The document discusses transforming HR functions to better align with business objectives. It describes moving HR from an administrative role to a strategic partner focused on talent management, workforce planning, and other areas that support business goals. The transformation involves setting up shared services for transactional work and centers of expertise for specialized functions. It also discusses implementing business partners, self-service technologies, standardized processes, and other elements to deliver efficient, effective HR support. The goal is for HR to operate as a true business function that helps meet commercial targets through people strategies and solutions.

1. 1 | JULY 2014 HR TRANSFORMATION: ALIGNING WITH THE COMMERCIAL AGENDA
2014
JULY
HR Transformation:
Aligning with the Commercial
Agenda

2. 2 | JULY 2014 HR TRANSFORMATION: ALIGNING WITH THE COMMERCIAL AGENDA
Introduction
While Human Resources processes pervade
the enterprise, reaching into every aspect of
operations, HR has nevertheless traditionally
tended to be viewed as an administrative
function, in isolation. As companies started to
recognize the potential influence of the Human
Resources function in meeting corporate targets,
however, the focus shifted to Shared Services
models, thereby optimizing operations, driving
standardization, and leveraging technology. Today,
with competition for staff fierce and “talent”
emerging as one of the most valuable competitive
differentiators (the others are HR process and HR
technology), the HR function is stepping into the
corporate spotlight, positioning itself as a strategic
partner to help the business meet growth and
operating targets, and succeed.
Getting from there to here, however, is an arduous
journey. The challenge of HR transformation,
which more and more companies are embracing,
is to align supporting frameworks and processes
to business objectives. Many organizations failing
to do so find that their HR services are still stuck
in a silo, and their impact on the business – though
cost effective – remains muted.
To help you manage your own HR Transformation
in accordance with best practices, we have
compiled the most important levers in this report.
Christina Exarchou
Head of HR Practice, EMEA
Chazey Partners

3. 3 | JULY 2014 HR TRANSFORMATION: ALIGNING WITH THE COMMERCIAL AGENDA
What is HR Transformation?
In its early incarnations, starting in the mid-nineties,
HR Transformation was focused predominantly on the
internal workings of the function, driving efficiency and
effectiveness. Today, however, Transformation is about
enabling and supporting corporate strategy, and adding
value. So while early Transformation was about serving
employees more effectively through self-service and
access to data, today HR is reaching outside its walls,
collaborating with the business to anticipate and plan
for workforce trends, respond to changes in business
requirements, manage risks, and ensure it remains
compliant with local legislation.
This “new” HR operates at the heart of the business,
driving both the planning and execution of workforce
strategy in the face of global competition for talent that
is putting critical skills in short supply. In this capacity,
HR will prove its value by anticipating and delivering
the skills the business needs through harnessing
the full potential of a global workforce, as well as
supporting processes in as effective and cost-efficient
a manner as possible.
HR Transformation: a
Compelling Value Proposition
Modern business has no room for stagnant functions.
As the enabler of organizational talent, HR has a crucial
role to play. By aligning its strategies with business
goals, by ensuring that people management systems
support business development, and by leveraging
strategic leaders, HR can truly provide a step change
for enterprise.
To be recognized as an enabler, and to gain senior-level
sponsorship, however, HR needs to create a tangible,
clear and compelling value proposition for the business
to buy into. Transformation to a better tomorrow
requires the full support of all stakeholders today.
Transformation Objectives
HR transformation is about positioning the function
in the same direction as the business. In other words,
the HR model replicates the rest of the business
functions, becoming a true business partner in support
of achieving strategic business targets.
HR Transformation is about eliminating, wherever
possible, non-value adding work; escalating insights
and influence to help the business meet its targets; and
providing innovative access to a globally dispersed pool
of labor.
There are three basic objectives for a successful HR
Transformation:
• Transaction Effectiveness: generally achieved
through a Shared Services model that deals with
all HR administrative matters and that can provide
more complex advice and support
• Specialty Services: essentially “Centers of
Expertise” that provide in depth technical
solutions (for example, employee relations, reward,
resourcing, learning and development etc.)
• Strategic Alignment: delivered via HR Business
Partners that support senior business leaders with
an appropriate “people” strategy
The result of this approach is that HR becomes more
customer-focused, cost-efficient and structured, and
is able to respond quickly and flexibly to changing
business requirements and priorities.
The Transformed Operating
Model
What differentiates a “transformed” HR function
from a conventional one is that it utilizes multiple
approaches to deliver support. So, apart from the
actual transactional element (now packaged as Shared
Services), it also offers advice and compliance support
on local issues, leverages enterprise knowledge to
drive efficiencies and innovation, and offers valuable
input on strategic decisions. We can summarize the
four core elements of a transformed HR services
operating model as:
1. Shared Services
2. Strategic Center of Expertise
3. Local HR Delivery
4. Business Partner/Advisor
These, between them, create a matrix of services
support that transforms a centralized HR center into a
value adding enabler of corporate strategy
(see Figure 1).

