Why (and how) HR needs to lead organizations from process engineering to work redesign

Despite the transformative effect of AI, customers are asking Deloitte: Where is the ROI from our AI investments? When will we see the efficiency gains?  

Kate Cohen, Managing Director at Deloitte, said “AI has been the biggest gravitational shift since the internet,” during the consulting giant’s UNLEASH America executive boardroom.  

The problem is, as recent Deloitte data found, most organizations see AI as a tech problem.  

They are stuck in a “process trap” whereby they are inserting AI into existing processes developed for deterministic technology, whereas AI is probabilistic.  

This might feel like a quick win, but it’s messy and won’t lead to the value organizations want to see.  

How can organizations break out of this process trap and move away process engineering and towards work redesign?  

This was the core premise of the boardroom discussion between Cohen, her fellow Deloitte Managing Director, Sarah Szpaichler, Zoom’s Chief People Officer, Todd Reeves, and select HR leaders.   

How HR can break out of the AI ‘process trap’

Cohen shared: “I won’t suggest that human-centered design is anything new” – it’s been around since the industrial revolution.  

The key difference with AI is not thinking this is what humans can do and this is what technology can do as separate things but looking at how humans and technology can work together in an integrated way.  

In the boardroom discussion, there was an acknowledgement that employers have lots of choices and decisions to make when it comes to redesigning work.  

The Deloitte team shared that customers often say: “We only have limited capital to invest, so what’s the biggest thing we should get started with?”   

The consulting giant’s recommendation is to look for the largest challenge you face; that’s where you will make the most impact.  

Start with small steps to solve that big challenge, and be prepared to take risks with use cases. As Zoom’s Reeves put it in the session: “I just knew I needed to get started.”  

Then, crucially, invest in both your tech stack, and your people (and their skills).  

Remember to not just focus on the AI use cases; “how do we think about a business use for humans?” asked Szpaichler. Just because you can automate something does not mean you should.  

Deloitte advises that organizations set a clear boundary for where you need humans not just in the loop, but in full control. This is essential to getting AI governance decision-making right as work is redesigned.  

One  attendee asked whether HR has the right skills for this work. This leads to a bigger question about whether HR should be the function with responsibility to redesign work. 

UNLEASH America keynotes Jaime Teevan, Josh Bersin, Peter Hinssen and Ethan Mollick all made the case for HR leading the reimagination of work.  

Reeves agreed. He shared with the boardroom that HR must be in control – they have the skills, capabilities and network across the business to lead through this change.  

In an interview at UNLEASH America, Kyle Forrest, Deloitte’s Future of HR Leader, notes that “there’s nothing that’s getting asked of a HR function that hasn’t been asked of them before. The difference is the speed that they’re expected to respond to it, and the spotlight they’re under.” 

While HR must take the lead, this does not mean they need to, or should, act alone.  

It’s essential for HR leaders to lean on IT and functional leaders; collaboration is essential if HR wants to achieve that AI ROI organizations desire.