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Ray S Curation A New Operating Model For People Management More

Leo Migdal
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ray s curation a new operating model for people management more

A New Operating Model for People Management: More Personal, More Tech, More Human | McKinsey & Company (2025) | Research reveals how organisations can transform HR into a strategic, data-driven function that personalises experiences... Did you know that while 70% of organisations are still defining their HR technology strategies, McKinsey estimates that 26% of HR tasks can already be fully automated, with another 40% ready for tech-assisted delivery? This automation potential represents a transformative opportunity for HR to evolve from transaction processor to strategic value creator. Figure: A New Operating Model for People Management Drawing on insights from over 100 experts, McKinsey's research outlines how tomorrow's people function will leverage technology to deliver personalised employee experiences while freeing HR professionals to focus on strategic value creation. The report introduces a "strategic triumvirate" model replacing traditional HR structures with three key roles: people strategists, scientists, and technologists.

Organisations implementing this approach are seeing measurable improvements in people's development and financial performance, with top performers four times more likely to outperform competitors financially. The workplace is experiencing unprecedented disruption. Generative AI has caused more changes to people operations in the past year than the previous decade combined. Simultaneously, employees increasingly expect the same personalisation at work that they experience as consumers. Despite these shifts, only 5% of organisations have successfully incorporated new technologies into their people functions. This implementation gap—with 70% still planning and 25% in early scaling—creates a competitive advantage opportunity for early adopters.

The way organizations manage their most important assets—their people—is ready for a fundamental transformation. New technologies, hybrid working practices, multigenerational workforces, heightened geopolitical risks, and other major disruptions are prompting leaders to rethink their methods for attracting, developing, and retaining employees. In the past year alone, for instance, we have seen more and more companies adopt, innovate, and invest in technology—particularly in gen AI—in ways that have spurred more changes to people operations than we... Many organizations are also taking significant steps to address shifts in employees’ expectations about work, pursue greater productivity, and foster greater resilience. In many cases, they are looking beyond previously established people management practices and people function (or HR) operating models and taking a step into the future of people management. What does that future look like?

In our view, it is centered on technology’s potential to reshape organizations. In the not-so-distant future, emerging technologies may allow companies to deliver personalized employee experiences, redefine work as a symbiotic relationship between human and machine, and continuously measure organizational health and performance to solve problems... Furthermore, automation through these new technologies should free up managers’ time so they can provide more of a “human touch” when interacting with employees—that is, more individualized attention as well as guidance and coaching. To help codify this vision of the future of people management, we gathered perspectives from more than 100 experts in HR technology, executives from blue-chip companies, academics, and other thought leaders in the people... Our conversations with these experts and our own research reiterate the value that strong people management functions can generate: Organizations that excel in both people development and financial performance are four times as likely... By registering with us, you agree to our privacy policy.

The way organizations manage their most important assets—their people—is ready for a fundamental transformation. New technologies, hybrid working practices, multigenerational workforces, heightened geopolitical risks, and other major disruptions are prompting leaders to rethink their methods for attracting, developing, and retaining employees. In the past year alone, for instance, we have seen more and more companies adopt, innovate, and invest in technology—particularly in gen AI—in ways that have spurred more changes to people operations than we... Many organizations are also taking significant steps to address shifts in employees’ expectations about work, pursue greater productivity, and foster greater resilience. In many cases, they are looking beyond previously established people management practices and people function (or HR) operating models and taking a step into the future of people management. What does that future look like?

In our view, it is centered on technology’s potential to reshape organizations. In the not-so-distant future, emerging technologies may allow companies to deliver personalized employee experiences, redefine work as a symbiotic relationship between human and machine, and continuously measure organizational health and performance to solve problems... Furthermore, automation through these new technologies should free up managers’ time so they can provide more of a “human touch” when interacting with employees—that is, more individualized attention as well as guidance and coaching. To help codify this vision of the future of people management, we gathered perspectives from more than 100 experts in HR technology, executives from blue-chip companies, academics, and other thought leaders in the people... Our conversations with these experts and our own research reiterate the value that strong people management functions can generate: Organizations that excel in both people development and financial performance are four times as likely... As HR leaders continue to reevaluate and evolve their HR operating models to deliver new forms of value, this McKinsey article shares insights on five HR models.

While Exhibit 2 shows the details of each model, the five models are: As one example, the defining features of the Agile Model include: Exhibit 3 provides guidance on model-organization fit based on eight different innovation shifts. I am also resharing this resource by Egon Zehnder, which offers additional insights on HR models, including a 2×2 matrix for evaluating different models based on: Rather than get stuck on the different labels and nuances of each model, I use resources like these as ONE of SEVERAL inputs to identify opportunities for using an HR operating model as one... Want to stay informedabout Chief Human Resources Officer(CHRO) hires andpromotions?

Become amember of CHROs on the Go. What does the future of HR look like? As organizations strive to remain competitive in a rapidly evolving business landscape, HR is undergoing a transformation unlike anything seen before. Traditional HR functions are being redefined by automation, data analytics, and a growing focus on hyper-personalized employee experiences. The shift is not just about efficiency—it’s about creating a strategic advantage where people development and financial performance go hand in hand. Organizations that excel in both workforce development and financial results are significantly more likely to outperform their peers.

According to research, companies that prioritize their people strategy are four times more likely to achieve financial success and 1.5 times more likely to remain in the top tier year after year. This signals a critical need for businesses to rethink their HR operating models. So, what does the HR function of the future look like? Let’s explore the key changes shaping HR and how organizations can adopt a modern, tech-driven, and employee-centric approach. Historically, HR was perceived as an administrative function—focused on payroll, compliance, and hiring. However, the role of HR is now being reinvented to align with business objectives, employee engagement, and workforce analytics.

The future HR model is designed to be: To successfully transition into the future, HR must establish a new operating system centered around three key roles:

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