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Accenture-Future-of-HR-Digital-Radically-Disrupts-HR

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<strong>Digital</strong> <strong>Radically</strong> <strong>Disrupts</strong> <strong>HR</strong>By David Gartside, Catherine Farley, Maureen Brosnan,Himanshu Tambe and Susan M. Cantrell


<strong>Digital</strong> technology is continuing to evolve atbreakneck speed, and it permeates nearly everyaspect <strong>of</strong> our working lives. In the coming years,digital will empower people to take significantlymore responsibility for talent management and <strong>HR</strong>activities. As digital enables talent management tobecome less <strong>of</strong> a centralized <strong>HR</strong> activity and more<strong>of</strong> an activity that is embedded in the fabric <strong>of</strong>everyday business, it will fundamentally change<strong>HR</strong> as we know it.2 | <strong>Accenture</strong> Institute for High Performance | Copyright © 2014 <strong>Accenture</strong>. All rights reserved.


Eventually, the lines between businessand people management systems mayblur, wiping away functional siloswithin <strong>HR</strong> and even the silo <strong>of</strong> <strong>HR</strong>itself. For example, better integrationmay fundamentally change the role <strong>of</strong>pr<strong>of</strong>essionals in <strong>HR</strong> Centers <strong>of</strong> Excellence.Typically, pr<strong>of</strong>essionals in these roles areorganizationally divided by functionssuch as recruiting, compensation andbenefits, training and development, andcareer development. But when informationsystems help enable talent management tobecome truly integrated across processes,rigid functional boundaries between talentmanagement processes may no longercontinue to make sense.And it won’t stop there. As mobilityapplications develop and people spendmore <strong>of</strong> their work and personal time ontechnology platforms, they will leave anever larger digital trail <strong>of</strong> informationthat can be tracked, integrated, andanalyzed as well. Already, enterprises likeGoogle Inc. are analyzing a wide array <strong>of</strong>data on people’s lives (such as whethersomeone has set a world record or whatmagazines someone subscribes to) tocreate statistically valid predictors <strong>of</strong>performance at work. 1 For example, Googlehas determined through quantitativeanalysis that ability to take initiative is afar better predictor <strong>of</strong> high performance onthe job than stellar academic records fromprestigious schools. 2 SuccessFactors, anSAP company, tracks employees’ searches<strong>of</strong> external blogs or podcasts to showexecutives how and what employeesare learning. 3 And it is now possible forbenefits information to be provided toindividuals based on their physical locationas determined from the GPS systemembedded in a person’s mobile device.In the future, companies will integratetraditional business and talent data withBig Data obtained from social and localdata sources—tweets, blog posts, RSS feeds,customer service feedback, GPS coordinatesand more—to get a complete picture <strong>of</strong>their workforce’s abilities, wants and needs.Data and the insights it yields mayeventually trump processes in terms<strong>of</strong> relative importance. The ability tostatistically determine the key drivers <strong>of</strong>performance and productivity for particularworkforce micro-segments based on harddata, for example, may become muchmore important than generalized rewards,development, or learning processes4 | <strong>Accenture</strong> Institute for High Performance | Copyright © 2014 <strong>Accenture</strong>. All rights reserved.


and rapidly adopted for nearly everyprocess to make it easier to performthese activities anywhere, anytime, andon any device—including talent analytics,performance management, and leadershipdevelopment. Technology companies likeSAP are now designing apps with a "mobilefirst" approach, promising to make mobilityfar easier than ever before for nearly everytalent and <strong>HR</strong> practice.Finally, the infusion <strong>of</strong> all things socialinto talent management—and the infusion<strong>of</strong> principles derived from gaming as well—will further weave talent management intothe very fabric <strong>of</strong> employees’ everyday worklives. Already, employees can learn togetherthrough corporate versions <strong>of</strong> Facebook orYouTube in addition to centrally mandatedtraining curricula. Companies can alsouse technology to draw on an employee’ssocial networks to target and recruit newhires with the right skills for an openposition. Moreover, workers can use socialmedia to advise career counselors howbest to counsel them, instead <strong>of</strong> having <strong>HR</strong>provide this advice. Sites like Mixtent, GILD,and TrueOffice can also help companiestransform everything from recruiting toperformance appraisals to learning into agame. New site Knack, for example, usesa game format to help workers discovertheir "knack"—their unique combination<strong>of</strong> strengths, talents, abilities, personalitytraits, likes and preferences. The site canbe used by companies to help identifyhigh performers for recruiting purposes;it combines gaming, analytics, and theapplication <strong>of</strong> behavioral insights fromscience. (For more on gaming, see sidebaron page 8: “Changing the <strong>HR</strong> Game:How Serious Games and GamificationAre Disrupting Human Resources”). Weexpect