Due to disruptive market changes like globalization and digitization of industries, Business Transformations have both increased in frequency and changed in nature. Transformation also becoming more frequent due to the fast-changing nature of consumer needs.
Transformations used to be organization-wide initiatives that took place every 3-5 years. Now, organizations often run multiple Transformation initiatives concurrently, with interdependencies among the initiatives.
This added complexity requires a significant amount of coordination among employees, managers, and other stakeholders (e.g. employee representatives). In particular, 5 common Business Transformation Personnel Risks arise:
1. Unrealized Personnel Cost Savings
2. High Restructuring Costs
3. Loss of Key Employees
4. Inefficient HR Implementation
5. Damaged Employee Relations
To ensure a successful Transformation, it is imperative to understand and address these 5 personnel risks, as HR powers the Transformation Program.
This PPT provides a comprehensive analysis of the five critical personnel risks that can derail business transformation efforts. It delves into the intricacies of unrealized personnel cost savings, emphasizing the need for precise planning and urgent action from management. The content highlights the significant impact of high restructuring costs, often exacerbated by inadequate HR tools and processes, and provides actionable steps to mitigate these expenses.
The analysis also addresses the loss of key employees, a common issue during transformations, and offers strategies for retaining essential talent while ensuring the remaining workforce has the right skill sets. Inefficient HR implementation is another focal point, with the document outlining the importance of centralized steering and clear mandates to keep the transformation on track. The final risk, damaged employee relations, is explored in depth, with recommendations for robust negotiation strategies to avoid costly collective bargaining agreements.
This document is essential for executives seeking to navigate the complexities of modern business transformations. It offers practical solutions and insights backed by data, such as the BCG study on severance payments, to help organizations achieve successful outcomes. The detailed guidance on managing personnel risks makes it a valuable resource for ensuring that transformation initiatives deliver the desired results without unintended consequences.
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Source: Best Practices in Business Transformation, HR Strategy PowerPoint Slides: Business Transformation: Personnel Risks PowerPoint (PPT) Presentation Slide Deck, PPT Lab
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