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Similarities behind Ali, Tencent and millet: the three pillar system of human resources

The success of many Tencent Ali millet right with the age of the Internet to interpret,! Have you ever thought of success is their fundamental success. Based on peer you recommend this article, through the NB company, we sort out a set of methods of human resources theory. Jack Welch once said, “human resources the person in charge of any business should be second people, but in China, 99% of the enterprises to do. The reason is very simple, the human resources department didn’t create so much value — business growing rapidly, but the total HR in drag.

Studies have shown that the human resources department can become a driving force for business, the key is HR itself to transition

1 reposition the human resource department

The human resources department has become a driving force for business, first of all to the “human capital” as a business. Therefore, the human resources department to re locate, from function oriented to business oriented mode of operation. China enterprise human resources department is currently divided by function block (such as salary, training, etc.) — each the function block is also responsible for policy formulation, policy implementation and transactional support (such as salary, formalities). In this mode, the company grew larger, HR is superior, the farther away from the business and business; grass-roots supervisor and employee needs HR support, it is difficult to obtain; often only on HR no, the lack of policy relevance and flexibility of the business needs, business executives feel more value but not control; HR a lot of time to focus on work, not targeted for auxiliary business supervisors Guide, can not provide customized and integrated solutions for business needs

HR to improve the efficiency and effectiveness, to operate like business units. In this business unit, is responsible for customer management, was responsible for the professional technology, responsible for service delivery, there is the need for human resources transformation.

2 Human Resources Department transition from mixed mode to the three pillar

The transformation of human resources, HR’s role is simply divided into three. Practice proves that this mode of operation can significantly improve the efficiency and effectiveness of HR, which is a leading company in the common HR three pillar model, see below:

Operate like business department, human resources department should answer first is my client who is, what are the requirements? From the above point of view, through the human resources department (business department) to meet internal customer demand, and thus indirectly to achieve external customers to meet the needs of the customer segmentation theory. Use of marketing, HR can put their target customers divided into three categories:

1) top management: their needs focus on the organization, talent, culture, change management and other aspects of strategy implementation;

2) middle managers: their needs are mainly about consulting, coaching, tools and data support for personnel management;

3) employees: they demand mainly around to answer policy questions and provide convenient services, such as labor contract, entry procedures, such as payroll. In first kinds of customer demand highly customized, high standard requirements of the third types of customers, second customers lies in the relationship between the two.

HR mode of operation to serve the customers to meet the needs of the service. With external customers, the most difficult to satisfy the demand for customized, HR BP (Business Partner) came into being. This role role in business partners, according to internal customer needs, provide consulting services and solutions. They are the key to ensure close to HR business needs.

However, at the same time provide solutions implies the need for knowledge of business and HR in various fields. Looking for a group of people are not well versed in reality. In this case, there arises the need for specialization, this is HR COE (center of expertise).HR COE’s role in the field of experts, with the field of deep professional skills and practice of leading the master, is responsible for the design of business oriented, innovative HR policies, procedures and programs, and provide technical support for HR BP.

If you want to HR BP and HR COE focused on the strategic advisory work, they must be free from transactional work. At the same time, HR of the third types of customers – employees, the demand is often relatively homogeneous, there are standardized scale possible. Therefore, it is the HR SSC (shared service center).HR SSC is the HR standard service providers, their managers and employees responsible for answering inquiries, free from BP and COE to help work out, and the customer satisfaction and operational excellence.

3 the value of human resource transformation

All in all, the value of HR’s transformation to the three pillar lies in its value:

1) enhance HR efficiency:

HR BP: close to the business with HR resources, to provide a unified service interface, providing end-to-end solutions; on the other hand, “the instructor assigned to company”, to provide organizational guarantee for the inheritance and the policy of the company’s core values fall;

HR COE: establish HR professional capabilities, enhance the effectiveness of human resources policies, processes and solutions, and provide technical support for HR BP service business;

2) improve HR efficiency:

HR SSC: providing standardized and process based services to enable executives and HR to be released from operational transactions to enhance the overall service efficiency of HR;

4HRBP: business partner to ensure HR business orientation

Roles and responsibilities of 4.1 HRBP

Strategic partners: promote the implementation of strategy in terms of organization and talent strategy, core values inheritance

Solution integrator: integrated COE design to form a business oriented solution

HR process executor: implement HR process, support personnel management decision

Facilitator of change: the catalyst role of change

Relationship Manager: effective management of employee relations

HR BP often close to the business configuration, through the “instructor to company”, to ensure that management effectively supported the industry often full-time employees according to BP/ service rate allocation BP; different complexity of different HR on business support and service, BP service rate differences, as shown in the table below.