innovations to keep arising inthis space, as start-ups take <strong>of</strong>f and astalent management s<strong>of</strong>tware companiescontinue to layer social and gamingfunctionality onto their existing <strong>of</strong>ferings.Eventually, new social, gaming and mobilecapabilities may replace traditionaltalent management practices, as well astime-honored <strong>HR</strong> tools such as employeesurveys and e-mail communications.Eventually, advances in digital will notonly empower the line to take much moreresponsibility for talent management,but they may even shift the locus <strong>of</strong>information and decision making from acentral group like <strong>HR</strong> or a small group <strong>of</strong>top leaders to employees themselves. Socialmedia could take <strong>HR</strong> as a middleman out<strong>of</strong> the picture, for example, by enablingthe following:• Employees to define their owncompensation in reverse talent auctions.• Employees to negotiate schedulingchanges with one another on shiftswappingsites.• Benefits choices to be determinedby consensus through analysis <strong>of</strong>corporate social media sites revealingwhich benefits are important to whichemployee populations.• Managers to analyze Big Data fromsources like blogs, social networking sitesand other online forums to determinewhat employees need and want andto find new employees.• Talent exchanges where workers andhiring managers can find each otherwithout the help <strong>of</strong> an intermediarythrough matching <strong>of</strong> open opportunitieswith an analysis <strong>of</strong> individuals’ skills orpast performance and interest pr<strong>of</strong>iles;or exchanges that act like stock markets,where the value <strong>of</strong> each individualworker is determined by the crowdin a quantifiable and searchable wayfor sourcing purposes.• Workers to define their own careerpaths by seeing each other’s customizedcareer paths (through sites that minetransfer and promotion histories) andnetwork with them.• New leaders or successors to be selectedin part through opinion polling by thosemost affected by the decision.In this future, the administrative burdenthat <strong>HR</strong> departments currently carrymay lighten up considerably. Not onlywill technology continue to automatetransactional <strong>HR</strong> processes like benefitsadministration, but it will continue toenable more strategic practices like many<strong>of</strong> those described above to be performedby employees. Technology could thenfree <strong>HR</strong> pr<strong>of</strong>essionals so they can focuson other work such as analytics. As aresult, the group primarily responsiblefor <strong>HR</strong> processes and transactions—whether a shared services organization, abusiness services group or an outsourcingpartner—may shrink to a fraction <strong>of</strong>what it is today. Employees may evenmanage their own data, and <strong>HR</strong> dataand transactions may become the soleresponsibility <strong>of</strong> the business with the6 | <strong>Accenture</strong> Institute for High Performance | Copyright © 2014 <strong>Accenture</strong>. All rights reserved.


support <strong>of</strong> IT. What’s more, <strong>HR</strong> may shiftits mission and mandate to concentrateon building a culture where people canuse talent management tools to enhancetheir own job performance. New roles andresponsibilities for <strong>HR</strong> pr<strong>of</strong>essionals mayensue accordingly.Consumer Applications Will Find a Homein the Enterprise. Closely linked to theadvent <strong>of</strong> cloud computing is the rise <strong>of</strong>businesses like LinkedIn® and BranchOut TM ,where talent management systems liveon the web and are shared by companies.Today, for example, employees and jobcandidates can input the equivalent <strong>of</strong>their resumes and skills on such sites. Bydoing so, they may circumvent the needfor internal talent pr<strong>of</strong>ile databases thataggregate individuals’ skills, job history,education, competencies and more. Othersites, like GILD TM and TalentBin, even letorganizations build talent pr<strong>of</strong>iles bymining the “social exhaust” from siteslike Facebook®, Twitter®, Meetup TM andQuora® to build searchable talent pr<strong>of</strong>ilesabout people’s pr<strong>of</strong>essional interests, skills,passions, and accomplishments. Withthe advent <strong>of</strong> companies like these thatsupport more user-friendly processes, suchas searching for people with particularskill sets in particular geographiesand interviewing them through video,processes like staffing can be shifted toline managers instead <strong>of</strong> being performedby <strong>HR</strong>. Market-based mechanisms couldmotivate people to use external systemsfor internal purposes. For example, ifemployees don’t input their skills into asite like LinkedIn®, they risk missing outon opportunities (such as projects andnew job assignments) that might havebenefited from their skills.Already, some organizations are drawingmore on such external, public sites andintegrating data from these sites into theirown <strong>HR</strong> information systems. Althoughdoing so may require some work matchingdata definitions used in external sites todata definitions used in internal systems,some companies are successfully blurringthe line between internal and externalapplications. We expect use <strong>of</strong> publicsites to accelerate—especially if the sitescan ensure that data is accurate andqualified. We