B t

Baumgartner &P t
Partner C t
Competence P fil
Profile
SHARPENING THE FOCUS OF THE
HR BUSINESS PARTNER FUNCTION

HR Strategy
St t HR Operational
O ti l T l t&P
Talent Performance
f C
Compensation
ti B
Benchmarking
h ki
Excellence Management Management
www.baumgartner.de Baumgartner & Partner Unternehmensberatung GmbH . Kurze Mhren 13 . 20095 Hamburg . +49
49 (40) 28 41 64 - 0
 Ba mgartner
Baumgartner
g & Partner Competence Profile September 20,
20 2010
Sharpening the Focus of the HR Business Partner Function Page 2

Ab t t
Abstract
Effectiveness
Effecti eness + Efficienc
Efficiencyy = HR E
Excellence.
cellence This is the mission statement of almost all large
g HR organizations
organi
g ations in Europe.
E rope
p All of them are undergoing
ndergoing
g g an HR
transformation
transformation . And the great
g majority
j y have identified the HR business ppartner role to take responsibility
p y for the effectiveness
effectiveness ppart of the equation.
equation
q The aim of
business partners is to increase the pro-activity
pro-activity of the HR function and with it the value added to the business.
business

H
However, the
th bbusiness
i partner
t ffunction
ti iis nott easy tto iimplement.
l t OOne off th
the reasons is
i that
th t the
th bbusiness
i has
h rarely
l asked
k d tto partner
partner
t with
ith th
the HR ffunction
ti andd
still pprimarilyy calls on it for ppure functional expert
p support
support.
pp Another reason is that it takes time for former HR ggeneralists to ggrow into the new ppro-active
pro active role
role. And
last but not least,
last, least the interface of tasks between a business partner and an independent,
independent centralized HR services function is under constant discussion.
discussion In the
endd only
end, l very ffew companies i seem tto bbe hhappy with
ith their
th i currentt bbusiness
i partner
t model.
model
d l

Lookingg at it from the HR clients

client s perspective
perspective,
p p , jjust one thingg appears
pp to be clear: The client is onlyy willingg to accept
p extra cost of HR services for extra value
value. In
this respect the client is not willing to pay for HR people sitting in regular business meetings without adding value to it. it Or for unfocused jour fixes without a
t ibl outcome.
tangible outcome
t Or
O for
f multiple
lti l contact
t t persons in i HR.
HR SoS the
th client
li t calls
ll ffor a clear
l andd ffocusedd HR bbusinessi partner
t ffunction.
function
ti

Lookingg at what is happening

pp g in major
j organizations
g Baumgartner
g & Partners identifyy a trend to re-invent
re invent the business ppartner function byy sharpening
p g ititss focus:
Strategic
Strategic business partners are different from functional
functional advisors
advisors .

S
Some off the
th latest
l t t thinking
thi ki andd project
j t experience
i is
i collected
ll t d on the
th nextt pages. Please
Pl askk us, should
h ld you require
i additional
dditi l information!
i f ti !

Baumgartner
g & Partners
September 2010
 Ba mgartner
Baumgartner
g & Partner Competence Profile September 20,
20 2010
Sharpening the Focus of the HR Business Partner Function Page 3

C
Currently
tl almost
l t all
ll large
l enterprises
t i transform
t f their
th i HR tot achieve
hi
higher
ig effectiveness
ff i ((
(More
More )
)) and efficiency
ffi i y ((
( ffor Less
Less).
Less)
))).

HR Transformation
Trend 1:
Effectiveness
S i
Services
St t
Strategy S
Structures
Processes St t
Strategy
Consulting Technology
gy
Added Value
Consultingg

Service / S i /
Service/
Administration Ad i i t ti
Administration
O t
Out-
Out Inefficient Inefficient Service
sourcing Processes Processes Center
T d 2:
Trend 2
Effi i
Efficiency
T diti l HR
Traditional HR-Function
F ti
Function HR Business
B i Partner
P t
Focus: Internal Service Provider Focus: Added Value
 Ba mgartner
Baumgartner
g & Partner Competence Profile September 20,
20 2010
Sharpening the Focus of the HR Business Partner Function Page 4

HR organizations
i ti strive
t i for
f higher
hi h effectiveness
ff ti b
by iintending
t di tto actt
more p
pro
pro-actively
actively
i y than iin the p
past ((
(HR
HR Business
i Partnership)
Partnership
ip))

From
From
((without
((without
HR HR
Business
Business
Partnership)
Partnership)
p) p) To ((with HR Business Partnership)
p)