4. 4 | JULY 2014 HR TRANSFORMATION: ALIGNING WITH THE COMMERCIAL AGENDA
Figure 1: HR Service Delivery Operating Model
External
Customers
(Recruits)
Countries
OCU
Execu3ves
Line
Managers
Staff
Business
Partner
Self-­‐Service
Human
Resources
Advisory
Centre
Expert
Services
Policy
Technical
Infrastructure
&
Applica3ons
Data Management & Reporting
HR Systems and Support
Health & Wellbeing
Performance Management
Reward Management
Compensation & Benefits
Change Management
Resourcing
Employment Relations
Workforce Planning
Strategic
Centre
• Health & Wellbeing
• Resourcing &
Workforce Planning
• Performance & Comp Mgmt
• Employment Relations
Shared
Service
Centre
Opera3onal
HR
Support
• Performance Management
• Absence Management
• Case Management
• Disciplinary
• Fairness at Work
• Line Manager guidance
HR Advisor
HR
Leadership
• Leadership
Capability
• Workforce
Performance
• Employee
Engagement
• Workforce
Adaptability
• Strategy
Alignment
• Talent
Management
• Staff
Efficiency
Here are some observations on the core elements that
drive a transformed HR operating model:
1. Shared Services
The operational hub of a transformed HR services
model is the Shared Service Organization, responsible
for delivering the policies and programs developed in
the Strategic Center and designed around service level
“Tiers”:
0: Self-Service (on-line answers and transactions)
1: HR Advisory Center (24x7 service)
2: Expert Teams (specific queries, more complex or
time-consuming transactions, based on service
centers)
3: Strategic Center
2. Strategic Center of Expertise
A pool of HR professionals with deep functional specialty
who work with the Customer (e.g. Business Partner,
HR Advisor, etc.) to design and develop HR solutions
to support business requirements, using intelligence
from the SSC and Business. The Center also proactively
identifies trends and interfaces with Training, Leadership,
and Organization Development.
Roles/Responsibilities
• Design and implement fit-for-purpose HR
programs, processes and policies
• Provide expert solutions to the business,
collaborate to provide insight on specific situations
• Maintain deep expertise in areas of functional
specialty
• Handle and close escalations forwarded by case
workers in the Shared Services Center
• Drive common standardized processes
• Provide communication materials to HR Business
Partners, HR Advisors, and Shared Services Center
for use within business groups
• Custodians of corporate memory/knowledge
management
• Monitor Service Center exceptions processing
and employee feedback to drive continuous
improvement
Assumptions
• Close linkage with governance body to ensure
process integrity and clarity of strategic direction
• Center of Expertise serves all businesses
In a transformed HR service, the following core People Management processes need to work effectively:
• Talent Acquisition
• Performance Management
• Learning and Development
• Compensation Management

5. 5 | JULY 2014 HR TRANSFORMATION: ALIGNING WITH THE COMMERCIAL AGENDA
3. Local HR Delivery
Deployed from Shared Services, this group is based in
the business and manages 1-on-1 interactions where
sensitive or complex cases require this level of support.
It guarantees localized HR delivery through the Service
Center, manages organization-wide policies and
procedures at a local level, and provides support and
coaching to local line managers.
Roles / Responsibilities
• Executes global policies and programs
• Ensures policy compliance with applicable
legislation
• Supports culture change and change management
initiatives
• Supports leadership in managing frontline
employee relations
• Includes discipline and grievance resolution
• Provides coaching to local leadership on
performance management and capability building
• Provides feedback to Center of Expertise and
Business Partner on effectiveness of initiatives
• Active communication with the Service Center and
Local HR Support to ensure business needs are
met
Assumptions
• Generalist resource with excellent relationship
building and management skills
• Deployed based on employee population and
business needs
• Accesses Shared Services and Center of Expertise
resources as required
• Reports to and deployed by HR Business Partners
4. Business Partner / Advisor
Ensures alignment between Business Strategy and HR,
and is responsible for understanding and defining HR
requirements from a business perspective, as well as
managing local delivery. It also ensures that the Shared
Services Organization meets local SLAs, and develops
solutions to meet business requirements in conjunction
with the Strategic Center.
Roles / Responsibilities
• Trusted advisor to the Business
• Ensures consistent implementation of HR
programs within the Business and adherence to
guidelines
• Drives culture change and change management
initiatives with the support of project managers
• Partners with the Center of Expertise to create
innovative and fit-for-purpose HR solutions
• Organization design & development, compensation
& benefits, training & education
• Manages the talent pipeline in conjunction with
Business Leadership
• Identifies organizational capabilities required to
execute business strategy
• Analyses, drives and monitors organization
performance
• Provides feedback to the Service Center, reviewing
quality and cost of service provided
Assumptions
• Reports to Business, not HR function
• Trusted advisor, charged with coaching &
mentoring of business leaders, facilitating ‘future
state’ performance
• Strong interface exists between Business Partner
and Center of Expertise
What Drives Transformed HR?
By taking a holistic approach to delivering HR services
across the business, and incorporating levers like
Leadership, Technology, and Process Support, activities
are delivered on time and at the level required for
optimum performance. The combination of technology,
process, and strong leadership ensure HR maintains its
strategic value across the enterprise.
Here is how the new operating model can be supported
by deploying these levers:
HR Leadership: Articulates strategic intent for HR and
is aligned to the overall company strategy.
Roles / Responsibilities
• Trusted Advisors to the Executive Board
• Sets the HR Agenda and Priorities
• Ensures appropriate HR support to strategic
initiatives
• Defines levels of decision making authority and
guidelines for escalation
• Establishes key communication framework
• Owns strategic direction of core global HR
processes; accountable for the integrity of
processes including delivery of high-level service
agreements
Self-Service (Technology): Employees and Line
Managers perform selected HR tasks online, via a
common HR employee portal.

