Nancy, the CHRO at a global pharmaceutical company, realizes that key HR processes, such as recruiting or compensation and benefits, lack clear management across different business units and regions, resulting in major process inefficiencies and poor service quality. Together with her HR leadership team, Nancy needs to find a way to manage and harmonize core processes across the enterprise, while still allowing for local variations.
“ A multitude of global and local processes can cause ineffective HR service delivery”
“As organizational complexity increases, HR leaders increasingly lack insight into key process activities and timelines, roles and responsibilities, frameworks and tools, or external vendors,” says Gartner director analyst Matthias Graf. “A multitude of global and local processes can cause ineffective HR service delivery with duplication of efforts, higher costs and low-quality results.”
Two essential components will help CHROs and HR leaders to govern HR processes across the enterprise, helping to optimize cost over the long term.
Degrees of standardization
Organizations can achieve a clear overview of all HR processes across their business units and regions by clearly defining the degrees of standardization for key activities.
Degrees of standardization are defined as the range between central standardization (central design and development, as well as standardized implementation and communication of a process) and local customization (local design, development, implementation and communication) in which a process can exist. A comprehensive catalog of defined degrees of standardization drives efficient HR service delivery, because it aligns efforts and costs across the organization, while allowing for local customization needs.
First define the degrees of standardization for selected activities and then determine the range of central standardization versus local customization for existing activities.