New global operating models the latest HR trend says Deloitte

Private Matters, December 2012

Deloitte | Private MattersThe movement towards globally integrated operating models is shaping up as one of the key trends in Human Resources (HR), according to a recent report from Deloitte.

The latest Deloitte report Human Capital Trends 2012: Leap ahead says the ability to successfully address people related issues, such as change, talent and HR operations, will be critical in meeting the challenges of operational globalisation.

Kate McDonald, Deloitte Consulting Human Capital partner, believes many companies now want to move beyond the established models.

“Leading organisations are increasingly shifting to integrated operating models, where major business operations (including both front- and back-office functions) are globally integrated, with the home country serving as just one of many markets,” she says.

“The evolving vision is a flexible operating model where work can be shifted to whatever global location makes the most sense, based not only on the cost of labour, but also the area’s future revenue potential and supply of skilled talent. Companies are looking for the right balance between customer and talent markets.

“As many companies look to maximise their ability to access the global market place, they are rethinking virtually every aspect of their operations, including how work gets done, who does it, where people are located and how they should be organised.”

For HR leaders, Ms McDonald says the shift to new global operating models and global talent pools is an opportunity that demands attention and focus “while drawing on HR’s particular ability to lead and shape the agenda around change, talent and global HR operations”.

The report identified five actions that organisations can take right now if they want ‘future ready’ operating models:

  1. Invest in HR leaders with the knowledge, skills and motivation for global operations. New operating models are anticipated to require new skill sets. Develop or hire HR leaders with the skills and competencies to be business driven and to lead and support business change.
  2. Expand HR’s services. Rethink the services that HR provides and how those services are delivered. Develop new services and capabilities to support strategic business activities, such as M&A and entering new-markets.
  3. Align HR around a global operating model. Redesign HR’s organisational structure to align with and support business operations that are truly global.
  4. Ratchet up HR’s change management capabilities. Create a dedicated team with deep knowledge and experience in managing large-scale change.
  5. Harness the power of advanced analytics. Advanced analytics can help a company manage its global workforce more effectively and focus its efforts on business areas with the greatest need.

For further information please contact:

Kate McDonald
Deloitte Consulting
Tel: + 61 2 9322 5525