Analyzing HR Service Delivery: A Case Study of Deloitte Strategies

This report examines the delivery of HR services within Deloitte, a major accounting firm. It analyzes HR requirements through a 10-step approach, aligning HR products and services with business strategy. A SWOT analysis identifies Deloitte's strengths, weaknesses, opportunities, and threats, while a PESTEL analysis explores the impact of political, economic, social, and technological factors. The report also addresses diversity requirements, emphasizing the shift towards inclusion. Finally, it outlines strategies for delivering HR services, highlighting the importance of a true HR service delivery model, defined roles for HR teams and line managers, and the use of external contractors to ensure a smooth flow of HR resources. The analysis provides valuable insights into how Deloitte leverages its HR function to achieve strategic goals and deliver business value.

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Executive Summary
This report outlines some key issues relating to the delivery of HR services. This study is
based on the company Deloitte, which is one of the largest accounting firms in the US that
delivering accounting solutions to their clients. The objective of this report is to get the clear
picture of HR delivering strategies and outcomes.
An effective action plan is also suggested for the clear delivery of HR services framed across
business and HR strategies. In addition, the role is also documented with the help of HR
team, line managers and external contractors.

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Table of Contents
Introduction................................................................................................................................3
Analysing HR Requirements......................................................................................................3
SWOT and PESTEL analysis of Deloitte..................................................................................4
Requirements for Diversity........................................................................................................6
Strategies for delivering HR services.........................................................................................7
References..................................................................................................................................8

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Introduction
Deloitte is an international service network that was founded in 1845 by William Welch
Deloitte. It is one of the largest accounting firms in the United States (Murray, 2014).
According to 2017 annual report, the number of employees working in Deloitte globally is
around 250,000. The major services given by the company are auditing, taxation,
management consulting, finance, and risk advisory solutions. In 2017, Deloitte earned $38.8
billion USD in terms of revenues.
Deloitte company culture is also ranked as one of the 100 Best Companies by the Fortune
Magazine in 2016. During the business cycle of the company, many mergers and acquisitions
also take place in the Deloitte, which helps in its growth, diversification, and development.
Analysing HR Requirements
A high performance organization always considers their employees as the most important
assests for the achievement of their strategic goals. It will always be the challenge to define
the exact involvement of the HR function in order to attain strategic objective of the business
firm (Zott and Amit, 2010).
The company business strategy and operational plans is to determine its HR requirements
based on the HR strategy framework. Hence, Deloitte has distinctively positioned itself in the
strategic role of the organization that aids to ensure fulfilment of their business operations.
The company follows 10-step approach that helps an organization in fulfilling their HR
requirements.
Express human capital value
 Understand the business strategy
 Defining HR strategy
Align HR products and services
 Target HR customers
 Prioritize HR investments
 Plan HR services

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Bring Value
 Ensurethe true HR service delivery model
 The building ofright capabilities related to HR
 Advance HR operational excellence constantly
 Form HR brand
 Evaluate the influence of HR products and services
The company business strategy and operational plan also includes the current market forces
and the trends that can have a significant influenced on the HR strategy. An effective
business strategy and operational plan provides blueprint to the company for delivering value
with the help of the organization workforce (Huang, 2009). It also includes the necessary
guidelines for the organization to identify broad range of issue.
Deloitte used their HR resources in the most practical ways so that they can deliver the
intended business value. The company also has a service named as “Human Capital Cost
Management” that helps the organization in identifying and managing the sources of cost and
value creation. This tool also enables the client to track the actual or expected costs and
provides benefit with using function of HR, and implements HR services and solutions
(Schwarz and Murphy, 2008).
SWOT and PESTEL analysis of Deloitte
SWOT analysis –
 Strength–The Company has strength of a large number of skilled and efficient
employees serving in more than 180 countries. The company also follows IT enabled
approach, which helps them in getting used of the advanced and the latest
technologies. They are also among the “Big Four” professional services firm
(Kornberger, Carter and Ross-Smith, 2010). The company as a brand has contains
exclusive sponsorship deals with Olympics and other global events.
 Weakness –In the professional service industry, there is intense competition, which
affects the business operations of the company and also limits the market share
growth for Deloitte. In the past few years, many legal and work related disputes have
diminished the brand identity.