may even see the equivalent<strong>of</strong> electronic medical records for peoplearise. In this scenario, organizations won’tmaintain their own talent managementrecords on employees, training histories,performance reviews, salary informationand so forth. Instead, such records willbe shared in a standardized format acrosscompanies on a public site, and theywon’t be lost when an individual leavesan organization. Shared solutions suchas these will be particularly valuable aspeople more rapidly move from employerto employer or strike out on their ownas independent freelancers. (See: TrendsReshaping the <strong>Future</strong> <strong>of</strong> <strong>HR</strong>: The Rise <strong>of</strong>the Extended Workforce). With this change,<strong>HR</strong> organizations may become primarilycoaches and educators for line managers—explaining how they can get the best valuefrom such shared applications and data.IT Will Enable Customized TalentManagement. Technology transformedmarketing by enabling customization<strong>of</strong> products, services and marketingmessages. (See: Trends Reshaping the<strong>Future</strong> <strong>of</strong> <strong>HR</strong>: Managing Your Peopleas a Workforce <strong>of</strong> One). Likewise, itcan transform <strong>HR</strong> by empoweringit to <strong>of</strong>fer highly customized talentpractices that optimize each employee’sperformance. Most organizations havealready achieved maximum cost savingsby using information technology tostandardize and harmonize their peoplepractices across their global operations.But <strong>HR</strong> pr<strong>of</strong>essionals can now leveragethat standardized framework to tailoremployment practices to every worker(see Figure 1).Figure 1: Evolution <strong>of</strong> talent managementYesterday's practice Today's practice Tomorrow's practiceWorkforce <strong>of</strong> manyPeople are treateddifferently, but with littlestructure, control or goodbusiness reasonsWorkforce as a single monolithic entityMore standardized systems thattreat everyone the same andenhance control and efficiencyWorkforce <strong>of</strong> oneSystems become more flexible andtailored to meet individual needs andachieve business value while retainingcontrol and structure7 | <strong>Accenture</strong> Institute for High Performance | Copyright © 2014 <strong>Accenture</strong>. All rights reserved.


Changing the <strong>HR</strong> Game: How Serious Games andGamification are Disrupting Human ResourcesManish Mehta and Alex Kass, <strong>Accenture</strong> Technology LabsSince the first Nintendo sets arrived inhomes in the mid-1980s, the workforcehas become increasingly populatedwith employees who have grown upwith computer games. For many peopleentering the workforce now, such games—including Massively Multi-Player OnlineRole-Playing Games (MMORPGs)—aremore than just an occasional pastime.Games form the very backdrop <strong>of</strong> theirlives. These individuals do much <strong>of</strong> theirsocializing through computer games anduse the vocabulary <strong>of</strong> gaming [“levelingup,” "epic win," “GG (good game)”] evenin conversations that have nothing todo with games. With gaming conceptsand terminology gaining prominenceamong young employees, it’s probably notsurprising that companies eager to attract,engage, incentivize and retain members <strong>of</strong>this generation have been taking gamesseriously. Gaming concepts have begunworking their way into key <strong>HR</strong> processesin two distinct forms, <strong>of</strong>ten called seriousgames and gamification. Whereas seriousgames are actual games used in theworkplace whose purpose is beyond merelyproviding entertainment, gamification isthe weaving <strong>of</strong> game mechanics such asvirtual currency, leaderboards (boards thatdisplay leaders in a competition), badges,or leveling up (progression to the next levelin a game) into existing work activities orprocesses without the development <strong>of</strong> afull-fledged actual game.Why now?The idea that gaming elements can beuseful in the workplace is not new. Forexample, sales groups have long usedleaderboards and other gamification-likemechanisms to foster friendly competition.And organizations as serious as themilitary have used war games and theircivilian equivalents to train soldiers andleaders. What is new is that more andmore workers are familiar with and enjoygaming. In addition, the commercialplatforms that have industrialized thedevelopment <strong>of</strong> games and gamificationare more widely available to organizations.These factors have made it much moreaffordable for enterprises to create seriousgames and to incorporate gamificationinto business processes. For example, someserious games leverage general-purposegame engines (such as Unreal Enginefrom Epic Games, or Unity Technologies’platform)—which provide graphics,game editors and artificial intelligencefunctions—to achieve high levels <strong>of</strong>sophistication and create simulatedcharacters. Likewise, vendors such asBunchball and Badgeville have createdcloud-based gamification engines, whichdeliver key gamification functions as webservices. This greatly reduces the cost andcomplexity <strong>of</strong> incorporating gamificationinto enterprise web applications. Thesedevelopments have given rise to a variedset <strong>of</strong> applications that have transformedvarious <strong>HR</strong> processes.8 | <strong>Accenture</strong> Institute for High Performance | Copyright © 2014 <strong>Accenture</strong>. All rights reserved.


