5 Principles For HR Transformation

By SHAHRAN MASOOD

Looking to the trends of future HR management, there is focus on how we process information for better decision-making. Not just looking at the manner in which we process, but most importantly the way information is utilised.

In an interview with Ravin Jesuthasan, co-author of Transformative HR: How Great Companies Use Evidence-Based Change for Sustainable Advantage, he mentions that ‘evidence based change’ programmes have their roots in ‘evidence based medicine’ – the practice of well-conducted research in healthcare decision making. In short, a better diagnosis.

According to Jesuthasan, he wants to instil rigour and science in the making of HR decisions – “just like finance and marketing functions have the tools, processes, and decision supports systems.”

Instead of just having data driven decision making in HR, it’s also about having hypotheses, the most relevant information, coupled with change management skills.

He suggests that when we identify the essential ingredients or tasks to make change happen, we are better prepared to transform company culture and raise productivity.

Transformative HR is based on five principles that build upon one another:

1. Logic driven analytics

Is there information that is not being utilised? There is value in all information so it is important to make sure that all data is processed and utilised for decision-making. Take opportunity to connect the dots to find new clues and opportunities.

2. Segmentations

Look at the whole business and groups of talents to understand when it is a good time to emphasise on one group more than another.

3. Risk leverage

Risk can be utilised where an outcome is still suitable. Instead of protecting against all outcomes we need to distinguish between good and bad risks.

4. Integration and synergy

How are your programmes integrating and building upon one another for improved outcome? Resources are better spent on integration rather than starting new initiatives.

5. Optimisation

Make decisions about where resources are allocated (HR and money) and analyse how effectively these resources are generating a return.

For applications of these principles, read here.

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First published in English daily The Star, Malaysia, 29 November 2014