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Restructuring an organization with all its elements is one of the most underestimated tasks. In addition to choosing the right organizational structure and designing end-to-end processes, it is also important to pay sufficient attention to acceptance among employees and stakeholders.
01 Organizational Design
When companies want or need to make organizational changes because they are having problems with their current organization, the question arises: which organizational form should be chosen?
Our tried-and-tested "CH/4NGE" framework, which was specially designed for S/4HANA transformation projects, focuses on the following objectives:
Designing innovative forms of organization
Regardless of whether the goal is a swarm organization, an agile organization or other forms of organization. If companies want to change and have set themselves ambitious goals, but do not yet know which organizational form is the best way to achieve them, then our "Organizational Design" solution is a good fit. Typical initial objectives are that larger divisions with several hundred employees should take on more tasks with the same number of employees or that staff should be cut without reducing the performance and service of the division. Or many local units are merged into one global unit. Sometimes the pressure to innovate is also the trigger for change projects.
Modern forms of organization, such as swarm organizations, are intended to help produce more innovations with the same team strength. The main drivers are therefore always increased efficiency and cost savings.
Organizational design starts in the design phase of restructuring and is the basis for sustainable reorganization.
Four steps of organizational design
By default, the process of restructuring is divided into three phases: the design phase, the planning phase and the transformation phase. Organizational design, on the other hand, focuses only on the design phase of the project and begins with defining the prerequisites.
For the successful design of a new organization, it is advisable to set up an integrated team consisting of representatives of the new organization, the future management and CPC. The design phase is divided into four sub-phases. Vision & Strategy is the first sub-phase, in which the foundations are laid. In the second sub-phase, Governance, processes, organizational form and roles are defined. This is followed by the Capabilities sub-phase, in which the skills and capabilities required are determined. Finally, the Collaboration sub-phase follows, in which collaboration is adapted both internally and externally with the interfaces and partners. Milestones are defined and results documented in the respective sub-phases so that reorganization and, above all, the subsequent organization function smoothly.
VISION & STRATEGY
The first sub-phase lays the foundations for all further organizational designs. The first step is to develop a future "value proposition" for the organization. Typical questions here are: What added value can the organization offer its internal or external customers? What distinguishing features differentiate it from its competitors? The answers are summarized into a catchy common vision.
GOVERNANCE
In a second sub-phase, the business processes required to achieve the departmental vision are defined and adapted. The next step is to choose a suitable organizational form. Should it be a matrix, swarm or pool organization or an agile form of organization? In a final step, the necessary roles and responsibilities are defined.
CAPABILITIES
Once the necessary roles and responsibilities have been defined and agreed, the next step is to compare the current roles and skills of the employees. The aim is to obtain transparency about the required organizational skills and the current status.
COLLABORATION
The fourth sub-phase deals with the internal and external collaboration model. On the one hand, collaboration in terms of roles, responsibilities and processes must be defined or adapted. On the other hand, the external interfaces must be defined; these can be neighbouring areas within the organization as well as customer interfaces. For example, an agile organization requires agile collaboration.
In addition to the four sub-phases of the design phase, there are additional tasks that should be considered during a reorganization:
STANDARDS
This includes HR guidelines, Group guidelines, the works council and taxes, topics that are normally negotiated with partners in the organization. People from these interest groups are involved in the change process very early on in the design phase.
OPTIONS
Change projects often go hand in hand with the implementation of other facilities, such as a new IT tool or the establishment of a shared service center. Although these measures are optional, they should be taken into account at the planning stage.
Key Success Factors
Define a clear vision
It is particularly important to define a clear vision that answers the question of why there should be a new organizational unit or a new organizational model. Managers are required to address this question and describe a sustainable vision. When defining a vision, it is important that the interests of the stakeholders and all corporate guidelines are taken into account and included. The vision forms the reference point for the further definition of the organization.
Turning those affected into participants
Another key success factor is turning those affected into stakeholders, i.e. the CPC consultants work closely with managers to develop all planning-relevant steps. At an early stage, all those involved should be made aware of and take responsibility for a common goal to be achieved.
Focus on customers
As the basis of the organizational vision, CPC consultants focus on the orientation of the future organization, its customers and the added value to be generated.