<strong>HR</strong> processes and gaming applications<strong>HR</strong> processRecruitmentGaming application examplesAmerica's Army® (AA) comprises serious games and was developed as an element <strong>of</strong> the U.S. Army’s recruitingprogram. AA strongly resembles battlefield entertainment games. The simulation-based game conveys thechallenges involved in common Army missions, making the soldier’s role appealing to the Army’s target audience.TrainingStone City is a serious game commissioned by Cold Stone Creamery Inc. The purpose <strong>of</strong> the game is to helpemployees learn correct “portioning behavior” for ice cream and understand its effect on pr<strong>of</strong>itability andcustomer satisfaction. A viscosity model simulates the way in which various flavors “scoop” differently. Success inthe game requires speed and skill, which makes the simulation fun and effective.America’s Army® has been extended to include training components in addition to recruiting. Training modulesenable players to try out various types <strong>of</strong> weapons, vehicles and military procedures. The game environment allowssafe trial-and-error learning <strong>of</strong> job functions that are dangerous in real life.SourcingTopCoder® is a programming community site that, among other things, uses gamification to help companiesidentify strong programmers for contract work or permanent hire. S<strong>of</strong>tware projects are divided up into smallcompetitions. Participants can earn royalties for winning results that are licensed for sale. However, the reputationa programmer earns by doing well in the competitions is <strong>of</strong>ten more important to participants. TopCoder®maintains programmer reputations and makes them accessible to potential employers.Performance ManagementWork.com TM , from salesforce.com, Inc., uses gamification mechanisms to provide timely feedback to employeesand to recognize high performers. Employees can recognize colleagues with customized badges that reflect theircompany’s culture and values. Any recognition employees receive becomes part <strong>of</strong> their social pr<strong>of</strong>iles, makingtheir reputation visible throughout the enterprise.ContestBuilder, by LevelEleven, LLC, enables sales managers to gamify any aspect <strong>of</strong> the sales metrics tracked insalesforce.com’s customer relationship management (CRM) system. Managers can design contests to incentivizecreating, responding to or converting leads or closing deals. The contests motivate salespeople to achieve, thusboosting their productivity. Companies can create customized contests and change the contests to reflect shifts intheir sales pipeline, making this an agile approach to performance management.Achievers provides companies with a stand-alone, branded social recognition portal, through which employees canrecognize each other with endorsements and virtual currency points. Recognition is broadcast in a social newsfeedand on the platform’s dashboard, fostering a sense <strong>of</strong> accomplishment and friendly competition. Recognitionpoints can become a source <strong>of</strong> pride for employees and can be redeemed for merchandise.The road aheadGamification <strong>of</strong> <strong>HR</strong> is still in its early days.Still, games and gamification have begunto alter the way <strong>HR</strong> pr<strong>of</strong>essionals andemployees experience various <strong>HR</strong> processes.Some <strong>of</strong> the changes are incremental.Others could prove disruptive, such asWork.com TM ’s use <strong>of</strong> gamification to replaceoccasional, private top-down feedback withreal-time, public 360-degree feedback.We’re just beginning to understand whichgame-related transformations are mostbeneficial to organizations and how toestimate the degree to which workersmay embrace these changes. As games9 | <strong>Accenture</strong> Institute for High Performance | Copyright © 2014 <strong>Accenture</strong>. All rights reserved.and gamification—along with insights intohow they can help organizations generatevaluable business outcomes—continue toimprove, this trend will likely become moreimportant. We may never get to the pointwhere the experience <strong>of</strong> going to work isas exciting and engaging as a great game.But high-performance enterprises will likelypush the boundaries to see just how closethey can get.


