hr transhormation

7/27/2019 HR Transhormation

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HumanResourcesTransformation:

IsItDrivingBusinessPerformance?

May2012

2012,HfSResearch,Ltd|www.hfsresearch.com 1

HUMANRESOURCES

TRANSFORMATION:ISITDRIVINGBUSINESSPERFORMANCE?Authors

TonyFilippone,ExecutiveVicePresidentofResearch,HfSResearch

DianeYouden,Principal,HumanResourcesTransformation,PwC

KevinPennington,Director,HumanResourcesTransformation,PwC

PhilFersht,ChiefExecutiveOfficer,HfSResearch

ExecutiveSummaryOurresearchshowsthataggressiveglobalexpansionandchangingworkforcecharacteristicshaveelevatedthe

importanceofrecruiting,talentmanagement,andperformancemanagement.Whilesomehumanresourcesexecutives

havetransformedtheiradministrative-focusedorganizationsandregionalizeddepartmentstoimprovetheirstrategic

valuetotheiroperationalandfunctionalcounterparts,manyorganizationsfallshortoftruetransformation.Whilethese

organizationsfocusonefficiency,theirbusinesscounterpartsstrategictalentmanagementissuesgounresolvedwith

significantopportunitycosttomarketgrowthandothercorporateinitiatives.Followingatransformation,doesyour

humanresourcesteamfocusmoreonthebusinessthanadministration?

Thispaperleveragesextensivequantitativeresearchintoglobaltrendsaswellasinterviewswithseniorhumanresources

andbusinessleadersthat:

Uncovertheglobaltrendsthathaveadvancedthestrategicroleofhumanresources. Weshareresearchfrominterviewsanddatacollectedfromover400humanresourcespractitionersandover350globalbusiness

executivesidentifyingwhyhumanresourcesexecutivesarebeingaskedtotransformtheirorganizations.

Exposeso-calledhumanresourcestransformationsforwhattheyreallyare. Basedonaseriesofinterviewswithhumanresourcesexecutiveswhohavesuccessfullytransformedtheirorganizations,weexplainwhyso

manyorganizationsfailtotransformbecausetheyfocusonadministrativeprocessimprovements,resourcesput

inchargeofday-to-dayprocessmanagementlacktheskillsandaccountabilitytoexecuteonthevision,and

humanresourcesleadershiplacksomeofthecompetenciesnecessarytodelivervaluetothebusiness.

Identifyhowhumanresourcesexecutivessuccessfullytransformtheirorganizationstosupportbusinessleaders.Weidentifythemajorshiftahumanresourcesorganizationundergoeswhenittrulytransformsits

capabilities.Wesharehowleadersfromtheseorganizationsbreakthroughwhereothershavefailedandincludeacasestudyfromalargeglobalorganizationthatdiditsuccessfully.


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TableofContents

UnprecedentedGlobalBusinessDynamicsPutHRintheHotSeat 3

TheWorkforceEnvironmentIsChanging 3

HumanResourcesExecutivesCanBeSubstantiveLeadersinTimesofChange 6

HumanResourcesTransformationsThrustintotheCorporateSpotlight 8

OperationalEfficiencyObjectivesFallShortWhenItComestoTransformation 8

GlobalSolutionsStillRequireLocalStrategytoBeEffective 9

FlexibilityIsKey:AchievingTransformationIsLikeChangingtheWheelsofaCarWhileDriving 10

ListentotheBusinessManagers:ItStillTakesTwotoTango 10

PracticeWhatYouPreach:EnsureYourOwnHumanResourcesTalentIsLeadingEdge 11

MakeTransformationReal:TieIttoCommonlyUnderstoodBusinessObjectives 11

WhenTransformationsAreTrulyTransformational 12

TheDifferenceaSuccessfulTransformationMakes 12

EightCommonTraitsofOrganizationsThatSuccessfullyUndergoTransformation 13

TheBottomLine:LeadersMustCultivatetheTalentwithinHumanResourcestoMakeTransformationPossible 16

AbouttheAuthors 18

AboutHfSResearch 20

AboutPwC 20


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UnprecedentedGlobalBusinessDynamicsPutHRintheHotSeat

Behindtheproductdesignandtechnologicalinnovationsthatcatapultorganizationsintowell-respectedindustryleaders

aremanagementsinvestmentsintheassetsthatcreatetomorrow:people.PeoplearetheforcebehindGooglesrapid

growthfromsearchengineleadertosoftwareandservicegiant,withproductslikeAdWords,Android,Gmail,andChrome.

Applesaward-winningdesigngeniusisovershadowedbyitssupplychainmanagementdiscipline,whichenablesthecompanytoproducediscretelyandshipmillionsofnewly-launchedproductstothirty-fivecountrieswithindaysoftheir

announcement.Today,talenttrulydifferentiatesfirmsandourresearchshowsthatfirmsarepressuredbythe

combinationofshiftingglobaleconomicsandchangingtalentrequirements.

TheWorkforceEnvironmentIsChanging

Ascompaniesembraceglobalization,technology,andcompetitivepressures(seeSevenGlobalTrendslaterinthis

report),locallabormarketsarerapidlyevolvingandchangingandtheskillshortagesarepushinghumanresourcesinto

thefrontlinesofacquiring,developing,andretainingtalent.HfSResearchsurveyed436humanresourcesexecutivesto

understandthefactorsaffectingcompaniesworkforces(seeExhibit1),andfindingsconfirmedthatworkercollaboration

andnewtechnologiesskillswererankedasthemostimportantfactors(both58percent),followedbyskillandtalent

shortages(56percent).

Exhibit1:FactorsAffectingtheGlobalWorkforce

Source:HfSResearch2011,N=436HumanResourcesandBusinessExecutives

Thereareseveralimplications:

Globalbusinessdynamicshavestretchedtheavailabilityoftalent,particularlyindevelopingcountries. Astalent

marketstighten,costshaveincreasedandlimitedavailabilityhasimpactedtheeffectivenessofcorporatestrategies.InPwCs15

thAnnualGlobalCEOSurvey,43percentofrespondentsfelttalentcostshadacceleratedfasterthananticipated

(seeExhibit2).Moreimportantly,thesurveyalsofoundthat31percentacknowledgedtheirrateofinnovationwas

impacted,and29percentfelttheycouldnotpursuemarketstrategies.

0% 20% 40% 60% 80% 100%

FreeAgentWorkforce

ResultsOnlyWorkEnvironment

DecentralizedDecisionMaking

MobileWorkforce

SocialMedia

MillennialWorkforce

GlobalWorkforce

AgingWorkforce

SpeedofChangeinBusiness

Skill/TalentShortages

NewTechnologies

WorkerCollaboraon

Towhatextentarethefollowingfutureofworkdriversimportanttoyourcompany?

VeryImportant Important Somewhat Important Not Important


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Exhibit2:TalentConstraintsImpairGrowthandProductivity

Source:PwC15thAnnualGlobalCEOSurvey2012,;N=1,258

Clearly,globaleconomicshavecausedbusinessstrategiestoincreasetheirrelianceontalent.Inastudyweconducted

surveying362businessleadersonshiftingbusinessprioritiesaffectingoperations,gainingaccesstotalentandcapabilities

anddrivingculturalchangenearlydoubledinimportance,reducingcosts(-15%)decreasedintotalimportance.

