The following article comes from Tsinghua Management Review, authored by Zhang Yueqiang and Lu Jiangyong
Introduction
Digitalization accelerates the return of human resource management to the value origin of personal development and organizational development. The enterprise digital talent supply chain system is the thinking and design of the talent management system based on the superposition of multi-dimensional factors from the internal perspective, external perspective, talent perspective and organizational perspective, covering target performance management reform, comprehensive talent inventory, forward-looking business insights and precise talents Development, promotes and supports the realization of corporate goals through the innovation of management mechanisms, and is prominently reflected in the organic combination and deep integration of the organization's business goals and talent development. At the same time, with the help of data intelligence, through the precise identification and automatic matching of personnel capability labels and enterprise business demand attributes, the "intelligent integration" of digital intelligence and accurate matching of enterprise business attributes and talent attributes is realized.
Text / Zhang Yueqiang, Lu Jiangyong
With the transformation and innovative development in the complex business environment and the wave of digitalization, the traditional development model relying on a single capability is changing to a global business model with strategic capabilities, business capabilities and organizational capabilities. Chinese companies are in a leading position in terms of market size, product development, and technological innovation. They need to continue to carry out business innovation and improve management and operation capabilities in order to achieve further leaps.
Technology adoption and digitization will remain key drivers of business transformation
In May 2023, the World Economic Forum's "2023 Future of Employment Report" showed that the increasing adoption of new and cutting-edge technologies and the expansion of digital access have become the biggest trends driving organizational transformation, that is, technology applications and digitalization will remain A key driver of business transformation. In May 2023, IBM announced that it would suspend recruitment for "AI-capable positions." The rapid development of artificial intelligence technologies such as ChatGPT puts some human jobs at risk of being replaced by AI.
The rapid development and in-depth application of artificial intelligence technology promotes the upgrading of talent ability structure
Continuous advances in technology applications provide businesses with many opportunities to innovate and improve. Whether it's artificial intelligence, big data analytics, cloud computing, the Internet of Things, or blockchain, these technologies can help companies better understand and respond to market demands, strengthen customer relationships, and achieve better business outcomes. Therefore, the rapid development and in-depth application of artificial intelligence technology requires enterprises to actively embrace technological change and prepare for the upgrading of the talent structure of new technologies.
Digital transformation promotes business innovation to adapt to the complex and uncertain business environment
The core value of digitization lies in improving operational efficiency, structural efficiency and organizational efficiency, improving customer experience, user experience and employee experience, enhancing the interaction and linkage between enterprises and customers, users, employees and other enterprises, and providing personalized products and services , improve employee satisfaction, employee engagement, customer satisfaction, as well as market capabilities and organizational operational efficiency, so as to cope with complex and uncertain business environments.
Technology adoption and digitalization are core drivers of this transformation, and they are interrelated and mutually supportive. By rationally utilizing and integrating technologies, enterprises can better respond to market challenges, create new business opportunities, and gain sustainable competitive advantages.
The digital transformation of endogenous organizational capability reconstruction is an inevitable choice for high-quality development of enterprises
With the normalization of uncertainty, major economies around the world have begun to focus more on sustainability and business growth. With the help of all kinds of organizations undergoing comprehensive transformation at an unprecedented speed, the cross-border operation and globalization of enterprises have entered a new stage. In this process, the value of the human resources department has increased rapidly, and it has gradually become the internal engine that promotes the development of the organization. It is also an important supporting force to help companies successfully complete their overseas and global operation strategies. Therefore, the extensional digital transformation focusing on the realization of corporate value is upgraded to the endogenous digital intelligence transformation with the goal of high-quality development, the reconstruction of organizational capabilities as the cornerstone, and the focus on personal and organizational development.
The two-dimensional development of personal development and organizational development is the cornerstone of high-quality development of enterprises
Changes in the value proposition of organizational capabilities, the penetration of the new generation of employees, the innovative development of digital technology, and more and more people expecting to gain meaning and value from work are driving the transformation of organizational roles. Organizations are no longer just transactional employers, but become transformational partners, working with employees to realize personal and organizational value. The employment relationship in the traditional sense is also undergoing subversive changes (see Table 1).
