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Us Human Capital Exponential HR
Enterprise, Workforce, and How Work Gets Done have rapidly shaped a new Future of HR. A digital
mind-set, relentless focus on the customer, advanced enabling technologies, and simplified, nimble
ways of working are musts to achieve positive business outcomes.
HR operating models have evolved over decades with a trajectory of increasing business impact
marked by changing brands from “personnel department” to “human resources” to “people function”
and “employee experience.” The function has advanced from necessary administrator to a supporting
function with a seat at the table, to business partner, and—in some cases—to trusted adviser.
HR’s evolution has generally progressed at the pace of business and largely met the needs of
enterprises along the way—or has been close enough for organizations across industries to thrive. Yet,
the future demands something different from enterprises—and their HR teams—with tremendous
urgency.
Today, enterprises are swimming through nearly constant change. Disruption is simultaneously
affecting the enterprise and its workforce with increasing demands from customers, constant
productivity pressure from competitors, and threats from unexpected entrants to their markets.
Digitization and personalization of our daily lives coupled with the introduction of enabling technologies
in the workplace at an unprecedented pace and scale create wholesale changes in the landscape of
business.
Top takeaways:
Reimagining the work of HR is paramount and demands dynamic and digital ways of working,
HR superjobs, and new capabilities
Exponential HR professionals and the enterprises they are part of will be adaptable,
agile, architecting, and augmented
Our research and pragmatic experience with the world’s leading enterprises create a window to the
rapidly unfolding imperatives that every HR team should explore as part of navigating the route to the
Future of HR and we share those key insights here.
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Exponential HR | Break away from traditional operating models to achieve work outcomes
All eyes are on the enterprise. Changing •• From integrated systems to a platform for •• Moving from reporting HR information to
workforce demographics and demands unified engagement providing insights that drive real business
from the communities and society in which decisions
•• From minimal analytics to data-driven
enterprises operate further complicate
practices for decision-making and design Exponential HR
matters. Enterprises must quickly anticipate,
The future brings exponential expectations
adapt, maneuver, make decisions, and shift Through that effort five years ago, we
of HR beyond its roles of supporter,
course in agile ways more than ever before explored real-world work with leading
partner, and adviser to the business.
to brave the never-ending disruption. enterprises across industries and
Exponential HR professionals will spearhead
geographies. We saw a clear trend that the
workforce strategy, access talent, foster
HR is uniquely positioned to lead enterprises classic, mostly unquestioned, standard way
team collaboration, curate personalized
to thrive in the new world of work, playing HR had been taught to operate was failing to
human experience to drive engagement
a new and vital leadership role in shaping deliver the impact their enterprises needed
and productivity, and lead the enterprise’s
the way enterprises compete, access talent, to excel. In combination with that hands-
readiness for the constant disruption of the
and curate experiences, and show up in on experience, we conducted extensive
future, through a relentless focus on driving
the communities where they live and work. research. A collection of characteristics
work outcomes.
Yet for many HR teams, this new leadership emerged, shaping a completely new
role remains a futuristic idea and it seems a construct: The High-Impact HR Operating
Innovating faster, beating the competition,
heavy burden to catch up with the pace of Model, which we’ve continued to evolve
and improving productivity are the
change—the new realities of business. each year since through experience and the
sort of work outcomes Exponential HR
rapidly changing shape of businesses today.
professionals will drive. Traditional measures
Evolution then . . . revolution now The High-Impact HR Operating Model
of HR value will continue to decrease in
Nearly five years ago, Deloitte recognized challenged the traditional, enabling many
relevance for leaders. In the Exponential HR
that traditional HR operating models, skills, HR functions around the globe to break
world, long-standing, old-school measures
and technologies were ill-equipped to from the way things had always been to
like “time to fill an open position” will shift to
meet the needs of enterprises that were become more fluid, agile, and workforce-
“time to productivity”; “number of learning
undergoing massive change—in technology, centric. Looking ahead, core elements of
course enrollments” will shift to “net-new
in the structure of the workforce, in the High-Impact HR will remain imperative in the
workforce capabilities mastered.” These
very way work gets done. It became clear future. However, they now simply function
are work outcomes and they are what truly
that the human resources function would as table stakes—the minimum for HR to
matter in the future of enterprises while
get stuck—if wasn’t already, as traditional deliver meaningful impact. Just as efficiency
process and operational measures are table
practices lost pace with enterprises’ and effectiveness are basic expectations,
stakes for keeping the trains running.