As we explain in our book Workforce <strong>of</strong>One: Revolutionizing Talent Managementthrough Customization (Harvard BusinessPress, 2010), such tailoring need not bea hodgepodge <strong>of</strong> one-<strong>of</strong>f deals betweenmanagers and employees. That’s notscalable, controllable or fair. Rather,customization can be built on standardsthat exist on top <strong>of</strong> a common process andinformation system platform—standardsthat allow for flexibility rather thansameness. For example, companies cansimply <strong>of</strong>fer a greater variety <strong>of</strong> standardpractices—such as different compensation,development or performance appraisalprocesses tailored to different employeesegments. Or, they could let employeeschoose from a menu <strong>of</strong> predefined,standard options.It is only due to advances in technologyin the past few years that customization<strong>of</strong> people practices in such ways is noweven possible. Consider, for example, howtechnology can now help an organizationbetter know individual employeesthrough data that is captured and minedon everything from demographics andbehaviors to communication or e-mailpatterns to determine customized <strong>of</strong>ferings.For example, by mining employees’ e-mailand other electronic communications,companies can now segment employeesinto networking types—central connectors,peripheral players, boundary spanners,and information brokers. Companies canidentify who is critical to collaboration andexecuting the business strategy as well asmodel the impact <strong>of</strong> losing specific peoplein a network in order to target tailoredretention practices.Consider also how technology canenable organizations to break downinformation on things like learning content,performance appraisal criteria, benefits,or even job activities into smaller chunks,keep track <strong>of</strong> it, and modularly configureit to create a custom <strong>of</strong>fering. For example,some companies use internal temporarystaffing agencies to allow employees tomass configure their jobs by choosingspecific assignments best suited to them.Such internal agencies can draw onskills databases that send only relevantassignment choices to employees basedon their skill and interest pr<strong>of</strong>iles. Or takelearning. Learners at the news serviceReuters can custom configure learning onthe fly, based on their individual needsand preferences, by choosing among a vastarray <strong>of</strong> ten- to twenty-minute bite-sizelearning components. 5 Companies todaycan create small components like shortvideos, simulations, games, traditionale-learning, podcasts, virtual classrooms,and more to be delivered on an employee’splatform <strong>of</strong> choice.<strong>Digital</strong> can also now be used to pushout customized <strong>of</strong>ferings, includinglearning and job opportunities, targeted,personalized messages, or personalizedinformation based on an analysis <strong>of</strong> anindividual’s social media digital trail andartificial intelligence that predict what anindividual needs and values based on theirunique employee segment. For example,to help people forge customized careerpaths, technology can now provide a fewwell-defined options regarding possiblenext positions—both lateral and vertical—that each employee may consider basedon competencies and experience, andcompute the person’s readiness for eachopportunity. 6To support such a customized model,<strong>HR</strong> may need to evolve to look more likethe marketing department next door.That is, it may have to become “employeecentric”just as marketing organizationshave become “customer-centric.” <strong>HR</strong> mightalso need to create altogether new roles(such as those focused on understandingand supporting specific segments <strong>of</strong>the workforce), new activities (includingcollecting and mining data to determineemployee segments or preferences) andnew organizational models (for example,integration <strong>of</strong> talent solutions that worktogether to suit specific employees’ needs).(See: Trends Reshaping the <strong>Future</strong> <strong>of</strong> <strong>HR</strong>:Managing Your People as a Workforce<strong>of</strong> One).Cloud Computing Will Enable NewFlexibility and Agility. Increasingly,organizations are accessing sharedresources, s<strong>of</strong>tware and information overthe Internet on a pay-as-you-go basis.Whereas the traditional big, siloed,industrial <strong>HR</strong> application that spanned10 | <strong>Accenture</strong> Institute for High Performance | Copyright © 2014 <strong>Accenture</strong>. All rights reserved.