Turning organizational design into a project
Set up the design phase of the future organization as a separate project. CPC has had good success with an agile approach, with short design sprints followed by direct management approval. In such a setup, it is possible to react quickly to changing requirements.
SUCCESS STORY: Introduction of a pool organization
Our customer from the product management division of a German telecommunications group wanted to be well positioned for an increasingly dynamic market environment and a growing area of responsibility in the future. He decided to restructure from a line organization to a pool organization.
CPC accompanied the transformation from idea to implementation. Due to the fact that 300 employees and managers in the department were one hundred percent affected and due to a tight timeline, a high level of commitment and a great willingness to change was required. After formulating a common vision, the team and department heads worked out the roles and responsibilities, processes and cooperation model of the target organization in work packages. Selected employees were trained and deployed as change consultants at an early stage in order to initiate specific measures to address the fields of action at employee level. In this way, the networking and personal initiative of all employees that will be necessary in the future became tangible even before the transformation.
Benefits achieved:
Thanks to our integrated approach of organizational design and Change Management , the affected managers and employees were involved in shaping the transformation right from the start.
This ensures that the future organization fits the needs of the employees. In addition, important basic principles of a pool organization such as personal responsibility and self-organization become tangible even before the transformation.
When the target organization went live, the customer was prepared for future challenges and was able to continue the subsequent transformation phase without external support. The division became a "blue print" for neighbouring divisions that also wanted to restructure from a line organization to a pool organization.
SUCCESS STORY: Design of a matrix organization
One of the global market leaders in the logistics sector merged three IT departments spread across China, Germany and India into one global software development unit. The aim was to support both the content of the reorganization and the subsequent implementation. The project involved around 500 employees worldwide.
CPC initially advised on the definition of a shared vision and the identification of a value profile and leadership principles. In a four-month design phase with weekly "sprints", we jointly developed a matrix organization with the underlying processes, roles and responsibilities as well as a service catalog.
In the subsequent implementation, the developed organizational model was brought to life. CPC set up a comprehensive Change Management architecture for this purpose, which used targeted measures and innovative formats to guarantee the early support of middle management and kept the workforce fully informed and involved at all times.
Benefits achieved:
The comprehensive restructuring brought enormous changes for almost every employee - CPC, together with the client, gave the middle management partial responsibility for the design of the new organization from the very beginning and thus generated its success-critical support at an early stage.
The success factor was absolute transparency towards the employees, who were informed about the goals, successes and challenges of the project throughout the entire project using innovative formats and were asked for valuable feedback.
CPC not only advised on the strategic development of the new organization, but also assumed responsibility for implementation, making a decisive contribution to the successful launch.
Download : Solution: Organizational Design
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02 Process Excellence
Non-transparent workflows and unclear role allocations cost companies a lot of money. This is why many companies decide to standardize and optimize workflows for company divisions, business units or the entire organization.
We support our customers in defining end-to-end processes, deliverables, roles and interfaces. With our change approach, we ensure that everyone involved internalizes the new roles and processes and gains a common understanding of the processes. This creates acceptance among employees and stakeholders.
Objectives of the process change
Internal causes, external requirements, standards or regulations - the reasons why companies want to document, standardize or optimize their processes are just as varied as the associated objectives:
- Work processes should be standardized for company divisions, business units or the entire organization.
- Costs are to be saved through process optimization.
- Known work processes must be documented for certification or an audit.
- Processes are to be standardized as a result of a merger or acquisition.
- The process knowledge in the company should be freely available in order to avoid long training periods and loss of know-how.
- The processes are to be transferred from a project to the line organization.
A customized approach must be defined for each of these challenges. If it is sufficient for certification to record and document the work processes in a structured manner, the introduction of a process-oriented organization with consistent end-to-end processes includes all components of process management: from process documentation and process optimization to organization-wide implementation.
Our modular solution kit
Depending on the objectives of the process change, we work with our clients to build a customized approach - consisting of one, several or all of the following modules.
Module 1
Concept - Scope, level of detail and objectives of the process-oriented organization.
First, we work with our client to determine the scope of the process-oriented design. Should the management, value-adding and supporting processes of the entire organization, a business unit or a corporate division be considered? At the same time, we determine the required level of detail to be applied when designing the process-oriented organization. We also define and prioritize the optimization goals with our client. Optimization goals are typically time, quality and costs.