Exhibit3:ChangeinBusinessObjectivesImportancefromProjectInitiationtoToday

Source:HfSResearch2012andPwC,N=188enterpriseswithover$3billioninrevenue

Businessstrategiesareincreasinglyforcingemployeestocollaborateacrosscustomersegments,regions,andprocesses,

whichrequireschangestoorganizationdesign,performancemanagement,andculture. Organizationshavebeenforced

toadoptglobalbusinessprocessownershipmodels,learntorelyonoutsourcingvendors,anddeveloporenhanceshared

servicestrategies.AsshowninExhibit4,58percentoffirmsuseahybridofsharedservicesandoutsourcingmodels.

Behindthesebusinessstrategies,culturesmustbepreparedforneworganizationalrealities.Neworganizationdesignsare

required,andexecutiveleadershipmustbecultivatedtomanagemoreresponsibilitythatisspreadglobally.Alongwith

neworganizationaldesigns,businessleadersneedtoupdateperformancemanagementprocessestoreflectnewgoals.

0% 15% 30% 45%

Ourproduconand/orservicedeliveryqualitystandardsfell

Wecancelledordelayedakeystrategiciniave

Wecouldntachievegrowthforecastsinoverseasmarkets

Wecouldn'tachievegrowthforecastsinthecountrywherewearebased

Wewereunabletopursueamarketopportunity

Weweren'tabletoinnovateeffecvely

Ourtalent-relatedexpensesrosemorethanexpected

-20% 0% 20% 40% 60% 80% 100%

Reducecosts

Increasescalabilityandflexibilityofoperaons

Supportglobalgrowthstrategy

improveaccesstotechnology

Transformprocesses

Alignsupportserviceswithglobalcorporatestrategy

Driveprocessefficiency

Improvecompliancecapabilies

Driveculturalchange

Gainaccesstotalentandcapabilies

%ChangeinImportancefromProjectIni\a\ontoToday

Howimportantwerethefollowingbusinessobjec\vesbehindyourcompany'sopera\ng

strategy?


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Asonehumanresourcesexecutivefromaglobalchemicalscompanyexplained,Thepaceoforganizationalchangeisso

great,executivesarestrugglingtokeeptheirleadershipfocused.Buttherealchallengeisdevelopingandmaintaininga

leadershippipelinewhiletheworldarounduschangeseverythreemonths.

Exhibit4:OrganizationalOperationsModels

Source:HfSResearch,2012,N=362Enterprises

Technologyimpactseveryemployee. Technologynolongerremainsthedomainoftheoperationsemployeetaskedwith

performingadministrativework.Today,ITprovidesrichanalyticsnecessarytoforecastfinancialperformance,analyze

customerandsupplierdynamics,monitorworkforcebehavior,andtrackproductperformance.Moreimportantly,

complextransactionmanagementrequiressophisticateduseoftoolstoanalyzeproblems,preferences,andhistorical

patterns.Whetheranemployeeisadjudicatingaclaim,managingproductdevelopment,orcollectingoverpaidfunds,he

orshemusthavethetechnologyskillstoperformthenecessaryresearchandtakeaction.Onehumanresourcesexecutive

explainedhisdilemmathisway,Whenwereplacedourglobalshippinglogisticssystem,oursupplychaingroundtoahalt.

Wehadspentmonthstrainingusersonthesystemtheyknewhowtousetheapplicationintheclassroom,butthe

businessprocesswassodifferent,ourusersdidntknowhowtouseitintherealworld.

HumanResourcesExecutivesCanBeSubstantiveLeadersinTimesofChange

Thegoodnewsis,despitethelackofinvestmentinthefunction,humanresourcesexecutivesarestillviewedastheleader

inareasthatmatter.AsshowninExhibit5,thehumanresourceexecutiveisviewedasacriticalleaderandadvisorto

businessstakeholders.Mostimportantly,nearly62percentofrespondentsfeltthathumanresourcesdepartmentsneed

toservealeadershiproleinmanagingskillandtalentshortages.Thisisavitalroleinthecontextofchangingbusiness

strategies.HRleadersneedtoembracethisrolechange.

-20%

0%

20%

40%

60%

Useahybridofsharedservicesand

outsourcing

Usesharedservices(limited/no

outsourcing)

Useoutsourcing(limited/noshared

services)

Nosharedservicesoroutsourcing

Whichofthefollowingdeliveryframeworksbestdescribeshowyour

organiza\oncurrentlyoperates?


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Exhibit5:WhereHumanResourcesIsExpectedtoLead

Source:HfSResearch,2011;N=436HumanResourcesandBusinessExecutives

SevenGlobalBusinessTrendsDrivingtheNeedforHumanResourcestoTransform

1. GlobalexpansionofWesterncompaniesintocountrieswithdevelopingeconomies. SlowingeconomiesintheUnitedStatesandEuropehavedrivengrowth-seekingcompaniestotapintorapidlydevelopingeconomiesin

China,India,andLatinAmerica.

2. ExpansionofleadingregionalcompaniesfromAsiaandLatinAmericaintoWesterncountries. Onceconsideredonlyregionalforces,AsianandLatinAmericanconglomerateshaveexpandedtoNorthAmericanandEuropean

countriesinsearchofnewcustomers.Theseorganizationslow-costoperationscreateopportunisticgrowthopportunitiesinWesterncountries,wherepotentialcustomersaffectedbyslowingeconomiesseekless

expensiveproducts.

3. Economichardshipsofthelastdecadehaveleftlittlefatwithinorganizations. Recessionsofthelastdecadeandweakereconomieshaveforcedbusinessleaderstomakemajorstaffreductions.Todaysleanercompanies

requireskillstotransformbusinessoperationsthroughprocessreengineeringandleveragingexistingcapabilities

acrossmoremarkets.

4. Companiesoperateunderincreasinglycomplexregulatoryenvironments. Financial,environmental,consumerrights,andprivacystandardshaveadvancedinbothWesternandEasterneconomies.Employeesmustbe

knowledgeableoflocalmarketrequirementswhileremainingvigilantagainstbuildinginefficienciesintolocal

processes.

5. Thepaceofbusinesshasaccelerated. Organizationsmustrapidlylaunchmultipleproductsintomanycountriesatonetimetodriverevenueobjectives.Theymustreactquicklytocompetitiveproductsandmarketingand

maintaincloserelationshipswiththeircustomers,whosebusinessenvironmentsarealsochangingquicklyallof

whichencouragescompaniestoinvestintalentstrategies.

0% 20% 40% 60% 80% 100%



NewTechnologies


FreeAgentWorkforce

SocialMedia

MobileWorkforce

GlobalWorkforce

WorkerCollaboraon

MillennialWorkforce

AgingWorkforce


Inyourorganiza\on,whatroledoestheHRfunc\onplayinshapinghowacompany

respondstothefutureofworkdrivers?

LeadershipRole AdvisorRole Execuon-onlyRole InformedOnly


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6. Organizationsarerealigningworkwithintheirteamstocreatenimblerstandardizedglobalbusinessprocesses. Managementneedsbetter,moreconsistentinformation.Customersandsupplychainprocessesdemandsimpler,

butstandardglobalprocesses.Asaresult,manyorganizationsarecreatingglobalbusinessprocessownership

modelsthatdriveconsistentprocessesandimproveallocationofcapital.

