Turnaround in HR
What was the initial situation of the project in the HR area?
A medium-sized IT company (SME), organized as an independent GmbH and wholly owned subsidiary of a city, was facing a comprehensive transformation. The company was responsible for all IT services – from hardware and software to IT architecture – for the city.
A new managing director was appointed in advance, with a clear mandate to strategically realign the company and increase efficiency. It quickly became clear that the Human Resources (HR) department in particular had structural deficits: there were no clearly defined responsibilities, no standardized HR processes and no central management.
The position of Head of Human Resources was newly created to drive forward the HR transformation both operationally and strategically.
What goals were pursued with the HR transformation?
The aim of the project was a holistic analysis and optimization of all HR processes with a focus on:
-Legal certainty (compliance, labor law, governance)
–Increase in efficiency (incl. cost optimization)
–Practicality for a medium-sized IT company
The mandate also included:
-Assumption of management responsibility for two employees
-Conducting a performance and potential analysis of the HR team and for key positions in the company
-Development of a strategic recommendation for action for the management
Ensuring the day-to-day operations in the HR area
This involved a classic HR turnaround with a transformational character, which included both strategic and operational elements.
How was the HR process analysis and implementation carried out in concrete terms?
The procedure followed a structured transformation approach:
Analysis phase
-Recording and evaluation of existing HR processes
-Identification of weaknesses in governance, efficiency and transparency
-Examination of legal risks (e.g. working time regulations, documentation)
Concept phase
-Development of HR governance structures
Definition of clear responsibilities and decision-making channels
Creation of company-wide guidelines
Implementation phase
-Introduction of new processes and systems
-Support for change management measures
Integration into day-to-day operations
At the same time, the management of HR employees was taken over and their development actively managed.
What concrete results were achieved in the HR area?
The HR transformation led to clearly structured and sustainable improvements:
HR governance: introduction of company-wide guidelines on responsibilities, powers of attorney and key topics such as working hours, vacation, on-call duty and mobile working
–Cost management: development of systematic HR budgeting and controlling structures for personnel planning and salaries
-Digitization: Selection and implementation of an HR information system with a focus on payroll accounting
–Management & Development: Introduction of a system for skills and potential management and succession planning
-HealthManagement: Implementation of company integration management (BEM) in accordance with §167 SGB IX
–Talent management: development of in-company training for IT specialists
These measures significantly strengthened the efficiency, transparency and future viability of the HR department.
What strategic added value was created for the company?
The HR transformation enabled the company to realize key competitive advantages:
-Increasedlegal certainty through clear guidelines and governance structures
–Increased efficiency through standardized processes and digitalization
–Transparency in HR decisions through controlling and clear responsibilities
-Strengtheningthe employer brand through structured personnel development and training
–Future viability through sustainable HR strategy and modern systems
Overall, the HR department was developed from an operationally weak function into a strategic management tool.
FAQFrequently asked questions
What is an HR transformation in an SME?
An HR transformation describes the fundamental realignment of the HR department. In SMEs, this usually includes the introduction of structured processes, digitalization (e.g. HR software), clear governance and the strategic integration of HR into corporate management.
What are the benefits of an HR process analysis for IT companies?
A systematic HR process analysis identifies inefficiencies, reduces legal risks and creates the basis for scalable structures – particularly important for IT companies with growing complexity and a shortage of skilled workers.
When is it worth introducing an HR information system (HRIS)?
An HRIS is worthwhile as soon as manual processes become too inefficient or there is a lack of transparency. An HR system offers considerable time and cost benefits, particularly in areas such as payroll accounting, personnel administration and reporting.
