Questions and Answers

Please elaborate on the background of the Human Capital Architecture?

The development of the Human Capital Architecture started with fundamental questions such as "How will the Information Age change our world, how will the economy change and how will organisations be impacted as a result?" - and subsequently: "How will the role of HR change in this new context?"

 These questions and the search for their answers started a journey of almost ten years during  which some questions were answered, new questions emerged, were answered again and subsequently all that became known culminated into a practically applicable model and methodologies and finally tested during business advisory consulting projects at client companies.

 Why the term “architecture”? Where does it come from?

The Human Capital Architecture is based on the theoretical models and principles of Enterprise Architecture (EA). Enterprise Architecture is described in Wikipedia as: “…a rigorous description of the structure of an enterprise, its decomposition into subsystems, the relationships between the subsystems, the relationships with the external environment, the terminology to use, and the guiding principles for the design and evolution of an enterprise. This description is comprehensive as it includes enterprise goals, business functions, business process, roles, organisational structures, business information, software applications and computer systems.”

Within an architecture approach there are key concepts to adapt that ultimately provides the reason for such an approach and also guides the efforts during the design and implementation of a Human Capital Architecture:

• Alignment;
• Integration;
• Change; and
• Time-to-Value

 The fusion of the modern, global network organisational structure, distributed management functions and essential relationships (suppliers, customers, shareholders, partners and employees) with information and communication technologies, necessitates a systems view (as in systems theory) of all the subsystems and their dynamics in order to achieve deep integration between them and in the process make the inherent complexities more manageable.

This “systems view” of the network enterprise is achieved through the systematic use of EA frameworks, tools and methodologies.

 Why is an “architecture” approach useful for HR?

The inherent complexities of matching the HR strategic mandate and talent services demand with an efficient service delivery organisation, makes the transformation of HR extremely challenging. A new approach that adequately meets these challenges was found within the domain of Enterprise Architecture, and by adopting the principles of EA to create a "domain" HR architecture; a business-oriented model for the successful transformation of HR has emerged.

When the HR function isolates itself from established business-based, management practices such as customer centrality, business process management, continuous improvement, adoption of information systems, master data management and information management (business intelligence); then it does not mirror the rest of the enterprise to which it is supposed to deliver quality services. 

Does Human Capital Architecture only support Talent Management execution?

No, Human Capital Architecture describes, implements and maintains all possible activities within the comprehensive People Value Chain or commonly known as the Employment Life Cycle – literally from budgeting and planning a position in the organisation structure, to the exit interview.

 Who will be responsible for the Human Capital Architecture in an organisation?

The first step towards the establishment of a Human Capital Architecture is the appointment or allocation of a HR Architect. As a HR initiative, the HR Architect should report to the Head of HR, alternatively to the Chief Enterprise Architect of the organisation.

To be successful, the HR Architect needs to be actively involved in the following architecture “layers”, but only from the design, implementation and maintenance points of view:  

• HR Strategy and Strategic Objectives Development;
• HR Service Delivery Models and Service Delivery Channels, such as HR Portal, Self-Service, Shared Services, Centres of Excellence or Expertise, HR Business Partners;
• HR Service Delivery Teams Structure;
• HR Business Processes Design (HR Transactional and Talent Management);
• HR Data & Information Structure (Business Rules, System Rules, Data Templates);
• HR Applications (ERP grade HRIS such as Workday, SAP, Oracle, etc.) and 
• HR Technology Infrastructure.

 Is this not a role for the IT department or its Business Analysts?

Similar to the HR function, IT has a clear service delivery mandate as a support function to business. From this perspective, IT serves HR within a service-based relationship and in accordance with a specific mandate that guides their services to HR in context of an agreed-to implementation roadmap over time.

In addition, the IT department normally focus on providing specific guidance with regard to the overarching Enterprise Architecture that are designed to describe and execute the Enterprise Business Strategy as an integrated system, as well as the specific ICT strategy that are a subsystem of the above-mentioned EA. 

Some companies have also chosen to remove the Enterprise Architecture responsibility from the IT department and have allocated it to the highest level or management function responsible for Business Strategy and Execution. By nature non-HR subject matter experts, the IT department cannot and should not carry the ownership for the design, implementation and maintenance of the Human Capital Architecture.

 Traditionally Business Analysts work with identifying business requirements for purposes of developing information systems for the business – in most functional areas. With pre-programmed information systems such as the ERP-types, Business Analysts are usually involved with the design of the business blueprint, ensuring the ERP consultants incorporates the business context via processes in the said business blueprint documentation. 

Again, giving the HR department ownership of its Human Capital Architecture necessitates the insight from a HR subject matter expertise. To be sure, Business Analysts do have very valuable skills that could and should be used during the design of the Human Capital Architecture, but the role of the HR Architect is much more evolved.

 What are the competencies for a HR Architect?

In our experience the HR Architect should have had a substantial HR generalist career of at least 10 years (as a minimum) – the combination of HR subject matter expertise and business maturity is essential, as is solid experience as a HR Business Partner providing valuable insight into what and how to deliver HR services to Operational Business Units.

The above-mentioned experience should then be complimented with hands-on exposure to initiatives such as Business Process Management (BPM), Continuous Improvement (Six-Sigma, etc.) and the implementation of HR information systems (Integrated ERP-types such as Workday, SAP, Oracle).

Although the role requires an “unique” combination of skills, training and experience, success will depend on the personal ability to use systemic thinking to make connections between things and concepts that do not seem to be related nor integrated off-hand.