true business needs. Advancing beyond so too are elements of High-Impact HR,
long-standing tradition required a shift to such as:
Exponential HR professionals will infuse
customer-centric models and practices
•• Keeping HR’s customers (leaders and advanced, digital solutions that automate,
with a recognition that enabling digital
workforce) at the center of focus simplify, ease the workforce experience,
technologies would elevate the workforce
and—most importantly—elevate the role
experience forever. •• Breaking down silos through communities
people play across the enterprise and
and intentional, cross-function
within HR, all toward creating value for
The Future of HR is inextricably linked with interactions
customers and stakeholders.
the futures of the enterprise, the workforce,
•• Embedding HR in the business
and how work gets done. To effectively
Clearly, becoming Exponential HR
address disruption in these arenas and to •• Creating scalability with wide scope of
requires far more than tweaking HR’s
achieve positive business outcomes, human leveraged services
existing operating model or tacking new
resources will need to further develop
•• Governing with a partnership of business roles, structures, or technology on old
expertise and make fundamental shifts in
and HR leaders frameworks. It forces an approach well
five areas:
beyond redesigning processes or even
•• Measuring impact—beyond activities,
•• From doing digital to being digital experiences, to work outcomes that matter.
cost, and efficiency
•• From center-driven to human-centered
•• Positioning internal and external
solutions
collaborators as an extension of the HR
•• From compliance and control to trust and function
empowerment
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Exponential HR | Break away from traditional operating models to achieve work outcomes
Reimagining work
Exponential HR teams will help their enterprises look at work in new ways and beyond
traditional operating model boxes. Perks, rewards, and development will be given new
meaning to create environments focused on role fit, capability growth, and enabling the
workers across the enterprise to answer the most personal question that can exist in the
workplace: “Am I making a difference?”
To accomplish this ambitious and necessary future, Exponential HR organizations will be:
Adaptable
Agile
Architecting
Augmented
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Exponential HR | Break away from traditional operating models to achieve work outcomes
Adaptable
Connected to the human instinct for resilience and Financial services giant gets tribal
reinvention, Adaptable Organizations embrace change Recognizing the need to shift HR to become
and adjust operating and management models in more customer-centric, flexible, and fast, a mega
response to shifting customer, environmental, and financial services company moved to an Adaptable
market needs. Adaptable organizations avoid the Organization model and began by forming a series
traps of fixation on scarcity, structure, and control by of networked teams.
operating within an ecosystem that learns and pivots
to help ensure survival of the overall system. Adaptable The first type of team created was a “squad”: A
organizations attack disruption with continuous self-managing, autonomous unit with end-to-
innovation. end responsibility for designing, delivering, and
optimizing a specific customer-focused outcome
Adaptable organizations are living and breathing aligned to agreed-upon objectives.
enterprises organized around networks based on how
people work and behave, distributing and maximizing When more than one squad was involved in a
human potential across five layers: grouping of related efforts, a “tribe” was formed.
Objectives, planned outcomes, priorities, and
1. Ecosystem—Adaptable organizations succeed in
efforts were well coordinated among squads and
purpose-driven ecosystems with defined customer-
within the tribe.
focused missions. They continuously analyze and
adjust to shifts in the needs and demands of the
Finally, “chapters” of subject matter experts that
workforce, customer, and market.
were not fully immersed in the day-to-day initiatives
2. Organization—Adaptable organizations function
were created. These chapters contained a small
through a flexible network of people, processes, and
circle of professionals with specially needed skills
systems that interact with each other to deliver what
that worked across boundaries by helping squads
their customers need. Rigid hierarchies and silos are
and tribes. Through this formation, chapters
replaced by multidisciplinary networks.
were able to provide economies of scale without
3. Team—Adaptable organizations develop a culture
sacrificing autonomy of the squads.
that supports high-performing teams connected
through adaptable networks that band together to
achieve shared goals, before being disbanded and
reformed where their skills are needed.
4. Leader—Leaders of adaptable organizations
are orchestrators who unlock the full potential
of the diverse skills of teams that feel connected
and empowered. These teams will function in an
environment that embraces creativity and inclusion
while respecting vulnerability.