7. Simpleworkhasbeenautomatedoroutsourcedtheremainingworkiscomplex. Theneedfortalentisprimarilydrivenbythesheercomplexityofworkthatemployeesmustnowhandle.MassiveinvestmentsinERP,

MRP,andCRMsystemsoverthelastdecadehaveleftemployeeswiththeremainingcomplexwork.Employees

nowneedtodesignandmanageself-serviceportalsandinventorymanagementsystems.

Source:HfSResearchandPwC15thAnnualGlobalCEOSurvey2012

HumanResourcesTransformationsThrustintotheCorporateSpotlight

Humanresourcesexecutiveshavebeencaughtupinthewhirlwindofchange.Theyvebeenaskedtocentralize,globalize,

cutcostsandstaff,andembracenewtechnologyjustliketheirbusinesscounterparts.Andsomehaveovervaluedtheir

changesbybrandingthemasHRtransformation.Yet,whentheyvedonelittlemorethanupdatetechnologyorshiftservicestoasharedservicescenter,aretheyreallytransformed?Wefoundsixparticularchallengesthatprevented

organizationsfromsucceeding:

Preferenceforwell-knownprocessefficiencytacticsoverdevelopingnewstrategiccapabilities. Ineffectivestrategiesforhandlingglobalrequirements. Unfamiliaritywiththeneedtopredictandadapttochangingbusinesstrends. Businesspartnerswhowereslowtoleveragehumanresourcesinnewways. Thelackofaburningplatformtodrivechange. Humanresourcesteamsthatdidntupgradetheirowntalenttodelivernewcapabilities.

OperationalEfficiencyObjectivesFallShortWhenItComestoTransformation

Mosttransformationsareexercisesintechnologyimplementation,outsourcing,orprocessefficiency.Leadersbecome

sotransfixedonriddingtheirorganizationsofinefficiencyandwaste,theyneglecttotransform.Humanresources

executivesfocusonputtingoutfires,targetingoneafteranother.Armedwithbenchmarkprocessandcostdataandthe

well-intentionedpanaceaoffoldingallsystemsintoasinglesystemofrecord,theteammarchesdowntheroadtoward

administrativeefficiency.Itsacomfortable,eveneasy,target:processredesignandtechnologycanfixallyourills.

Theproblemwithcreatingaleaner,moreefficienthumanresourcesorganizationisthattodaysbusinessleadershipneeds

somethingdifferent.Surely,everyoneneedstobecosteffectiveandservetheirinternalcustomersefficiently,butthe

changingglobalbusinessmarketrequireshumanresourcestodeliveradifferentarrayofservices,notthesameservices

forless.Ahumanresourcesexecutivewhohadledoneofthelargestglobalhumanresourcestransformationsdescribed

whathappenedwhenheinitiallyfollowedthispath,EverydayIwasbotheredbythelackofinnovation.Weweredoingwhateveryoneelsewas.Outsourcingwasn'tinnovative.Wemovedpuzzlepieces.Wespentmillionsontechnologyand

trainingourteams.Absolutelynoneofthatwasinnovative.

Byfocusingonadministrativegoals,humanresourcesleadersoverlooktheneedtodevelopdifferentservices,suchas

maximizingbusinesstimespentonworkforceproductivity,identifyinghowbusinessperformanceisimpactedby

workforcemetrics,understandingtherootcausebehindfirst-yearandhigh-performerattrition,andcoordinating

successionplanningandmanagementdevelopmentactivities.Buildingthecapabilitiestodelivertheseservicesrequiresa


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truetransformation.

WhatIsaHumanResourcesTransformation?

Anorganization thatundergoesa human resourcestransformation redefineshow itshuman resourcesteam collaborateswiththe

business to execute business strategy. Through the transformation, an administratively focused human resources organization

assumesaccountabilitytoachievebusinessobjectives,insteadofhumanresourcesobjectives.Humanresourcestransformations:

Expose the humanresources organization to the true business of a company. Human resources teammembersmustunderstandthetruenatureoftheirbusinessscompetitiveenvironmentandthecompanysexecutivestrategiestoachieve

success.Thisunderstandingisntsimplya responsibilityof humanresourcesleadership.Forprocessestodelivertheirtrue

value,everymemberoftheteamhastobeingrainedintothebusiness.

Assignaccountabilitytothehumanresourcesorganizationtoachievebusinessgoals. Transformationsarentaboutgettingtoknowyourneighbortheyreabouttakinganactiveroleinexecutionofbusinessstrategy.Sinceexecutionrarelyhappens

insilos,accountabilityforcesboththebusinessandhumanresourcestocollaborate.

Redefinethemetricsofsuccess. Itstimetopushyourratiosofhumanresourcesstaff-to-employeesmetricsaway!Metricslikethesearecost-efficiencymeasuresthatrarelyprovidebusinessbenefit.Therightmetricsfocusonbusinesschallenges,

suchasincentivecompensationdifferentialsbetweenhighandlowperformers,successionplanreadiness,anddistributionofperformancemanagementratings.Yourmetricshavetochangetomeetyourtransformationaspirations.

Reconfigure human resources process and technology to contribute to strategy. Whereas most human resourcesorganizationsaredesignedtodelivercost-effectiveservice,transformedhumanresourcesorganizationsadaptpracticesthat

deliverbusinessthroughtheirprocesses.Sincethevalueleveris different,theprocessesareoftendifferent.For example,

performancemanagementprocessesmustchangefromanannualdocumentationprocesstoaprocessthatprogressively

develops talent, quantifies skills, and identifies high performance.With that change, analytics and technology-enabled

performancemanagementtoolsbecomeessential.

GlobalSolutionsStillRequireLocalStrategytoBeEffective

Manytransformationsrunintoroadblocksorlimittheireffectivenesswhentheyfailtoconsidermarketrequirements.TakeforexamplethefindinginPwCs15

thAnnualGlobalCEOSurveythatsourcingandretainingtalentinemerging

marketsisconsistentlyachallenge(seeExhibit6).Recruitingindevelopingmarketsoftenrequiresdifferentstrategies.

Organizationsthatapproacheverymarketwithaone-size-fits-allsourcingapproachoftenimproveperformance,but

clearlyleavevalueonthetablebynotleveragingeffectivelocalstrategies.Transformationsthatapproachallprocesses

withthismindsetseverelylimittheirvalueproposition.Ofequalimportance,thismindsetalsodisenfranchiseslocal

leadership,therebysustaininghumanresourcesimageasacorporatebureaucracythatdoesntunderstandthebusiness.