Personal transformation from "external drive" to "internal drive"
In the workplace, especially in the new era when Generation Z has become the main force, the driving force for talents is accelerating the transformation from "external drive" to "internal drive". The new generation of employees pay more attention to vision, goals, sense of responsibility and sense of belonging. They pay more attention to personal growth and continuous development, as well as employee experience and satisfaction, while paying attention to employee engagement and identification with the organization. Therefore, enterprises must think about how to stimulate the internal driving force of each individual talent, so as to exert personal value and promote the rapid development of the organization.
Organizations shift from "entrepreneurship" to "innovation"
From an organizational point of view, enterprises are shifting from business development that was dominated by market size and customer expansion in the past to organizational development and innovation that support the healthy and sustainable development of enterprises. With the intensification of market competition and the promotion of technological progress, only relying on expanding market share and expanding product lines can no longer meet the long-term development needs of the organization. Organizations need to change their thinking, from pursuing scale growth to pursuing innovation and improving organizational capabilities and effectiveness.
Upgrading of Talent Ability Structure in the Intelligent Era
In the age of intelligence, the ability structure of talents is also facing an upgrade. With the rapid development of digital technology, there is an increasing demand for talents with innovative capabilities, digital skills and adaptability. Facing the challenge of artificial intelligence, the talent structure is accelerating to upgrade to five major skills, namely active learning ability, scientific thinking ability, critical thinking ability, systematic thinking ability and dynamic review ability.
Therefore, organizations need to combine changes in the structure of talent capabilities, use digital means to optimize talent recruitment, training, allocation, and retention strategies, actively introduce and cultivate talents with digital thinking and technical capabilities, and strengthen cross-departmental collaboration and knowledge sharing to adapt to The development requirements of the intelligent age.
The two-dimensional development of talent development and organizational development is the cornerstone of high-quality development of enterprises
Personal development is the improvement of personal capabilities based on organizational business goals, while organizational development is based on personal development. By optimizing organizational structure, processes and management mechanisms, the overall operational efficiency and effectiveness of the enterprise can be improved.
Organizational development is the improvement of organizational effectiveness based on personal development. Through reasonable organizational design, process optimization and digital construction, enterprises can eliminate redundancy and waste, improve resource utilization, and strengthen collaboration and coordination among internal departments. Optimized organizational performance can promote rapid decision-making, efficient execution, and enhance the competitiveness and innovation capabilities of enterprises.
The interaction between individuals and organizations and the development of both are the cornerstones of high-quality development of enterprises. Only on this basis can enterprises continuously improve their comprehensive strength in a highly competitive market and achieve long-term sustainable high-quality development .
Digital Reconstruction of Enterprises' Global Talent Supply Chain
In February 2022, the State Council's "Guiding Opinions on Accelerating the Construction of World-Class Enterprises" encouraged enterprises to make full use of both domestic and foreign markets and resources, enhance global resource allocation and integration capabilities, and create globally competitive products and services . This move will further encourage Chinese companies to conduct overseas business and continue to upgrade in the process of internationalization. Accenture's 2022 survey on the internationalization of Chinese companies shows that in the next three years, the growth targets of Chinese companies' overseas business will remain stable and positive.
It can be seen that although the current external environment is more uncertain, Chinese enterprises maintain a firm and confident pace in the process of internationalization. The development of globalization will bring new impetus to the development of Chinese enterprises. Chinese enterprises are moving from a regional international development model with single capabilities (such as large-scale markets, low-cost products, channel expansion, etc.) to a global business model with strategic capabilities, business capabilities, and organizational capabilities. Chinese companies maintain leading advantages in terms of market size, product development, and technological innovation, but they still need to continue to carry out business innovation and improve management and operation capabilities to support further leaps.
