we have found to work effectively.
- Speak the business' language
It sounds simple, but unless you communicate in a way that your business colleagues will understand, the message you are trying to give will be lost. Consider involving a group from the target audience to check and rewrite the message. Why not ask them to take responsibility for it? In doing so they will become engaged in the programme.
- Place yourself in the business' shoes
The impact of HR transformation is often misunderstood or is seen as much larger in the minds of managers than in HR. Requiring managers to phone a service centre when they used to be visited by HR is a significant change and can create feelings that HR has 'abandoned' the business and is too far away to understand frontline issues. It is, therefore, important to consult with the business on what is important to them.
For example, the CEO will be focussed on delivering strategic objectives, the FD on financial savings, operations staff on delivering products or services, the IT Director on the benefits of using technology such as self service.
In a large government department, the HR transformation phase began by holding focus groups with each of the main professions, delivery units and back office support teams. These sessions were designed to drive out the key issues facing these staff groups and define what they wanted from HR. This enabled the programme to be clear on what could be provided and what benefits would be delivered to each group and to define what couldn't be provided and set clear expectations. This helped to dissipate many of the objections and resistance.
- Lead by example
This is an ideal opportunity for HR to demonstrate its changing leadership role in practice. Many of the benefits of HR transformation lie in how effectively line managers and employees take on greater responsibility for the management of their careers, as well as a more active role in people management. Engagement with line managers when building the business case demonstrates that HR is both serious about the change and that it is concerned that managers believe in and buy into the benefits that HR transformation will bring to the organisation.
This approach is also an excellent way of ensuring that HR does not develop the business case in isolation from the rest of the business, and that the business stays involved after the initial engagement. This reduces the risk that the business perceives that the programme has gone into a black hole and is then suddenly hit by implementation. This approach also tests the HR transformation solution from the business perspective, providing the mechanism for the business to raise potential design issues early in the process.
- Use demonstrations of new service delivery channels
Demonstrations given very early on can be extremely powerful in getting people excited about what the transformation could look like. They help people really to understand what the HR systems delivery channel in particular will look like and what their role in that will be. Demonstrations can be easily organised — in fact, many software vendors will stage them for you.
Similarly, opportunities exist to demonstrate shared services and outsourced delivery channels. Site visits provide a good opportunity here, as do conference room pilots (physical demonstrations of how a process will work with simulated hand-offs and processing).
- Ensure the commitment of those who have responsibility for benefit delivery
Ensuring that benefit owners include in their budgets the effect of the anticipated benefit accruing to HR transformation is a highly effective way of demonstrating their commitment to HR transformation and of concentrating their minds on the implications of the changes. This approach is particularly effective where cost savings are concerned and where benefit owners need to commit to business case cost savings.
- Deliver some changes early in the programme
Delivering change early sends a message that change is possible and is beneficial. For example, delivering HR self service in phases enables staff to become comfortable with basic tools, such as updating personal information. Later phases of self service then gradually introduce staff and managers to tools that will enable them to book courses on line, more accurately record and manage sickness absence or better manage performance. This approach enables staff to become comfortable with self service and to start taking responsibility for managing their career and staff, whilst also delivering early savings within areas such as HR administration.
This approach enables transformation programmes to not only deliver concrete benefits before the whole programme is completed but also starts to change behaviours early, so that when the larger changes happen, people are ready for them.
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