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Exhibit6:SourcingEmergingMarketsTalentRemainsaMajorConcern

Source:PwC15

thAnnualGlobalCEOSurvey2012,;N=621and637

FlexibilityIsKey:AchievingTransformationIsLikeChangingtheWheelsofaCarWhileDriving

Aconsistentthemeinourinterviewswasjusthowfrequentlythebusinesschangesandhowthosechangesstall

transformations.Frequentleadershipchangesaccompaniedbyreorganizationsplayamajorfactor,butchangesinthe

actualbusinessenvironmentasaresultofnewproductintroductions,newregulations,orcompetitivepressurecompel

organizationstoshifttheirobjectives,too.WhileEasternEuropemayhavebeenanidealmarketexpansionopportunityin

oneyear,souringWesterneconomiescreatedopportunitiesforsomeorganizationstoopportunisticallyshiftgearsand

addressamoreprofitablemarket.OneseniorhumanresourcesleaderforalargeUSfederalagencysaid,Overnight,our

missionchangedfromchasingcriminalstotrackingterrorists.Humanresourcesneededtochangetosupportthebusiness,

butearlyonwelackedtheabilitytoadapt.Toooften,humanresourcesorganizationslacktheflexibilitytoadaptto

evolvingmarketconditions.Whilewell-developedhumanresourcesteamspredictchangesandadaptwiththem,mostteamsareblindsidedbychange.Highfrequenciesofchangecaneventuallyfatigueorganizationsandstalltheir

transformation,whichisanissueforbothhumanresourcesandbusinessleadersalike.

ListentotheBusinessManagers:ItStillTakesTwotoTango

Transformationcannotbeforcedontomanagers;ithastobeacollaborativeandrewardingprocessforbothsides.Many

transformationsarestalledbybusinessleaderswhoarentvestedinthechangeshumanresourcesismaking,butina

humanresourcestransformation,thebusinessalsoneedstochangeitsways.Foryears,businessleadershave

experiencedonlythemosttacticalofhumanresourcescapabilitiesandhavelearnedtousethemsolelyinthisway.Need

tohiresomeoneaftertheyleave?Callyourhumanresourcesrepresentative.Withtheexceptionofcompliance-related

training,businessexecutivesandlinemanagershavegrownaccustomedtoexpectlittlefromtheirhumanresources

representativeexcepttoofferhelpfuladviceatcriticalmoments.Oneseniorhumanresourcesexecutivedescribedthe

meetingsheattendedtocommunicatehowthebusinessneededtointeractwithhisteamdifferently.Thoseworkshops

werereallyhard.Linemanagerscouldn'twaittogetoutoftheroom.Theyjustwantedustokeepourcostsdownandsay

yestothethingstheywantedtodo.

HRexecutivesneedtospendmoreone-on-onetimewiththeirbusinessmanagerstounderstandtheirrealtalentissues

andspendalotoftimelisteningbeforepressinghometransformationinitiatives.Transformationcanonlybeeffective

onceHRandthebusinessfunctionleaderareallboughtintotheobjectivesandoutcomes.

0% 10% 20% 30% 40% 50% 60%

Overseasunitheads

Seniormanagementteam

Youngerworkers

Skilledproduconworkers

High-potenalmiddlemanagers

EmergingMarkets DevelopedMarkets


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PracticeWhatYouPreach:EnsureYourOwnHumanResourcesTalentIsLeadingEdge

Upgradingtalentisacriticalandongoingendeavorofanyleadingorganization,andhumanresourcesisnodifferent.

However,manytransformationsstallbecausetheteamsaretooheavilyskilledintacticalexecutionandlacktheanalytical

consultingskillsnecessarytoserveasstrategiccontributors.Ourresearchshowsthathumanresourcesexecutivesare

unsatisfiedwiththeirabilitytomanagekeyworkforcedrivers.AsshowninExhibit7,lessthan9percentofrespondentsfeltverysatisfiedwiththeirabilitytomanagekeydrivers,likeworkforceglobalization,thespeedofbusinesschange,and

skillandtalentshortages.Worseyet,lessthan42percentevenfeltsatisfiedwiththeirabilitytomanagethesecritical

issues.

Exhibit7:HumanResourcesSatisfactionwithItsAbilitytoManageKeyDrivers

Source:HfSResearch,2011;N=436HumanResourcesandBusinessExecutives

Severaloftheorganizationswespoketocitedchallengesinhiringexperiencedhumanresourcesprofessionalswith

strategicskills,especiallyincertainareasoftheworldwherehumanresourceswastrulyabackofficefunction.Itdoesn't

worktoputHRmanagersinthefrontline,explainedoneseniorhumanresourcesleader.Thesadrealityisthatpeople

aregoingtolosetheirjobsbecausetheyarenotwellequippedtodothenewjobs.Wehadnewrolesandresponsibilities.

Thereareahighnumberoffailures.

Alongwithashiftinstrategycomesafundamentalshiftinrolesandresponsibilitiesofafarmorestrategicnature.This

requiresamajorchangeinpersonnelthatfartoofeworganizationsundertake.Saidoneseniorleader,Inowhiretwo

typesofpeople:statisticalanalystsandindustrialpsychologists.IdontwantpeoplewhocantalkaboutFMLA.Ineed

peoplewhocantalkthroughthenumbersandthepeoplemotivatorstohelpthemmanagechanges.

MakeTransformationReal:TieIttoCommonlyUnderstoodBusinessObjectivesTransformationisntaboutfixingone-offproblems,butthatsexactlytherutinwhichmanyhumanresourcesteamsfind

themselves.Inevitably,itleadstoahodgepodgeofreorganizationsandsystemupgradesthatdonttrulymattertothe

business.Withoutadirecttietocorporatestrategy,humanresourcesteamsquicklyfadeintoirrelevance.Anexecutive

vicepresidentofhumanresourcesdescribedhisorganizationbeforehewashiredtotransformtheirteamasamerry

bandofdo-goodersthateachyearcreatedanewtop10listofthingstofixwithoutacommonthreadintheentire

thing.

0% 20% 40% 60% 80% 100%

SocialMedia



FreeAgentWorkforce


MobileWorkforce

MillennialWorkforce


AgingWorkforce

GlobalWorkforce

NewTechnologies

WorkerCollaboraon

Howsa\sfiedareyouwithyour(oryourfunc\ons)abilitytomanagethefollowing

futureofworkdriversinawaythatsupportsyourcompanysobjec\ves?

VerySasfied Sasfied SomewhatSasfied NotSasfied


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Humanresourcesteamsneedacommonstrategy,acalltoarms,toundertakeacompletelynewroleinanorganization.It

helpsinternalstakeholderscollaborateandprioritize,andcommunicatesthechangingroleofhumanresourcesto

externalstakeholdersalongwiththeirnewengagementmodels.Humanresourcestransformationsneedtodirectly

supporttheorganizationsbigpictureobjectives.Aseniorleadertoldus,WetriedthisfirstintheArctic,but,withouta

businesschallenge,noonetookitseriously.HRinitselfcannotwalkinandchangewithoutthebusinessneedinga

change.Ifhumanresourcesisntareadycontributortotheissuesthebusinessfaces,itstransformationisnt

meaningful.

WhenTransformationsAreTrulyTransformational

Eventhoughmostorganizationsexperiencemorethanoneofthepitfallswevedescribed,someorganizationssuccessfully

transformtheirhumanresourcesteamintoabusiness-focusedorganizationthathardlyresemblesatraditionalhuman

resourcesteam.

TheDifferenceaSuccessfulTransformationMakes

Organizationsthatsuccessfullyundergoatransformationaresubstantiallydifferentthanthosethattryandfailorthose

thatneverattemptone.AsshowninExhibit8,thereareanumberofareasthatdifferentiatebusiness-focusedhuman

resourcesorganizations.