Reconstructing the global talent supply chain
Chinese companies are going through the process of going overseas from products to capabilities, from high-speed expansion to optimizing operations to a new type of globalization. There is no "best practice" that can be directly applied to the scale of operation, technological innovation and management change of Chinese enterprises. The upgrading of Chinese enterprises requires a comprehensive upgrade of their global talent strategy to become a continuously leading global operating company.
Build a data-driven social talent development system
Continuous business innovation is the cornerstone for enterprises to cope with the complex business environment of uncertainty and discontinuity. Data has become the production factor of enterprises, and socialized employment has gradually become the mainstream of the employment model in the era of digital intelligence. Therefore, Chinese enterprises need to build a data-driven talent development system, and support business innovation and management reform through data analysis and the application of social employment models. This will help enhance the competitiveness and adaptability of enterprises.
Establish a double helix structure of organizational capacity building system
Chinese enterprises should establish a double-helix human resource management system, with personal development and organizational efficiency improvement as the core goals. By providing employees with development opportunities and training plans, and improving organizational structures and processes, Chinese companies can continuously optimize and enhance organizational capabilities, thereby achieving continuous optimization and improvement of organizational effectiveness and building agile and resilient organizational capabilities.
Upgrade the human resources operation model
The in-depth application of artificial intelligence promotes the rapid development of management and technological changes. Use digital technology to automate low-value, repetitive work, and regularly evaluate process efficiency indicators and service levels (SLA) to maintain and continuously improve the organization's operational efficiency; This will inevitably subvert the traditional human resource management method, and human resource management will be upgraded to intelligent human resource operation.
Emphasis on the construction of a diverse talent team and personalized employee services
Digitization and intelligence have improved employee satisfaction, creativity, goal-driven, and organizational process optimization. A diverse talent team requires excellent employee experience and employee services with thousands of faces. Focus on employee experience and service productization, emphasize goal-driven, responsibility-oriented, and sense of belonging, and drive employee satisfaction and talent retention.
Build a comprehensive data governance system and an intelligent human analysis system
How to realize and improve employee data management is perplexing enterprises going overseas. As the basis of enterprise operation, data is becoming more and more prominent, and as the degree of digitalization of enterprises increases, enterprises' dependence on data will also increase. It is especially important to use data legally, reasonably and effectively, and protect data security.
Build a comprehensive data governance system and an intelligent human analysis system that supports global operations, focus on talents, data, and business, follow the path of dataization, analysis, and visualization, based on business insight, aiming at designing the future, through continuous Digital and intelligent operation, formulate clear and executable action plans, and finally achieve the results of improving organizational capabilities and organizational effectiveness.
Digitalization accelerates the integration of business and talents
With the advent of the digital age, enterprises are facing unprecedented opportunities and challenges. In this competitive environment, how to maintain competitiveness and achieve sustainable business growth has become the focus of the top managers of enterprises. In this process, the talent-centric strategy has become more and more important.
Human resource management is integrating digital technology, accelerating the transformation from original human resource management and control to human resource operation focusing on business value creation, data empowerment and wisdom embedding, talent development and organizational development, in-depth data analysis and intelligent application .
The value of organizational development lies in promoting and supporting the realization of corporate goals through the innovation of management mechanisms. It is prominently reflected in the deep integration and organic combination of the organization's business goals and talents. With the help of data intelligence, through the automatic matching and accurate identification of personnel capability labels and enterprise business demand attributes, the organic integration of enterprise business attributes and personnel attributes is realized, thereby realizing personnel integration. Here, "people" refers to "talent" and "things" refer to business goals or performance. The core of "personnel integration" is to accurately match organizational goals and talent allocation, emphasizing the integration of the right things, right people and right methods, organically combining business attributes and personnel attributes, realizing the deep integration of talents and business, and improving Strategic execution to achieve strategic goals.