6. 6 | JULY 2014 HR TRANSFORMATION: ALIGNING WITH THE COMMERCIAL AGENDA
MSS - Manager Self Services
• Online handling of team’s organizational
management changes (transfers, promotions,
department rotations, etc….)
• Online access to performance management
• Online access to absence management tools
• Online access to C&B tools
• Online access to Learning & Development
• Online posting of all open positions
• Online approvals for all relevant processes
• Access to HR reports
Employee Self Services
• Online access to personal data
• Requests and authorization of vacation days
• Performance management process reports
• Access to e-learning
• Access to job postings and application submission
Other Web-enabled information
• Portal – Intranet to host internal strategy, HR
policies, employment information, benefits, direct
system access,
• Internet – external company site reaching the
public, applicants access tool, sharing news on
Corporate Social Responsibility
Process Support:
• Process standardization & performance
management
• One common technology platform (ERP)
• CRM (Customer Relationship Management) in
place
• Service level Agreements communicated and
signed off by all customers (countries & SHS
organization)
• CPIs, measurable and transparent customer
performance indicators to measure performance
and efficiencies
• Customer Feedback surveys
A few warnings before you
start…
• Ensure that HR processes are compliant across all
jurisdictions and are fit for purpose.
• Recognize that HR has a number of different
customers with different requirements.
• Drive a seamless service within HR to satisfy all
levels of service requirements in the business.
• Communicate so that the business is aware of and
informed about the support options under the new
HR model.
• Up-skill Line Managers (for People Management)
so they are more proactive and accountable.
• Ensure that HR Business Partners are trained and
skilled in delivering strategic (not operational)
support to their client.
• Understand that there may be a need for
large-scale capital investment to get the right
technological infrastructure.
Next steps
Take a moment to assess your readiness for HR
Transformation:
Yes No
Do you have standard processes run
at a global level?
Do you have one common ERP plat-
form?
Is your HR structure reflecting the
business function structure?
Are your HR customer satisfaction
rates at the ‘positive’ side? (positive
as defined by your internal ratio)
Are your Key Performance Indica-
tors (KPIs) results meeting your set
targets?
If you are interested in evaluating your operations and
finding out how you can drive changes through HR,
please feel free to contact one of our
Practitioners here: enquiries@chazeypartners.com
To truly transform HR requires a holistic approach that encompasses resources, productivity improvement, and better
service provided at better cost. Such a transformation is built on three core foundations:
• Service Centers
• Technology
• Standard Process Design
These three features are, in turn, enabled through communications, change management and training.

7. 7 | JULY 2014 HR TRANSFORMATION: ALIGNING WITH THE COMMERCIAL AGENDA
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ChazeyPartners
Chazey Partners is a practitioners-led global management advisory business. We bring together a unique wealth of
experience, empowering our clients to strive for world-class excellence through Business Transformation, Shared Services &
Outsourcing, Technology Enablement, Process Enhancement and Corporate Strategy Optimization. We pride ourselves in
having built, operated and turned around some of the world’s most highly commended and ground breaking Shared Services
Organizations, and for implementing many highly successful multi-sourced (shared services and outsourced) delivery
solutions. Over the last 20 years, we have delivered numerous programs globally, in the US, Canada, UK, Continental Europe,
Ireland, India, Eastern Europe, South America, Singapore, Australia, China, Middle-East and Africa. Our experience covers
both Private and Public Sectors, providing expertise in a wide spectrum of business functions, including Finance, HR, IT and
Procurement.
Learn more about us at www.ChazeyPartners.com.
Phil Searle CEO & Founder
Chazey Partners
philsearle@chazeypartners.com
David O’Sullivan Co-Founder & Partner
Chazey Partners
davidosullivan@chazeypartners.com
Esteban Carril Managing Director, Latin America
Chazey Partners
estebancarril@chazeypartners.com
Chas Moore Managing Director, North America (West)
Chazey Partners
chasmoore@chazeypartners.com
Anirvan Sen Managing Director, Asia, Middle East and Africa
Chazey Partners
anirvansen@chazeypartners.com
Janey Jux Head of Public Sector Practice EMEA
Chazey Partners
janeyjux@chazeypartners.com
Christina Exarchou Head of HR Practice EMEA
Chazey Partners
christinaexarchou@chazeypartners.com
Emer O’Kelly Regional Director Europe
Chazey Partners
emerokelly@chazeypartners.com
Robert Towle Managing Director, North America (East)
Chazey Partners
roberttowle@chazeypartners.com