
HR review as a success factor for a future-orientated HR strategy
Why an HR review is the key to a successful transformation
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In many companies, the need for HR transformation is recognised as an essential prerequisite for ensuring competitiveness, similar to the ongoing digital transformation throughout the company. Nevertheless, those responsible often struggle with the implementation. A common reason for this is that they focus too quickly on the introduction and use of certain tools, on ideas for organisational changes or similar topics, while a systematic analysis of the initial situation is not carried out or is only rudimentary. This is fatal insofar as a meaningful and effective HR transformation is only possible if the individual steps and measures are tailored to both the individual situation in the company and the objectives defined in the specific case. A look at medicine may serve as an illustration here: Even the best and most modern medication can be of little help or possibly even harmful if it is administered before a thorough diagnosis has been made and an appropriate indication has been derived from it.
Analyse the initial situation - the basis for success
If you are responsible for Human Resources (HR) in your company and want to contribute to the overall success of the company with a future-orientated HR strategy, you cannot avoid a detailed analysis of the initial situation. Conversely, a well-founded analysis will provide you with an important basis for ensuring a sustainable transformation in HR for the benefit of the entire company.
Important questions for a comprehensive assessment
Key questions that should be answered as part of the HR review relate on the one hand to personnel and their integration in the company and on the other to the HR department. In this context, people analytics, the analysis of HR data in conjunction with data from other areas of the company, also plays an important role. With regard to personnel, it is particularly important to clarify how they currently provide which services, which resources are accessed and which tools are used. In the area of HR, the main question is what its key strengths and areas of action are. This must be answered from an internal perspective as well as from the perspective of customers and the market, as this is the only way to gain a meaningful picture.
The first step: Recording the structure and processes
After an HR review, three end products should be available: a mapping of the current organisation and its core processes, a synthesis of the strengths and fields of action from the perspective of the various stakeholders and an evaluation of relevant performance indicators.
In the first step, when mapping the core processes and the current organisation, you can rely on grids, organisational charts or process maps that already exist in the company and are possibly also used in other departments outside HR. These visualisations must then be completed and further developed for the purposes of the HR review. The mapping of the current organisation should focus on the HR service portfolio and core processes and incorporate the results of the ongoing headcount allocation. And in view of the digital transformation and the central importance of IT for almost every company, the mapping of the current organisation would be incomplete if it did not also include a mapping of the IT landscape. It usually makes sense to get IT managers on board for this. At the end of the first step, the offerings or processes that are to be analysed in greater depth should be derived from the mapping.
The second step: Gaining stakeholder insights
In the second step of the HR review, the stakeholder perspective is then recorded. Interviews and surveys are the main methods of choice here. It makes sense to create an up-to-date overview of all stakeholders in advance so that no relevant group is overlooked. If internal analyses are already available in which specific areas of action have been identified with regard to individual stakeholders, these can serve as the basis for the second review step. Finally, the stakeholder perspectives resulting from the interviews or survey results should be compared with current trends.
The third step: Analysing internal and external data
Step three then involves analysing key performance indicators and market data. Firstly, documents and key performance indicators from the company itself must be analysed. Here you should focus in particular on those processes that have either been identified as critical in the surveys or where results and improvements - so-called quick wins - can be achieved quickly. The second component of the evaluation is the analysis of market data relating to employer attractiveness, talent availability or the competitive situation, for example. The results of the analyses should be compared with external reference examples in order to better classify them and increase their significance.
The fourth step: synthesis and recommendations for action
The fourth and final step of the HR review involves synthesising and communicating the results. In particular, strengths and important fields of action must be identified and prioritised from a stakeholder perspective and implications for quick wins and for the company's strategy process must be derived. In addition, differentiated communication to the various areas of the company is necessary.
Utilise exchange of experience for new perspectives
External networking to support changes within the company can be optional, but may be very helpful. Various exchange formats with HR representatives from other companies, such as virtual interviews or roundtables, are suitable for this. They enable the development of a common understanding of the different levels of maturity of HR organisations and an insight into the transformation experiences of others.
Pragmatic approach for sustainable results
If you base your HR review on the approach outlined here, this will generally lead to a reliable starting point for your further HR work, which will ensure both an efficient use of resources and a sustainable strengthening of competitiveness. On the one hand, it is necessary to proceed in a structured manner and to go through the individual steps in the right order. On the other hand, the whole process should be implemented with the necessary pragmatism so as not to get lost in the details and achieve usable results in the foreseeable future. For example, it is advisable not to collect too many key figures and not to overload interviews or questionnaires. Realistic time planning is at least as important. You should therefore allow sufficient buffer time, for example for coordination with the works council in connection with a planned employee survey or for analysing the interviews.
