THE HIDDEN SECRETS TO HR PROJECT FUNDING – WHAT SHOULD YOU KNOW!

The information in this blog was collected from the data of “People Streme” company in a workshop that I have a chance to join in around 2 weeks ago.

The main aim of this blog is revealed what I studied from the board of director of “PeopleStreme” about the way how a HR project was funded or rejected and the mistakes that people usually met when they want to fund for the HR project.

First of all, I would like to identify all facts that already exits in funding a HR project nowadays:

• 80% – 90% of HR request for funding get deferred or declined.
• The infective recruitment and low productivity usually happen in first 18 months before getting the benefit.
• There are 3 common mistake that make a HR project fail: “No ROI data – No funding – No understanding” => Declined.

And in the preparation period of a business case, We are usually have some serious mistakes that we couldn’t recognize if we don’t have an expert’s advice. To be more specific, there are:

• The misunderstood about the individual benefits and organization benefits: When many people think that their roles in the organization just play an insignificant part in a multi – step process in their company, the reality is the way how they do their job could have a significant effect to the organization process. Ex: If a man can do his job faster 10%, the organization could save the time at least 100 bigger time.
• Assume we don’t need a business case: Many people think that they have a tight relationship with the CFO or similar role. Therefore, they can discuss and understand together effectively. However, the business case is inevitable. Because if we don’t have this case, We will: “Have a narrow vision – Poor assumptions – No numbers” => Be declined.
• Just basing on what we think, we feel: Actually, CFO is a person who is a numerate man. If you just show him what you think, your business case will be failed.
• No definition of what happens if we do nothing: Many companies didn’t have an estimation about what they will waste if they don’t make the business case. Therefore, they couldn’t have a clear picture about what they have or don’t have basing on their business case.
• No time lines and consequences of delay in the business case.

So, after all of these struggle things when preparation a business case, what  we can do to built a real good business case?

We will find out in this following steps:

• Setting context for Performance management in the business case: We need to make this case to be simple term that all staff could understand about the final goal of company. Besides, instead of lacking discussion (many companies usually choose to do it in 3 periods: Beginning – middle time – The final time); we should set up more face to face meeting during the process that all staffs can discuss and improve the mistake frequently;  and agree with the common Objectives + set a good development plan.
• Improve the completion rate that make people to be more aligned and create a better business outcome.
• Improve engagement: By alignment and regular feedback
• Improve productivity through a better goals/objectives
• Improve alignment/focus
• Improve visibility and reporting

These are a short brief about what we can do to get a better result for our HR project funding. To be honest, this topic need time and a deep analyse if we would like to have a better understanding and can apply effectively to our business case. However, I suppose that this blog could make you have a general knowledge about the field that many people concern about ‘HR funding” and make a good foundation for you to have a self research about it in the future.

Thank you for your precious time to reading my blog!

If you have any question,

Feel free to comment below or send me the question in my contact form. I will reply you soon <3.

Anthony Lee GMC