Using Business Models to Achieve HRIS Success IHRIM Conference Presentation October 28, 1997 Royal York Hotel Toronto, Ontario George L. Eckhert Consultant CHARTWELL INC.

Purpose l To help you have a more successful HR information system which contributes to a more successful enterprise l To persuade you to consider using a business model approach in doing so

Main Messages l Success depends on understanding. l Building a model creates understanding. l A business model shows understanding and facilitates change. l Business modeling is the best way to prepare for and manage change.

The Problem: HR Systems That Don’t meet enough important business needs Take too long to implement Exceed expected costs

Non-optimum HRIS Situation DATA Applicant Tracking DATA Benefits Admin. Job Evaluation DATA Training Mgmt. DATA Payroll DATA Competency Modeling DATA

The Root Cause Lack of clarity in, and common understanding of, the current and/or desired future situation, including: Connection between HR and business strategies HR policies, practices and business rules HR functions and business process to be automated Optimum roles and accountabilities Multiple uses and interactions of data

An Example Executive wants to know “how many people work for us?” Clarity issues: –Employees only or including contractors? –In all business units? –At all locations? –On what date? –Present at work, active or on leave? –All leaves? –Actual individuals or computed FTEs? –Include new hires not yet started?

Clarity and Understanding What practices, processes, data and technology do we have now? Really? Everywhere? Who says? What are the significant problems and limitations? Which ones are worth fixing? Is more/different information technology really needed to fix them? Why?

Clarity and Understanding What practices, processes, data and technology should we have? What benefits would we realize from those? Who should do what in the desired future state? Do they agree?

Practical Implications How can we develop satisfactory answers to these questions? How can we document and communicate our answers to others for buy-in, approval and funding? How can we apply these answers during implementation despite time pressures, scope changes, personnel turnover, etc.?

Competency Modeling Benefits Admin. Optimum Situation Job Evaluation Training Mgmt. Payroll Applicant Tracking Competency Modeling HR DATA Integrated HR Systems and Data

Definition l “An organization’s conscious patterns for delivering its services, carrying out its processes and managing its resources.” l In practice - a set of interrelated diagrams, lists and tables that define an organization’s resources and processes and coordinate their use for maximum results.

Business Model Contents HR Services HR Roles HR Policies and Standards Internal HR Processes HR Projects HR Staff HR Budget HR Suppliers HR Measurement

Roles and Positions A role is a function for a person. A position is a defined job for one person. Roles are generic. Positions are specific to an organization. In small organizations, one position does several roles. In large organizations, one role needs multiple positions.

Typical HR Roles recruiter trainer performance coach compliance officer facilitator job evaluation analyst HR executive labor negotiator privacy administrator benefits specialist development advisor equity consultant competency analyst HR services planner policy/standard analyst capacity planner compensation specialist

Advantages of Roles/Positions All roles are explicitly defined. Subjectivity is replaced with agreed-upon objectivity. Relationships to services, positions and competencies are clarified and recorded. Roles can be mapped to any set of positions and are not “lost” during reorganizations. Verifies completeness of the HR function.

Services A service is a specific duty or set of duties performed for a customer (internal or external). Services may be provided routinely or only upon request. Services require roles and resources.

Typical HR Services staffing job evaluation compensation plan design career counseling personal development planning organization design compliance reporting incident tracking

Advantages of Services Defines HR work independently of staff. Clarifies boundaries between similar or related services. Services can be mapped to roles and positions and are not “lost” during reorganizations. Verifies completeness of the HR function. Assists in managing and costing use of HR staff.

Summary A business model includes and integrates a variety of conceptual resources. Preparing a business model helps clarify many factors in any organization. A business model represents the way HR should work so that technology can support it appropriately. Building a business model develops the understandings necessary for HRIS success.

Conclusion When considering changes to HR information technology, building a business model first will help you see and make the right ones.

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