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Maximising HR transformation potential with Cloud system optimisation

By Gianmatteo Masala, Alight Research and Advisory Centre

Organisations globally channel substantial resources into HR Cloud systems as a critical pillar in Human Resources (HR) transformation. These cutting-edge cloud systems are not an endgame; they serve as catalysts for continued growth and innovation tailored to an organisation's evolving needs.

However, for many organisations, the journey towards HR transformation is not always smooth. It can be hindered by change fatigue following the initial excitement of the design and build phase.

Combatting change fatigue in post-HR transformation

Effectively managing change fatigue is critical in ensuring the ongoing success of the transformation process. Modernising HR is an ongoing process.

The strategy only starts to drive changes when it progresses from conceptual into a dynamic platform with actively engaged users. All too often, the transition to regular maintenance can falsely signify the end.

The consequences of neglecting system optimisation

Neglecting continuous HR system optimisation can result in issues in live implementations, such as sluggish processing, data inaccuracies and access challenges.

The consequences of neglecting system optimisation

Neglecting continuous HR system optimisation can result in issues in live implementations, such as sluggish processing, data inaccuracies and access challenges.

  • Inefficient processes hinder productivity and workflows
  • Data errors and inconsistencies lead to unreliable information and decision-making
  • Compliance risks expose the business to non-compliance with regulations
  • Limited visibility and reporting impede accurate HR analytics
  • Poor employee experience due to delays, errors and limited self-service
  • Increased administrative burden on HR teams
  • Lack of scalability and flexibility to support growth and changes
  • Missed opportunities for innovation and advanced analytics

Prioritising HR system optimisation helps address these challenges and improves efficiency, compliance, employee empowerment and strategic decision-making.

The role of project management in HR transformation

Rigorous project management is indispensable in sustaining momentum and fully realising the benefits of HR Cloud systems. It encompasses comprehensive planning and resource allocation. By doing so, it maximises the return on investment.

Adopting an active and forward-thinking strategy

To achieve the best HR transformation outcomes, organisations must go beyond routine and reactive maintenance. Cultivating a culture of proactive optimisation paves the way for growth.

Integrating continuous improvement into HR strategies enables an adaptable and forward-thinking approach. This initiative-taking mindset unlocks opportunities and drives HR transformation success.

Expert project management as a key to success

Expert project management plays a key role in keeping focus, mitigating change fatigue and driving successful HR transformation. For organisations lacking internal resources or expertise, HR project management as a Service (PMaaS) provides flexible and scalable solutions.

Emphasising the importance of HR transformation

In my colleague's recent blog, Is HR transformation the key to unlocking success in the modern workplace?, the importance of effective HR transformation is emphasised. She stresses that HR transformation is not merely an option but a necessity in today's competitive environment.

HR transformation goes beyond being a luxury or a passing trend; it is an essential business imperative for navigating the complexities of the modern world and building resilience for the future.

Frauke Freese, Professional Services – Advisory
Alight Solutions

Addressing the challenges of HR transformation

Despite its importance, research by McKinsey shows only 30% of HR transformation projects meet their goals. Furthermore, a mere 16% reported sustained performance improvements and just seven per cent experienced temporary gains.

These poor statistics underscore the inherent complexities and challenges in digital transformations and highlight the critical need for effective ongoing project management.

Continuous HR modernisation is key to success in the modern workplace

Continuous HR modernisation brings a range of benefits that extend throughout the organisation. It enables the alignment of HR and broader workforce management strategies with the overall organisational strategy.

By streamlining processes and implementing standardised data analytics, organisations can make data-driven decisions that optimise business operations and enhance the employee experience.

Moreover, adapting to evolving expectations and using digital solutions fosters flexibility, diversity and career growth opportunities. This, in turn, enables organisations to attract and keep top-tier talent, cultivate an engaging work environment and gain a competitive advantage in the market.

By taking a proactive approach to HR modernisation, organisations unlock their full potential and achieve long-term success.

Cultivating a change mindset for long-lasting HR transformation success

Achieving enduring success in HR transformation requires cultivating a change mindset. Organisations must prioritise continuous system optimisation and adaptability to meet the ever-evolving demands of the workforce.

By aligning HR practices with overarching business strategies, organisations can attract exceptional talent and streamline data-driven decision-making processes. 

In the next blog in this HR transformation series, Unlock HR transformation success with design thinking and scrum, we will delve into how Alight effectively combines design thinking and scrum methodologies to expedite HR optimisation projects.

Although these methodologies are often associated with IT, their value in HR optimisation has been proven. Tailoring them to meet our clients' unique needs allows us to extract tangible value from HR transformation initiatives and set up a robust HR operating model for long-term success.

Top 10 best practices for an optimised Cloud HR operating model

  1. Continuously innovate and update for peak system performance
  2. Maximise cloud HR system potential through staff education and training
  3. Enforce data quality standards with regular audits for reliable performance
  4. Enhance user experience with proactive support and engagement
  5. Foster a culture of continuous improvement and innovation in HR procedures
  6. Streamline admin functions through automation and self-service options
  7. Synchronise HR cloud system with relevant systems for seamless data exchange
  8. Monitor system performance for prompt issue resolution
  9. Implement stringent security protocols to safeguard sensitive HR data
  10. Collect user feedback for ongoing system enhancements

By executing these practices, organisations can sustain an optimised cloud HR operating model, maximise system advantages and promote HR excellence.

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