A Case in point....2

Using an architecture approach to assess or analyse the lack of integration  between HR strategy and policies, HR service delivery model and channels, HR people, HR business processes, HR data  and information and HR applications (such as SAP HCM), provides one with a very productive systemic view on the HR organisation's operations.

Let’s consider some of the results of the architecture assessment that was done for the client company that I have mentioned in my previous post (with the same name): 

 HR Service Delivery Quality: A new HR service delivery model was implemented consisting of a HR Shared Services Center, 4 Centers of Expertise as well as the HR Operations Teams situated at the various operations. The responses from the operations managers (line) as the primary customer group of HR, indicated that the new service delivery model did not seem to be "working" as the quality (consistency and reliability) of the new levels of the HR services were disappointingly lower as before the implementation of the new model. 

One aspect that surfaced consistently in the responses, was that the line managers regarded the local (operational) HR team as their first line of service delivery, and that they were of opinion that these HR teams are somewhat disempowered in their own new model due to an over-reliance on the service delivery from the Centers Of Expertise (CoE) and the HR shared service center. 

HR Business Processes: The current state of the HR standard operating procedures and the alignment thereof in an end-to-end integrated process context as well as its integration with the functionalities of the HR information systems, indicated to a lack of close alignment or integration that impacted negatively on the current service delivery capacity of the various HR Teams in the new model, with the result that the customers of HR do not view the current quality of service delivery in general as sufficient to match their needs.

Our analysis of the HR standard operating procedures was that they did not comply to the "best practice" process architecture design used for HR business processes. Key architectural dimensions were missing such as specific customer results, service levels, identification of customer groups, process activities, business rules, relevant policies, partners, suppliers, etc. In addition, no integration between the process activities and the supporting or enabling HR applications was documented.

HR Data and Information: Our analysis of the current state of the HR information layer in the architecture indicated to the fact that real-time information exchange across the HR business processes and service delivery organisations was virtually non-existent. As a result, it was difficult to see how the complex HR environment could be managed effectively and services efficiently delivered through processes to the customer groups via predetermined service scenarios.

When we examined the quality of HR data and information that were used across the new HR service delivery structure, and also how the respective HR teams gained access to HR information they needed to serve their customers, as well as the information-dependent service delivery needs of the HR customer groups; our conclusion was that the new HR organisation suffered greatly from invalidated, duplicated and outdated data and information. The current practices around the creation, maintenance and distribution of HR master data across the various applications as well as across the new HR service delivery model, were problematic and harmful to the quality of the HR data and information.

HR Information Systems/ Applications: The current state of HR information systems at the client was characterised by a confusing muddle of disparate or dissimilar applications of which a significant number was home-grown and custom developed. This was aggravated by an extremely limited use of the SAP HCM system that has almost been systematically made redundant by wrongful information system practices. Our system audits also indicated to the elaborate and costly customisation of the SAP HCM system to such an extent that the system became a liability to the service delivery efforts of the HR organisation.

 

I have tried to show how (in broad terms) a well-timed Human Capital Architecture Assessment as illustrated above, provides a credible basis for determining what the exact state of the current Human Capital Architecture is. This is a very important step to take as a planning mechanism for the HR Transformation journey. The level of detail per architecture layer that can be gained as well as the visibility of the lack of integration between the various architecture layers provides the content of the interventions and mandate of the HR Transformation Team.