Helping HR Navigate Digital Change and Transformation
Only 30% of digital transformations succeed in achieving their target value and sustainable change. Those that do succeed tend to have digitally proficient teams that are better at aligning strategy, people, process and technology.
Why Successful Digital Transformations Are So Rare
Top 12 reasons why digital transformations fail
Based on a recent thematic analysis of research conducted by leading management consulting firms and IT/HR publications on why digital transformations fail. Click Here for more information on this research.
How to Ensure Digital Change & Transformation Success
The good news - every reason why digital transformations fail are within the control of every organization. These digital failure points are about the organization and not third parties like software vendors of system integrators (as much as organizations would prefer to think). When we cluster the failure points, four key themes emerge: strategy and governance, people and culture, process and design, and technology and data. Let’s take a look at each theme and how leading digital HR organizations are overcoming the failure points.
1. Strategy & Governance
More successful digital HR programs have:
A clear digital vision and governance model
A transformation program plan and multi-year roadmap
A value realization plan (how success will be measured)
Dedicated digital project management office (PMO)
Proactive resource planning for program teams
More agile delivery models and teams with cross-functional representation
Legacy methods and models are replaced with modern operating models and highly capable teams or pods that are organized for uncertainty. These small, purpose-driven, cross-functional teams are empowered to be agile and innovative. They operate with autonomy and seamless communications and collaboration. Valued partners and contingent workers are integrated within these teams ensuring the right expertise is available when and where it is needed. Knowledge transfer is optimized and prioritized. Once the solutions are operational, smaller core teams - often led by Product Managers - remain in place to ensure the solutions (or products) stay current and relevant to the ever-changing realities of the business and the digital landscape.
2. People & Culture
More capable digital HR transformation programs have:
Strong, tech-savvy leaders with commitment and support from the CEO through mid-management
Change enablement capabilities that fully engage and empower stakeholders, end-users and sustainment teams for the future state
Service mindset - HR teams are service-oriented and obsessed about employee experience
Digital mindset - an open and innovative mindset guides the team's efforts, and effective risk management and risk tolerance keeps them on track and engaged
3. Process & Design
More successful transformation programs obsess about employee experience - well before technology. They:
Analyze experiences across the employee lifecycle
Use Design Thinking and Value-Centered Design tools and methods
Deliver experiences and interactions that are intuitive and seamless for employees
Target Operating Models are used to define how people, process and technology components will work together in the ideal future state.
‘Smart Touch’ (not 'High Touch') Service Models deliver scalable support options at the point-of-need. For common user challenges these organizations make use of automated, RPA and AI self-service options. Direct service options are used more strategically for more impactful and complex support needs.
For more information on how to make your HR organization more digitally proficient see this article
4. Technology & Data
More successful transformation programs take a business-driven approach to technology and data. The following elements drive their technology roadmap: an HR technology strategy informed by business priorities, a disciplined intake process and digital leverage points.
They have an integrated digital HR platform with the following capabilities: built-in leading practices and scalability; interoperability - optimizing information exchange across technologies, devices and channels; and seamless integration of enterprise and third-party applications.
Data excellence is also paramount for these organizations. They have a well-defined data governance model and data controls. Good data accuracy and reliability is what fuels effective HR systems and processes that employees and downstream systems rely on. Without accurate and reliable data, the HR organization is unable to unlock next level functionality and capability needed to scale and mature as the business demands and challenges demand.
Together, a clear technology strategy, an integrated digital platform and data excellence can ensure:
A more seamless, user-centric experience
Downstream systems are able to consume and process necessary data
People analytics teams can produce reports leaders need and trust
Data-driven decision making occurs across the enterprise
Regulatory and compliance issues no longer dominate the executive agenda
The Difference Between Automation and Transformation
Wherever you are on your digital journey we can help you and your partners:
Assess digital transformation readiness or program health
Align on a transformation or turn-around strategy, governance and operating models, program charter, program road-map
Mobilize and optionally run a leading practice digital project management office (PMO)
Discover current state pain points and opportunities, and capture target state requirements
Design digital solutions and target operating models (TOMs) your employees want and need
Plan and budget the implementation your sponsors and project teams will love
Execute your plan with confidence, fewer surprises and smoother transitions to support - or -
Recover from program/project setbacks with program assurance & risk management support
Run, Optimize & Innovate your HR operations, products and systems at the speed of business
We help HR organizations build their digital capabilities and capacity so their reliance on vendors is by choice rather than necessity.
A customer-first, tailored approach that works
1
Plan
Perhaps the most critical phase of any digital change and transformation initiative is Phase Zero Planning or Pre-implementation Planning. Most organizations tend to shortcut this phase and struggle to produce a defensible Program Plan their executive sponsor(s) can truly understand - let alone approve.
First, we partner with you to define your Program Vision. We then assess your team’s Digital Readiness to deliver on that vision, and develop a Program Charter. Next, we can help you define an effective digital delivery model and mobilize the PMO and program team with the appropriate tools, methods and frameworks. From here we work with your team to do the following: capture your Business Requirements, identify and evaluate potential solutions, and land on a Solution Design (technology) and Target Operating Model (people and process) your employees will want to use and your business needs. Finally, we help you develop a Program Plan, roadmap and budget your sponsors expect.
2
Deliver
During Phase 1 implementation, there is a tendency for teams to become technology-centric and lose sight of the people and process parts of the transformation equation.
We typically work alongside a technical delivery partner, who is responsible for the implementation of your new HCM solution(s). In one or more embedded roles (full-time or fractional), we can act as an extension of your HR team. We provide direct support to help de-risk your program and ensure your digital program is truly transformational. With decades of digital transformation experience we can help with program management and reporting, risk management, coaching and knowledge transfer - all with a focus on:
building your team’s digital self-sufficiency
ensuring a smooth delivery of your solution
ensuring change and operational readiness
3
Run & Optimize
Once Phase 1 is live, programs often run into user adoption and service support issues - often well past the hyper-care period. Additionally, intake of issues and enhancements can start overwhelming the freshly trained support team - especially if the business is underrepresented in the support model.
Here we can provide tactical and strategic support to help your team through this stabilization period. With the new foundational system(s) in place, this is also an ideal time to consider the introduction of best-in-class support models like the Product Operating Model (POM) (if not already factored into the original program plan). These models help ensure solutions and solution teams stay responsive to the ever-changing needs of the business.
“Kevin helped us evolve into a new operating model to guide more consistent projects and deliver more predictable outcomes.”
- Mandy Whiting, VP HR Operations, lululemon