Digital HR Strategy

Achieving Sustainable Transformation in the Digital Age

Soumyasanto Sen

• Publisher: Kogan Page
• Year: 2020
• ISBN:
  9781789661231
• Edition: 1
• Topic: Business
• Subtopic: Human Resource Management
• Index: Business

We are living in an uncertain world that is rapidly changing with an overload of information and a continual rise of technologies. Automation, the gig economy, digital platforms and other innovations are changing the fundamental nature of work and are having a significant impact on the workforce, workplace and the HR function. Digital HR Strategy is crucial reading for all HR practitioners and leaders wanting to ensure that their organization adapts to this changing and increasingly competitive environment by creating a strategic approach for sustainable transformation which goes beyond conventional digital HR propositions. Featuring case studies from organizations including Airbnb and PepsiCo, it covers areas such as the importance of cultural change and creating a human-centric employee experience, leveraging value propositions, and harnessing data insights and analytics to improve performance. Digital HR Strategy also explores frameworks, strategies and opportunities for wellbeing initiatives, upskilling and reskilling workforces to respond to and establishing a culture of collaboration and innovation. Featuring tips, tools, and key questions to consider, it is an indispensable resource for all HR practitioners and leaders looking to build, develop and execute a digital HR strategy in order to achieve and sustain competitive advantage in this fast-changing digital age.

part one

Revolution

We are living in a world that is changing at a very rapid pace and are overloaded with information and persistent technological revolutions. This demands changes in the way we live, communicate, share knowledge, work and even on how we manage our relationships. It is radically altering our lives, both personally and professionally, irrespective of whether we disagree or try to ignore it.

The biggest challenge is that organizations must keep up with change. They need to overhaul their usual ways of working, doing business and even how they develop their future strategies. The basic meaning of transformation should not be confounded – it says anything that is really transforming is changing its entire nature or form, and people should be at the centre.

When we think of revolution, we are reminded to a great extent of the American and French revolutions that happened in the late 1700s.

Like past democratic revolutions that changed or redefined the role of government, today, in this digital age, we also need a revolution in the way we do business, generate value and the way in which we rehumanize. This can lead us to a world where people have more opportunities to show their capabilities, and a world in which more and more people are at the centre of their organizations and central to the digital economy. Although new ways of working are emerging, new edge technologies are giving more opportunities to people. But the real momentum behind this revolution should be our own human desires for economic efficiency and flexibility, and for personal satisfaction, fulfilment and a better society for our future. And this efficiency and flexibility are enabling individuals to bring more of their own personal values into businesses and organizations.

The transformation of business functions and HR in this digital age must start with a revolution in which the patterns of change are understood as challenges, not least in terms of the workforce, thereby leading organizations to reach their desired future states by correctly defining their rightful purpose. During this journey of transformation, organizations need to build strategies that concurrently:

• unleash their HR and digital transformation journeys in relation to the new industrial revolution and the growing digital economy;
• rethink the correct digital mindset in terms of operating models and working frameworks to bring about business value for people-centric transformation;
• leverage the right way to use data and strategy together with cultural transformation.

The key to success is not only having the correct new technologies, but rather organizations should ask themselves what makes sense for them. They should have an open-minded attitude and the right mindset to explore the new world full of opportunities and get ready for their own journey. Transformation also enables people to think and to change, and for the workforce it is not just about adaptation to change but also about driving change and innovation, enabling the organization to fulfil its purpose and mission.

The ongoing digital revolution is also a cultural revolution, a social revolution and a revolution to think beyond the norm; it involves information, the workforce, culture, learning, ways of working and a social shift. It can’t be undertaken alone. Together we can do what we cannot achieve alone, and the key to successful ongoing change for the workforce is to find the proper motivation to keep doing the next correct thing. Any sustainable transformation for the workforce should be done through collaboration between human resources and the rest of the business.

This part includes the following chapters, which can help readers to understand the ways to overcome challenges with a defined purpose and relevant strategies related to the workforce and the future changes in the digital world. They also help in creating a unique value proposition for organizations, as there is no one size fits all.

Chapter 1 – Growing the digital economy alongside disruptions. This chapter helps to interpret the digital economy and industrial revolution in the context of people and organizations, along with the disruptions that are happening across functions, including human resources, industries and sectors. It also explores the impact on future work models, work and the workforce, and why people are at the centre of the digital world and any transformations that are underway.

Chapter 2 – The need for transformation and having the right mindset. In this chapter, we look at the fast-changing uncertain world for developing our forward-thinking capabilities. It also looks at how transformation can be the turning point in a company’s relationship with its workforce and its economic and social environment. We discuss why we need growth and a digital mindset for the transformation and also outline the importance of adaptability for businesses, organizations and HR in the future.

Chapter 3 – The game changers: culture, data and strategy. This chapter helps in exploring the impact of cultural change on transformations and outlines data-driven transformation using analytics. It also includes an overview of positioning strategic HR business in an organization and how to build a sustainable agile digital HR strategy for transformation.

Chapter 4 – Creating value propositions that are fit for purpose. In this chapter, we introduce the concept of propositions that are fit for purpose, as one size does not fit all. We also explore the multi-dimensional operating models for HR. It can help to know how to bring about business efficiency and value for an organization, and we outline how to achieve effective functional excellence within HR.

Figure details

The journey phases of the revolution with four journey blocks are listed below:

• Value proposition and fit for purpose
• Digital economy and disruptions
• Digital mindset and transformations
• Data strategy and culture change

The building blocks of the revolution are listed below:

• Disruption
• People centric
• Work modules
• Operational models
• Industry40
• VUCA
• Growth mindset
• Strategic HR
• Functional efficiency
• Business value
• Culture change
• Data driven
• Digital strategy

The HR takeaways are listed below:

• HR and digital transformation
• Purpose
• Challenge
• HR strategy
• Digital HR