4a. Deloitte High Impact HR Operating Model

The High-Impact HR
Operating Model
Extended Point of View
February 2017
HRs role in leading through
disruption
Copyright 2017 Deloitte Development LLC. All rights reserved. The High-Impact HR Operating Model 2
HR Initiatives are Translating to Business Value
However, despite the ongoing transformation efforts, Bersin by Deloitte
research shows that HR has not created sustainable value for the
business
85%
Of global organizations feel the need to
transform HR to meet new business priorities
40%
Of new CHROs come from the business,
not HR
28%
Of business executives believe HR is highly
efficient
22%
Feel confident they are adapting to
employees needs well
20%
Of business executives believe HR is adequately
planning for their companys future talent needs
future talent needs
Sources: Bersin by Deloitte; Deloitte University Press
The Function of HR Needs to Elevate
We know that the business and the workforce are changing in significant
ways to respond to the disruption. For HR to stay aligned, it needs to
change as well
YESTERDAY TODAY
Workforce
Standard social contracts Mobile & transient workforce
Process at the core Employee Experience at the core
Defined generations Demographic upheavals
Organizational hierarchies Networks of teams
HR
Business
Transformative technology Digital revolution
Shareholder management Reputation management
Customer satisfaction Customer engagement
Business partnerships Economic ecosystems
Global expansion Dynamic globalization
The 4Cs Enable High-Impact HR
A High-Impact HR Operating Model Requires Critical Shifts to Achieve
the 4Cs and enhance the workforce experience
Process Thinking Design Thinking

CREATE
CAPACITY Systems of Record Digital Workplace
Admin Operational
Back Office Data Front Office Insights

GROW
CAPABILITY Working in the Business Working on the Business
Generalist Guide
IMPACT
Silos & Segments Enterprise Communities
EMPOWER
COMMUNITY Internal Internal and External Networks Creating a
High-Impact
One to Many Many to Many on the
Organization
HR Functional Orientation Business Outcomes

BOOST
CREDIBILITY Talent Management Workforce Maximization
Standardized Personalized
High-Impact HR Drives Business Performance
Research shows that organizations with High-Impact HR have better
business outcomes
2.5x 2.4x 2x 2x 1.4x 1.3x

Higher Higher Higher Higher Higher Higher
Aligns to Creates new Improves Operates Wins over Responds to

market products / processes to efficiently / the customer
changes services maximize keeps costs competition needs more
faster more efficiency low in the quickly
quickly market
Below average HR performance

Average HR performance
High-Impact HR
Source: High-Impact HR: Building Organizational Performance from the Ground Up, Bersin by Deloitte, David Mallon, Karen Shellenback and Josh Bersin
Core Fit for
Model Purpose
The High-Impact HR Operating Model Core Elements
1. HR Customers remain at the center and with a bigger voice than

ever, driving a critical focus on workforce experience
9 2. Digital Workplace empowers and connects the workforce
3. Workforce Insights are used to inform the business strategy
4. The models strength is fluid interactions
7 2
6 5. HR Operational Services delivers inquiry, data, and specialized
services, generating capacity for other HR components
6. Business HR uses data and insights to deploy workforce solutions
that ensure the business is capable of achieving its strategy
7. Communities of Expertise connect experts to develop relevant,
10 data-driven, and experience-designed workforce solutions
5
8 1 8. External Networks & Partners extend the HR community beyond
its walls and add more credibility to workforce solutions
3 9. HR Leadership partners with the business to set the HR vision,
4 culture and priorities that deliver the business strategy
10. HR Enablers are fundamental to fueling the credibility and impact
on the business and HR customers
HR Customers
HR Components
HR Accelerators
HR Enablers
Core Fit For
Model Purpose
Fit for Purpose Strategic Design Choices Example Current-state

Manufacturing organization with 90K employees mostly in Future
North America supporting a decentralized business model

HR Owned Experience Full End-to-End Experience
1 HR Scope HR takes on accountability primarily for HR HR has accountability for a HR and non-HR process steps
process steps within the employee experience within the employee experience
Controlled Entrepreneurial
2 Governance Robust governance, decisions driven from a Policies are guidance with local groups
central governing group making decisions and adapting programs
Employee Standardized Personalized