multiple areas <strong>of</strong> functionality wascreated precisely because connectingdisparate systems from different vendorswas quite difficult (and usually involvedexpensive systems integration experts onthe back-end), today big ERP vendorslike Oracle and SAP are <strong>of</strong>fering thesesystems over the Internet in the form <strong>of</strong>s<strong>of</strong>tware-as-a-Service (SaaS). Likewise,new cloud-based platforms like thosefrom Workday and Salesforce.com arebeing built from the ground up withweb-services-based connectors, openarchitecture, and an orientation towarddata analytics and integration. This maymake it increasingly easy and inexpensivefor newer cloud-based solutions to connectwith one another.We thus imagine a future in whichfaster-moving, loosely collaborativecloud-based <strong>HR</strong> applications tied togetherin an integrated network may replaceexisting systems altogether. Unencumberedby legacy code, mindsets or businessmodels, newer cloud-based players mayalso be able to more nimbly capturemarket share – through building successfulbusinesses by (for example) charging 10people within a single client organizationa subscription fee rather than relying onlicensing fees based on thousands <strong>of</strong> usersper organization.This cloud computing approach will give<strong>HR</strong> more flexibility to support the business.With the advent <strong>of</strong> s<strong>of</strong>tware-as-a-service,for example, companies can now updateand introduce the latest innovationsenabled through s<strong>of</strong>tware every 3-6months instead <strong>of</strong> every few years. Inaddition, organizations can more quicklyscale their computing power up or downand switch vendors as their needs change.Although fewer organizations have adoptedplatform-as-a-service (PaaS), we expectmore <strong>of</strong> them to in the future. That’sbecause PaaS will enable <strong>HR</strong> organizationsto more easily tailor s<strong>of</strong>tware applicationsto their unique requirements and processes.How? PaaS will let <strong>HR</strong> build an ecosystem<strong>of</strong> extension applications from a variety <strong>of</strong>vendors based on business needs—withoutrequiring an army <strong>of</strong> IT support to handlemessy customizations and integration withother systems. The result is that s<strong>of</strong>twarecan be readily configured to meet theneeds <strong>of</strong> users in an individual group,business unit, department or geography.The platform involved may take the form<strong>of</strong> a hub-and-spoke model comprisingmultiple plug-and-play applications thattie into a central data system.Thanks to SaaS, technology updates,flexible configurations and applicationsintegration are easier than they havebeen in the past. But they still requiresome work from organizations, includingthe conversion <strong>of</strong> data so that it maps tovendors’ data structure or the restructuring<strong>of</strong> a company’s IT environment. But inthe future, such conversion efforts coulddisappear if vendors adopt consistent orcompatible data structures. Of course, thismay be a long way <strong>of</strong>f, as there is currentlyno commitment by vendors to do so. But ifthat ever happens, managers may be ableto easily download <strong>HR</strong> applications from anapp store and integrate them with core<strong>HR</strong> systems as handily as consumersdownload apps to their mobile phonesor tablets today.In the consumer world, people arebecoming accustomed to smaller, singleuseapplications available for iPhones andiPads. By using similar kinds <strong>of</strong> applicationsin the enterprise, organizations can provideemployees with the functionality theyneed and can avoid costly seldom-usedfeatures. With smaller cloud-based apps,companies can implement and change <strong>HR</strong>apps swiftly as their business demandsshift. The resulting flexibility could reducecosts and the number <strong>of</strong> IT and <strong>HR</strong> staffneeded in organizations. Organizations like<strong>Accenture</strong> are now developing their owninternal app stores, <strong>of</strong>fering extensions <strong>of</strong>existing internal apps and third-party appsto their employees.To make the shift to SaaS, <strong>HR</strong> will need towork closely with IT to regularly evaluatenew s<strong>of</strong>tware innovations and functionality,assess current people managementprocesses and determine how emergings<strong>of</strong>tware may change those processes. Newroles may arise within the <strong>HR</strong> function toperform these evaluations in conjunctionwith IT pr<strong>of</strong>essionals. And as SaaS becomesincreasingly user-friendly and intuitive, <strong>HR</strong>pr<strong>of</strong>essionals might be able to configures<strong>of</strong>tware on their own without the help<strong>of</strong> IT at all. The move toward SaaS willbe one <strong>of</strong> many factors contributing toa future <strong>of</strong> <strong>HR</strong> in which the <strong>HR</strong> functionintegrates other disciplines or relies heavilyon spanning boundaries between itself andother functions such as IT.11 | <strong>Accenture</strong> Institute for High Performance | Copyright © 2014 <strong>Accenture</strong>. All rights reserved.


Impact onthe BusinessAs we have discussed in the context <strong>of</strong>each <strong>of</strong> the five IT developments, digitaladvances will have significant implicationson employees, managers, and leaders alike.The most important implications include:• Talent management will become aneveryday activity for each employeeand manager.• The locus <strong>of</strong> information and decisionmaking will shift to employees—andaway from a central group like <strong>HR</strong>or a small group <strong>of</strong> top leaders.• <strong>Digital</strong> will knock down silos and blurboundaries—between <strong>HR</strong> and businesslines, between consumer applications andenterprise applications, between layersin the organizational hierarchy, betweenbusiness processes and <strong>HR</strong> processes,and between work and personal life.