{"id":91741,"date":"2023-06-22T16:00:38","date_gmt":"2023-06-22T23:00:38","guid":{"rendered":"https:\/\/www.betterworks.com\/?p=91741"},"modified":"2023-12-17T16:12:45","modified_gmt":"2023-12-18T00:12:45","slug":"how-hr-can-build-the-case-for-people-transformation","status":"publish","type":"post","link":"https:\/\/www.betterworks.com\/magazine\/how-hr-can-build-the-case-for-people-transformation\/","title":{"rendered":"How HR Can Build a Successful Business Case for Transformation"},"content":{"rendered":"\n<div class=\"wp-block-ht-block-toc is-style-contrasted htoc htoc--position-wide toc-list-style-plain\" data-htoc-state=\"closed\"><span class=\"htoc__title\"><span class=\"ht_toc_title\">Table of Contents<\/span><span class=\"htoc__toggle\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"16\"><g fill=\"#444\"><path d=\"M15 7H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><path d=\"M15 1H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1zM15 13H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><\/g><\/svg><\/span><\/span><div class=\"htoc__itemswrap\"><ul class=\"ht_toc_list\"><li class=\"\"><a href=\"#h-articulate-the-benefits-of-the-future-state\">Articulate the benefits of the future state<\/a><\/li><li class=\"\"><a href=\"#h-build-your-case-with-the-most-meaningful-metrics\">Build your case with the most meaningful metrics<\/a><ul class=\"ht_toc_child_list\"><li class=\"\"><a href=\"#h-overcoming-good-enough\">Overcoming \u2018good enough\u2019<\/a><\/li><li class=\"\"><a href=\"#h-be-ready-to-handle-objections\">Be ready to handle objections<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#h-find-the-right-moment-to-state-your-case\">Find the right moment to state your case<\/a><\/li><\/ul><\/div><\/div>\n\n\n\n<p><em>Editor\u2019s note: This is the third in a series of six articles on how to become a more strategic HR leader.<\/em><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Transforming how we manage people and performance is at the heart of business success. Yet many in HR struggle to articulate how innovation in HR drives positive business outcomes. We get stuck talking about the problems of the process. It\u2019s&nbsp; hard to manage, very manual, and highly administrative, it\u2019s not a system that meets HR\u2019s needs \u2014 and<strong> <\/strong>we leave it there.<\/p>\n\n\n\n<p>The boardroom doesn\u2019t respond well to this reasoning and HR is unsuccessful at securing investment.<\/p>\n\n\n\n<p>The good news is that executives are ready to hear a more compelling, business-oriented case. <a href=\"https:\/\/www.accenture.com\/us-en\/insights\/consulting\/chro-growth-executive?c=acn_glb_hr-driventransfgoogle_13643184&amp;n=psgs_0523&amp;gclid=CjwKCAjwyqWkBhBMEiwAp2yUFklaJdlhpMmUoguPoX9KuSZE5R0RH9LpEVcv-UbA-a0fnKmgRBAvTBoCfb4QAvD_BwE&amp;gclsrc=aw.ds\" target=\"_blank\" rel=\"noreferrer noopener\">Research from Accenture<\/a> found that unlocking the growth potential of data, tech, <em>and<\/em> people produced an 11% increase in top-line productivity, compared to a 4% increase when people were excluded. Business leaders clearly recognize this opportunity, as 89% of CEOs agree that their chief HR officer plays a pivotal role in driving long-term profitable growth, yet only 5% of global organizations are following through.<\/p>\n\n\n\n<p>But even if leaders are ready to hear your business case for HR change, making the argument can be challenging. Let\u2019s talk about securing the investment and buy-in you need.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"580\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/06\/How-HR-can-build-the-business-case-for-people-innovation-Internal-1-1024x580.jpg\" alt=\"\" class=\"wp-image-91750\" srcset=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/06\/How-HR-can-build-the-business-case-for-people-innovation-Internal-1-1024x580.jpg 1024w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/06\/How-HR-can-build-the-business-case-for-people-innovation-Internal-1-980x555.jpg 980w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/06\/How-HR-can-build-the-business-case-for-people-innovation-Internal-1-480x272.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-articulate-the-benefits-of-the-future-state\">Articulate the benefits of the future state<\/h2>\n\n\n\n<p>The most direct way to make your case for HR transformation is to start with a one-page executive summary linking the business imperatives to what you\u2019re trying to achieve in HR. Outline what\u2019s broken within your existing performance process, why it doesn\u2019t work (not just that people don\u2019t like it) and what the ideal future state looks like. Identify the <a href=\"https:\/\/www.betterworks.com\/magazine\/reimagine-performance-management-to-make-work-better\/\">benefits of reimagining performance management<\/a> for each stakeholder persona in the organization: employees, managers, HR leaders, and company leadership.