Using Business Models to

Achieve HRIS Success

IHRIM Conference Presentation

October 28, 1997

George L. Eckhert
Royal York Hotel Consultant
Toronto, Ontario CHARTWELL INC.
 Purpose

To help you have a more successful HR
information system which contributes
to a more successful enterprise

To persuade you to consider using a
business model approach in doing so
 Main Messages

Success depends on understanding.

Building a model creates
understanding.

A business model shows understanding
and facilitates change.

Business modeling is the best way to
prepare for and manage change.
The Problem: HR Systems That
• Don’t meet enough important business
needs
• Take too long to implement
• Exceed expected costs
Non-optimum HRIS Situation
Payroll Benefits
Admin.

Applicant
Tracking
DATA
DATA

Training
DATA Mgmt.

DATA
Competency
Modeling
DATA
Job
Evaluation
DATA
 The Root Cause
Lack of clarity in, and common
understanding of, the current and/or
desired future situation, including:
• Connection between HR and business strategies
• HR policies, practices and business rules
• HR functions and business process to be
automated
• Optimum roles and accountabilities
• Multiple uses and interactions of data
 An Example
• Executive wants to know “how many
people work for us?”
• Clarity issues:
– Employees only or including contractors?
– In all business units?
– At all locations?
– On what date?
– Present at work, active or on leave?
– All leaves?
– Include new hires not yet started?
 Clarity and Understanding
• What practices, processes, data and
technology do we have now?
• Really? Everywhere? Who says?
• What are the significant problems and
limitations? Which ones are worth fixing?
• Is more/different information technology
really needed to fix them? Why?
 Clarity and Understanding
• What practices, processes, data and
technology should we have?
• What benefits would we realize from
those?
• Who should do what in the desired
future state?
• Do they agree?
 Practical Implications
• How can we develop satisfactory
answers to these questions?
• How can we document and communicate
our answers to others for buy-in,
approval and funding?
• How can we apply these answers during
implementation despite time pressures,
scope changes, personnel turnover, etc.?
 Optimum Situation

Payroll Benefits
Admin.

HR DATA
Applicant Training
Tracking Mgmt.

Competency
Competency
Modeling Job
Modeling Evaluation

Integrated HR Systems and Data

 Definition

“An organization’s conscious patterns for
delivering its services, carrying out its
processes and managing its resources.”

In practice - a set of interrelated
diagrams, lists and tables that define an
organization’s resources and processes
and coordinate their use for maximum
results.
 Business Model Contents
• HR Services • HR Projects
• HR Roles • HR Staff
• HR Policies and • HR Budget
Standards • HR Suppliers
• Internal HR • HR Measurement
Processes
 Roles and Positions
• A role is a function for a person.
• A position is a defined job for one person.
• Roles are generic.
• Positions are specific to an organization.
• In small organizations, one position does
several roles.
• In large organizations, one role needs
multiple positions.
 Typical HR Roles
• recruiter • privacy administrator
• trainer • benefits specialist
• • development advisor
performance coach
• • equity consultant
compliance officer
• competency analyst
• facilitator
• HR services planner
• job evaluation analyst
• policy/standard analyst
• HR executive
• capacity planner
• labor negotiator
• compensation specialist
 Advantages of Roles/Positions
• All roles are explicitly defined.
• Subjectivity is replaced with agreed-upon
objectivity.
• Relationships to services, positions and
competencies are clarified and recorded.
• Roles can be mapped to any set of positions
and are not “lost” during reorganizations.
• Verifies completeness of the HR function.
 Services
• A service is a specific duty or set of
duties performed for a customer
(internal or external).
• Services may be provided routinely or
only upon request.
• Services require roles and resources.
 Typical HR Services
• staffing
• job evaluation
• compensation plan design
• career counseling
• personal development planning
• organization design
• compliance reporting
• incident tracking
 Advantages of Services
• Defines HR work independently of staff.
• Clarifies boundaries between similar or
related services.
• Services can be mapped to roles and positions
and are not “lost” during reorganizations.
• Verifies completeness of the HR function.
• Assists in managing and costing use of HR
staff.
 Summary
• A business model includes and integrates a
variety of conceptual resources.
• Preparing a business model helps clarify many
factors in any organization.
• A business model represents the way HR should
work so that technology can support it
appropriately.
• Building a business model develops the
understandings necessary for HRIS success.
 Conclusion

When considering changes to HR

information technology, building a
business model first will help you see
and make the right ones.
Thank You!
for more information

geckhert@chartwell.on.ca
(416) 362-3328