Exhibit8:HumanResourcesOrganizationsBeforeandAfter

AdministrativelyFocusedHuman

ResourcesOrganizations

Dimension Business-FocusedHumanResources

Organizations

Atprocesstouchpointsorforexceptions BusinessEngagement Activelyinvolvedinaddressingbusiness

issuesandorganizationaldevelopment

opportunities

Managingcostandefficiencyofhuman

resourcesteam,alongwithexecutive

leadershipsspecialprojects

Strategy Developingtalentmanagementandhuman

capitalmanagementstrategiesthatdrive

businesssuccess

Focusedoncompliance,processefficiency,

andhumanresourcesrequirements

Talent Analytic,insightful,andrelationship

focused;strongknowledgeofbusiness

Focusedonmanagingmultiplesystems

andprocessestohumanresources

timelines

Operations Focusedonbenchmarkefficiency,butwith

acarefulfocusonoperationswithstrategic

value

Source:HfSResearchandPwC,2012

Whenitcomestobusinessengagement,business-focusedhumanresourcesorganizationsdevelopthecorporateagenda

almostasmuchastheyactivelyexecuteagainstit.Theyengagewiththebusinessasacollectiveteaminsteadofengaging

transactionalpointsofcontact.Whilemajorgrowthstrategiesaredevelopedbybusinessleaders,thetalentmanagementstrategytosupporttheseobjectivesareequallyimportant,whiletheycontinuetofocusoncosteffectiveoperational

excellence.Talentwithintheteammayultimatelydifferentiateabusiness-focusedteam.Whileblockingandtackling

remainsimportant,engagingstrategicallyrequiresadvancedanalyticskills,asolidunderstandingofthebusiness,and

superiororganizationaldevelopmentcapabilities.Thishigh-performingteamleveragestheirexpertisetoengagewiththe

business,butalsotocreatestrategicvaluefromtacticalprocesses.


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EightCommonTraitsofOrganizationsThatSuccessfullyUndergoTransformation

Allisnotlostontheroadtotransformation.Despitethedifferencescompanieshave,suchasindustries,regions,and

leadership,thosethatsuccessfullytransformexhibiteightcommontraitsshowninExhibit9:

Exhibit9:EightCommonTraitsofTransformedOrganizations

Source:HfSResearchandPwC,2012

EmployTalentManagementStrategiestoEmpowerCorporateStrategies

Oneofthedefiningcharacteristicsofatransformedhumanresourcesorganizationishowcloselytalentmanagement

strategiesalignwithcorporatestrategies.Theroleofhumanresourcesisntsimplytoaccountforcostsofresources,but

tohelpbusinessleadersbuildbusinessplanstojustifytheirinvestment.Withorganizationsnowfocusedonglobal

businessprocessownershipandenteringnewgeographicmarkets,humanresourcesmustarmitsbusinessleadership

withthelabormarketessentials.Therightinformationcanpositionacompanyingeographiclocationswheretheycan

improvetheiroddsofsuccess.Inaddition,asbusinessleaderschangetheirbusinessstrategiesanddeploynewproducts

andservices,humanresourcesleadersmusthelpbusinessleaderswithadjustmentsintheirapproachtotalent

management.Possiblymostimportantly,transformedhumanresourcesteamsproactivelyhelpbusinessleadersmanage

thevaluepropositionofhumancapitalbydifferentiatingbetweencriticalandnon-criticalroles,anddevelopingstrategies

toimprovemanagementbenchstrength.Asoneglobaltradingcompanyexecutivesaid,Ourobjectivetoexpandtonew

marketsputspressureonourmanagementteamsbenchstrength.OurAsiangeneralmanagersdonthavetheknowledge

ofLatinAmericanmarkets,soweneedtoaggressivelysourceexperiencedmanagers.

PickingtheRightTimetoTransform

Successfulorganizationstypicallyundergohumanresourcestransformationsprojectsduringtimesofsignificantorganizational,economic,orfunctionalchangesuchas:

Businessrestructure,reorganization,oradoptionofglobalandcentralizedbusinessmodels WheretheHRorganizationneedstomakechangestoalignwithanewbusinessmodelorstrategyandsupportthewider

businesschange.

SuccessfulTransformations

TalentManagementEmpowersCorporateStrategies

LeverageaBurningPlatform

DifferentiateStrategicValueandTacticalExecution

ForgeStrategicRelationships

UpgradeTalent

BusinessOrientedResults

SmartSystemsInvestments

LeverageTrustedAdvisors


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ChangeintheHRtechnologyandsourcingagenda WhereHRtechnologyneedsupgrading,optimizing,orwholesalechangeinoutdatedorunderperformingsoftware(e.g.,ERP,globalhumanresourcessystem,orshiftby

ITtooutsourcedtechnologyprovider).

Regulatorychangeandcompliance Wherethereisaneedtomakechangestoculture,behavior,andtheunderlyinghumanresourcesprocesses,technologyanddata,policies,andcapabilities.

Corporatecostreduction WherethecostbaseofHRneedstobereduced;thiscanbeheadcountdrivenandincludethirdpartyspending(e.g.,trainingorrecruitment).

Pre/postmerger WhereHRneedstotransformHRprocess,technology,policy,data,andstructuretobetteralignwithanacquiredorto-be-acquiredbusiness.

Asthesetriggeringeventsoccur,businessleadersneedthesupportofastrategichumanresourcescapability.Human

resourcesexecutiveswhohavesuccessfullytransformedtheirteamsleveragedtheseopportunitiestocreateachange

platformthatpositionstheirorganizationsdifferently.

KnowtheDifferenceBetweenStrategicValueandTacticalExecution

Typicalhumanresourcesorganizationsdrowntheirbesttalentinarisingtideofopenjobrequisitions,beneficiary

updates,andannualperformancemanagementprocesses.Thisleavesthemwithlittletimetoactuallyperformstrategic

work.Oneofthebestpracticesoftransformedorganizationsistooffloadtacticalworkintosharedservicescenters

managedinternallyorbyoutsourcers.Managementofthesecentersissolelyfocusedonefficient,cost-effectiveservice

delivery.Freedfromtacticalburdens,strategicrelationshipmanagerscannowfocusongettingtoknowthebusinessand

theleadershipbetter.Oneseniorexecutiveexplained,Wewerereceivinghundredsofthousandsofjobapplicationseach

yearandprocessingpayrollourselvesallovertheworld.Ourpeopledidnthavethetimetogetstrategic,sowe

outsourcedbothandthisfreedourtimetodevelopspecializedtalentsourcingstrategiesandinsightintocompensation

strategies.AsshowninExhibit10,adoptingasharedservicesoroutsourcingstrategyfortacticalprocessesremainsan

importantoptionformanyorganizations.