<\/p>\n\n\n\n<p>Your peers in leadership \u2014 the CEO, CIO, and COO, among others \u2014 are pivotal in helping flesh out the impact of transformation on each stakeholder group. Talk to them to better understand the nature of their concerns. Are they specific to your performance management solution, or are they related problems that may stem from faulty performance management processes? For example, employee disengagement or productivity declines could be tied to a lack of clarity about what goals to prioritize, or distrust in how their performance is measured. In these examples, taking a different approach to performance management could improve the major indicators.&nbsp;<\/p>\n\n\n\n<p>Whether the issues are tied to performance management or another workforce challenge, understanding what keeps your internal constituents up at night, and the likely sources of those issues, will help you think about what changes can improve organizational outcomes.&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>When you articulate how your program will answer business challenges to fellow business leaders, you can earn their support <em>before<\/em> officially making your case for change. By then, you\u2019re presenting to a group of proponents rather than skeptics.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>Whether the issues are tied to performance management or another workforce challenge, understanding what keeps your internal constituents up at night, and the likely sources of those issues, will help you think about what changes can improve organizational outcomes.<\/p><\/blockquote><\/figure>\n\n\n\n<p>As you outline your vision, have a basic plan for the technology you\u2019ll need to reach the desired state. Talk with your peers in IT about how to best integrate available software options with your existing tech stack. You don\u2019t need to come to the table with a request for a specific product, but you should be able to demonstrate that you\u2019ve researched your options and have solutions in mind.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-build-your-case-with-the-most-meaningful-metrics\">Build your case with the most meaningful metrics<\/h2>\n\n\n\n<p>No matter how idyllic a picture you paint, you won\u2019t get traction without data. But you can\u2019t include every single metric in a one-page summary without overwhelming your audience and diluting your impact.&nbsp;<\/p>\n\n\n\n<p>You need curated, targeted data points to illustrate how you\u2019ll achieve this future state. Ask yourself, \u201cWhat am I trying to solve for?\u201d<\/p>\n\n\n\n<p>Consider the return on investment (ROI) when choosing the metrics you want to highlight. Quantitative metrics are usually better, as qualitative metrics can be perceived as \u201cfuzzy.\u201d Look for data points that are accessible, in-depth, and will resonate with your audience \u2014 you want to deliver a report that\u2019s substantial and compelling.&nbsp;<\/p>\n\n\n\n<p>Next, choose the <a href=\"https:\/\/www.betterworks.com\/magazine\/hr-metrics\/\">HR metrics that matter most<\/a> to your specific organization. Look to the business strategy for cues. For example, if there\u2019s a big drive in the organization to reduce costs, then you might show ROI based on efficiency, cost savings, and time savings. If the organization has a big appetite for mergers and acquisitions, then you might include metrics related to employee alignment around the combined company&#8217;s mission, vision, and goals.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-overcoming-good-enough\"><strong>Overcoming \u2018good enough\u2019<\/strong><\/h3>\n\n\n\n<p>Oftentimes, the biggest obstacle is inertia, a sense among leadership that what your organization has is sufficient. Sometimes the high costs of a recent implementation, such as an HRIS system, prevent an objective evaluation of whether all elements of that solution are working as they should. If you\u2019re in this situation, it\u2019s wise to provide data to show the cost of staying with the status quo.&nbsp;<\/p>\n\n\n\n<p>Not only may there be limitations to your company\u2019s current state, but the cost of making things better by leapfrogging to a more advanced technology can justify or even outweigh the cost of implementing it.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-be-ready-to-handle-objections\"><strong>Be ready to handle objections<\/strong><\/h3>\n\n\n\n<p>Although your one-page summary won\u2019t include every data point, be ready to provide additional details to address inevitable objections. For example, you\u2019ll likely be questioned about the cost of implementing a new performance management process. You\u2019ll want to be ready to give estimates \u2014 just don\u2019t forget to lay out the cost of maintaining the status quo, as mentioned above.