Fresh off NEC’s successful HR transformation, and based on years of client-side HR experience, Strada’s UK Director of Client Management, Chloe Lewis shares the practicalities of delivering a successful HR digital transformation programme, what’s involved, what steps to take, and what pitfalls to avoid.

HR transformations are significant undertakings. Even the simplest transition can give rise to unforeseen challenges. That’s why it’s important for companies to learn all they can, not just from Advisory and Technology partners, but from other companies who have been through the experience.

Our recent webinar discussing NEC’s recent transformation project offered a wealth of insights into the process, but four key lessons emerged:

1. Have a defined vision and scope.
2. Engage in thorough pre-planning.
3. Establish clear and consistent non-negotiables.
4. Establish adult-to-adult ways of working.

According to a poll conducted during the webinar, 54% of the participating businesses have plans to embark on an HR transformation in the coming year. Considering that an estimated 70% of HR transformations fail, the lessons learned from NEC’s transformation – which was delivered successfully and on-time – are certainly worth investigating.

Have a defined vision and scope

Many transformations are derailed or delayed by uncertainty surrounding the project’s goals. Having a clear understanding of your transformation’s objectives is essential. There are three main reasons businesses embark on a transformation program:

1. They have technology and are doing well but want to continue driving improvements.
2. They have technology, but feel they are not getting the full value from their investment.
3. They haven’t got technology and want to update and streamline their systems and processes.

At the same time, caution is needed against viewing technology as an end in itself. Businesses need to first define their transformation goals and then determine how technology can be deployed to achieve them. Similarly, business culture cannot be built around technology, but rather technology should be deployed to enable the existing culture.

The same considerations come into play when determining scope. One of the myths of HR transformations is that they have to be huge. Any digital enhancement should be viewed and approached as a transformation regardless of size, and we mustn’t neglect the importance of payroll as a strong potential driver of ROI.

The key to all of this—and a key value driver—is aligning transformation program outcomes with overall business outcomes. A transformation is not an end in itself but a means to achieving strategic business goals. Start by envisioning where you want your business to go and then define how your transformation will get you there.

Engage in thorough pre-planning

Lack of pre-planning can often result in confusion during the transformation process, especially when confronted with unforeseen events. Preparedness is vitally important as it gives you and your teams the ability to quickly and efficiently navigate unexpected occurrences and stay focused on achieving desired outcomes.

Choosing the right Advisory and Technology partner is fundamental. In addition to providing insights into your global process design, getting the partnership right can really accelerate your transformation. But how do you determine which Advisory/Tech partner is the right one?

Consider these three essential qualities when choosing an Advisory or Tech partner:

• Expertise and previous experience
• Innovation and creativity
• Compatibility and value alignment

Expertise signifies an understanding of technology, while experience provides partners with the ability to accommodate your business culture and identify key risk areas. Innovation and creativity mean they can bring flexibility to the table and won’t take a cookie-cutter approach to your organisation’s unique needs. Perhaps most essentially, compatibility and alignment ensure your partner truly understands your business, enabling good communication and teamwork.

Once your partnership is secured, take the time to understand the contract, the statement of work, and the change methodology to ensure that, at each stage of your transformation, everyone is on the same page. Similarly, make sure you’re clear on exactly what resources will be needed and when.

Finally, an often-overlooked aspect of pre-planning is determining how to drive transformation within your company. An HR transformation begins with mindset change, and that begins with your HR colleagues. It’s normal for employees to have concerns about impending changes, so it’s important to give them space and establish clear communication. Identifying your most important transformation allies and securing sponsorship from business leaders will also help establish a global innovation mindset.

Establish clear and consistent non-negotiables

Flexibility is key to any successful transformation, but it’s equally important to know where to draw the line. It’s really important to make a list of non-negotiables—driving principles important enough that they should not be compromised. An example from NEC’s transformation was a specification that local change requests for systems and processes required justifications relating to administrative compliance or customer risk or they would not be met. Keeping a clear eye on those non-negotiable aspects of your transformation helps keep goals in focus while eliminating unnecessary expenditures and distractions.

Establish adult-to-adult ways of working

Navigating the complications and occasional frustrations inherent in the transformation process demands clear and open communication, especially when one factors in cultural differences such as languages, countries, and customs. It’s vitally important to establish adult-to-adult ways of working that place transparency, empathy, and respect at the forefront.

From design through deployment and go-live, it is important to engage heavily with colleagues impacted by the transformation process, from stakeholders to employees, to understand their individual circumstances. Remember that the people involved in your transformation also have their day-to-day jobs to attend to. Articulate goals and methods, communicate expectations and resource requirements clearly, and above all, listen to concerns and allow for debate.

As mentioned earlier, it’s natural for employees to have concerns. Some may even be resistant to the transformation and regard it with scepticism. While these kinds of responses can create difficulties, it’s essential to listen empathetically and respond honestly. Not everything in a transformation program will be beneficial to everyone and transparent, adult-to-adult communication entails being forthright about that.

This dialogue should remain constant throughout the transformation in order to accurately gauge progress. Frequent one-to-one check-ins and conversations with HR colleagues will provide insight into what’s working and what isn’t, ensuring everyone involved has the knowledge and flexibility to adapt and make improvements.

Conclusion

A successful HR transformation demands a unique balance of focus and flexibility. On one hand, you need to keep your eyes on your goals and the most efficient path to attaining them. On the other, you need to be agile enough to make quick adjustments when unforeseen circumstances arise. The process can be a challenging one, but the four key lessons that emerge from the discussions we’ve had can help you stay the course, be prepared for the unexpected, and avoid unnecessary obstacles.

Catch-up on the original webinar here, and for further advice and support on your own HR transformation journey, get in touch with Strada.