Module 2
Process Documentation - with method.
We conduct structured interviews with those involved in the process to record the actual processes in the required level of detail. The process documentation is carried out according to a jointly defined methodology (e.g. based on BPMN 2.0).
Module 3
Communication concept - early involvement of stakeholders.
Without the targeted and early involvement of the relevant stakeholders, the project is likely to fail. If, for example, the production area redesigns its organizational structures in a process-oriented manner but does not sufficiently integrate the adjacent areas, tensions and errors will arise at the interfaces. A communication concept that identifies all relevant stakeholders, defines the type of involvement and specifies the communication measures is therefore an indispensable component of a sustainable Change Management.
Module 4
Process review - relentlessly uncover current weaknesses.
In the case of existing processes, we first carry out a process review. Collaboration is often not sufficiently defined as key questions remain unanswered:
- What roles are there? Which role has which tasks, competencies and responsibilities?
- Who works for whom and in what order?
- What delivery items are there and who creates them?
- Which delivery items are mandatory and which are more of a supportive nature?
- How do the different roles and areas work together and what interfaces are there?
The current weak points and areas for action in the work processes and everything associated with them are ruthlessly exposed.
Module 5
Process Design - Optimization of processes, roles and delivery items.
In process design, we identify optimization potential together with those involved in the process. Here we rely on creative methods such as the "6-3-5 method". Our "Conference Room Simulation" solution is ideal for more complex workflows. In a realistic practical test, we simulate different variants of the future processes with the relevant stakeholders. Process design also includes the definition and description of roles, deliverables and interfaces.
Module 6
Integration - Consistent integration of processes in one or more organizations.
After the process design, the new processes and organizational structures need to be integrated with the adjacent organizations and areas. Here we (again) use our "Conference Room Simulation" solution: the new processes, roles, deliverables and interfaces are simulated together with the relevant stakeholders. Errors, gaps and conflicts are identified before implementation. This saves time and money. In addition, a common understanding of the new processes and increased commitment to the new workflows is created among those involved.
Module 7
Implementation - Sustainable implementation of the new process-oriented organization.
Implementation involves training employees in the new processes and roles and creating acceptance for the new process-oriented organization. Here, too, we rely on proven solutions: target group-specific training and targeted communication measures form the basis. Proven implementation tools developed in-house, such as the "process workshop", ensure sustainability: in this format, each employee takes on exactly the same tasks that await them later in their day-to-day work. The new processes, interfaces and roles are tested for functionality and acceptance in a test environment. The workshop promotes interaction between employees and an understanding of the change. This allows the new work processes to be put into practice more quickly.
Module 8
Process management - the basis for continuous process improvement.
As part of process management, standardized structures (roles, responsibilities, committees and framework conditions) are created for process governance. This forms the basis for future process changes and improvements as well as the introduction of new processes in the organization.
Your advantages at a glance
PRACTICABILITY
Our process experts do not prescribe solutions. We offer our customers the opportunity to find the best possible solutions together through knowledge transfer and formats such as the "Conference Room Simulation". In this way, we create the conditions for the results to be put into practice - instead of gathering dust in the archive.
MODULAR SYSTEM
Thanks to our modular approach, we offer our customers tailor-made solutions - from process documentation to process optimization and process management. From the conception to the implementation of process-oriented organizational models. The focus is always on increasing the efficiency of workflows - whether for individual departments or the entire company.
SCALABILITY
Our approach is equally applicable to large corporations and medium-sized companies.
ACCEPTANCE
Whether our customers operate in Germany, Brazil or China, we always pay attention to the cultural and national circumstances of the company and the country. All relevant stakeholders are identified at an early stage and involved in a targeted manner. This creates acceptance and commitment.
EXPERIENCE
Using proven tools such as the "process workshop", we ensure that the new roles and processes are experienced and internalized across the board. In this way, we anchor changes in the organization in the long term.
For the successful introduction of a process-oriented organization, an experienced partner is the critical success factor when it comes to change. This is because most employees have massive reservations when it comes to changes to their familiar structures and processes. Benefit from our expertise as Germany's leading Change Management consultancy.
