USA 
United KingdomKathi Enderes,
SVP Research and Global Industry Analyst,
The Josh Bersin Company
For far too many employers, HR remains a collection of separate, siloed functions, stuck in the past of administrative, fire-fighting people practices. This is not the level of service that businesses now need from their HR function. With expertise locked away in isolated domains, HR cannot become capable of tackling the volatile, unexpected, and uncertain state of change in which companies operate, and will forever remain the punching bag for workers fed up with a poor employee experience...
Kathi Enderes,
SVP Research and Global Industry Analyst,
The Josh Bersin Company
For far too many employers, HR remains a collection of separate, siloed functions, stuck in the past of administrative, fire-fighting people practices. This is not the level of service that businesses now need from their HR function. With expertise locked away in isolated domains, HR cannot become capable of tackling the volatile, unexpected, and uncertain state of change in which companies operate, and will forever remain the punching bag for workers fed up with a poor employee experience...
To transform into the agile, data-driven function that has been the promised land for HR for many years, a new operating model is needed, argues Kathi Enderes, SVP of Research and Global Industry Analyst, The Josh Bersin Company. But to reach that Eden, and to avoid further disappointment to employees and HR teams alike, successful implementation is key.
Systemic HR is a new, evolved operating system for HR functions, designed for the post-industrial world. It differs from previous HR operating models in several key ways. Whereas traditional HR models focus on service delivery, Systemic HR evolves through service delivery to product offerings and finally to consulting. It operates on a cross-functional and integrated basis, moving away from silos and leveraging cross-functional teams.
It is data and intelligence-driven and aims for broader objectives like business transformation, productivity, and growth. It promotes a flatter organizational structure, encouraging work in cross-functional teams and leverages different technologies, integrating them into the HR function to support its systemic approach and create an exceptional employee experience.
In essence, systemic HR represents a shift from a fragmented, service delivery-focused approach to a more integrated, consulting-oriented, and data-driven operating system that aligns closely with business strategies and goals.
Systemic HR focuses on the dynamic business problems to be solved, rather than pushing static one-size-fits-all solutions. We call this “falling in love with the problem.” For example, are we lacking key skills in a certain business group? Do we want to enter a new market or geography? Do we need to decide on a location strategy for our product development group? How do we address emerging trends like the four-day workweek?
It promotes a flatter organizational structure, encouraging work in cross-functional teams and leverages different technologies, integrating them into the HR function to support its systemic approach and create an exceptional employee experience.
None of these problems fit neatly into one HR domain but need cross-functional design teams to fully understand the issue, quantify its impact, determine viable solutions, design them with user input, and rapidly iterate and improve.
Only with a laser focus on consulting, an integrated approach, deep data and analytics, a focus on business objectives, and employee-first technology can these multidimensional business problems be solved.
No two organizations are the same, and systemic HR looks different for every organization because the business and culture are always different. A general 90-day plan can be structured around three main phases: Assessment and Planning, Implementation, and Review and Adjustment.
Such a 90-day plan is a good starting point for rolling out systemic HR. It's important to maintain flexibility and adapt the plan for changing needs. Companies go about systemic HR in different ways: for example, LEGO focused on key changes to its HRBP role, shifting these capabilities to make it much more business-savvy, data-oriented, and transformation-ready, and focusing on organization design. TomTom restructured its entire HR operating model over several years, first starting to work in cross-functional teams and only redesigning the structure once it got in the way. Mastercard is executing a strategic 2-year plan to make HR more systemic and business-aligned.
12 months?
Beyond the initial 90-day plan, there are several other changes to be prioritized to ensure the transformation is comprehensive and sustainable in the first year. These should include the deepening of integration with business strategy, the expansion of data and analytics capabilities, the review and refinement of the HR business partner role, strengthening the HR leadership team, implementation of agile HR practices, the review and revision of HR policies, and the strengthening of HR’s strategic role.
By focusing on these priorities in the first 12 months, organizations can solidify the foundation of their Systemic HR transformation, ensuring it delivers lasting benefits and aligns closely with business strategies and goals.
It’s important to note that organizational structure doesn’t come first in systemic HR. Instead, it should come last once new ways of working have been established and legacy structures seem no longer relevant.
Through iterations of the program, we've looked at women, BIPOC, and military veterans who are coming back into the workforce. We want to give them an easy way to come back into the workforce because things are shifting and changing so much over time
Under a systemic HR approach, organizational structures become more flexible, agile, and team-based, moving away from traditional hierarchical models. Employees can feel confused or frustrated without a clear vision and transparent guidelines for the future. A focus on communication, employee activation, and enabling co-design of new approaches is key.
Systemic HR is impossible without data-driven decision-making. Falling in love with the problem means using data and analytics to quantify the business impact, identify root causes, and leverage data to design the right solutions to the problems, then continuing to leverage data to determine needed changes to the solutions.
There are many areas where HR can become more data-driven, such as establishing an HR Tech strategy, prioritising analytics and insights, leveraging systemic people analytics, using data to solve business problems systemically, and improving employee listening capabilities.
By implementing these strategies, HR can become more data-driven, leveraging systemic HR practices to address complex business challenges in an integrated and strategic manner.
HR solve?
Systemic HR can address a range of enterprise problems by integrating HR functions more closely with business strategies and leveraging data and technology – that’s what sets it apart from previous approaches. Issues it can help address include talent shortages and skills gaps, business transformation and innovation, cultural transformation, organizational agility, productivity, Diversity, Equity, and Inclusion (DEI), employee engagement and retention, and leadership development.
By addressing such enterprise problems, systemic HR not only enhances the strategic role of HR but also contributes significantly to the overall success and competitiveness of the organization – the ultimate promise of systemic HR.