3 Employee experience similar regardless Employee experience differs and is
Experience of customer segment tailored by customer segment
Service Enterprise Differentiated

4 Set of standardized HR services HR services differentiated and aligned to specific regional
Differentiation provided across all regions and businesses and/or business contexts
Enterprise Differentiated
5 HR Processes Primarily integrated and standardized process steps Primarily localized process steps aligned to regional
to deliver HR services across regions and businesses and/or business differences to deliver HR services
Data Supported Data Driven

6 Workforce Data Data primarily used to support and be a part of Data used as the primary driver and key part
the workforce decision-making process of the workforce decision-making process
Enabling Extended
Provide the tools to enable employee and manager Provide the tools to drive employee and manager
7 HR Technology
access to information and transactions with HR ownership for HR data, transactions with limited HR
involvement in approvals involvement in approvals
Competitive Advantage Full Services

8 HR Capability Focus on HR capabilities that build the Focus on HR capabilities that build competitive
competitive advantage for the business to win advantage and deliver a broader set of services
HR Resource Centralized Distributed

9 Delivery of HR services occurs primarily from Delivery of HR services occurs primarily from
Location a centralized team of resources regional and/or local teams of resources
Broad Specialty
Copyright HR Roles
10 2017 Deloitte Development LLC. All rights reserved.
Fewerdifferentiated roles that focus The High-Impact
More differentiated roles withHRdeep
Operating Model 8
on a broad range of services concentrated expertise on defined services
Enhancing the employee
experience
HR Customers:
Driving business results through moments that matter
Definition
Customers are placed at the center of the model as
the focal point for delivery of HR capabilities. They
are the primary recipient of HRs services.
Understanding the needs across each segment of HR
customers allows for consideration of ways to flex the
employee experience to fit varied needs and deliver
moments that matter within the HR customer life
cycle. Customer needs influence the talent strategy
and HR programs of the business.
External
Shareholders/Investors, Candidates, Alumni,
Retirees, Government Agencies, NGOs,
Dependents/Beneficiaries/POAs, Contract Workers,
Gig and Independent Contract Workers
Internal
Executives, Business Leaders, Managers, Employees
Creating Human Experiences
What does it mean to put your customers at the center of the model?
It means HR will create human experience by:
1. Understanding who their customers are, what they need, and the moments that
matter most to them
2. Creating differentiated interactions to satisfy each customer groups unique needs,

starting with the moments that matter most
3. Using models and prototypes to rapidly develop, test, and evaluate solutions
4. Empowering and holding accountable leaders for end-to-end HR Costumer Experiences
5. Developing HR processes and technologies that are simple, intuitive and delightful
Creating human experiences in HR begins with developing employee

experiences that delight and engage
Crafting the Employee Experience
Shifting the design of HR from programs, processes, and policies to the
design of experiences that delight and engage
Evolving from Moving towards
Traditional Inside-Out Approach Customer-Centric Outside-In Approach

focusing on how HR compares to best practice molding HR based on the needs of its
customers
Look, listen and Generate and Prioritize

Test, Refine and Plan
understand Ideas
Vision and Set Employee Experience Let your imagination into the wild to generate
Principles Prototype, test, and refine
and prioritize cutting-edge employee
experience solutions. Specifically:
Define focal employee experience Build employee experience prototypes
question of problem to solve 1. Conduct Employee Experience lab to
develop employee experience Analyze outcomes and impact of solutions
Look & listen to define Employee breakthroughs Conduct, test, and refine solutions
Personas 2. Prioritize employee experience ideas for
Conduct interview and observation prototyping Create a plan and execution roadmap
activities to understand the problem
Develop go-forward plan to implement the
Understand & synthesize HR needs most impactful employee experience
solutions
Synthesize results from interviews and
observations
Develop journey maps and personas
Identify themes in HR needs
Moments That Matter Shape the Employee Experience
Differently for each Persona Using Three Key Tools
1 Employee personas 3 HR Journey maps