Thank
Th
Thankk you for
f signing
i i theth company agreementt tto II have heard of the issues with our joint
j venture in
reduce the workforce in eastern Europe and the list eastern
t Europe
E p andd aboutb t th
the reduction
d ti ttalks lk with
ith
off employees
pl y involved
involved.
i l d I will
ill handle
h dl replacements
pl t the JV partner.
partner Here are my suggestions on how to
andd llayoffs
layoffs.
ff retain and developp our 10 topp talents
talents.
May
M
Mayy I askk for
f the
h summaryy off the
h management
g Dear
Dear eexecutive
ec ti e board colleagues
colleagues,
colleag es the settlement of
meeting
ti minutes
i t on ththe hi
hiring
i plans
l for
f our new our new retail branch in XY will challenge
g the
branch in XY so that I can prepare for recruiting recruitment
it t off experts
experts.
p t Partly
P tly financing
fi i g a chair
h i att
activities?
activities?
ti iti ? the local university will be the most economic
solution to build a sustainable talent pipeline
pp in XY
over the
th nextt 5 years
years.
y

R ti
Reactive P active
Pro-active
Pro ti
 Ba mgartner
Baumgartner
g & Partner Competence Profile September 20,
20 2010
Sharpening the Focus of the HR Business Partner Function Page 5

but
b t experience
i pitfalls
itf ll iimplementing
l ti ththe pro
pro-active
active
ti role
l
(HR Business
((HR i Partner Model).
Model)
Model))).
0T i l pitfalls
0Typical itf ll off HR bbusiness
i
partnerships:
t hi
1 Ownership between HR business
1.
partner tasks and administrative
Center of service center tasks is unclear.
unclear
E ll
Excellence 2 Management
2. g rarely
rarely accepts p pro-
pro
p
active
ti role l off HR andd wont
wontt make
k up
missing HR support of employees.
employees
3 HR business partners lack skills and
3.

HR
0 3 competences
role
role.
p to fulfill the ppro-active
pro active

Governance
Governance
HR HR
Service Business
C t
Center 0 1
Partner

ESS:
0 2
MSS:
Employee Employees Managers Manager
Self Service Self Service

Consistent HR Information System

y
 Ba mgartner
Baumgartner
g & Partner Competence Profile September 20,
20 2010
Sharpening the Focus of the HR Business Partner Function Page 6

Cli t perspective
Client ti calls
ll ffor diff
differentiated
ti t d b
business
i partner
t role:
l
Tactical
i managerg support
pp vs.
vs strategic
gi consultancy y
Hi h
High

Strategic
g
St t i Business
Strategic B i Partner
P t
C
Consulting
li
H
Harmonization
i ti
p exxityy

Standardization Product Design

g &
C t off C
Center Competence
t
mple

A t
Automation
ti G
Governance
om
Co
Serrvviccee C

Tactical Manager
g
HR Advisor
S
Support
t
Se

Transaction
HR Services
M
Management t

L
Low A
Acceptable
Acceptable
t bl price
i off services
i ffrom client
li t perspective
ti Hi h
High
 Ba mgartner
Baumgartner
g & Partner Competence Profile September 20,
20 2010
Sharpening the Focus of the HR Business Partner Function Page 7

F
Functional
ti l HR
HR advisory
advisory
d i was identified
id tifi d as an important
i t t building
b ildi
block off the HR Business
i Partner service
i offering
ff i g
HR Business Partner Service Catalogue
Catalogue*
g I.I Linkingg HR to business
Regular
g meetingg and structures for interaction
F db k culture
Feedback lt
(Pil t) IImplementation
(Pilot) l t ti off (new)
( ) HR products
d t andd techniques
t h i

II
II. S
Supporting
ti change
h andd optimization
ti i ti initiatives
i iti ti
HR projects
p j
P j t in
Projects i the
th lines
li off business
b i

III
III. S
Supporting
ti managers ini leadership
l d hi
Active approach
pp
S i offering
Service ff i

9 Typical tasks (dos and don

donts)
ts) of a business partner IV
IV. Ad i i managers th
Advising throughh HR expertise
ti
Recruiting
g
9 Typical decisions to be taken by business partners
C
Compensation
ti & b benefits
fit
9 S t off KPI
Set KPIs
KPIs to
t compare business
b i partner
t ratios
ti
Performance management
g
9 C
Competency
t profile
fil off a business
b i partner
t
T l t managementt
Talent
9 T
Transformation
f ti plan
l andd career path
th off a business
b i partner
t HR Planning g and analytics
y

* Developed by 11 business partner organizations out of the B&P

B&P business partner community
community
 Ba mgartner
Baumgartner
g & Partner Competence Profile September 20,
20 2010
Sharpening the Focus of the HR Business Partner Function Page 8