5. Individual—Adaptable organizations develop talent
programs that are responsive to the different ways
in which individuals learn, grow, and develop. They
support resilience in the face of ongoing uncertainty
and change.
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Exponential HR | Break away from traditional operating models to achieve work outcomes Brochure / report title goes here |
Section title goes here
Agile
Agile HR teams fail fast yet learn faster. This means Global household brand company flexes
testing quickly through experimentation and eliminating Operating across many countries throughout
the pressure to achieve perfection. They deliver Europe and Africa, the HR leadership team of a
proactively, iteratively, and frequently, stressing consumer products company knew they had to
collaboration over individual contributions, promoting operate at an exponential pace to enable the need
frequent and focused team connections to identify for speed of its business. Focused on remaking HR
issues, and making rapid decisions with democratized into an agile, flexible, and simple organization, the
data. Being agile includes frequent reflection and CHRO and team established two key priorities for
refinement to create and realize solutions that empower reimagining HR:
workers and leaders to innovate, collaborate, and deliver
for customers. 1. Revitalize the HR operating model and
include the use of flexible pools and adaptive
Agile HR teams adopt an operating philosophy that organizations.
breaks from the long-standing quest for “perfect” 2. Transform the way HR plans, prioritizes, and
solutions borne from an understandable mind-set that delivers work through the use of agile cultures,
every policy, process, and program must be flawless mind-sets, and frameworks.
before launching. Enterprises today must move
at unprecedented speed, forcing faster workforce In response to their challenge, the company,
programs and solutions. HR can become agile—and they chose to create “flexpools,” individuals with
promote agility across the wider enterprise—by specific knowledge and resources who can be
meaningfully shifting in four areas: part of initiative-focused teams that can be rapidly
assembled and dropped in to address project-
1. Technology—Applying mobile, social, and workplace specific issues or problems. Flexpool members are
tools that promote working together at speed and drawn from across HR—whether in traditional roles
enable 24/7 access to knowledge, insights, actions, like CoEs, Business HR, or HR Operational Services
and real-time collaboration by equipping teams at or in other, newer kinds of roles. In this way, the
work with tools that mirror the ease of technology in company is realizing a hybrid blend of roles in their
their personal lives. move to become agile.
2. Development—Fostering leadership development
and learning for all members of the workforce to grow
new and needed skills to advance their careers and
change how they work.
3. Products—Reinventing the way HR constructs
programs to adopt a product management mind-set,
connecting previously disparate programs into end-
to-end, human-centered, and personalized solutions
that drive value for the enterprise and its people.
4. Process—Simplifying and streamlining to enable
faster decisions, iterative creation, and empowering
leaders and workers in the business to drive work
outcomes and productivity.
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Exponential HR | Break away from traditional operating models to achieve work outcomes
The CHRO and team created a “Fast-to-Action” (F2A) team in cooperation with other business functions. A consultative
group, the team comprised experienced HR professionals who were upskilled through rigorous agile method training and
certification. The F2A team drives enterprise initiatives that create value, increase efficiency and effectiveness, and enhance
productivity. The F2A teams have a strong foundation in a varying blend of both hard and soft skills and strategic capabilities
and tools to drive results. F2A was defined by:
• Fluidity and relevance—shifting resources and scaling models to work effectively; by tapping into a pool of flexible global
HR resources they can now address critical business initiatives.
• Demand-based model—employs dedicated, decentralized HR talent focused on the needs of the business.
• Solution and business orientation—leverages relationships, enterprise knowledge, and cross-functional HR skills to devise
effective business solutions.
While all of HR is driven by strategic business priorities, the following triggering criteria was used to determine which projects
are addressed by F2A teams:
• Accelerated execution of critical business priorities with the right level of sponsorship.
• Projects that strengthen competitive advantage that require an enhanced ability to make critical business decisions.
• Initiatives that mitigate loss of market share and have outcomes and metrics that can clearly define success.
• Projects with a definitive start and stop date with measurable deliverables.
Success for F2A is measured by business impact, customer satisfaction, utilization, spending on external firms, and playbook
development. To date, these F2A teams have grown to 27 members that have freed up capacity by leading business-critical
projects in partnership with other HR professionals across the enterprise, accomplishing:
• Seventeen projects completed in less than 12 months, 34 current projects underway, and 15 projects in the pipeline.