SUCCESS STORY: Introduction of a process-oriented organization
A leading car manufacturer is faced with the challenge of having to integrate its IT systems more closely due to its global corporate structure and projects encompassing more and more areas. At the same time, the Group's IT department realizes that a "common language" is no longer spoken in projects and that heterogeneous workflows prevent efficient collaboration.
How did this come about? Due to historically grown structures and almost autonomously operating IT and specialist departments, processes and roles that have little in common with each other have developed over the years. The solution: structures and processes were harmonized over a period of two years by introducing a process-oriented organization in Group-wide IT with the involvement of the specialist departments.
Our approach:
- Consideration of the status quo
- Existing processes put to the test
- Best practices collected and validated
- Templates optimized
- Potentially supporting systems evaluated
- Development of a standardized, comprehensive process model
- Standardization of processes
- Standardization of roles
- Standardization of delivery items
- Simultaneous consideration of best practices
- Validation and optimization of the model with the experts from the individual IT departments
- Quality assurance of the process model in "Conference Room Simulations" with more than 100 representative use cases
- Validation of all interfaces to the adjacent process domains
- Practising and internalizing the roles and their interaction in training sessions and "process workshops"
- Creating commitment
Convincing management that the model works.
Benefits achieved:
- Projects, line organizations and collaboration models between different departments in IT can be set up more quickly and easily, as the introduced process model provides a replicable "blueprint".
- The interfaces to the specialist departments are transparent and enable efficient collaboration.
- A standardized language is now spoken in projects - worldwide.
SUCCESS STORY: Introduction of a process-oriented organization
Restructuring an organization with all its elements is one of the most underestimated tasks. Unfortunately, it is still common practice to pay all the attention to the organizational structure. Top management and strategy consultants paint the big lines and the organizational structure. Process organization, control logic and change are not considered at all or only insufficiently.
One of the world's leading automation companies is on fire. Three months to go before the go-live. The new organizational chart is ready and the names of the top level have been named. However, the discussion about the structure of the new organization is taking far too long.
The employees cannot yet be informed as fundamental cornerstones are missing. There are problems everywhere. The commissioned strategy consultancy points to delayed decisions by top management.
"Help us with the implementation - pragmatically and quickly". These are the project manager's first words when he briefs the CPC consultants. Together with our client, we develop a change architecture that prepares the new teams for the challenges of the new organization.
In addition to more methodical work, such as process definitions and role clarifications, we are developing a gamification format that allows all managers to "play" the change with their employees. 800 managers and over 2000 employees worldwide are preparing for their new tasks. What begins as a sober reorganization develops into a transformation with passion in order to achieve the ambitious goals.
Download : Solution: Process Excellence
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03 Conference Room Simulation
Most process projects fail or are not completed on time or on budget. This is often due to a lack of coordination. The project managers take great care in specifying and designing the processes without seeking contact with the specialist departments concerned
As a result, we lose sight of the big picture. The feasibility and underlying assumptions of the changed or new processes are hardly questioned. The rude awakening comes shortly before the rollout - the introduction of new processes and structures meets with resistance from those affected. Conflicts between project management and specialist departments threaten to paralyze the rollout and costs get out of hand.
Early testing of the new processes
When companies are forced to change their organizational structures due to increased competition or new legal conditions, they are faced with a mammoth task.
Projects that aim to optimize cross-departmental processes, introduce more efficient systems or define new roles and interfaces are accompanied by a number of enormous challenges.
- Do new interfaces and roles function smoothly?
- How can the acceptance of the responsible and involved employees be ensured?
- Do the targeted processes fulfill the management requirements and the business case?
- Are the key players in the areas involved familiar with the new processes and systems to the necessary level of detail?
- How can conceptual gaps and errors be identified in good time?
Tests are necessary to answer these questions. That is why we have developed a tried-and-tested format that is unique in this form: The Conference Room Simulation.
Excellent results in the early project phase
Inadequate communication, unrealistic expectations, absent key players, lack of awareness of the problem: The list of challenges in process projects goes on and on. Yet most problems can be avoided quite simply - with a conference room simulation.
The format brings all project managers together at an early stage and simulates the most important processes in a realistic practical test. Weak points and risks are identified by the various departments involved and suggestions for improvement are coordinated directly with each other. This saves the project budget.
The simulations take place under protected conditions. Those involved have the opportunity to run through all conceivable process scenarios. In this way, sources of error can be eliminated without affecting day-to-day business.
