In this business environment of digital disruption, organizations that are agile far outpace their competition. Constant change can be a challenge, but as Workday CFO Robynne Sisco has said, “Having the ability to adapt and respond—whether it’s your mindset, the way you plan, or the technology you use—will help ready you and your organization for the road ahead, wherever it may lead.”
Forward-thinking HR leaders agree. ”By 2025, half of midmarket and large enterprises worldwide will have invested in a cloud-deployed human capital management (HCM) suite for administrative HR and talent management,” according to the recent “Gartner 2019-2021 Strategic Roadmap for HCM Technology Investments.”¹
Why are they making this investment? Cloud HCM technology, the report states, enables a more agile HR function. And HR has to be more agile to address issues such as shifting skill requirements, hiring and retention in a tight talent market, a changing workforce, and the need for greater diversity throughout organizations. Put another way, HR needs to be more agile to help the overall organization be more agile.
Successful transformation—which includes fully realizing the value of digital solutions—depends on thoughtful examination of a company’s current state and potential future state. In the future state, “HCM requires an agile mindset, led by HR but involving the entire organization in continuous experimentation,” according to the Gartner report. Key ingredients for HR digital transformation include a willingness to implement organizational change, alignment between HR and IT, and a strategic roadmap for creating a digital workplace.