HRO, Change, Solution

Managing HRO change: The 3Rs solution

Most human resource executives now realize that many HRO providers have been selling technology as the means to unlocking the strategic value of the HR function. This is not totally without merit. But it is incomplete. The concept of HR as a business partner grew up at the same time HRO surfaced as a growing strategy for driving more value from administrative business functions. The idea was to get HR to the table as a strategic contributor. The rush to demonstrate HR’s value proposition to C-level executives through outsourcing created the myth that technology is the path to value creation.

In reality new technology adds new complexity – not just new tools for getting the HR job done, but also new challenges that arise from the inability to take full advantage of what HRO offers. What is needed is applied Organizational Change Management (OCM) so that technology helps achieve speed-to-value, rather than slow the organization down.

The 3 Rs Solution

Most of us know the three Rs as; Reading, Writing and Arithmetic. These are considered to be foundation principles for a good education and we all received a healthy dose of each. Building a solid foundation is fundamental to every worthy pursuit and often is the difference between success and failure. HRO is no different.

People, process and technology have long been considered staples for business optimization. While they are important in combination, most of the emphasis has been placed on technology. What has been misunderstood is that technology does not improve productivity – it accelerates processes. Consider what happens when processes are accelerated without enabling people to take advantage of this acceleration.

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