In the simulation, the participants deal with the processes in the necessary depth of detail. CPC designs the meetings very realistically and integrates prototypes of the new systems into the simulation as required. Employees practice their new roles until they have internalized them.
Projects do not only produce winners. However, the disadvantaged areas often only articulate their objections in the final phase of the project. Fears and criticism are quickly voiced during the conference room simulation. Those responsible have time to dispel any reservations - an essential prerequisite for the stability of the newly introduced processes and structures. As the simulations lead to excellent results in the early project phase, they have a positive effect on the overall project quality.
From analysis to stress test
Before starting the conference room simulation, we put the existing process documentation through its paces. The focus here is on process maturity and plausibility. This analysis lays the foundation for a successful simulation.
Record simulation goals
After the process analysis, we develop clear simulation goals with the project management - taking all relevant departments into account. In this way, we ensure a common direction of travel.
Developing a simulation concept
We develop the simulation concept based on the agreed objectives. We develop a protected environment in which the new processes, structures, roles and systems can be tested realistically.
Perform simulation
The actual simulation is about identifying gaps and errors, practicing roles and processes - but also about exchanging information about the new processes and clarifying potential conflicts.
Recognizing the need for action
Finally, the simulation reveals a concrete need for action. In a concluding wrap-up sequence, the participants reflect on the key simulation results and define further measures.
10 advantages at a glance
- The conference room simulation enables new processes, structures, roles, interfaces and systems to be tested realistically step by step and sources of error to be identified at an early stage.
- Different solution variants can be tested and compared with each other.
- Business case-relevant information (costs, use of resources, throughput times, etc.) is recorded as part of the simulation. This makes it possible to compare future and current processes.
- Identified errors in the processes are rectified immediately. Extensive improvements are implemented in follow-up meetings.
- All departments involved are involved in the simulation. This ensures commitment and ownership.
- Conflicts between the divisions come to the table - and are resolved.
- Imbalances in the responsibility of process steps become immediately visible in the simulation.
- Those involved in the conference room simulation understand the overall process - not just a section of their area.
- Dealing openly with concerns creates the basis for sustainable acceptance.
- Process faults can also be simulated.
SUCCESS STORY: All around the table
The IT system complexity in the workshops of our customer - a leading German car manufacturer - was no longer acceptable. Whether diagnostics, ordering spare parts, warranty or goodwill - each area insisted on a separate system.
Because this fragmentation ultimately ran counter to the company's service claim, our customer decided to combat the uncontrolled growth. From vehicle acceptance to invoicing: all workshop processes and IT systems were to be developed in such a way that they would ultimately mesh seamlessly.
Because the comprehensive IT integration affected numerous departments, we had to get all managers to row in the same direction. Optimum interaction between all forces was necessary. We had little time to achieve this
ambitious goal.
The solution:
It quickly became clear that this challenge could only be overcome with a conference room simulation. Our experts ultimately focused on three cornerstones in the simulations
:
- First, we worked on the interaction. To this end, the central customer employees practiced new roles during the conference room simulation and were given an idea of their mission in the upcoming change process.
- The simulation managers also brought together the most important people involved in the project at
. In this way, the car manufacturer's managers were able to consult directly with each other, correct errors, resolve disagreements and coordinate the system changeover in an exemplary manner. - Because the division managers involved ran through more than 100 use cases and variants under extremely realistic conditions, the IT systems subsequently developed experienced an enormous boost in quality.
The global rollout ultimately went extremely well. The company's employees now have considerably more time for customer care and service. Our customer was very satisfied and emphasized the efficient and effective cooperation between the departments.
Without the conference room simulation, process gaps would only have been discovered at a later stage, which would have resulted in enormous additional costs. All those responsible for the project agreed: "We were only able to achieve these successes thanks to the simulation."
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04 HR business partner model
The significance of HR departments is more important than ever: they are expected to work as an equal partner with other areas of the company and provide an increased range of services as a competent service provider - from answering HR-related questions to initiating strategic measures. The key to fulfilling this role is to see yourself as a business partner. Experience has shown that this means far-reaching changes to structures and processes. The reorganization of the HR department is therefore a key issue.
Many companies are following the guidelines of Dave Ulrich's HR Business Partner Model with its three roles as part of the reorganization process: Business Partner, Competence Center and Shared Service Center. However, the transformation rarely proceeds as planned.
