All businesses and functions put a lot of effort into making annual plans and budgets. As a responsible HR manager, you naturally consider what existing HR software will support your HR and management processes. For you, these are obvious investments. Support and commitment are crucial.
Decision criteria for HR investments
You know that the support of your colleagues in the management team is crucial when it comes to investments in processes and systems. And if the other managers at the table don’t see the value of your proposal, it won’t matter how enthusiastic you are. Because if you can’t feel the pain, you won’t see the point of spending money on medicine.
Why develop decision criteria?
Proposed investments in a company’s human capital are often made on the basis of qualitative arguments along with a strong belief in the business impact. Sometimes, this is not a sufficient basis for making decisions, especially when you have to compete for limited investment funds. Then, the winners will be those initiatives that are best substantiated with documented effects, risk management and a promising cost/benefit ratio.
We must speak the language of the CEO and CFO. Well-prepared decision criteria ensure that the management team can make a decision that is perceived as both considered and smart.
But first, what we do we mean by HR and management processes?
For some businesses, it is a matter of establishing a solid foundation, namely HR Master Data. HR data is an important factor in strategic HR work. If HR data is poor quality, it affects other HR processes, and the ability to make the right decisions. Other examples of processes that must be digitised include: onboarding, appraisal dialogue, competence mapping, competence development, employee surveys or succession planning.
# 1: The current situation – what needs improvement and what are the consequences of doing nothing?
# 2: The objective of initiative
# 3: Description of the solution
# 4: Cost/benefit, “Return on investment”
# 5: Project plan
# 6: Risk considerations
# 7: Conclusion and recommendation
If you use this recipe and can give good answers to these points, you will be well prepared for your presentation to the management team. It will increase your chances of getting approval to conduct even better leadership and employee development for the company in the years ahead.