Human Capital

The way in which organizations manage people used to be relatively straightforward. For more than two decades, multinational companies generally adopted a combination of HR business partners, centers of excellence, and shared service centers, adjusting these three elements to fit each organization’s unique nature and needs.

Today, this approach—introduced by Dave Ulrich in 19961—is rapidly evolving. In interviews with more than 100 chief human resources officers (CHROs) and senior people leaders from global multinational businesses, we identified five HR operating-model archetypes that are emerging in response to dramatic changes in business and in the world—including heightened geopolitical risks, hybrid working models, and the rise of majority-millennial workforces.

These emerging operating models have been facilitated by eight innovation shifts, with each archetype typically based on one major innovation shift and supported by a few minor ones. The key for leaders is to consciously select the most relevant of these innovation shifts to help them transition gradually toward their desired operating model.

By Sandra Durth, Neel Gandhi, Asmus Komm, and Florian Pollner

Takeaway…

DeFonseka understands this paradigm shift and as companies grow and scale, they need to integrate to design and delivery with end-to-end accountability.

This has never been more important than now, in our post-Covid landscape, where remote work and employee motivation are at all time lows.

Microsoft’s CEO had this to say in September of 2022…

One thing is clear: “Thriving employees are what will give organizations a competitive advantage in today’s dynamic economic environment,” according to Satya Nadella, Chairman and CEO, Microsoft. And, creating a culture and employee experience to meet the needs of today’s digitally connected, distributed workforce requires a new approach.