How can you determine the best HCM framework for your organization?

In my experience to find the appropriate HCM Framework is a challenging process, especially when you have to manage remote human capital in different countries. We started the work to choose the best HCM Framework by analyzing different proposals and shortlisted those that offers the largest opportunities to tailor their system on our needs. We organized meetings with all the stakeholders inside the company to create the blueprint of each department process. Another important point that we took in consideration was the possibilities to create our own reports and analytics.

Conduct stakeholder analysis with an emphasis on influencers and relationships, beginning by broadly identifying key stakeholders & including informal influencers who may not hold high-profile titles. Then conduct surveys, interviews, and focus groups to collect both quantitative and qualitative data, to get a holistic view of your org's HCM challenges and expectations. Identify any redundancies in your current processes or unused tools and assess whether end-users require training to utilize tools effectively. By ruling out these inefficiencies, your needs analysis not only uncovers pain points but also highlights opportunities for improvement, making the decision-making process more informed and tailored to the organization's needs.

It all starts from understanding your industry. So learn about the people in your market and their employee habits to make a better framework that enables them to unleash their capabilities rather than applying the same framework for all.

When choosing your HCM Framework, it‘s important to not only know where you currently are (organizational structures, in place processes, countries involved), but also to know where you are heading to. You are looking for a HCM framework which can serve you as you grow and develop as a company. You should also look for an HCM system which can be customized based on your individual needs as a company: in the need you have your unique characteristics or local/industry/legal requirements to meet, so make sure the new HCM framework can be tailored now or in addition in the future depending on what you need. Involve every stakeholder who can contribute and has something to say when it comes to how to configure the HCM framework.

The world does not evolve at the same pace on anything. We have AI and hunter gatherer societies coexisting 5000 to 16000 years after modern human settlements took shape. The same is the case with HR. 1. We have bare minimum HR. 2. We have evolutionary HR. 3. We have evolved HR. The first one should take the help of a consulting organization to accelerate their HR on each Pillar of HR. The second one needs to build an HR structure that supports each pillar as a COE. The third one should build the framework of the future. Here the pillars (TA, TE, PM, CD, ODCM) are a given and there are no brownie points for delivering them well.

Spend quality time with the CEO and other CXOs. One big challenge in HR is delivering flavour of the season outcomes with negligible revenue impact. The biggest HCM framework is one that keeps growth and profitability at its center and builds around the same.

Start with a high-level meeting with key stakeholders to outline overarching objectives and ensure alignment with the organization's strategic vision. Gather input from stakeholders to define specific, measurable, achievable, relevant, and time-bound (SMART) objectives. Create a comprehensive roadmap with timelines, roles, responsibilities, and key performance indicators to track progress. Throughout this process, maintain open communication and collaboration to ensure that the selected HCM framework aligns with organizational goals, and key stakeholders remain engaged in achieving the desired outcomes.

In my experience, other options that can be explored before designing an HCM framework for your organisation is your current demographics. This will largely influence the HCM model to adopt, and will extensively determine its adoption and ease of implementation.

The next factors that you can consider when determining the best HCM framework for your organization: - Size and complexity of your organization Consider the size and complexity of your organization, including the number of employees, locations, and departments. - Features and functionality Look for an HCM framework that offers the features and functionality - Integration capabilities Ensure that the HCM framework integrates with other systems and applications - Costing Consider the cost of the HCM framework, including implementation, maintenance, and ongoing support. Choose an HCM framework that fits within your organization's budget

One of the pertinent aspect needs to be considered in selecting the HCM model is to understand what business are we in and why are we doing what we are doing in the HR space. This would mean, understanding current operating model (service delivery model) if organisation is exploring a change and in case of a new organisation, understand the business requirement, nature of operations, information flow, decision making, performance measures etc prior deciding the HR operating model. In-depth discussions with leadership team to understand their expectations on HR service delivery would help to clearly develop the most appropriate model.

Selecting the right methodology for HCM process improvement hinges on several factors. Firstly, the organization's size, complexity, and the nature of existing HR processes play a pivotal role. Large organizations with complex HR systems may benefit more from the structured approach of Six Sigma, while smaller, more agile firms might find Lean or TQM more suitable. Secondly, the specific challenges and goals of the HR department and organization should guide the choice. The chosen methodology should align with the organization's strategic objectives, cultural norms, and employee engagement levels to ensure successful implementation and sustainable improvement in HCM processes.

This stage involves developing and executing strategies to address the identified issues and to capitalize on opportunities for enhancement. The implementation may include the integration of new technologies, such as AI and machine learning tools, for better data analysis and decision-making in HR processes. It could also involve changes in workflow, such as the introduction of more streamlined procedures for talent acquisition or the adoption of more effective employee performance evaluation systems. During this phase, it's essential to ensure that the changes are aligned with the overall business strategy and that they contribute to a positive employee experience.

Continuous monitoring and adaptability are essential for the long-term success of HCM process improvements. In an ever-changing business environment, HR processes and practices need to be flexible and scalable to adapt to new challenges, technologies, and workforce dynamics. Regular monitoring of key performance indicators and metrics allows for the assessment of the effectiveness of implemented changes and identifies areas for further improvement.