<\/p>\n\n\n\n<p>For example, to prepare for questions about changing solutions providers, look at when your current provider\u2019s contract expires and how much it would cost to recast that solution to support the desired future state. By doing this, you refocus the discussion on the cost of doing nothing in terms of lost productivity, misalignment, or added cost \u2014 whichever metric your audience values most.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-find-the-right-moment-to-state-your-case\">Find the right moment to state your case<\/h2>\n\n\n\n<p>Once you\u2019ve developed the most effective case for change, plan for the right moment to bring it to leadership\u2019s attention. How will you know when that is? Here are a couple of examples.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>To successfully sell your vision for HR transformation, you need three ingredients: an articulation of how your recommendations will drive business outcomes, data that demonstrates the value, and the right moment to present.<\/p><\/blockquote><\/figure>\n\n\n\n<p>Businesses go through natural rhythms, and HR leaders can time those cycles to make the case for HR transformation. There\u2019s typically an internal funding cycle, where upcoming initiatives are submitted for review and approval. In a large enterprise, this usually happens during the last quarter of the fiscal year.<\/p>\n\n\n\n<p>At this point, the leadership team is primed to hear recommendations for driving business value in the upcoming year.<\/p>\n\n\n\n<p>Alternatively, you could state your case alongside another transformation project or major business change. Maybe you\u2019re undergoing a digital transformation or have an ambitious new CEO who\u2019s looking to make major changes. In either case, the business is already in flux and is more open to hearing about <a href=\"https:\/\/www.betterworks.com\/magazine\/9-ways-hr-leaders-can-lead-workforce-transformation\/\">workforce transformation<\/a>.<\/p>\n\n\n\n<p>To successfully sell your vision for HR transformation, you need three ingredients: an articulation of how your recommendations will drive business outcomes, data that demonstrates the value, and the right moment to present. Follow those steps, and you\u2019re primed to make a compelling case for people innovation.<\/p>\n\n\n\n<p><em>As VP of HR Transformation at Betterworks, Jamie helps customers reimagine the way employee performance is managed with proven systems and processes that work.<\/em>\u00a0<em>She is co-author of the book,\u00a0<\/em><a href=\"https:\/\/www.amazon.com\/Make-Work-Better-Revolutionizing-Employees\/dp\/1510774912\/ref=sr_1_1?crid=1U6QUUPW2PJ91&amp;keywords=make+work+better+aitken&amp;qid=1674502998&amp;sprefix=make+work+better+aitken%2Caps%2C147&amp;sr=8-1\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Make Work Better<\/em><\/a><em>, and draws inspiration from her more than twenty-five years of HR leadership experience, spearheading organizational development, HR transformation, and employee engagement strategies that boost business performance.<\/em><\/p>\n\n\n<div class=\"lazyblock-post-resource-cta-2seP8d align  wp-block-lazyblock-post-resource-cta\"><div class=\"custom-post-resource-box\" style=\"background:url('https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/06\/2023-HowToBeStrategicHRLeader-Horizontal.jpg;') no-repeat center;background-color:;box-shadow: 0px 0px 18px -5px ;background-color:\">\n  <div class=\"custom-box-heading\" style=\"max-width:50%;\"><p style=\"color:#ffffff;font-size:30px\">Be the strategic HR leader everyone looks to<\/p><\/div>\n  <div class=\"custom-box-cta\" style=\"\"><a class=\"et_pb_button\" href=\"https:\/\/www.betterworks.com\/how-to-be-a-strategic-hr-leader\/\" style=\"color:#008AAB;background-color:#ffffff;\">READ THE EBOOK<\/a><\/div>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Making a business case for HR change can be complex. Here\u2019s how to build a business case for an HR transformation and secure buy-in from the organization.<\/p>\n","protected":false},"author":116,"featured_media":91742,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"footnotes":""},"categories":[3515,3518],"tags":[],"featured_location":[],"industry":[],"class_list":["post-91741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-betterworks-insights","category-hr-leadership"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v18.1 (Yoast SEO v23.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>3 Step to Making the Business Case for HR Transformation - Betterworks<\/title>\n<meta name=\"description\" content=\"Making a business case for HR change can be complex. 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