Becoming an Administrative Expert

As HR professionals reengineering their

delivery of service, they become
administrative experts creating efficient
infrastructures, both for HR processes and
for their businesses as a whole.

Case Study 1: Johnson & Johnson

J&Js centers of expertise included the following.

Compensation / benefits;
Affirmative action / diversity;
Live of life, a combination of medical, safety,
wellness, and employee-assistance programs and
risk-screening service;
Employee relations;
Organizational effectiveness.

Table 4-1 Johnson & Johnsons Estimated Allocation of HR Time

Field HR/
Dedicated
Service

Service
Center

Center of
Expertise

Contracted
Service

Total Time

Past: In a
centralized
HR
organization

20

70

10

100

Past: In a
decentralized
HR
organization

80

10

10

100

Present:
Where we
are today

40

30

10

20

100

Future:
Where we
are headed

20

40

10

30

100

Case Study 2: Lotus Company

The HR department created a new vision:
We view ourselves as a business dedicated
to helping all our customers achieve
maximum value from our products and
services.

The key practices and lessons from

the Lotus HR reengineering effort:
Place all possible HR information on-line.
Empower responder accountability among the
Direct Connect staff to ensure quality service
delivery.
Track all calls.
Work hard to deliver Direct Connect service.
Distribute data about Call Center use to line
managers.
Do aggressive marketing.

Actions Necessary to Becoming

an Administrative Expert

Two Phases of Reengineering:

Phase 1: Improving Processes
Define the target processes.
Develop as is models.
Challenge underlying assumptions.
Develop should be models.
Implement, roll out, market.
Measure business impact.

Phase 2: Rethinking HR Value Creation

Framework 1: Avoid the
centralization/decentralization quandary
Framework 2: Define a value-creation
framework and delivery options
Framework 3: Define a value-creation
process

Broker of Services:
(IBMs Workforce Solutions)

HR research and consulting

Leadership development
Compensation and benefits administration
Occupational health service
Work force diversity programs
Equal opportunity compliance and records
Recruiting and employment
Resource programs and operations
Information technology
Executive programs

Service Center:
Transaction-based activities

Benefit-related activities
Compensation/pay activities
Development and learning activities
Corporate citizenship activities
Records activities
Staffing activities

Centers of Expertise:
Transformation-based activities

Staffing
Development
Compensation
Organizational effectiveness
Communication
Organization design
Employee relations
Union relations
Security

Integrated Solutions:
The integrated solution engages and enlists experts
from multiple staff groups into teams that confront
business problems within business units, unlike the
center of expertise, though which HR experts
independently contract with a business unit.
A second difference is that the integrated solution,
either across the multiple functions of HR or across
multiple staff groups, provides in-house consulting
expertise on common business problem.

Framework 3:
Define a value-creation process
Step 1: Customer Requirements
Step 2: Customer Interface
Step 3: Process
HR professionals dedicated to the business
HR professionals in shared service roles
Line managers
Information technology
Outsourcing
Step 4: Shared Services

Key Success Factors in a Shared

Service Organization
step1:Customer Requirements
Involve the customer in defining
deliverables
Help the customer see the importance of
strategic HRM and the role of HR strategy

Step2: Customer Interface

Select the right HR business professional
Be skilled at organizational diagnosis

Step3: Process
Define and use multiple channels of
delivery
Share information between customer and
shared service and shared service and
customer

Step4: Shared Services

Remove boundaries within the HR function
Clarify multiple roles within the shared service
organization
Co-locate members of the shared service
organization
Encourage and teach teamwork
Get consolidations over as quickly as possible
Define measures of shared service success

Potential Pitfalls and Things to

Watch out for

Power Shifts
Depersonalization
Accountability
Shared Mindset
Shadow Staff

Questions
1. IBM had found that some of the outsourced HR
services were elements of IBMs distinctive
competence and that buying and selling these
services as commodities lessened IBMs
uniqueness. What is your opinion on this finding?
2.What is boundaryless behavior? What will be the
results of boundaryless behavior?
3.What is the difference between Administrative
Expert and Strategic Partner?