The  Business Benefits Case becomes clearer

Traditionally the benefits case for implementing HR solutions has not been strong. However the linking and aligning of  the new HR technology agenda with clear business issues and strategic benefits to the organisation has changed this. New technologies allow the HR function to move away from the traditional focus; centralised, engaged in transactional activity and administrative sludge.  HR organisations are transforming themselves by initially taking advantage of integrated technologies and beginning their journey of change by ensuring business processes are optimised and re-engineered appropriately 'maybe not perfect but starting the change and continuing an evolutionary path. Transforming HR organisations are looking at taking advantage of the basics, having a single, cleansed and accurate source of data for employees. This in itself will enable accurate reporting and the building up of key people based reports that are of strategic value to the business.  Additionally reducing the duplication of effort around the organisation, whether this be using different systems, spreadsheets, process or organisations is  also significant.

A critical philosophy to adapt is to :

'Think Big, Start Small, Scale Fast. Rome was not built in a day as we all know.'

Talent management has become a key buzzword in the HR organisation and to some degree the wider business. Transformed HR organisations are looking at gaining a strategic advantage from the function and at the same time enhancing the reputation of HR. To not only be able to do the basics well and cost effectively but also to be strategic i.e contribute to the bottom line. Talent Management provides a great example because its about reducing recruitment costs and lowering your turnover of key people in the organisation. It does this through motivational employee development initiatives and encouragement of career long learning and development. (Talent Management will also be explored further in this series of HR Blogs)

Whilst traditional HR organisations are transforming through technology and acknowledging the importance of business change, and perhaps ultimately becoming transformed to provide strategic benefit. One thing is very clear, they still have to do the basics well and be as cost effective as possible. The nature of the more strategic role for HR is perhaps more expensive in terms of skills and roles and therefore cost effective management of the basics is as critical as the strategic contribution. (Putting together a business case will be explored further in this series of blogs)

If the basic HR processes such as administrative activities are not in good order, especially on sensitive issues such as executive pay, no strategic contribution is likely to be considered of value until the administrative problem has been fixed.
Perversely, HR teams, which concentrate on administration tend to be criticised as 'reactive' and are regarded as a cost .. 

One way of resolving the paradox is by taking good care of routine HR responsibilities through information technology, so HR departments can concentrate on high value-add activities.

Linda Holbeche Aligning Human Resources and Business Strategy (2001)