Which employee groups make up our key What do employees experience during
HR Customers? the moments that matter most to them?
It all starts with understanding who your HR We understand HR expereinces when we take a
Customers really are. Personas link each group and walk in an employee's shoes. Built using insights
their impact on the business from employees, HR Journey Maps depict the
sentiment felt by populations as they experience the
Store Manager frontline impact on success Moments That Matter most to them and envision
High Potential key to the future the desired sentiment
New Hire critical investment
Executive evaluating our success
2 Moments that Matter

What HR experiences matter most to
them?
Next comes
understanding the HR
experiences that really
matter.
Enabling us to think
bigger than HR policies,
programs, or processes
by considering impact on
specific outcomes that
matter.
The Design Thinking Process for Employee Experience
Vision and
set Employee Create a plan
Experience and execution
principles roadmap
Look and listen

Prototype,
to defined
test, refine
HR Personas
Understand
and synthesize Generate and
Employee prioritize ideas
needs
Driving Momentum to Enhance the Employee Experience
The journey to delight and engage employees begins with the
thoughtful collection of internal and external insights and concludes with
a set of pilot initiatives
Vision and Set Employee Understand and Prototype, test, and

Experience Principles synthesize employee refine
needs Build employee experience
Synthesize results from prototypes
Define focal employee
Look & listen to interviews and observations Generate and Analyze outcomes and impact Create a plan and
experience question of
Develop journey maps and of solutions
problem to solve define Employee Prioritize Ideas execution roadmap
personas Conduct, test, and refine
Personas Conduct Employee Experience solutions Develop go-forward plan to
Identify themes in employee
Conduct interview and needs lab to develop employee implement the most
observation activities to experience breakthroughs impactful employee
understand the problem Prioritize employee experience experience solutions
ideas for prototyping
Work Period 1 1 2 Work Period 2 Work Period 3 Work Period 4 5

3 4
HR Experience Vision Employee Moments Journey Maps Employee Experience
1 2 Personas 3 That Matter 4 5 Path Forward
Examples: Examples:
Articulate the future Employee Store Middle Applying For Getting Envision the future Employee Define the path and resources
Experience and how the change Manager Management My Job Performance Experience for select required to launch and measure a
will drive critical business High Executive Getting My Feedback personas to Delight series of Employee Experience
outcomes Potential Offer Figuring Out at the Moments that Matter pilots
New Hire My First 90 My Next
Days Career Move
Changing Role
Appendix
Deloittes High-Impact HR Operating Model
Familiar. Sustainable. Revolutionary.
Executive Leadership
Visions, Strategy, Priorities
HR Leadership Team Senior Business Leaders
Governance
Digital
Workplace
Communities
of Expertise Business HR
HR
Customers
HR Operational
External Services
Networks
&
Partners Workforce
HR Customers Insights
HR Components
HR Accelerators
HR Enablers
Data
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by
guarantee, and its network of member firms, each of which is a legally separate and independent entity.
Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche
Tohmatsu Limited and its member firms. Please see www.deloitte.com/us/about for a detailed description of
the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients
under the rules and regulations of public accounting.
Copyright 2017 Deloitte Development LLC. All rights reserved.

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The High-Impact HR

Process Thinking Design Thinking

Back Office Data Front Office Insights

HR Functional Orientation Business Outcomes

2.5x 2.4x 2x 2x 1.4x 1.3x

Aligns to Creates new Improves Operates Wins over Responds to

Below average HR performance

The High-Impact HR Operating Model Core Elements

1. HR Customers remain at the center and with a bigger voice than

Fit for Purpose Strategic Design Choices Example Current-state

North America supporting a decentralized business model

Employee Standardized Personalized

Service Enterprise Differentiated

Data Supported Data Driven

Competitive Advantage Full Services

HR Resource Centralized Distributed

It means HR will create human experience by:

2. Creating differentiated interactions to satisfy each customer groups unique needs,

4. Empowering and holding accountable leaders for end-to-end HR Costumer Experiences

Creating human experiences in HR begins with developing employee

Evolving from Moving towards

Traditional Inside-Out Approach Customer-Centric Outside-In Approach

Look, listen and Generate and Prioritize

1 Employee personas 3 HR Journey maps

2 Moments that Matter

Look and listen

Vision and Set Employee Understand and Prototype, test, and

Work Period 1 1 2 Work Period 2 Work Period 3 Work Period 4 5

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