From shared services to professional services

Abstract

Purpose

This paper aims to define the four basic organization design choices for HR, discuss the need to align the HR organization with the business organization, explore how to organize to turn HR knowledge into client productivity, and clarify the role of HR and how HR roles work together.

Design/methodology/approach

This research is based on over 100 interviews and discussions with senior HR professionals in over 50 Global 500 organizations across all industry sectors.

Findings

The next evolution in the organization of the HR department is the professional services model. HR can learn and adapt the professional services model to turn HR expertise and knowledge into client productivity and line manager value.

Originality/value

This article provides HR professionals with practical advice on how to organize the HR department. It offers five useful steps to help HR shift from a shared services organizational model to a professional services model so that HR can turn knowledge into value.

Citation

Ulrich, D. and Grochowski, J. (2012), "From shared services to professional services", Strategic HR Review, Vol. 11 No. 3, pp. 136-142. https://doi.org/10.1108/14754391211216850