The long road to common ground and how to succeed!
"It took us six years to agree on a common HR taxonomy with our international team - a standardised list of our most important products, services and processes. This common understanding was the foundation we needed to move forward together."
(from a call with a CHRO)
Author: Christina Haury
Aligning international teams is no easy task!
The company has 15,000 employees, and its HR products and services are comprehensive!
A basis is crucial for harmonizing global HR processes, increasing efficiency, and enabling data-based decisions.
But how can the path to a standardized HR taxonomy be successfully designed?
Table of contents
- General Significance
- Why a standardized HR taxonomy is important
- Steps for introducing an HR taxonomy
- Pitfalls and success factors
- Why it’s worth the effort for HR
- Summarising
1. General Significance
Taxonomy refers to systematically categorizing, classifying, and naming elements in a specific context. Originating in biology, used to organize living organisms, the term is now used in various fields, such as science, technology, education, and business.
A taxonomy generally creates order and structure by organizing elements into hierarchical categories. This makes it easier to understand, communicate, and analyze information.
Characteristics of a taxonomy:
- Hierarchical structure: elements are grouped into superordinate and subordinate categories.
- Uniformity: The taxonomy ensures standardized terms and definitions.
- Purpose orientation: It is often developed to solve specific problems or optimize processes.
Examples of areas of application:
- HR and business processes: Standardised terms for processes and services.
- IT and data management: Structuring of data for effective storage/retrieval.
- Education: Classification of learning objectives, as in Bloom’s taxonomy.
2. Why a standardized HR taxonomy is important
Definition:
A common taxonomy in HR describes a uniform system for naming and structuring processes, products, or services accepted by all organizational levels and locations.
Purpose and importance:
- Ensures consistency in communication and decision-making across national borders.
- Serves as the basis for process optimisation, data-driven decisions and global HR alignment.
- It avoids misunderstandings caused by inconsistent terminology that can jeopardize strategic initiatives.
Examples:
HR processes: Standardised onboarding processes ensure consistent support for new employees.
Product definitions: Standardised terms for a wide range of services prevent duplication of work.
3. Steps for the introduction of an HR taxonomy
1. Initial stocktaking and stakeholder analysis:
Goal: Identify differences and similarities in existing terms and processes.
Implementation: Workshops and interviews with regional and functional teams.
Important: Involve stakeholders at an early stage to create acceptance.
2. Definition of goal and scope:
Goal: Clarify which areas the taxonomy should cover and which strategic goals are associated.
Important: Start with a limited scope to achieve rapid success.
3. Development of a draft:
Goal: Create a first structured draft based on the analysis results.
Realization: Use visual tools such as process mapping.
4. Validation and test phase:
Goal: Verify practicality through pilot projects.
Implementation: Ask teams to apply the taxonomy and collect feedback.
5 Finalisation and rollout:
Goal: Adopt the taxonomy and plan an organization-wide rollout.
Implementation: Training and communication strategies are crucial
4. Pitfalls and success factors
Typical pitfalls:
- Insufficient involvement of stakeholders: Without acceptance, the taxonomy remains a theoretical construct.
- Too large or unclear scope: Overambitious goals often lead to delays and frustration.
- Lack of communication: A lack of transparency about the benefits leads to resistance.
- Lack of updating: A poorly maintained taxonomy quickly loses relevance.
What is absolutely necessary:
- Clear leadership: a dedicated project team with an executive-level sponsor provides direction and support.
- Transparent communication: The benefits and advantages of the taxonomy must be explained clearly and comprehensively.
- Iterative approach: Working step-by-step and achieving quick wins helps to build momentum.
- Technological support: Tools such as process mapping software make implementation easier.
- Regular maintenance: Plan annual updates to ensure relevance.
5. Why it’s worth the effort for HR
A standardized taxonomy is more than just a theoretical model – it forms the basis for long-term success.
It enables:
- Increased efficiency: Standardised terms reduce misunderstandings and improve collaboration.
- Data quality: Clear definitions are crucial for analyzing and using HR data.
- Strategic alignment: A common basis supports the global HR strategy and contributes directly to the company’s objectives.
Definition: Based on the status quo analysis, clear priorities must be set for improvement measures. A distinction should be made between short-term achievable goals and long-term strategic measures.
Purpose and importance: Following the analysis, the aim is to prioritize areas for improvement. Measures that can be implemented quickly are necessary, but long-term strategies must not be neglected. This ensures a sustainable improvement in HR processes.
Examples: One example would be that you can achieve quick wins in recruiting, but without a comprehensive improvement in the onboarding process, employee retention becomes a problem. Long-term measures such as strategic HR development are crucial for long-term success.
Danger: The danger lies in focusing too much on short-term success and losing sight of the long-term strategy. Many companies focus on quick results and miss out on critical strategic improvements necessary for the future.
6. Summary
The introduction of a standardized taxonomy is a challenge but also an opportunity. With a clear plan, avoiding typical pitfalls, and the right success factors, companies create the basis for more efficient and strategically orientated HR work.
Interested in further insights into HR transformation projects and process optimization?
Subscribe to our newsletter and stay up to date.
If you would like to know how you can easily carry out this process independently and digitally, we would be happy to show you our software solution, TraSy
Haury Solutions GmbH
November 2024