Exhibit10:AdoptionofHumanResourcesSharedServicesorOutsourcingStrategiesbyProcess

Source:HfSResearchandtheLondonSchoolofEconomicsOutsourcingUnit,2011,N=347BuyersofOutsourcingServices

0% 20% 40% 60% 80% 100%

Payroll

BenefitsAdministraon

Recruitment/Staffing

Employeecontactcenter

Workforcedatamanagement/analycs

ManagedInhouse SharedServicecenter

Offshore/nearshorecapvecenter Currentlyoutsourcedtoaserviceprovider


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Exhibit11:Business-OrientedMetrics

ForgeStrategicRelationshipswithBusinessLeaders

Oneofthehallmarksofsuccessfultransformationistheopen-armed

acceptanceofhumanresourceswithinleadershipteams.Whereas

humanresourcesisirregularlyinvitedtopresentanupdateintypical

organizations,strategichumanresourcescapabilitiesisanimportant

partofseniorleadershipagendas.Aformerexecutivevicepresidentof

humanresourcessaid,Aswedevelopedthecapabilitytostrategically

engagewithleadersonorganizationaldevelopmentissues,they

couldntgetenoughofus.Inparticular,organizationshavefound

successbydevelopingthehumanresourcespartnerbetterbecause

therolerequiresgreateranalytic,relationship,andbusiness

understandingthanotherhumanresourcesroles.

UpgradeHumanResourcesTalenttoPerformNewRoles

Oneofthehardest,butmostcriticalchangesreportedbyexecutives

withwhomwespokewastheupgradingofinternaltalent.Acrossthe

board,executivesrecognizedthatmanylifelonghumanresources

practitionerslackedthetalenttodevelopcomplexorganizational

developmentandtalentmanagementstrategies.Manyprocess-

orientedresourcesalsolackedtheabilitytoforgedeeperrelationships

withseniorexecutives.Inordertosucceed,allorganizationsneedto

developandupgradeexistingtalent.Talentneedstohavemore

analyticalskills,theabilitytodeveloptalentmanagementandhuman

capitalstrategiestobusinessobjectives,andtheabilitytocoach

managersthroughimportantorganizationchanges.

DeployMetricsThatDriveBusinessResultsInsteadofHumanResourcesResults

Astheadagegoes,Yougetwhatyoumeasure,andtransformedhumanresourcesorganizationstrackremarkably

differentmetricsthantypicalhumanresourcesorganizations.Inpart,thisisduetothedevelopmentofnewprocesses.A

seniorexecutivesaid,Wecreatedprocessesthathelpedthemfocusonoutcomes.Successionplanning,competency

assessment,andhighpotentiallists.Weaddedmetricsthatfocusedthebusinessontheseoutcomes.Thestrongest

metricsfocusonvalueleversthatdrivebusinessoutcomes,asshowninExhibit11.

DontPrioritizeProcessandSystemsStandardizationoverBusinessAlignment

Manyorganizationslosetheplotwhenitcomestoprocessandsystemstrategyandblowthroughmillionsofdollarsin

capitaltocreatestandardprocessesordeployapplicationsthatsupporteveryregionalneed.Globalirregularityin

regulation,language,andworkforcecapabilitiesmakethisanexpensiveinvestment.Asoneseniorexecutivesaid,Pan

europayrolldidn'twork.Globalrecruitingdidn'twork.Ourlargestcompetitorspent750MtoimplementSAPononeinstancewithcountlesstemplates.I'mnotsurethatwasagoodvalue.Thatisnttosaythattransformationsdonot

standardizeandright-sizetheirtechnologyfootprint.Mostorganizationsvalueeliminatingunnecessaryredundancyor

deployingthefullcapabilityofexistingapplications.Theseeffortscansavemoneyandimproveorganizationalflexibility.

However,theimportantinvestmentsshouldbemorestrategicbecausetheydriveoutcomesthatalignwiththebusiness.

Improve Quality ofHire

Grow theBusiness

ImproveProfitability

Market Agility/Responsiveness

Increase WorkforceProductivity

Maximize Return onWorkforce Investment

Improve Leadership

Develop Employees

Compensate Efficiently

Drive WorkforceEngagement

Retain HighPerformers

Create WorkforceAlignment

Source:Source:PwC,2012


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LeverageTrustedAdvisorstoBringFocustoDisciplineandChangeManagementProcesses

Itmayseemlikeaself-aggrandizingfinding,butsuccessfulexecutiveswithwhomwespokeuniversallysaidthatthey

couldnthavemanagedahumanresourcestransformationwithoutaconsultingpartner.Theyvaluedthelargeproject

managementandtransformationdisciplineconsultantsbrought.Theyalsovaluedtheadviceandcounselexperienced

consultantscontributed.TheydidthinkingIdidnthavetimetodo,saidoneseniorhumanresourcesleader.TheyrethereworkingeverydayandthinkingaboutitevenwhenIcouldnt.Theykepttheprogrammovingforward.

CaseStudy:GlobalHumanResourcesTransformationDramaticallyImprovesHRDeliveryandCost

Issue Alargeglobalcompanysetouttotransformitshumanresources(HR)function.Thetransformationgoalsincluded

ensuringaconsistentdeliveryofHRstrategicservicesgloballyandsignificantimprovementstoHRdeliverycosts.The

companybelievedthatvaryingHRprocessesandpoliciesacrossgeographieswerecreatinginconsistentserviceand

redundantexpense.InordertoachievethereductionsincostandensureaconsistenthighlevelofHRstrategicservices,

thecompanyadoptedahybridHRoutsourcingmodelandbest-in-classHRtechnology.

Action ThecompanybeganbydesigningtheretainedservicedeliverymodeltoalignHRwiththebusinessesitsupported.

Additionally,theteamwasaskedtoidentifythemostcriticalfuturestateprocessredesignopportunitiesthatwoulddrive

consistentandefficientserviceswhilealigningtheservicestotheneedsofthebusiness.Teammembersdocumentedthe

businesscontextandHRsstrategicvision.Thisinformationformedthefuturestatedesignprinciples.Theteamalso

conductedadetailedreviewoftheactivitiesthatwereinscopeandoutofscopeforapotentialoutsourceprovider.Lastly,

theteamutilizedbenchmarkstofullyinformthedeliverymodel.TheoutcomewasaleadingpracticemacroHRservice

deliverymodelthatincludedoutsourcedadministrativeactivities,strategiccentersofexcellence,andaretainedshared

servicesfunction.Themodeloperationalizedthecompany'scostimprovementandservicedeliveryobjectives.

Thecompanynextdevelopeditsretainedorganizationtransitionplan.Theplanhadtoaligntheretainedorganization

transitiontimingandactivitieswithasimultaneoustechnologyimplementationandtransitionofadministrativeactivities

toanoutsourcedprovider.Thislevelofconcurrenttransformationrequiredintegratedplanningacrossteams.Italso

reinforcedtheneedforacomprehensiveandeffectivechangemanagementplan.Thecompanyleverageditsconsultants

globalimplementationexperienceandleadingpracticetransitionmethodologytodevelopanintegratedtransitionplan.

Impact Thetransformationprojectisexpectedtoachieveupto30percentcostsavingsfromthecurrentstate.Additionally,the

transformationoftheHRorganization,andnotjusttheadministrativetasks,allowedHRtodeliveraconsistenthigh

qualityofHRstrategicvalueandimpactacrosstheglobalorganization.ThistransformationenabledHRtodeliverservices

tothebusinesssstrategicneedsandalignitselftotheoutcomesofthebusiness.

