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&J’s 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 & Johnson’s 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 Present: Where we are today 40 30 Future: Where we are headed

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: (IBM’s 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 IBM’s distinctive competence and that buying and selling these services as commodities lessened IBM’s 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?