• Talent management processes willbetter serve the business—becausethey’re customized to an organization’schanging needs and to the employeesthat work to make the business a success,and are able to more flexibly adapt tochanging business conditions.• Talent practices will become moreintegral to the business’s strategiccapability—because they are datadriven,and because talent data isbetter integrated with an organization’sbusiness data.Impact on <strong>HR</strong>As digital infuses nearly every aspect <strong>of</strong>talent management and work itself, it willtransform how <strong>HR</strong> organizations operateand how they serve the business. It willimpact <strong>HR</strong> in the following ways:• Structure and size <strong>of</strong> the <strong>HR</strong> function.The <strong>HR</strong> function may become smalleras digital more efficiently enablestransactional processes and as linemanagers and employees adoptconsumer-like applications to handle <strong>HR</strong>processes themselves. What remains in<strong>HR</strong> may become more project-orientedand aimed at improving organizationaleffectiveness—such as helping tointegrate a new acquisition. In addition,new organizational structures may ariseto help <strong>HR</strong> pr<strong>of</strong>essionals collaborateclosely with the business and otherfunctions such as IT.• Core activities <strong>of</strong> the <strong>HR</strong> function.<strong>HR</strong> may start acting like a marketingorganization, by analyzing employeedata to mine it for insights; creatingcustomized talent <strong>of</strong>ferings; andmarketing, branding and educatingemployees about talent and <strong>HR</strong> processes.Already, in some leading companies, <strong>HR</strong>analytics groups have been establishedwhose mission is to analyze datato determine drivers <strong>of</strong> workforceperformance. <strong>HR</strong> pr<strong>of</strong>essionals will alsolikely take on more <strong>of</strong> a coaching role,helping to design cultures, incentivesand educational programs to supportemployees as they engage in IT-enabledtalent processes.• <strong>HR</strong> information managementand technology roles. As the linecontinues to blur between internal andexternal applications, the role <strong>of</strong> <strong>HR</strong>information management and technologypr<strong>of</strong>essionals could change. Instead<strong>of</strong> implementing internal applications,information technologists specializingin <strong>HR</strong> and talent management may bemore involved with evaluating externalapplications and building interfacesbetween them and an organization’s owndata and systems. In addition, new rolesassociated with constantly evaluatingnew cloud-based s<strong>of</strong>tware and theimpact the s<strong>of</strong>tware might may have onthe business may arise. And as s<strong>of</strong>twarebecomes increasingly user-friendly andintuitive, <strong>HR</strong> pr<strong>of</strong>essionals may configurepackaged s<strong>of</strong>tware instead <strong>of</strong> IT experts.Eventually, s<strong>of</strong>tware and the manipulation<strong>of</strong> data may become so user-friendly thatemployees themselves may even be able tomanage their own data, with only limitedinvolvement from the IT or <strong>HR</strong> function.Bottom LineFor years, the human resourcesfunction has shouldered much <strong>of</strong> theresponsibility for managing people, in alargely segregated operation. Technologyadvances will change all this, byintegrating talent management intothe fabric <strong>of</strong> everyday business. <strong>HR</strong> ITwill thus become a vital component<strong>of</strong> organizational performance in anincreasingly competitive and fast-changingworld. As <strong>HR</strong> heads toward a futurecharacterized by Big Data, integration,mobility, social media, gamification,and cloud computing, the ability fororganizations to manage their people willgrow more flexible, agile and customized.12 | <strong>Accenture</strong> Institute for High Performance | Copyright © 2014 <strong>Accenture</strong>. All rights reserved.


About the AuthorsDavid Gartside, managing director,<strong>Accenture</strong> Strategy, Talent & Organization,leads large scale <strong>HR</strong> transformationprograms for clients around the world.He is also the executive sponsor for the<strong>Accenture</strong> <strong>Future</strong> <strong>of</strong> <strong>HR</strong> research initiative.Based in New York, Mr. Gartside has deepexperience in addressing the complexitiesinvolved in driving a successful global<strong>HR</strong> strategy.Catherine Farley, managing director,<strong>Accenture</strong> Talent & <strong>HR</strong> services. She isresponsible for integrating and innovatingend–to-end talent and <strong>HR</strong> solutions<strong>Accenture</strong> brings to its clients, spanningall aspects <strong>of</strong> <strong>Accenture</strong>’s business inconsulting, technology and outsourcing.Based in Seattle, Washington, Ms. Farleyhas extensive experience with workforcerestructurings and the implications <strong>of</strong> thistype <strong>of</strong> change.Maureen Brosnan, managing director,<strong>Accenture</strong> Human Capital Managementpractice. Based in Boston, Massachusetts,Ms. Brosnan has in depth experiencehelping companies transform their <strong>HR</strong>organizations to drive strategic valuethrough automation, self service andshared services.Himanshu Tambe, managing director,<strong>Accenture</strong> Strategy, Talent