What: McKinsey polled CHRO across the globe to understand the extent of the role transformation.

Why it is important: The traditional 3 pillar Ulrich model is dissolving as its siloed approach might not be adapted anymore to the current challenges companies face, and their need for flexibility and agility.

The pandemic came with significant challenges, which put the HR role at the centre of the organisation, since it became vital to be able to reorganise teams and processes from scratch in the minimum time possible. While making clear that the position is as central as sales or production, for instance, the pandemic also induced changes which are transforming the HR role.

In the past, HR officers were broadly responsible for 3 areas: being business partners with the rest of the company, provide shared services, and develop centres of excellence. However, this approach (the Ulrich model) could easily lead into siloed organisations and diluting the focus.

According to McKinsey, there are 8 areas of changes when it comes to the role:

• HR should be elevated through digitalization, by automating processes and administrative tasks. It is not about large ERP systems anymore, but solutions, data and employee experience.
• Enabling agility and fluidity, by not organising the HR team anymore according to the 3 pillars, but as pools of professionals who can be quickly deployed to deal with critical issues and priorities.
• Refocus business partners on advising top management rather than working on routine administrative tasks.
• Create HR practice groups to tackle specific and cross-functional HR priorities from end to end, putting an end to the separation between strategic and transactional tasks,
• Organize around employee experience,
• Virtualize centres of excellence and centres of competence, with workflow practice groups, instead of business partners being kept separate from the HQ.
• Put the business in the driver’s seat by shifting responsibility for traditional HR tasks to line managers.

Reimagining the CHRO role