See the big picture

4.2 key success factors for implementing HR BP in China

A study has been carried out HR BP’s global survey found that 53% of companies believe that BP is not successful in the implementation of the company, because the only change does not represent the successful transformation of what are the critical success factors of BP.HR name? I think they are as follows:

  1. select and make excellent HR BP:

As mentioned earlier, HR BP is required to understand the business, but also to grasp the general knowledge of human resources. In the industry practice, selection and enable BP in two ways: one is from the HR group in the selection of a comprehensive knowledge of HR, with consulting skills and influence of talents, and through on-the-job practice to enhance business acuity; another is the choice of successful experience in personnel management personnel from the business supervisor, and through the system enables the program to enhance the role of human resources and cognitive skills; these two modes like climbing Himalaya Range, can climb from the southern slope, can also climb from the north slope, are likely to be successful. The first mode is more common in the the industry, after a business model is more suitable for the presence of HR and transformation of soil organization occupation;

  1. help business executives prepare:

HR BP implementation of second cause of success is the business executives do not know HR BP in the end what ought to be done, so back to HR or BP; so in the implementation, and business executives should clearly communicate the role of BP HR, will do what, what do not do, expect a lot of enterprises because of HR BP management. What should report to who and confused, at the beginning of the implementation of HR BP HR BP, the author suggests to business report, so you can ensure that business executives will HR BP as one of their own, there is enough ownership to play the role of BP HR;

  1. help HR BP extricate itself from transactional work:

HR BP introduced a third reason of success is the establishment of the shared service center often requires 3~5 years time, in the transition period of HR BP has a lot of work but also themselves, causing them to produce frustration. The solution to this problem is to set up some bear Affairs primary role in the BP team, they help the BP experience to share business roles, let them focus on high-end work, and fully established in the shared service center, these roles will be gradually transferred to the shared service center.

5HR COE:HR domain experts to ensure design consistency

Roles and responsibilities of 5.1 HR COE

Designers: use domain knowledge to design business orientation, innovative HR policies, processes and solutions, and continually improve their effectiveness

Regulators: control policy, process compliance, control risk

Technical experts: HR BP/HR SSC, business management personnel to provide technical support in this field

For a large company of global / group type, due to the complexity of regional / business line, HR COE for different regions / business line configuration exclusive resources, to ensure that the design is close to the needs of the business. Among them, the headquarters responsible for the design of COE / Global Group unified strategy, policy, guiding principle and process plan, and regional COE / business line is responsible for regional / business lines according to the characteristics of customized, such COE settings can be achieved in the framework of the whole company uniform, allowing the required business flexibility.

5.2 key success factors for implementing HR COE in China

The success of COE is no less difficult than HR BP.HR COE. What’s the key success factor?:

  1. HR COE and BP to form closed-loop communication: effect of HR on company policy is sensitive, extensive and far-reaching. If HR COE and HR BP communication, will not be able to ensure business development support HR policy. This requires two people to communicate into habits, and several key communication nodes to form a closed loop flow:

1) planning together with HR BP during the annual plan;

2) when designing, the requirements presented by HR BP are considered as important inputs;

3) when implementing, guide HR BP for promotion;

4) after a period of time, seek feedback from HR BP as an important input for improvement;

  1. HR COE to enhance the ability of successful design requires a full understanding of the business needs in this area need more profound professional skills. Chinese of enterprises, the HR team liberal majority, professionals lack, lack professional skills means to cultivate talents in the interior. For the overall quality of the rapid promotion of the COE team. The author suggests that buy, borrow and build three, namely from the industry to recruit experienced expert COE (buy), cooperation and leading consultants (borrow) and the selection of design experience to cultivate professionals (build). In addition to the ability of COE to enhance the ability of personnel, but also need to improve the management and control (Governance), policy (Policy) that process (process), (program) a comprehensive improvement scheme and application of IT hardware system, it is often a long process, the need for patience;
  2. HR COE: sharing resources experts often limited resources, each business unit / department is equipped with a full-time COE expert, means that the number of talents demand is huge, in this case, it is difficult to guarantee the quality of talents, policy highly fragmented, difficult to achieve consistency. Because of this, must implement the COE resource sharing.Aon Hewitt global research also supports the view that different HR and BP (hundreds of employees can be equipped with 1 HR BP), but COE is often thousands of employees can be equipped with 1 COE experts, this means that each layer is equipped with a full-time COE team is not realistic. The global survey data Aon Hewitt2009 based on the 77% company in the world only in the world or the next level of organization (such as division / area) set COE, and is not set COE. in the lower levels of the organization and sharing of resources is the biggest obstacle to reporting relationships, China enterprises are often in different layers Level organizations are equipped with HR, and reporting to the business; to achieve resource sharing, requires determination and action, need to pay more attention to quality than quantity