Organization.Based in New Delhi (Gurgaon), Mr. Tambespecializes in Business & Human CapitalStrategy and <strong>HR</strong> Transformation solutionsfor the metals & mining and bankingindustries as well as the public sectoracross Asia Pacific.Susan M. Cantrell is a research fellowat the <strong>Accenture</strong> Institute for HighPerformance. Based in Fort Lauderdale,Florida, Ms. Cantrell is the coauthor <strong>of</strong>Workforce <strong>of</strong> One: Revolutionizing TalentManagement Through Customization(Harvard Business Press, 2010). She hascoauthored more than 30 articles or bookchapters, including Elements <strong>of</strong> SuccessfulOrganizations (The Workforce Instituteat Kronos, 2011).About Our ResearchThe primary objective <strong>of</strong> the <strong>Accenture</strong><strong>Future</strong> <strong>of</strong> <strong>HR</strong> research initiative is todevelop insights that can be useful to both<strong>HR</strong> and business executives as they seekto maximize the role <strong>of</strong> <strong>HR</strong> as a criticalfunction within the organization. We areexploring how current business trendsmight reshape the nature <strong>of</strong> the function—in terms <strong>of</strong> <strong>HR</strong>’s mission and mandate, thekey activities <strong>HR</strong> performs, the skill setnecessary for <strong>HR</strong> pr<strong>of</strong>essionals, the metricson which to evaluate <strong>HR</strong>’s performance,and the organization and governancemodels and roles that will most effectivelyhelp <strong>HR</strong> maximize its value to thebusiness. We also are examining currentbest practices in <strong>HR</strong>, as well as some <strong>of</strong>the obstacles <strong>HR</strong> is facing and how thoseobstacles can be overcome in the future.Related Reading“Trends Reshaping the <strong>Future</strong> <strong>of</strong> <strong>HR</strong>:Managing Each Employee as a Workforce<strong>of</strong> One,” by David Smith and SusanM. Cantrell.“Trends Reshaping the <strong>Future</strong> <strong>of</strong> <strong>HR</strong>:The Rise <strong>of</strong> the Extended Workforce,”by David Gartside, Yaarit Silverstone,Catherine Farley and Susan M. Cantrell13 | <strong>Accenture</strong> Institute for High Performance | Copyright © 2014 <strong>Accenture</strong>. All rights reserved.


Notes1. “Google Answer to Filling Jobs Is anAlgorithm,” by Saul Hansell, New YorkTimes, January 3, 2007.2. “Competing on Talent Analytics,“ byThomas H. Davenport, Jeanne Harris, andJeremy Shapiro, Harvard Business Review,October, 2010.3. “Your Co-Worker, Your Teacher:Collaborative Technology Speeds Peer-PeerLearning,” by Ed Frauenheim, WorkforceManagement, January 29, 2007. PlateauSystems, mentioned in the article, wasbought by Successfactors.4. “Salesforce.com Rolls out Rypple,Revamps Website-Builder Tools,” by ChrisKanaracus, March 15, 2012: http://www.pcworld.com/businesscenter/article/251904/salesforcecom_rolls_out_rypple_revamps_websitebuilder_tools.htmlAbout <strong>Accenture</strong><strong>Accenture</strong> is a global managementconsulting, technology services andoutsourcing company, with approximately281,000 people serving clients in more than120 countries. Combining unparalleledexperience, comprehensive capabilitiesacross all industries and business functions,and extensive research on the world’smost successful companies, <strong>Accenture</strong>collaborates with clients to help thembecome high-performance businesses andgovernments. The company generated netrevenues <strong>of</strong> US$28.6 billion for the fiscalyear ended Aug. 31, 2013. Its home page iswww.accenture.com.About the <strong>Accenture</strong>Institute for HighPerformanceThe <strong>Accenture</strong> Institute for HighPerformance develops and publishespractical insights into critical managementissues and global economic trends. Itsworldwide team <strong>of</strong> researchers connectswith <strong>Accenture</strong>’s consulting, technologyand outsourcing leaders to demonstratehow organizations become and remainhigh performers through original, rigorousresearch and analysis.5. Kay Baldwin-Evans and Charles Jennings,“Taking a Bold Approach to OrganizationalLearning,” Strategic <strong>HR</strong> Review 6, no. 5(2007): 28.6. Erik Berggren and Jason Corsello,“Talent Management 2017,” SuccessFactorsResearch Report, http://www.successfactors.com/research/talent-2017.This document makes descriptive reference to trademarks that may be owned by others. The use <strong>of</strong> such trademarksherein is not an assertion <strong>of</strong> ownership <strong>of</strong> such trademarks by <strong>Accenture</strong> and is not intended to represent or imply theexistence <strong>of</strong> an association between <strong>Accenture</strong> and the lawful owners <strong>of</strong> such trademarks.14 | <strong>Accenture</strong> Institute for High Performance | Copyright © 2014 <strong>Accenture</strong>. All rights reserved.


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Copyright © 2014 <strong>Accenture</strong>Copyright All rights reserved.2013 <strong>Accenture</strong>All rights reserved.<strong>Accenture</strong>, its logo, and<strong>Accenture</strong>, High Performance its logo, Delivered andHigh are trademarks Performance <strong>of</strong> <strong>Accenture</strong>. Deliveredare trademarks <strong>of</strong> <strong>Accenture</strong>.

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