• $5.6 million in savings.
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Exponential HR | Break away from traditional operating models to achieve work outcomes
Augmented
Exponential HR professionals embrace the combination Global retailer augments HR
of technologies and solution providers to augment their Leaders at a top global retailer with continued scaled
roles and work. growth knew the business needed HR professionals
focused on creating the best possible workforce
Cognitive tools amplify organizational intelligence by experience to enrich the customer experience in
delivering real-time, actionable insights through pattern the hotly competitive and highly disruptive world of
detection and analysis from multiple data sources. They retail. HR’s role needed to elevate to place focus on
can drive engagement by using intelligent agents and accessing the right talent for its business and growing
avatars to deliver personalization at scale and create capabilities within the workforce to innovate faster
smarter, more relevant insights to improve the end-user than competitors and deliver on the company’s
experience. AI can replicate rules-based human actions mission for its customers.
for the purposes of automating transaction processing.
These applications are already being used and continue In response to this challenge the company augmented
to evolve. They can be deployed in new ways to perform professionals with a virtual assistant that supports
higher order activities beyond the transactional. workers digitally 24x7 to find information and access
support when needed. Additionally, robotic process
Exponential HR teams are elevated by their collaboration automation (RPA) enabled the equivalent of 30 HR
with new machine co-workers. They embrace the practitioners to be reinvested in efforts with far greater
advantages humans, far from being replaceable, value than routine, repetitive administration. As a
gain by partnering with the machines to rise up and result, continued automation and the introduction
perform new roles and derive new insights to benefit of machine learning to elevate the complexity of
the workforce and the enterprise. Equipping leaders automations are collectively on track to unlock an
with insights through the human-machine partnership additional equivalent of 150 more HR practitioners.
can accelerate decision-making on some of the most
complex challenges enterprises face today, ranging from
inclusion to equity to performance and well-being.
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Exponential HR | Break away from traditional operating models to achieve work outcomes
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Exponential HR | Break away from traditional operating models to achieve work outcomes
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Exponential HR | Break away from traditional operating models to achieve work outcomes
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Exponential HR | Break away from traditional operating models to achieve work outcomes
Sprint lead •• Agile coach—Quickly mobilizes work, assembles teams, and provides direction
Launches and manages cross-functional teams that to achieve outcomes.
quickly and effectively solve business challenges.
•• Researcher—Demonstrates subject matter expertise in a specific HR
knowledge area(s).
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Exponential HR | Break away from traditional operating models to achieve work outcomes
Augmented HR specialist (e.g., augmented •• Ethics and compliance dedicated—Interprets employment law and
recruiter, augmented rewards specialist, policies, applies compliance knowledge and management offerings to protect
augmented learning specialist) organization, mitigate people-related risks, ensure ethical standards and
Deploys integrated solutions and continuously improves behavior are upheld and practiced.
HR services through a variety of channels that provide a
•• Business outcome & continuous innovation focused—Uses data and formal
positive HR customer experience. Leads and manages the
measurement channels to track the performance impact of workforce solutions
design and deployment of advanced technology tools that
on business outcomes and continuously improve and adapt services/offerings to
deliver services for HR customers.
meet the changing requirements of the business.
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Exponential HR | Break away from traditional operating models to achieve work outcomes
Stretching HR capabilities to 1. Meaningful—Ensures that every team Exponential HR capabilities form the
Exponential heights and individual on the team understands foundational prerequisites for Exponential
Traditional HR capability models and old- the purpose, desired outcome, HR. These capabilities are the jumping-off
school competencies need fundamental and—most importantly—meaning point for the new roles—or superjobs—of
restructuring to progress toward of everything they do, encouraging, Exponential HR.
Exponential HR and create the ability empowering, and coaching teams to
for HR to lead the business forward. achieve their shared ambition. Navigating your route
The Exponential HR teams will continue 2. Customer-centric—Focuses on Every enterprise will have a unique route
to anticipate, develop, and implement customers and their needs as the to its Future of HR. Becoming Exponential
workforce solutions based on customer starting and end points for every is a crucial part of that journey. Navigating
intelligence and a deep understanding initiative and solution—with a broad your route should follow an iterative
of the business. Yet, decision-making will definition of customers (e.g., extended approach that realizes a series of defined
be far more grounded in data, which will workforce). “minimal viable products” that build on
be gathered, organized, synthesized, and 3. Team ignitor—Assembles and knits each other and create the progressive shift
analyzed to detect issues, predict trends, together network teams that rally from traditional HR operating models to
make recommendations, and direct actions around a cause and deliver business Exponential HR, including:
to improve productivity and performance. solutions.