TheBottomLine:LeadersMustCultivatetheTalentwithinHuman

ResourcestoMakeTransformationPossibleInthefaceofglobalindustrychangesthatescalateworldwidetalentmanagementdemands,humanresourcesleaders

haveamandatefortransformation.Ourresearchshowsthattheeasyworkisincorporatingvision,developingascope,

buildingaprojectplan,andobtainingmanagementpermissiontoexecuteatransformation.Thehardworkispersevering

throughthechangesinpeopleandculturethatmustoccuralongthebumpyroadtowardbuildingstrategic,business-

orientedcapability.Leadersmustcultivatethetalentwithinhumanresourcestomakethispossibleandbuildbusiness


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knowledgewithintheirteams.Thosewhotakethisroadfindthattheyaretransformed.Thosethatdontwilloftenstallor

fallshortoftheirobjectives.

Tomany,itmayseemironicthattalentmanagementandorganizationaldevelopmentwithinahumanresourcesteamis

thelimitingfactorbehinditsownsuccess.Afterall,ifhumanresourcescannotturnitscapabilityinwardlytohelpitself

first,howcanitexpecttohavethecapabilitytohelpotherssucceed?Yet,thisisthecruxofahumanresourcestransformationtheabilityofhumanresourcesleaderstohelpexecutiveslinkbusinessstrategytohumancapital

strategies,suchastalentmanagement,organizationaldesign,andperformancemanagement,requiresatransformationin

itsownhumancapitalstrategies.Basedonthesecapabilities,executiveswillopentheirdoorsandhumanresources

executiveswillleveragetheirnewlydevelopedcapabilitiestoearntherighttohaveaseatatthetable.


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AbouttheAuthors

TonyFilippone,ExecutiveVicePresident,Research

TonyFilipponeisExecutiveVicePresident,Research,atHfSResearch.HeoverseesthequalityofHfS'overallresearchagendaandpublishedresearchandworkswiththeHfSanalystteamstoensureHfS'contentisrelevantforthefirm'sbuy-

sideclients'sourcingstrategies.

Hisprimeresearchfocusisdeliveringpracticaladviceandimpartingreal-worldvendormanagementexperiencetobuy-

sideclientsandserviceprovidersonwhatreallymattershowtogovernoutsourcingprogramsinamannerthatcreates

realvaluetoallparties.HealsooverseesthecompanysresearchinthehealthcareindustryBPOverticalandthe

documentmanagementandcallcenterBPOhorizontals.

PriortojoiningHfS,TonyspentnineyearsatWellPoint,theUnitedStateslargesthealthbenefitscompany,wherehehad

multipleleadershiproles.Tonyinitiatedandledthecompanysenterprise-wideBPOgovernanceforamulti-vendor,multi-

process(callcenter,backofficeprocessing,imaging/dataentry/mailroom,andKPO)programwiththousandsofFTEs.

Tonyledstrategicsourcingincomplexindirectservicesprocurement,wherehemanagedtheselectionandenterprise-

wideimplementationofanindustryleadingprocurementapplicationwhilesimultaneouslyleadingcross-functional

sourcingteamsinoutsourcing,marketing,consulting,facilities,contingentlabor,andhumanresourcescategories.Tony

alsoledWellPointsstrategicprocurementinitiatives,includingcreatingandleadingitsstrategicsuppliermanagement

program,demandandconsumptionmanagementanalyses,andbusinessprocessbenchmarking.BeforejoiningWellPoint,

TonyspentsevenyearsconsultingwithAccentureandMarchFirst,wherehespecializedinbusinessprocesssimulation

andreengineering,strategiccustomerrelationshipmanagement,andpost-merger/acquisitionintegrationmanagement.

TonyholdsaMAinCommunicationManagementfromtheUniversityofSouthernCaliforniasAnnenbergSchoolfor

CommunicationandaBAinOrganizationalCommunication(MagnaCumLaude)fromPepperdineUniversity.Tonyisalsoa

CertifiedProfessionalinSupplyManagement(CPSM)fromtheInstituteofSupplyManagement(ISM).

TonyFilipponecanbereachedattony.filippone@hfsresearch.com.Hecanalsobefoundontwitter:@360VendorMgmt.

DianeYouden,Principal,HumanResourcesTransformation,PwC

DianeleadsPwC'sHRTransformationpracticeandhasovertwentyyearsofexperienceofworkingwithcompaniesin

improvingtheirHumanResourcesorganizationsByworkingwithherclientstodevelopandexecuteHRstrategiesthat

aligntothebusinessgoalsandobjectives,theHRorganizationsareabletooptimizetheirvaluetothebusiness.Diane's

broadrangeofexperienceandsubjectmatterknowledgecoversthemanydisciplinesofHRandenableshertohavea

holisticviewofHRandpayrolloperationsfromstrategythroughtacticalexecutionandcontinuousimprovement.

LeadingteamsofindividualswithbackgroundsinHRoperationsandtalentmanagement,Dianeworkswithorganizations

toevaluatetheiroverallHRoperatingmodelandorganizationstructureanddevelopthepathforwardtooptimizeor

right-sizetheuseoftechnologyandoutsourcinginoverallHRdelivery.

Dianehasworkedwithorganizationstodeliverlargeandsmall-scaleHRtransformationactivities,includingoverallHR

strategy,servicedeliverymodels,talentmanagementstrategies,cultureassessments,andimplementationofHRshared

services.WiththefocusonbuildingasustainableHRinfrastructurewiththerightHRcapabilitiesandcompetencies,the

HRfunctionisabletoprovidestrategicdirectionandinsightfulinformationtoenablethebusinesstomanageitstalentresources.


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KevinPennington,Director,HumanResourcesTransformation,PwC

KevinisanHRandbusinesstransformationexecutivewithmorethannineteenyearsofprofessionalexperienceinHR,HR

sharedservices,HRsourcing,businesstransformationandmanagementconsulting.HehasglobalHRtransformation

experienceandbringsaperspectiveofboththeclientandtheserviceprovider.Hisexperienceshavefocusedonglobal

businessstrategy,sharedservices,businesstransformation,vendorsourcingandselection,changemanagement,andprocessimprovements.

Kevinworkswithhisclientstoimprovetheirhumanresourcesorganizationandcapabilitybydevelopingand

implementingHRstrategiesandsolutionsthatdrivealignmentofHRtobusinessgoals.Kevinalsoservesastheleaderof

PwC'sHRSharedServicesandOutsourcingservices.

PhilFersht,ChiefExecutiveOfficer,HfSResearch

PhilFershtisFounderandChiefExecutiveOfficerofHfSResearch,theacclaimedanalystadvisoryorganizationcovering

globalservicesandoutsourcingstrategies.Hewasnamed"AnalystoftheYear2011bytheInstituteofIndustryAnalyst

Relations(IIAR),winningtheawardforthesecondsuccessiveyear.Thisisthemostcovetedglobalawardforindustry

analystsintechnologyandservices.HeisarenownedexpertinthefieldsofSharedServicesandBusinessProcess

Outsourcingandfrequentlydiscussescomplexindustry-specificissuesthatimpacthowenterprisesmanagetheirglobalbusinessoperations.

