The virtual water cooler: Honing collaboration platforms in M&A

watercoolerPosted by Danielle FeinblumAntonia PearsonTJ MossChelsey Ott on July 31, 2020.

Even before our world became more virtual, most organizations could share an example of how a piece of information “went viral” within the company on Slack, Microsoft Teams, Quip or another other collaboration tool. From quick requests for help on a project, to sharing feelings about a recent message from leadership, or even daycare recommendations, these platforms create a one-stop shop for quick and easy information sharing between employees. Which is why we see more companies take a deliberate approach to using these tools during major changes in the organization, including M&A.

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Letter from a Professional in a Pandemic

Posted by Alejandra Arrué, Erin Clark on July 30, 2020.

A Deloitte professional – Alejandra – reached out to her leader  – Erin – to discuss her personal experiences in the current environment. Ale reflects on her experiences with uncertainty and unrest, and what she has learned over the course of the past few months. In response, Erin transparently shared similarities in her personal experiences and offered insight on ways to thrive amidst disruption. They have summarized their conversations in the illustrative format of the open letter below.


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To PEO or not to PEO in M&A Transactions

Posted by Andrew Heller, Jennifer Zheng on July 21, 2020.

Professional Employer Organizations (PEOs) can be a valuable solution in Mergers, Acquisitions and Restructuring transactions.

Companies engaged in Mergers, Acquisitions, Divestitures or Restructuring (M&A) activities face highly complex strategic and operational challenges.  To effectively navigate these challenges, back and front office functions should choreograph critical decisions with limited time and data.  Such decisions are the cornerstone for the success of an M&A transaction, as they impact the overall risk profile for these corporate life events.  Professional Employer Organizations (PEOs) can help businesses reduce the risk and accelerate the timeline.

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Adaptable and Efficient: Designing for Today’s Shared Services Center

Posted by Don Miller, Maya Bodan, Sonia Singh, Michael Kessler on July 17, 2020.

As organizations become more adaptable and innovative, so do their Shared Services. Shared Services Centers (SSCs) have evolved from being a “provider of what they ask for” to a generator of tangible business value.1 SSCs are increasingly global, multifunctional, digital, and supported by automation and analytics. Meanwhile, in the response to the COVID-19 crisis, many organizations are also looking for their SSCs to help drive low-cost options for service delivery.

The organizational structure supporting your SSC likely looks like what we’ve come to think of as the modern organizational model: Sticks and boxes forming a regimented, hierarchical, top-down structure. Yet, this model isn’t really that modern at all. It’s the exact same organizational structure used by General Marc Antony as he was leading Julius Caesar’s legions into battle.

This realization prompts the question: If we can agree that the work of SSCs has evolved, shouldn’t their organizational structures and operating models also mature to keep up with the customer-centric work that is being done? Continue reading “Adaptable and Efficient: Designing for Today’s Shared Services Center”

Humans with Machines

Harnessing the power of intelligent automation (IA) by effectively managing a mixed workforce of people and machines

Posted by Gina Schaefer, Ryan Sanders, on July 16, 2020.

While the idea of machines “taking over the world” makes for compelling science fiction, businesses are discovering that the most powerful use cases for intelligent automation (IA) involve people and machines working together as a team. Of course, managing a mixed workforce of human workers and “digital workers” presents its own unique challenges. Here’s a look at the critical challenges—and how to address them.

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Human Capital Balance Sheet

Capital H Blog Series – Blog #1 Cost Reduction Strategies: A Needed Paradigm Shift

Posted by Kecia Bingham, Doug Tapp, Jose Molina, Yon-Loon Chen, Mike Fuchs on July 14, 2020.

While cost management and cost reduction are common business terms even in the best of economic times, the COVID-19 crisis has propelled them to the forefront of business discussions.  Typical cost management efforts center on reducing overall costs by cutting labor costs.  Initial responses to the COVID-19 crisis have largely followed suit.  The speed and magnitude of the disruption caused by the pandemic propelled many business leaders to make quick, and at times, deep cuts to workforce spend.  Preliminary COVID-19 research by Deloitte Consulting LLP indicates that business leaders’ early response to the pandemic was to trim costs through pay cuts, elimination of bonuses, furloughs, and layoffs.  These actions largely impacted traditional full-time/part-time employees, who comprise a subset of total labor costs.  It is difficult to evaluate the prudence of these cost reduction decisions without understanding whether other types of labor costs (e.g., alternative workers, real estate, technology) were considered for reduction and how each supports the bottom line.

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Helping Increase the Odds of Leadership Success in Digital Transformation


Posted by Erin Clark, Wayne Robinson July 10, 2020.

Most organizations understand that to be competitive in the market, they need to invest in digital transformation. However, organizations often underestimate the importance of cultivating leaders who can drive the required change. Many digital transformations fail due to unprepared leaders. How can you better ensure that your organization has the right leaders with the skillset to successfully lead a digital transformation? How do you prepare and form teams that have the skills and problem solving to be successful in a transformation? There are four key principles to support executing a successful transformation: pick the right leaders, build high-performing teams, find new ways to solve new problems, and embrace a growth mindset.

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Navigating through unchartered waters: How building an adaptable mindset is critical for the transition to an adaptable organization

Posted by Aparupa BhattacharyaJoshua Akman, Cameron Wilk and Katherine Curran on June 26, 2020.

In these unprecedented times, we are seeing clients taking stock of the short and long term effects of the “new normal.” We know that this new normal will be defined by more virtual work, more flexible work arrangements, and call for increased agility on the part of the organization and the individual. This is truly a fundamental shift. It means moving away from the tried and true hierarchical structure, profit-driven, and silo’d organization to one that is designed to enable agile, purpose-driven, network-based teams. We refer to this as an adaptable organization.

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Change your mindset about change


Posted by Chris Havrilla, on June 23, 2020.

The inspiration for our High-Impact Technology Strategy research was less about technology and more about solving a puzzle. Organizations spend big money on their HR technology and expect it to drive change and transform the HR function, the organization, and the overall workforce. But why weren’t they realizing the promise, outcomes, or value from their digital transformation? Why didn’t transformation occur? Our research shows the answer may be because organizations didn’t approach these factors like a puzzle.
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IRS Guidance Permits Additional Flexibility for Mid-Year Election Changes in Cafeteria Plans

Posted by Robert Davis on June 19 , 2020.

The Internal Revenue Service has issued Notice 2020-29 to give employers additional flexibility to allow employees to make mid-year election changes with respect to health coverage, health flexible spending arrangements (health FSAs) and dependent care FSAs during the 2020 calendar year.  For FSAs with grace periods or plan years ending in 2020, the Notice also permits plans to let employees apply unused balances to expenses incurred during the remainder of 2020.

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