•• Conduct early sensing through myriad
4. Innovative thinker—Constantly
channels by engaging with the workforce
An Exponential HR team will be digital. It will considers and investigates new ways
and leaders to directly understand how
embrace a culture of digital immersion by to perform work and deliver value,
solutions can improve their work and
continually testing, applying, and distributing with openness to creative ideas and
overall experience.
technologies that facilitate work integration, experimentation.
offer new ways of working, and resolve 5. Integrator—Operates with the •• Create your aspirational vision of how HR
challenges. These activities will take place complete story in mind, understands will drive work outcomes in the future.
among networked teams that will share connections, creates bridges, and
•• Chart the series of thoughtful sprints to
ideas, information, and access to leading seamless experiences by linking people,
achieve the aspiration.
best practices, trends, and intelligence. ideas, and initiatives to common goals.
6. Entrepreneur—Relentlessly explores •• Drive change through near-term shifts in
Historically, organizations would accept that opportunities, tackles problems, and the work of HR itself and how it delivers
capabilities must shift in waves and over discovers and implements new ways by testing, learning, and rewarding both
extended periods of time. For example, of working to achieve better results failure and success.
many HR transformation programs accepted through an ownership of outcomes.
•• Prototype key elements of the vision to
that roughly one-third of HR professionals 7. Action-oriented—Leans into execution
experiment and drive buy-in.
already held the capabilities needed for with accountability, tests, and learns,
the future, while another third would and pushes iterative design and •• Enable cognitive and automation step-
get there over time, and the final third development. changes to create faster, smarter, and
would never adjust. In the Future of HR, 8. Digitally literate—Embraces a digital more efficient ways of working.
however, the measure of success must be world with the capability to envision and
•• Create, train, and launch progressive
far more aggressive and aim to elevate the build new business models, tools, and
champions to advance the Exponential HR
capabilities of all HR professionals. ways of working informed by digital.
organization of the future.
9. Data-obsessed—Feels passionate
Each HR team’s path to Exponential will be about, understands, and uses data to
different, shaped by the starting point, and anticipate issues, identify opportunities, As we recommended in our perspectives on
gated by how quickly you can grow the new diagnose, test ideas, and design and The Future of HR, navigating the best route
capabilities required for the Future of HR. improve solutions. requires a See-Think-Do approach. Moving
In addition to the capabilities above aligned 10. Ambidextrous—Applies practices to become Exponential HR is part of that
with emerging Exponential HR superjobs, HR to engage and motivate a blended path to the Future and you can make moves
professionals of the future must all pivot to team—full-time, part-time, gig, contract, in this direction now.
the Top 10 Exponential HR Capabilities—that multi-generational, robotic, or AI—in
require a new, bold attitude: distributed locations—local, regional, Each HR organization’s journey is uniquely
global—to accomplish goals with its own. In today’s disruptive world, it may
heightened flexibility. be the path less traveled that leads to the
ultimate destination.
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Exponential HR | Break away from traditional operating models to achieve work outcomes
Authors:
Arthur Mazor Gary Johnsen
Global HR Transformation Leader HR Transformation Practice, United States
Deloitte Consulting LLP Deloitte Consulting LLP
+1 404 631 3917 +1 612 659 2923
amazor@deloitte.com gjohnsen@deloitte.com
The authors would like to thank the following contributors: Gareth Brown (Netherlands), Richard Coombes (UK),
Kraig Eaton (US), Renate Laracker (Netherlands), Kip Salter (US), Amy Sanford (US), Ankita Tipnis (US), and Sophie
Vezina (Canada).
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Global Human Capital leadership
Erica Volini Arthur Mazor David Brown
Global Human Capital HR Transformation Workforce Transformation and Asia Pacific
evolini@deloitte.com amazor@deloitte.com davidbrown@deloitte.com.au
About Deloitte
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