The value of digitalization lies in upgrading the original judgment model based on personal experience to in-depth data analysis using digitalization and intelligence through data analysis and intelligent applications. This kind of analysis can provide more precise insights into causal relationships, trends, and correlations, and make predictive judgments and early intervention management methods based on these insights. The application of digital technology can help enterprises better understand and utilize data, thereby improving the accuracy and efficiency of management.
Organizational capacity building with both personal development and organizational effectiveness
In order to achieve organizational performance, we need to pay attention to both personal development and organizational effectiveness. This requires an agile organizational model that adapts to change as a sound organizational foundation, and talent leadership as the key to driving organizational development. In addition, the mechanism innovation of continuous innovation and change is also an important factor supporting the high-quality development of enterprises (see Figure 1).
Strategic choice In the process of achieving business goals, companies need to use data analysis to achieve the right strategic choice. The strategic layout should put forward requirements for organizational and staffing capabilities, and provide prerequisites for doing the right thing and seeking the right organization and talent support.
Organizational configuration follows the principle of "structure follows strategy" and supports organizational development through sound organizational configuration. Utilize digital tools to realize an organizational structure that matches the strategic layout, and establish a multi-scenario organizational structure agility that adapts to complex, changeable, and flexible features. At the same time, ensure that the job system is clear, and talent classification and job standards can restore strategic capability requirements.
Business operations use scientific mechanisms to support business operations. Digital tools can help enterprises achieve horizontal and vertical decomposition (“horizontal to the side, vertical to the bottom”), forming a closed loop of organizational performance management, so as to ensure that the work is carried out around the “right thing”. At the same time, digitalization also helps to achieve performance management result-oriented and focus on the process, forming a closed-loop process of organizational performance management, and ensuring that work is carried out according to the "correct method".
Personnel matching uses data, labels, portraits, person-post matching and other digital means to ensure that the right people can do the right job on the basis of intelligent matching of strategic capability requirements, and realize the effective matching of talents and careers (or business, positions) , lead the continuous high-quality development of the entire organization through talents.
The above process involves the two core dimensions of "enterprise/organization" and "talent/wisdom". Using digital management tools to organically combine the two dimensions can realize the unification of intellectual capital and organizational effectiveness, or it is called "intelligence and efficiency integration". Here, "intelligence" represents wisdom, intelligence, intellectual capital and talent attributes, and "efficiency" represents organizational goals, organizational performance and business attributes.
Drive talent development and achieve business goals with organizational performance innovation
Based on the thought of "how the organizational performance can be directly related to the employee's performance and closely related to the employee's daily behavior", American management expert George T. Doran created a new model application and named it GOT goal Set the method (Goal Objectives Task, goals, objectives, strategies). The GOT model combines the concept of OKR (Objectives and Key Results) and continuous feedback, realizes strategy decoding, goal management and organizational performance through digital applications, and transforms them into guidance for employees' daily behaviors to achieve seamless The upgrade of the collaborative, agile, efficient and controllable organizational performance management model. This model breaks the original passive situation of only focusing on organizational performance setting while ignoring or being unable to effectively manage team performance and employees' daily behaviors. The vertical penetration of networking, performance management, communication and feedback, and cross-organizational collaboration will ultimately achieve the same desires rather than games between the top and bottom of the enterprise (see Figure 2).
Utilize digital tools to drive the co-prosperity of organizational goals and personal value realization through organizational performance. Digital organizational performance management can be upgraded on the basis of agility, efficiency, and controllability, realizing the trinity synergy among organizations, teams, and individuals.
Through digital means, the deep matching and comprehensive integration of organizational performance and employee performance can be realized. Realize target cascading, solve the tedious work of target decoding, decomposition and setting through digitalization, and establish non-attenuating cascade of targets.
Through digitalization, organizational performance drives individual performance, ensuring that personal goals meet organizational goals. With the help of strategic decoding (goal setting, goal decomposition) to achieve layer-by-layer decomposition and effective association from strategic goals to individual goals; with the help of digital tools, to achieve organizational strategic goals and team goals, personal behavior/daily execution (goal consensus, goal monitoring/ Tracking) organic integration, so that the strategy can directly reach the individual behavior.