6HR SSC:HR standard service provider to ensure consistency of service delivery

The role of 6.1 HR SSC

Employee call center: support service requirements initiated by employees and administrators

HR process transaction center: supports the administrative part of the mainstream process initiated by COE (e.g. payroll, recruitment)

HR SSC operations management center: provide quality, internal control, data, technology (including self-service) and supplier management support

HR SSC HR is to enhance the efficiency of the drive, its mission is to HR service target groups to provide efficient, high quality and cost of the best HR sharing service. Therefore, HR SSC usually needs a tiered service model to maximize the work efficiency.

See the big picture

Zeroth tier network self service: on this layer, managers and employees, through web self-service, answer HR questions and complete HR transaction processing; based on leading practice, in this layer can usually deal with 66% of the problem;

First layer -HR SSC Service Representative: at this level, received comprehensive training on behalf of HR SSC will solve the general problems in the field of involving relatively broad, they by telephone, mail processing; in this layer can usually handle 28% problems;

Second layer -HR SSC specialist: at this level, upgrade to the second layer of the query will be master professional skills in a specific field of HR HR specialist is responsible for processing, the local HR and / or HR BP may choose to intervene according to query specific content; in this layer can usually handle 5% problems;

Third layer -HR COE: complex queries that are upgraded to the second level are handled by COE or functional experts. The amount of work that needs to be dealt with at this level should not exceed 1%.

6.2 key success factors for implementing HR SSC in China

  1. gradually shift, minimizing the risk: as previously mentioned, HR SSC cannot be built overnight, in the transition period, many companies HR COE and HR BP will be responsible for routine work, leading to changes in the HR business model has been a lot of questions. The way to solve this problem is to set up a transitional position in HR COE and HR BP they assume, full-time work, and according to the HR SSC transfer of the business process, and gradually realize the transfer of personnel;
  2. improve network self-service functions: Chinese employees more accustomed to “face to face” (high touch) instead of “self-service” (high tech) services, the main reason is that IT technology has not been fully used. In order to reach the level of efficiency of leading companies, enterprises need to improve Chinese self-service network function, and implementation effective change management, change the service target groups mainly face to face service to get used to;
  3. the correct selection of SSC services: not all affairs are suitable for inclusion in the HR SSC (which also means not established after SSC, COE and BP will still have a small amount of work for HR SSC). In future work often have a large amount of transactional, easy standardization / centralization, to clearly define and document requirements, high compliance, automatic processing, energy and other characteristics; and do not have these features don’t fit into HR SSC in operation;
  4. site selection: successful site selection with half the effort. In the formulation of location decision-making, Chinese enterprises should focus on the following 4 factors:

1) scale benefit: centralized operation of HR SSC can play scale advantages, reduce operating costs and management difficulty; if the company has other shared centers, CO site construction, lower cost;

2) talent: we need to focus on the quantity and quality of qualified personnel, language ability (especially the global operation company), turnover rate and wage cost, etc.;

3) infrastructure: Telecommunications quality, power quality and stability, real estate, etc.;

4) business outlook: the business difficulty, political and natural disasters, tax, 7*24 hours of operation, /IP data protection, supplier maturity.

7 implementation path of human resource transformation

Rome wasn’t built in one day. The human resources department to realize the “three pillar” transformation needs at least 5-8 years, the adjustment of organization structure including HR, HR HR shared service center construction, process reengineering, HR IT and HR system integration capability improvement. From the industry practice, the transformation of human resources travel often follow a systematic pattern, see below:

  1. early pay more attention to “build foundation”: including the initial establishment of BP, COE and SSC role, accelerate the construction of shared service center; for multinational companies, the need to strengthen the integration of IT system at the regional level, etc.;

2. the medium-term focus more attention to “strengthening the core”: including the continuous optimization of the three pillar role, improve the lean operation level of SSC transactional process and the professional value added process, and realize the integration of HR portal system;

  1. later focus more attention to “focus ahead”: including attention to business results, end to end process integration and global IT system integration

Of course, different business urgency and HR maturity of different strategies — some more attention the myriads of changes to enhance the efficiency of the implementation, some are more concerned about how to balance the business efficiency show “quick wins” and “solid foundation” is the human resources director must grasp the art.


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