HCM 4.0 # the model for HR THOUGHT LEADERS: HCM 4.0 MODEL – THE INWARD/OUTWARD APPROACH # PART A

HCM 4.0 MODEL –

THE INWARD/OUTWARD APPROACH

‘’There are two ways to extend a business. Take inventory of what you’re good at and extend out from your skills. Or determine what your customers need and work backward, even if it requires learning new capabilities “ says Jeff Bezos (Founder of Amazon)

The strategic pathway espoused by Jeff Bezos is indeed a guideline for HCM 4.0 in its journey to make the function business centric.

The critique against the HCM function in the past has been … that it is an inward looking function without touch of the market conditions or the external realities. The truth is HCM must now reach further into to external environment of the business to understand more deeply the business agenda We can name it the INWARD/OUTWARD APPROACH.

PART (A) - THE VOICE OF THE CUSTOMER

The OUTWARD /MARKET APPROACH ( “voice of the customer “) means addressing the market trends and compulsions and responding to the forces of competitive market strategy.

HCM 4.0 is centered around the business environment and the challenges it throws at the HCM function. The real value of HCM is how precisely it is attuned to business realities. The business’ goals – that is its strategic imperatives – sit at the center of any HCM strategy

Following that the VOICE OF THE CUSTOMER begins with a business mindset and an externally focused view. HCM 4.0 to remain relevant need to shift from the hitherto inward boxed-up perception of the role of the HCM function. Keeping an eye on the external business environment and the markets is now something which HCM professionals need to do.

To elucidate the above concept let’s take an example:

A product innovation by the near competitor for a technology company means a chain of reaction to challenge the pioneer. This begins with overhauling the company’s product design and R&D department; the chain effect passes on to the Manufacturing Department who need men machine and methods to bring the new product into reality. As a consequence the marketing department has to rejig its strategy to challenge the market leader and penetrate their market .

At each of this inflection points the HCM 4.0 leaders must have a proactive action plan to make it business centric. HCM 4.0 has a role to bring in the right people or develop the right competencies; created the change readiness; have a long-term plan for culture of innovation to replicate the process in future