Cross-organization delivery models
In our last book Leading HR we argued that HR is being re-positioned into a function that must provide Architectural Design skills to the organization:
“… not just because of internal organization design pressures resulting from complex business models, but also as a consequence of changes in the importance of external inter-dependence and partnership. The organizational “value web” is, in almost every case, extended across traditional organizational boundaries. This interdependence is a defining characteristic of business model change. Relationships with external bodies which were previously characterised as adversarial at best are suddenly having to be redesigned under a partnership model, as long term contracts are developed with other organizations in the same value web” (Sparrow, Hird, Hesketh and Cooper, 2010)
We concluded that there would be a new onus for HR functions:
“… Rather like the new breed of industry regulators, they will find themselves overseeing all those parties and partners involved in people-related aspects of their own business model, regulating both internal and external HR systems, ensuring they perform in line with the overall goals of the organization. They will not just equate internal centres of expertise to existing HR processes, but will need to initiate external centres of excellence, think tanks and networks that can manage the proprietary HR expertise necessary for long-term performance-driving processes – such as strategic competence, innovation, consumer insight, productivity, and partnership learning” (Sparrow, Hird, Hesketh and Cooper, 2010).
Not surprisingly, we have designated cross-organisation business models as one of the key research themes for the Centre for 2011-13.
As part of this programme, we were involved in a Bespoke project with a major MNC looking at the implications of such developments for HR delivery models in relation to Joint Ventures.
A broad programme is needed. Partnership models, however, may be based not just around joint ventures and alliances, but also collaborations involving joint R&D, the management of innovation across networks, deep supply chain integration, inter-organizational information systems, collaborative manufacturing, multi-party strategic alliances, outsourcing work, public sector-private consortia, and models for service support to franchisors.
We believe that the time is ripe for HR to explore all of these business developments to understand the underlying implications for management.
In an HR world previously driven by standardisation and simplification, these new organisational forms raise the need to reconsider whether to re-differentiate HR provision, whilst bearing in mind the cost and capability investments involved in this. It also creates major challenges for governance, relationship management, and the flow of talent.
We see the management of HR across different partnering arrangements as being centrally concerned with the management of risk. Under this theme, our research will look at the following sorts of questions:
- How do you provide support to the employees who you may now not employ directly, or indirectly?
- How do you manage the risk associated with the people and organisational issues that have to be dealt with in cross-organization business models
- How do you align the necessary entrepreneurship, differentiation and management of ambiguity, in an HR function that traditionally has been on a journey of standardisation and simplification
- What sort of interventions, policies or processes will be needed to support such entities?
- What are the implications for the leadership agenda, capability building activity, local relationship needs, and employee relations issues?