Anacclaimedindustryanalyst,practitioner,advisorandstrategist,FershthaslivedandworkedextensivelyinEurope,

NorthAmerica,andAsia.Duringthistime,hehasadvisedonmorethan150majoroutsourcing,sharedservicesand

offshoringengagementsandconsultsregularlywithsenioroperationsandITexecutivesontheirglobalsourcing

strategies.AtHfSResearch,Phildirectsandcontributestothefirmsresearch,consulting,andsocialmediastrategy,in

additiontooverseeingthefirm'sglobalfinanceandbusinessoperations.

Duringhiscareer,PhilFershthasworkedatAMRResearch(GartnerInc),leadingthefirmsBPOandITOpractice.

Previously,heservedasmarketleaderforDeloitteConsultingsBPOAdvisoryServices,wherehelednumerous

outsourcingandoffshoringadvisoryengagementswithFortune500enterprises.Healsoworkedforoutsourcingadvisor

EverestGroup,leadingthecompanysBPOresearchpractice.PhilbeganhiscareeratITanalystIDCacrossitsEuropean

andAsia/Pacificoperations.

FershtisafrequentauthorandspeakeronglobalsharedservicesandoutsourcingtrendsandissuesacrossIT,finance,and

HumanResources.Hewasnamedbothan"FAO"and"HROSuperstar"byFAOTodayandHROTodaymagazinesfor2005,

2006,2007,2008,2009,and2010andwasfeaturedasthecoverstoryfortheDecember2006issueofFAOTodayasone

oftheoutsourcingindustry'smostprominentadvisors.HewasalsonominatedforAdvisoroftheYearattheFAO

Summit2008.Hewasalsorecognizedin2011byGlobalizationToday(theofficialmagazineoftheInternational

AssociationofOutsourcingProfessionals)intheirfirstever"Powerhouse25"list.

Hespeaksregularlyatmanyleadingindustryconferences,whichhaveincludedTheConferenceBoard,NASSCOM,IDC

Directions,theSourcingInterestsGroup,theSharedServices&OutsourcingNetwork,andtheCouncilofSupplyChain

ManagementProfessionals.Heisalsoaregularcolumnistforseveralindustrypublications,includingGlobalServices

Media,SSON,FAOToday,andFinanceDirectorEurope.

HereceivedaBachelorofScience,withHonorsinEuropeanBusiness&Technology,fromCoventryUniversity,United

Kingdom,andaDiplmeUniversitairedeTechnologieinBusiness&TechnologyfromtheUniversityofGrenoble,France.

PhilFershtcanbereachedatphil.fersht@HfSresearch.com.Hecanalsobefoundontwitter:@pfersht.


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May2012

AboutHfSResearch

HfSResearchistheleadinganalystauthorityandknowledgecommunityfortheglobalservicesindustry.Inadditionto

researchingbusinessservicesandtechnologyservicesstrategies,HfSeducatesandfacilitatesdiscussionamongthe

worldslargestknowledgecommunityofservicesprofessionals,currentlycomprising120,000subscribers.HfSprovidesa

collaborativeplatformforthelargest,highestimpact,andmostfrequentlyvisitedprofessionalcommunityintheglobalservicesindustry,offeringrapidandinsightfulcommentaryon,analysisof,anddebateaboutenterprisesharedservices,

outsourcing,andglobaloperationsdynamics.

In2011,HfSwasawardedOutsourcing,BPOandServicesAnalystFirmoftheYearbytheInternationalInstituteofAnalyst

Relations(IIAR),thepremierbodyofanalyst-facingprofessionals,andrunner-upforoverallAnalystFirmoftheYear.Led

byrecognizedindustryexpertPhilFersht,HfSResearchdifferentiatesitselfwithitsglobalteamofexpertservicesanalysts

withrealindustryexperience,provocativeandopinionatedresearch,unrivalledmarketanalytics,andaviewoftechnology

asanenablerforbusinessprocessimprovement.Itson-demandexpertiserelationshipmodelhelpsclientsleverageHfS

knowledgeandstrategicinsightinarapid,responsiveandengagingmanner.

HfSResearchalsomanagestheHfS50SourcingExecutiveCouncil,thepremierpeerdiscussiongroupforenterprise

outsourcingandbusinessservicesexecutives.Thisby-invitation-onlyprogramfostersnetworking,debateandbest-

practicessharingamongthemostseniorsourcingexecutivesoflargeglobalenterprises.Thispowerfulforumisshapingthestrategicdirectionofthesourcingindustry,influencingotherbuyers,serviceprovidersandintermediariesacrossBPO,

ITOandsharedservicesdomains.HfShostsandfacilitatesregularmeetings,webinars,introductionsandpeernetworking

opportunitiesforHfS50members,anditsanalystscontributetotheseinteractionswithcandid,unbiasedopinionsbased

oncurrent,relevantresearch,benchmarkingdataanddeepsourcinggovernanceexpertise.

Nowinitssixthyearofpublication,HfSResearch'sacclaimedblogHorsesforSourcesiswidelyrecognizedastheleading

destinationforcollectiveinsight,researchandopendebateofsourcingindustryissuesanddevelopments.ThethrivingHfS

LinkedIncommunityincludesover17,000industryprofessionalswhoshareviewsandinformationdaily.Moreinformation

aboutHfSResearchcanbeaccessedatwww.HfSResearch.com.ThecompanycanbefollowedonTwitter

atwww.twitter.com/horses4sourcesandLinkedInbyjoiningTheBPOandOffshoringBestPracticesforum.

TolearnmoreaboutHfSResearch,[email protected].

AboutPwCPwCfirmshelporganizationsandindividualscreatethevaluetheyrelookingfor.Wereanetworkoffirmsin158

countrieswithcloseto169,000peoplewhoarecommittedtodeliveringqualityinassurance,tax,andadvisoryservices.

PwCsAdvisoryprofessionalshelporganizationsimprovebusinessperformance,respondquicklyandeffectivelytocrisis,

andextractvaluefromtransactions.Weunderstandourclientsindustriesanduniquebusinesschallenges,andlook

acrosstheentireorganizationfocusingonstrategy,structure,people,process,andtechnologytohelpclientsbuild

theirnextcompetitiveadvantagefromstrategythroughexecution.

OurAdvisory,PeopleandChangeprofessionalshelpclientsexecutetheirstrategiesthroughtheirpeopleand

organizations.Wedothisbyhelpingthemdeveloptheright:talentstrategy,organizationaldesignandoperatingmodel,

supportfunctionssuchasHR,ITandfinance;changeandcommunicationsstrategies;andleadership.

Seewww.pwc.com/us/peopleandchangeformoreinformation.

2012PricewaterhouseCoopersLLP,aDelawarelimitedliabilitypartnership.Allrightsreserved.

PwCreferstotheUSmemberfirm,andmaysometimesrefertothePwCnetwork.Eachmemberfirmisaseparatelegalentity.Pleaseseewww.pwc.com/structureforfurther

details.Thiscontentisforgeneralinformationpurposesonly,andshouldnotbeusedasasubstituteforconsultationwithprofessionaladvisors.PwCUShelpsorganizations

andindividualscreatethevaluetheyrelookingfor.WereamemberofthePwCnetworkoffirmswith169,000peopleinmorethan158countries.Werecommittedto

deliveringqualityinassurance,tax,andadvisoryservices.Telluswhatmatterstoyou,andfindoutmorebyvisitingusatwww.pwc.com/us.

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