HRD Asia speaks to Eugene Lam, regional HR director at Kimberly-Clark, who shares his experience and tips on building a compelling business case for HR tech investment.
HRD: HR tech systems typically require a large investment from the company, so where should HR professionals start in building a case for it?
EL: Be very clear about what you want to achieve. You must start with questions like ‘what is the problem statement?’ and ‘why a new system in the first place?’ You should always go back to the basics and be clear about what you are trying to resolve.
Management might ask why would the company need a regional system, when they can get a local system that costs 20% lesser than a regional one.
In the case that I presented, I was clear that we needed to solve a few things: not only the issue of cost, but also the synergies around getting one regional system, and the bigger issue of compliance – which is something that companies cannot afford to compromise with.
HRD: What are some guidelines you follow when presenting a business case for a tech system?
EL: 1. Answer the ‘why’ well: This is the part that cuts across the science of change management and it’s about answering the big
W-H-Y –
Why the system? Why now? You need to tell your ‘why’ well.
2. Prove the ROI: Quantify your case. You also need to show the cost-analysis by telling a story. For eg if the company invests $100,000 in a system, show that they may reduce spending in three years’ time due to a lower headcount and improved efficiencies. From experience, business leaders like to see a projection of when the company can breakeven with the investment.
3. Prepare a sound implementation plan: Present a robust execution plan: how do you intend to go about doing this? People will be impacted, and tech introductions may take time as training is involved. Provide answers on how you plan to mitigate risks and how you plan to convince the middle managers who will be affected as well.
HRD: What is your top tip for HR professionals making a case for their tech project?
EL: Get a sponsor. Even if I’m proposing an idea for a HR program that’s not tech-related, I will always go to the business leader first – eg country head or regional head – and tackle the issue from there. I’ll debate the idea with him/her and the moment the business leader is convinced, half the battle is won.
When you present your business case to the team, they may bring up difficult questions about why the idea is not feasible, but if you have a business leader as a sponsor, they can tell the team that everything has been discussed prior.
HRD: Please share an example of a successful case that you presented.
EL: I was always a HR generalist but recently, I had to present a case for a payroll outsourcing system. I had to answer the question –
why payroll outsourcing?
The APAC countries that our business is in were running local systems that cost about half the price of the regional one I was proposing, so why should the company spend so much money on it? I was able to show that it’s cheaper to use a regional system in half of the countries in the region.
Also, I was very clear that payroll involves solving a compliance issue. Another compelling issue is proving that the system will always stay up to date with local manpower laws and regulations.
However, none of those reasons would have been enough for a case if I had not shown how the system can save on manpower costs as the system’s vendors can handle updates.
Eugene Lam will be on the panel discussing how to build a compelling business case for HR technology investment at the HR Tech Summit being held at the Hilton Singapore on 28 March 2018. Click here for more details and to register.
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