Three Resources for Optimizing HR Structure and Operating Model | Gartner and McKinsey

HR Effectiveness

HR leaders continue to reevaluate their HR structures and operating models to optimize efficiency, cost, and impact. And given the various ways they can achieve these goals, CHROs must weigh different options when making these decisions. As HR leaders think through these decisions, I include three resources that can be leveraged. 1) Using Shared Services to Drive the HR Operating Model of the Future. This Gartner article argues that many operational HR activities that are most suitable to be wholly owned by a Shared Services Center (SCC) still fall into HR teams outside of SSC. It offers a 4-component model that separates operational and strategic work and promotes operational efficiency and strategic impact. 2) Five Steps to Build an HR Center of Excellence. A Gartner article that helps establish COEs that drive economies of scale and experience and “which do not distract the entire HR team from business-as-usual activities.” 3) Redefining Corporate Functions to Better Support Strategy and Growth. This McKinsey article provides criteria for decision-makers of organization design when choosing a centralized or decentralized model. It bases decisions on the strategic rationale for the current design and how it drives business value. These resources can help HR leaders evaluate which design options enable effective and efficient HR operating models and structures.

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