A l i off HR BP function
Analysis f ti activities
ti iti prior
i tot streamlining
t li i

Advisingg Managers
g with HR Expertise:
p HR BP Activities in Recruitment
100%
outt of
gue

100%
o
og
ess ou
attalo

80% 80%
activvitie
e ca

63%
vicce

59% 60%

53%
off ac

50%
erv

49%
err sse

41%
eo

40%

35%
arre
ne

29%
Sha
Parrtn

24% Activities covered by HR

Sh

18%
s Pa

20%

business partner
esss

0% 0 0%
sine
Bus
HR Bu

-20%

A ti iti nott coveredd by

Activities by
HR

-40%
p
HR business partner
%
-50%
50%
-60%

Non-business-partner-
Non business partner
-80%

activities covered by HR
-100%
100% -100%

business partner
1 2 3 4 5 6 7 8 9 10 11
Company

Source: B&P Business Partner community

 Ba mgartner
Baumgartner
g & Partner Competence Profile September 20,
20 2010
Sharpening the Focus of the HR Business Partner Function Page 9

HR T
Transformation
f ti 22.0:
00: F
Functional
ti l ffocus ffor th
the b
business
i partner
t
(P j t E
(Project Example,
Example
l IIndustry:
d t Fi Financial
i lSServices)
i )

Business Partner Business Partner

B i
Business Consulting
C lti T l t/P f M
Talent/Perf
Talent/Perf. Mngmntt Individual P&O Visibility
Visibility, analysis
L l
Local People Solutions & recommendations
Data Mgt
Mgt.
g & Reporting
p g Administration
HR Solution Organisational/
g
Delivery Change
g management
g
Design & Development Social Relations Management
g Solutions
maatiioonn 1.00

maattioonn 2.00
Alloccaatiion

Alloccaatiion
Recruitingg Empl
Empl.
p Rel./Query
Rel /Query
Q y Res.
Res
((Global)) Centers of Competence
p
(L l) C
(Local) Centers
t off Competence
C t
Proceessss A

Procceesss A
Trraannssffoorrm
m

Ma ket
Market P ocess//Policy//P oduc
Process/Policy/Product
d t

Trraannssffoorrm
m
T l t /P
Talent /Perf.f M
Mgmntt D i &D
Design Development
l t C
Common
Tools Be ch a ki g
Benchmarking Desig & Go
Design G e a ce
Governance
Orrgaannizzaatiion & Pr

Orggaannizzaationn & Pr
+
Data Mgt
Mgt.
g & Reporting
p g Social Relations I t
Integrated
t d
Processes T 150
Top P l C
People Cycle
l
P li Design
Policy D i Administration
HR T

RT
Recruitingg Queryy Resolution

HR
HR Service Center
O

O
H
HR S
Service
i Center
C t Employee
p y Relations Administration &
Efficient Q
Query Resolution
R l ti P
Processing
i
Data Mgt
Mgt. & Reporting Administration Operational
D li
Delivery Non top 150
N
Non-top 1 0 Data Management &
Queryy Resolution Processingg Recruiting / Mobility Reporting
 Ba mgartner
Baumgartner
g & Partner Competence Profile September 20,
20 2010
Sharpening the Focus of the HR Business Partner Function Page 10

B
Baumgartner
t & Partner
P t Profile
P fil

HR Strategy HR Operational Talent & Performance Compensation Benchmarking

Excellence Management
g Management
g

HR St
Strategy
t HR B
Business
i P
Partner
t J bP
Job Profiling
fili & Grading
G di C
Compensation
ti C
Compensation
ti
St t i P
Strategic Personnell O
Organization P f
Performance Management
M t G
Governance Benchmarking
Planning HR Process C
Competence & Executive/Supervisory HR Process
HR Analytics/ Reengineering Skill-Management Board Compensation Benchmarking
HR Scorecard HR IT Strategy
gy and Job Grading
g HR Function
Career Systems/
y
Implementation
p Benchmarkingg
HR Audit/ Career Paths Base Salaryy
HR D
Due Dili
Diligence HR Business
B i Case
C & Learning
g & Development
p Variable Salaryy Concepts
p
HR Transformation
T f ti I
Investment
t t S t
Systems Long term
L
Long-term
t
H
Human C
Capital
it l HR S
Service
i Levels
l M
ManagementtA
Audit/
dit/ I
Incentive
ti S Systems
t
Management HR Shared Services Assessments
Tariff
ff C
Classification
f
Center
Management Employee Retention/
Systems
y HR Outsourcing
g Employee
p y Satisfaction
Assessment