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In the earlier two blog series (http://renewhr.com/2016/08/20/hcm-health-check-roadmap-part-1/) posted a few weeks back we explored the need for an HCM health check and how that can help organizations to build a future HR Roadmap for the entire Organization.

So far so good, but the main challenge faced by the CHROs now would be to get the funding for the same. As the decision-making has shifted from CIO to CHRO, it gives more authority for HR to decide what they need , when they need and how they need it but HR traditionally is not used to prepare for these type of discussions with the CFOs. Now HR needs to present a strong cost/benefit analysis and justification for these expenditures. This is where a well-researched and thoroughly documented “HR Business Case” can help the organization to get their desired funding for their proposed SuccessFactors based “HR Roadmap”.

There are at least three significant reasons why building a robust “HR Business Case” helps the organization.

  1. The first reason is the HR department has an obligation to control its costs. But to control costs, you must be able to measure them in the first place.
  2. Secondly – and with more far-reaching implications – actionable analytics today are used for decision making process in almost across the organization. To truly determine about company performance and link it to competitive advantage; organization need variety of information but personnel information is too important to omit from the equation, and no organization today can effectively gather and analyze the breadth and quantity of data it needs for this purpose without a strong HR System like SuccessFactors with built in Analytics and big data engine. The return on investment here is sometimes difficult to quantify but is nonetheless quite real.
  3. The third reason for a strong “HR Business Case” for your organization is that it potentially justifies the need for the a solid technical architecture that can provide a financially measurable return on investment in the form of greater productivity, and even reduced labor costs within the HR department. That “technical architecture” is more generally known as Employee service center or HR Shared services, employee, and manager self service, social collaboration tools, and mobile apps.

 

Very often we come across organizations who have implemented SuccessFcators as apart of their overall HR Transformation roadmap but are not quite sure if the new system in place is giving them the desired results as expected. But without a well documented business case there is no way to know if you are successful or not. This is where the business case comes to the rescue of HR department and also helps in building a good starting point for future investments in HR as well.

In part 2 of my blog of this series, I will talk about the essential ingredients of a good HR Business case.

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

Sabya Mitra (LinkedIn)

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