The deep integration of business and talents in the digital talent supply chain system
The digital talent supply chain system is a process of deep integration of business and talents. When building an enterprise digital talent supply chain system, two dimensions need to be considered.
The first is the perspective of external business development and talent supply. This is an expectation of talent structure demand based on the perspective of corporate strategy and organizational capabilities. We need to combine the requirements of the organization's external environment for the enterprise's talent capability structure, and use data analysis and data insight to form an organizational portrait. Organizational portrait refers to the insight based on future business trends to determine which talents the company needs and what kind of capability structure and quantity it needs. Organizational portrait is a talent capability structure built on the basis of organizational longevity and continuous business transformation.
The second is the perspective of internal talent activation. This is a presentation of the talent structure based on the perspective of internal and external talents. By analyzing the existing talents within the enterprise and the predictable talent supply in the market, we can understand their characteristics, ability structure, and future career development expectations, so as to formulate corresponding talent strategies. This part is called talent portrait, which is a digital display of the company's existing talent capability structure.
The enterprise digital talent supply chain system is a process of comprehensive thinking and design of the talent management system on the basis of the superposition of internal and external perspectives. These include upgrading the performance management system for corporate strategy and business development, talent inventory based on organizational goals (talent attributes), talent demand forecasting and analysis focusing on future development (business attributes), and talent management systems based on personal value realization and organizational development . The core value of digitization is to digitize the business attributes of the company's current and future development, to comprehensively digitize and structure the personal attributes and talent structure covering explicit and implicit qualities, performance results and personal potential, and to build models , with the help of tags, talent matching, project criticism and other scenarios, the precise matching of digital talent attributes and business attributes is realized.
Data-driven business from analyzing the past to designing the future
Data-driven business analysis is a process that revolves around people and data. By using data and analysis as the path, with insight as the goal, continue to carry out digital and intelligent operations, formulate clear and executable action plans, and ultimately improve organizational capabilities and effectiveness.
Different from traditional structural analysis and causal analysis, data-driven human analysis is a proactive, insightful, predictive, strategic and behavior-oriented in-depth analysis; it is an in-depth value mining for business insight and business design, and also It is when the business environment has not changed, relying on management tools such as talent portraits, organizational portraits, talent discovery, etc., to realize the top-level design presentation based on future insights, and on this basis to make assumptions and plans for different action strategies and suggestions ( See Figure 4).
Dataization is people-centered, and comprehensively digitizes various roles related to enterprise business, such as users, customers, managers, employees, and partners, as well as the processes of different business scenarios, and forms data assets by collecting, sorting, storing, and analyzing large amounts of data , to gain in-depth insights into business operations and market environments.
On the basis of scientific data governance, scientific data governance realizes the analysis of talent data through model construction . Use big data analysis, artificial intelligence and other technical means to process and analyze massive data, generate business insight reports that can empower business development and organizational development, and provide important reference and decision-making basis for organizations.
The digitization and analysis tools of personnel attributes include personnel labeling, talent portraits, organizational network analysis, etc. Among them, the talent portrait has changed the original cold, static, fragmented, and face-based data analysis, based on big data analysis and data insight, to achieve a comprehensive and accurate talent portrait, and to display and evaluate talents more comprehensively and objectively.
Executable Action Strategies Transform insight reports into executable action strategies through continuous business operations to guide business management changes. Insight reports reveal problems, opportunities and potential risks in business operations, and provide corresponding solutions and improvement measures. The action strategy transforms the suggestions and improvement plans in the insight report into actual business actions to promote the development and transformation of the enterprise.
Continuous business operation adjusts and optimizes action strategies in a timely manner through continuous tracking and monitoring of business operations. Continuous business operations help companies discover problems and challenges in a timely manner, and take corresponding measures to correct and improve. Only through continuous business operations can enterprises adapt to the changing market environment and maintain competitiveness and sustainable development.
