- There is no one-size-fits-all HR structure, as no two HR functions are the same – they have different strategic objectives, clients, employee value propositions, etc.
- Designing an HR structure is complicated and often doesn’t produce the desired results.
- A poorly structured HR function impacts the larger organization, as it can result in bottlenecks and delays in meeting client needs or misalignment between priority HR capabilities and HR resource allocation.
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Our Advice
Critical Insight
- There is no one-size-fits-all structure. Invest time in identifying how the HR function enables your unique organizational strategy.
- Optimize HR to ensure resources are allocated where they will have the biggest impact and create no conflict between subfunctions.
- Prepare for iteration. Designing an HR function is an iterative process that requires re-evaluating previous design decisions to ensure they are still appropriate.
Impact and Result
- Design a fit-for-purpose HR structure rather than replicating or copying another.
- Design for the future, aligning HR structure and HR functional capabilities with organizational and line of business strategic objectives.
Workshop: Redesign Your HR Structure
Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.
Module 1: Discuss Design Principles and Capabilities
The Purpose
- Assess current-state implications and identify future state.
- Draft and discuss design principles and capabilities.
Key Benefits Achieved
- Reviewed and assessed the current state of the HR structure
- Vision for the future statement determined
- Identified the design principles and capabilities for the HR structure
Activities
Outputs
Review the assessments.
Identify current-state implications.
- Current-state assessment
Determine future state.
- Future vision
Draft design principles.
- Design principles
Discuss the capability model.
- Capability model ranking assessment
Module 2: Design HR Operating Model
The Purpose
- Finalize capability heat map.
- Review centralization, decentralization, and sourcing.
Key Benefits Achieved
- A finalized HR capability heat map
- A finalized level of delivery centralization/ decentralization map (if applicable)
- Sourcing options defined
Activities
Outputs
Review and finalize capability heat map.
- HR capability heat map
Discuss centralization and decentralization.
- Level of delivery centralization/ decentralization map (if applicable)
Determine and define sourcing options.
- Sourcing map
Module 3: Design HR Operating Model
The Purpose
- Review capabilities and design potential HR structures.
Key Benefits Achieved
HR operating model reviewed and two potential HR structures identified
Activities
Outputs
Review capabilities against design principles.
Review HR operating models and build two potential HR structures.
- HR operating models and two potential HR structures
Module 4: Design HR Work Units
The Purpose
Select and modify HR structure and discuss HR work units.
Key Benefits Achieved
- HR structure selected and modified if necessary
- Completed responsibility and accountability matrix
Activities
Outputs
Select final HR structure and modify, if necessary.
Complete responsibility and accountability matrix.
- Capability-based responsibility and accountability matrix
Discuss HR work units.
Module 5: Finalize Work Unit Structure
The Purpose
Finalize work unit structure and create high-level plan for next steps.
Key Benefits Achieved
- Finalized work units, and if time permitting, inclusion of work unit responsibilities
- Review future-state HR structure presentation template for completion (time permitting)
Activities
Outputs
Finalize HR work units.
- HR work units
Complete work unit responsibilities.
Start mandate statements, as time allows.
Document high-level plan for next steps.
- Future-state HR structure presentation template