Instead, the following situation can be found in large parts of the economy: Companies have initiated the introduction of the HR business partner model, but develop the HR department only sporadically. However, this approach takes a lot of time and money. The transformation often gets stuck halfway through, meaning that the three essential roles cannot be fully implemented.
Other companies are still taking a wait-and-see approach. They are still pursuing a referent-like model and are not sure whether they should tackle the transformation to the HR business partner model. Nevertheless, those involved are generally aware of the need to take this step.
The challenges of introducing the model.
Whether the HR business partner model is already being introduced or not, the following challenges must always be taken into account in the course of the transformation:
Processes:
The model requires processes to be adapted and standardized at a detailed level so that efficiency and savings potential can be realized. This requires a high level of understanding of content and processes.
Acceptance:
The HR business partner model is changing the world of work far and wide. Although the new or changed roles and the associated processes are often defined, they are not anchored in the employees' minds accordingly. As a result, the hoped-for effects, above all cost savings and quality improvements, remain mere pipe dreams. The change process must be actively designed in order to generate willingness among HR employees for the new roles and processes.
Day-to-day business:
The introduction of the model can be compared to open-heart surgery, as day-to-day operations must also function during the change phase. Precise project planning and management is therefore necessary in order to successfully master the double burden.
The introduction of the HR business partner model therefore requires a targeted approach. This is the only way to achieve a holistic transformation of the HR organization that achieves the desired effects quickly and reliably.
The phases of model introduction.
CPC offers a best-practice approach to reliably implement the HR business partner model for our customers. In doing so, we rely on many years of experience and do not act according to common standards, as these have not proven themselves in practice. Instead, our approach is geared towards the added value of the company or HR department. The following phases characterize our approach:
Strategy development:
In the first phase, strategic issues are clarified:
- What are the requirements of the individual business areas?
- What is the vision of the HR department?
- To what extent does HR contribute to value creation and what contribution should it make in the future?
The strategic specification forms the basis for the successful implementation of the HR business partner model. This ensures that the individual business areas of the company are adequately supported in HR matters.
Definition of products and processes:
In the second phase, the services of the HR department are identified and specified.
In this context, CPC makes tangible which products the HR department stands for and also defines appropriate key figures. In addition, we define quantity and quality requirements in consultation with the customer. This results in a portfolio that represents the services of the HR department in the form of products. On this basis, we define an efficient process model, which forms the basis for continuous improvement of all HR services.
Introduction of the new structure:
Anchoring the new process, product and role structure is one of the most difficult but most important tasks.
In order to successfully implement the business change, CPC uses formats such as the practical workshop in the run-up to the changeover, in which specific business scenarios are simulated. Here, each employee takes on the tasks that they will later have to perform in their real day-to-day work. The format therefore tests whether the new structures work and are accepted. It also improves interaction between employees. Because they understand and accept the change, the new work processes can be quickly put into practice.
Finally, our consultants check the actual implementation of the new structure and fine-tune it if necessary. Our customers can rest assured that the desired results will be achieved.
Our benefits:
CPC has many years of practical experience and a large number of proven tools, methods and approaches that can be adapted to suit specific customer requirements.
- CPC successfully achieves planned or stalled HR transformations through a targeted approach with significant time and cost savings.
- The introduction of the model is embedded in our organizational, process and project management expertise, which enables us to carry out HR transformations in a structured, high-quality and comparatively fast manner. This increases the value contribution of the HR department as well as internal customer satisfaction.
- CPC also covers the change aspect that is critical to the success of transformations. Employees take on their new roles in realistic simulations. This increases the willingness to transfer the change into daily practice.
SUCCESS STORY: Introduction of the HR business partner model.
A leading international telecommunications company faces the challenge of implementing standardized business processes based on the HR business partner model in all Group companies. A previous project had already failed. "This time, nothing, absolutely nothing can go wrong," are the first words of the project manager. We are commissioned to define and introduce processes for selected HR services in the three role areas "Business Partner", "Shared Service" and "Competence Center".
We create a change process model including a communication concept and anchor it at top management level. The next step is to identify, model and document the HR processes. Realistic scenarios are then simulated as part of the HR practice workshop in order to test the process designs for their suitability for everyday use. This approach enables employees to learn the processes in their new roles and improve them at the same time.
