Question

The HR department in a musical instrument company is struggling to support the company's rapid growth. The company, which started as the home business of a casual musician, logged $17 million in sales last year. The HR department has hired additional team members over the years but hasn't changed its structure since start-up. All HR team members currently function as generalists, doing whatever it takes to support the company.

The organization now consists of multiple store franchises. Each store has a sales department, a service and repair department, and a department offering music lessons. This initial product and service offering was followed by instrument rentals and later the acquisition of a publishing company that specializes in learning guides for new musicians and music teachers. The company's newest effort, the production of their own brand of mandolin, is recognized by most of the senior leaders as a high-risk effort but with the potential for a profitable high-margin instrument being added to their product line.
With the rapid growth and expansion, the CEO is becoming increasingly concerned about quality and has made it clear that the entire corporation is to prioritize quality and efficiency while maintaining focus on the strategic plan.
After careful research, the HR director learns that many similar organizations have successfully implemented a shared services model with focused HR business partners, centers of excellence, and a centralized HR service center. Which approach is best for the HR director to take to determine the viability of this option?

A. Define new roles based upon a shared services model and present the information to the leadership team.
B. Partner with an external consultant to develop and implement a pilot of the shared services model.
C. Develop a business case for the shared services model, including cost implications, and present it to the CEO.
D. Send out an announcement about the intent to move to a shared services model and request feedback.

Answer 1

The HR director should develop a business case for the shared services model, analyzing costs, benefits, and strategic alignment, and then present it to the CEO for an informed decision.

Step-by-step explanation:

The HR director should develop a comprehensive business case for the shared services model, including an analysis of cost implications, benefits, potential challenges, and how it aligns with the organization's strategic goals focusing on quality and efficiency. This proposal should be thoroughly reviewed and presented to the CEO, since it would provide a factual basis for assessing the viability of the new HR structure. Additionally, by articulating the potential return on investment, efficiency gains, and how the model might enhance HR’s support for the company’s growth and quality objectives, the director might more effectively gain executive support. Preparing this business case involves considering the information from the recruitment process, understanding how current operations might be consolidated, assessing the impact on employee retention and hiring, and evaluating the potential for professional development and reduced bias in the HR function.

Adopting such a proactive and analytical approach rather than simply announcing the intent or piloting without objective analysis should assist the leadership team in making an informed decision regarding the proposed HR model change. Input from diverse stakeholders might also be included in the business case to enrich the understanding of its implications across the organization.