Centralizing and Standardizing Transactional HR Services
A global industrial company initiated a Service Operations transformation to harmonize processes, streamline IT architecture, and enable centralized delivery of transactional HR services.
The objective was to reduce cost, improve quality, and create a more consistent employee experience—while enabling future strategic initiatives such as AI and automation.
What we did
The country organization selected for the first wave became the starting point of a broader global People & Culture transformation. The initiative represented a strategic shift from operational HR execution toward a more advisory HR role.
The existing transactional HR setup had grown over time, resulting in low efficiency ratios and high structural cost. The transformation therefore included cost reduction measures and a workforce restructuring process.
To enable this shift, we:
-
Defined a clear global operating model for Service Operations
-
Designed the future local target organization, clarifying roles and capabilities in relation to the centralized hub
-
Facilitated workshops to align on current vs. future capabilities
-
Strengthened coordination between local and global stakeholders
-
Developed and anchored a structured communication plan for managers and employees
-
Identified key risks and mitigation plans
Results
A future-state organization was defined for the local People & Culture function, including clarified roles and responsibilities following the transfer of transactional activities to the centralized European hub.
The workforce restructuring and union negotiations were executed in a structured and fair process, ensuring transparency and compliance.
The transformation created the foundation for a more cost-efficient, advisory-focused HR function aligned with the broader global operating model.
Outcome
The organization successfully initiated the shift from decentralized transactional HR to a centralized service model—reducing structural cost while strengthening the strategic role of HR.
The new operating model provides scalability, improved governance, and a platform for continued digitalization and automation.