The following milestones are also achieved:
- Design of a perfect process model that can be used again and again to improve HR performance
- Reduction of operational problems and disruptions
- Strong commitment to the transformation from all those involved by actively shaping the change
- Different Group companies communicate with each other
- Basis for a standardized IT landscape
- Significant increase in internal customer satisfaction
In the end, not only are the processes for the "Business Partner", "Shared Service Center" and "Competence Center" areas defined. The people who fill the new roles develop an understanding for each other during the project and communicate with each other much better than before. The HR role model has been successfully implemented.
Download : Solution: HR Business Partner Model
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05 Staff restructuring measures
Companies today are operating in a time of constant change - new technologies, digitalization, Industry 4.0, fast-moving sales markets, increased competition. The constant pressure to change means that jobs that were once needed no longer contribute to operational value creation.
Staff reductions can often not be achieved through natural fluctuation alone. Traditional staff restructuring instruments such as severance models or partial retirement are quickly exhausted and are used by fewer employees with each new restructuring.
Depending on the background, companies in this situation either make redundancies for operational reasons or set up transfer companies. However, there are circumstances that make it necessary to cut jobs on a large scale, but there is no legal basis for a transfer company or compulsory redundancies. The operational implementation of a social selection is also often very difficult and can hardly be implemented in the necessary time. In addition, there is a risk of far-reaching damage to the working atmosphere and damage to the company's image due to negative headlines. Furthermore, in the case of redundancies for operational reasons, a legally prescribed selection must be made according to social criteria. This can only be controlled by the employer to a limited extent and quickly leads to the loss of talent. If, on the other hand, the selection is based on professional criteria, the employer can control the effects on personnel transformation to safeguard the future.
The question remains: How should companies deal with employees who are "no longer needed" and - possibly very late in their careers and after many years with the company - suddenly have to think about new career prospects? From the employees' point of view, there is no need for action: Their job is permanent and their salary payments continue as normal even if they leave the company.
In such cases, HR managers look for alternative, socially acceptable and sustainable options for staff restructuring. Financial targets are often the driving factors that need to be achieved.
The solution: An internal unit for the implementation of personnel transformation.
An alternative is to implement an internal project unit that is fully integrated into the HR processes. This unit is tasked with developing new career prospects with the employees affected by the restructuring and supporting them in their personal change process.
One success factor in personnel restructuring is to give employees responsibility for shaping their professional future. Only if employees really want to change their career can the change succeed. This approach to personnel restructuring at eye level works if all those involved - from line managers to HR managers - share the same understanding and live this with genuine conviction in their interactions with employees: The employees affected should be supported in finding a new career perspective for themselves on their own responsibility.
The first and most important step is to make employees aware of their need for change. There is no alternative to their professional reorientation. The employer offers them honest, constructive and individual support in making a self-determined decision.
This support is provided by special placement advisors, who accompany their employees over a period of several months with individual coaching and group offers for personal reorientation. Other HR processes that support professional reorientation run in parallel:
- The training department offers further training measures specially tailored to development needs.
- The Personnel Requirements Planning department actively checks positions to be filled internally for compatibility with the employees concerned and thus acts as an internal recruitment agency.
- Specialist experts support employees on their way to semi-retirement or early retirement, possibly with a project assignment during the transition period.
- If necessary, the legal department reviews employment law principles. It thus supports a special unit for escalation cases to provide intensive advice to individual employees who are not actively involved in Change Management.
Organizational structure of the internal project structure:
The most important difference between this model and conventional personnel restructuring measures is that employees are not removed from their organizational unit. They continue to report to their previous supervisor in disciplinary terms until they actually change companies or departments. Consultation with employees takes place in a virtual project structure so that the employees' employment rights are not affected. However, the employees are released from their previous duties in order to devote themselves entirely to their professional reorientation.
Our consulting services.
We form the overarching framework and design the following processes and interfaces:
Core process of the project organization:
- Advising the affected employees using a holistic consulting approach in the change process
Supporting processes:
- Search for project assignments and alternative employment
- Analysis of qualification requirements and implementation of measures
- Stakeholder management and communication
- Quality management, reporting and data management
- Provision of infrastructure for employees and consultants
- Purchasing and assembling the placement consultants and the project team
Interfaces to stakeholders:
- Managers of the employees concerned
- Works Council
- Training department
- HR department
- Legal department and specialist departments
- Corporate communications (internal/external)
Planning and procedure:
The duration of a staff restructuring project with a virtual project structure depends primarily on the number and qualifications of the employees concerned.