Evaluation of business results evaluates and confirms the ROI, impact, and practicability of action strategies and implementation, and feeds back the evaluation results into the data. Business performance evaluation helps companies judge the effectiveness of action strategies and improvement directions, and promote long-term continuous improvement and development.
In short, through the above steps, the organic connection and closed-loop management of technology, data science, process/people/culture, and business model innovation will be realized. With the help of digital-driven business insight and design, it will help enterprises redefine talent digital insight and lead talent management. , Realize the visualization of management decision-making, promote human resource management to realize talent analysis and design the future.
The digital transformation of human resources management accelerates the "integration of intelligence and efficiency"
With the help of digital technology, the original empirical judgment or intuitive prediction model will inevitably be upgraded to intelligent decision-making based on data analysis and in-depth insight; the original passive situation of separation of business attributes and talent attributes, and disconnection of talent development and business development will The transition is the simultaneous development of talent development and organizational development, and the development of both personal ability improvement and organizational ability optimization, that is, the development of the "smart and effective integration" model that digitally drives human resource management to deeply integrate the talent of intellectual capital and the organizational performance of business development ( See Figure 5).
Focusing on the fundamental goal of "organizational capacity building that combines personal development and organizational development", with the concept of "empowering employees and activating the organization", it focuses on "talents lead organizational development, organizational carrying strategies are achieved, management strengthens employee empowerment, and organizational success The closed loop of "key talents" realizes the digital transformation of human resource management.
First of all, through digital technology, realize personalized customization and precise talent matching, and open up the closed loop of training and development of outstanding talents.
Secondly, deeply integrate the organization's strategic goals with data intelligence, create higher business value and gain competitive advantage through data-driven decision-making. Through the intelligent data analysis and governance system, data such as personnel structure, talent quality, and human operation are integrated with financial and business data to provide comprehensive business analysis, realize data empowerment, and gain insights, predict, and design the future.
Third, provide solutions for organizational change and structural efficiency by reconstructing the digital operation of the HR department itself. Reshape the role positioning of human resource management, optimize the salary system, reconstruct the target performance management and talent development system, and improve organizational effectiveness and human resource operation efficiency.
Fourth, use intelligent tools and technologies to build digital and intelligent infrastructure, create a satisfactory working environment and an efficient collaboration platform for employees, and enhance employee engagement and sense of mission.
Through the transformation of these four dimensions, the digitalization of human resource management of "precise talent development, agile organizational transformation, intelligent human operation, and excellent employee experience" will be realized, and the goal of "integration of intelligence and efficiency" will be realized.
epilogue
In the new era, digital technology provides enterprises with important opportunities, especially in the field of human resource management. Through digital transformation, enterprises can realize the intelligence and efficiency of talent management, thereby promoting the high-quality development of the organization.
Talent is the core resource of an enterprise. Through digital means, enterprises can better meet the needs of business development and talent supply. At the same time, combined with the perspective of organizational capabilities, the existing talents are analyzed and activated so that they can better support the strategic goals of the enterprise. This reconstruction of the digital talent supply chain system is an inevitable choice and a key strategy for Chinese companies to use digital technology in the new era.
Digitalization accelerates the return of human resource management to the value source of personal ability improvement and organizational efficiency improvement. Through digital means, enterprises can realize the transformation of target performance management, conduct comprehensive talent inventory, obtain forward-looking business insights, and achieve precise talent development. These measures will promote the realization of corporate goals through the innovation of management mechanisms, and highlight the deep integration of the organization's business goals and talents. At the same time, with the help of data intelligence, the organic integration of enterprise business attributes and personnel attributes can be realized, thereby realizing the precise matching of enterprise business attributes and talent attributes.
In short, the digital transformation of human resource management is an important path for enterprises to achieve high-quality development. Through the application of digital technology, enterprises can realize the deep integration of talents and business, improve personal ability and organizational efficiency, and finally realize the goal of "integration of intelligence and efficiency". This will provide strong support for enterprises to maintain their competitive advantages in a highly competitive market environment.