The global Business Driven HR Transformation environment is experiencing unprecedented change, and human resources (HR) should develop new capabilities if it wants to remain relevant.

Our world’s social and economic center of gravity is steadily shifting from west to east. Many developing countries are facing a ‘new normal characterized by ongoing economic uncertainty, lingering underemployment, excessive debt, and stagnant consumer demand. At the same time, emerging countries are flourishing as their expanding populations and growing middle classes give rise to a new and powerful pool of consumers and workers. And all of this is happening against an unpredictable backdrop of natural disasters, political upheavals, dwindling global resources, and wildly fluctuating commodity prices.

In the past, Business Driven HR Transformation mostly focused on making existing HR services more efficient, effective, and compliant. The unspoken assumption was that HR was already doing all of the things that needed to be done; it just needed to do them more effectively, faster, and cheaper.

Now, the rules of the game are changing. Basic HR capabilities — such as efficient and effective service delivery, integrated HR systems, employee self-service, and timely access to relevant/correct workforce data — are as important as ever. But today, they are merely table stakes: basic building blocks that each HR function should possess.