With up to 2,000 employees, it is estimated that it will take around two years for the majority of employees. The planning phase involving the works council and the selection of employees is estimated at six months. Operational preparation, including setting up the necessary project structure and selecting, onboarding and aligning consultants, takes around three months. The majority of solutions are achieved within the first 15 months of consulting. This depends on the qualifications of the employees and their locations.
If the company plans further staff reductions, the project structure can be transferred to regular operations and thus used permanently as a staff restructuring tool.
SELECTION AND NEGOTIATION: approx. 6 months
OPERATIVE PREPARATION: approx. 3 months
IMPLEMENTATION OF CONSULTATION: approx. 15 months
GGF. TRANSFER TO REGULAR OPERATION FOR NEW OVERHANGS
Sustainable success:
With the help of the model described, experience has shown that 70% of the employees concerned find a new career perspective within a period of 12 months. This means that within a year, the majority of employees will be able to find a self-chosen alternative for professional reorientation, while around 15% of the target group will ultimately be unable to find new prospects. Other employment options must be found for these employees.
The advantages at a glance:
- Avoidance of reputational damage due to waves of redundancies as a result of compulsory redundancies
- Adaptation of the personnel structure to professional requirements with appropriate selection of employees
- Reduction of personal frustration among "unproductive" employees through deployment in new areas
- Identifying new, individual perspectives for employees
- Time and cost savings through efficient staff restructuring
- Creation of sustainable structures in exit and performance management
Our consulting services for integrating all personnel restructuring processes into the overall project:
- Setting up the project structure with various stakeholders, including the integration of the necessary HR processes
- Setup and anchoring of processes for the professional reorientation of employees
- Supporting managers during the change process
- Advising the project management during the implementation of the various project phases
- Cooperation with placement consultants
SUCCESS STORY: Staff restructuring successfully mastered.
Our client, a large telecommunications company, is facing the challenge of no longer being able to offer around 4,000 employees any prospects in their current position. After finding a solution for more than half of the employees with the help of traditional personnel restructuring measures, we supported our client in setting up a virtual project structure. This offers the remaining 1,700 employees a range of advisory and training services and supports them in their professional reorientation. Throughout the entire process, we supported the project management in the implementation of this innovative concept.
First, we set up the necessary structures for advising the employees concerned. With the help of the placement consultants, the employees go through a modular group and individual consulting process: the consultants analyze the employees' personal and professional situation in one-on-one meetings and work with them to develop individual career goals. The resulting qualification requirements are covered by internal or external training courses in combination with practical assignments.
If the focus is then on internal or external job advertisements, employees receive advice on applications and self-marketing. There are tailored advice focuses for different target groups, for example "Temporary employment models" for employees approaching retirement.
Part of the solution is also dealing with employees who are reluctant to make a career change or who are not yet suitable for a new position due to their mental state. Consultants are specially trained in employment law to support these employees.
We integrate the project organization into the existing HR processes right from the start. This is achieved, for example, through cooperation with the training department and those responsible for recruiting, or through communicative networking with the specialist departments and the works council.
We are constantly developing new initiatives and measures for the employees concerned, such as networking events and participation in job fairs or company presentations. Depending on the requirements in the project phases, we realign the project team several times. In addition, those responsible for implementation receive coaching on Change Management.
THE RESULT:
The personnel restructuring project is quickly bearing fruit for our customer. The key to success lies in treating employees as equals and challenging and encouraging them to take responsibility.
Thanks to the clear and transparent communication, most of the employees affected quickly see the upcoming changes as necessary. Many employees see the change as an opportunity to play an active role in reshaping their professional situation. Within 18 months, around 80% of employees are able to start a new professional or personal perspective: many within the Group, most outside. The ROI is 320%.
The positive feedback and sincere letters of thanks from people who have successfully mastered a career change speak for the success of the project. Due to the ongoing demand, we are planning with the customer to transfer the project structure to regular operations once the project has been completed.
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