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This is my debut blog with Renew HR. I hope to provide you insightful information that you can readily use to make effective and actionable decisions within your organization.

Significance of doing a HCM Health check for your Organization

HCM Health Check can be defined as a holistic overview of client’s existing HR processes, service delivery, user experience and HCM systems conducted using various methodologies which may consists of diagnostic questionnaires, surveys, interviews and workshops with business and IT stakeholders.

As we are moving out of long and lengthy implementation cycles to a new cloud world full of opportunities and possibilities, many a times we are short sighted in your vision to go for a quick implementation for SuccessFactors without understanding the lessons we should have learned in the past while implementing SAP HR (we can consider PeopleSoft or Oracle clients as well). We believe it is important to understand what worked and what didn’t but also the reason behind that.

There could be a question in readers mind that why should we care about what we did 5-10 years back when we are moving into the new best in class thing called SuccessFactors, which is supposed to take care of all our problems magically in a 5-10 months period. We wish life would have been that simple. If you answered “No” to one or more of these questions, then you would benefit from an HR Health Check

  • Are your users have a great “User Experience” in HCM?
  • Are you spending enough time in understanding whether you are meeting your HR KPIs or not?
  • Are your customers ‘very satisfied” with your HR service offerings?
  • Are you still spending 60% or more of your HR dollars on administration?
  • Does your ESS/MSS covers 95% of your HR process/transactions?
  • Can you easily find, aggregate and analyze your HR data and build actionable analytics on it?
  • Are you able to bench mark your HR Processes and performance with the industry?
  • Do you common HR processes across our your enterprise?
  • Are you realizing the benefits from your SAP HR and other HR software implementations?

It is important to know how you did the last time a major HCM (SAP HR and others) software was implemented to understand the pitfalls and avoid them.

Below are 5 top questions and potential thoughts you should think about as you reflect back on your prior implementation and assess your future HR roadmap.

  1. Why did your organization decided to implement SAP HR and other HR systems in the first place
    • Other part of the organization had SAP ERP and IT insisted on having SAP HCM
    • Integration benefits
    • Strategic benefits
    • Operational benefits
    • Align with organization’s strategic goals
  2. Were you able to judge the success of that project
    • Was there a business case build before the implementation
    • Were all these benefits and goals met?
    • Was business involved in the decision making process?
    • Is the current solution out dated? And why?
    • Does the current solution allow analytical data from HR, PY and other non-HR specific department(s)?
    • Does the current solution still offer an ROI?
  3. Does your current solution meet the long-term strategic vision of your organization?
    • Were complete solutions implemented that took into consideration the variations of the business process requirements?
    • Has there been a lot of business level changes due to merger and acquisition, other organizational changes since the time you have implemented SAP HR and other HCM solutions for your organization
  4. What were the learning from that implementation
    • The solution as designed worked very well
    • There were a lot of work around as the business blue print didn’t reflect the to-Be processes well enough
    • User adaptability was low because of lack of change management, difficulty in using the software, lack of end user training etc.
  5. What would you like to achieve from your SuccessFactors implementation:
    • Current organizational goals
    • Current pain points and limitations
    • Desired functionality
    • Your need to have HCM analytics, operational, predictive, prescriptive etc.
    • Enhancements, customizations, and/or non-standard solutions
      • Are these still relevant?
      • Should they be replaced with standard best practices?

A well done health check helps the organization to develop a good business case for their next round of HR Transformation enabled by SuccessFactors (or another leading cloud HRIS) solution. A good Health Check should give you some of the following benefits:

  • Identification of improvement opportunities for HR process, delivery, system
  • Assessment of effectiveness of technology that supports HR services delivery
  • Potential solutions to key issues and pain points
  • Comparison to HR “leading practice” metrics and Best Practices
  • Presentation of final report findings and recommendations to senior leadership
  • Limited front-end investment and accelerated time frame to create an HR “call to action”

This also helps you to come out with future HR Roadmap which depicts a short term, mid-term and long term vision of the organization keeping in mind your organizations strategic business objectives.

In Part Two of my blog next Friday, I will discuss how to utilize the data from your HCM health check to develop your strategic HR Roadmap. Stay tuned.

Please visit Renew HR’s Advisory Services to learn more and Contact Us to schedule a free HR Health Assessment.

Sabya Mitra (LinkedIn)

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