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 Opportunities–In the global financial services, getting of various financial and audit
expertise can help Deloitte in delivery of efficient services. With this approach, they
can also acquire mid-market businesses. In addition, Deloitte can be stronger if it
acquires more numbers of smaller firms and gains the market share.
 Threats–The Company is facing strong competition from major industry players like
PwC and KPMG, which reducing the market share of Deloitte (Basioudis and Francis,
2007). In addition, many organizations are setting up their own knowledge centres,
which will have a direct impact on the consulting firms.
PEST analysis –
This analysis was made to find out the impact of external factors on the macro environment
that influence the business activities of the business.
 Political Factors – In Europe, Deloitte has a high market share but the Brexit change
the scenario and also have a colossal impact on the market of Deloitte. Some of the
impacts can be shown in the change in currency value like pound lose 16 percent of
its value against US Dollar. However, later on, Deloitte build an analysis tool which
finds the potential future costs based on the different scenarios. In addition, Trump
administration policies also affects Deloitte in a positive way as the corporate taxes
were reduced and this creates an opportunity for the Deloitte to grow more in
America.
 Economic Factors – These includes the global economic issues that affect the
Deloitte business and policies. They focus on the macroeconomic landscape, which
includes inflationary risks, and gaining traction in the economy. This helps them to
develop a strategic solution before they have any hard-core impact over the business
operations of the company.
 Social Factors – The Company Deloitte believes that an organization plays a
significant role in shaping the society and should always be committed to drive
positive social changes. This can be made more efficient if government, businesses
and civil society work together in an innovative ways. Deloitte is also trying to solve
various biggest societal challenges with driving the corporate growth through social
impact. For example, with support of the Rockefeller Foundation, Deloitte is
leveraging networks in service of their social impact goals (Muratovski, 2015).

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 Technological Factors – Deloitte also need to consider various dynamic
technological changes including social media and Block chain, so that to meet the
customer expectations. For example, Block chain technology can improve several
business processes in Deloitte by providing cross-border payments and using crypto
currency as the future methods of payment.
Requirements for Diversity
Deloitte has always a qualitative plan, which helps the client in meet their diversity and
leadership goals. They know how to generate sustainable transformation such as, integrate
diversity into the business infrastructure. However, in the changing global environment, the
company is modifying their business strategy from diversity to inclusion so that to deliver
true values (Muzio and Tomlinson, 2012).
According to their research, all surveyed business firm promotes diversity but they fail to
realize the business benefits of a diverse workforce. This diverse workforce includes
engaging all types of people to generate new ideas of thinking and creativity in the
organization and new form of leadership. It also includes the role of women in leadership
around the world.
The diversity requirements in Deloitte come from their management perspectives, which state
the company is improving the women access to leadership opportunities. It can also be seen
by the published list in Fortune Magazines that states Deloitte is one of the companies which
provides best workplaces for women list.
The diversity requirement of the Industry 4.0 is also analysed by Deloitte, which brings
physical and digital worlds together. Their organization policies and business goals already
moved towards their commitment, which lead people to prepare for the work of the Fourth
Industrial Revolution. This will help them in achieving their goal, which also includes benefit
for a client, people and communities.

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Strategies for delivering HR services
The management needs to use appropriate delivery approach so that to convert HR strategies
and initiatives into tangible business values.
Source: (Boroughs and Palmer, 2016)
For this purpose, the company need to use true HR service delivery model and also needs to
consider people-related corporate challenges to plan the accurate HR service delivery model.
To assess the HR delivery model effectively in accordance with the company needs and
objectives, the company have to define specific roles, delivery options and governance
mechanisms (Goo et al, 2009). In addition, the company need to recognise key delivery
enables such as systems, procedures and infrastructure. The company also needs to assess the
business current and future capability by executing the distinct corporate strategy.
In the above framework, the starting point of the model includes organization and HR plans
with the identification of the critical requirements associate to each segment of customer
including employees, manager or administrators.
In last, the necessary technology also needs to redesign for the HR service delivery model
(Lin, Shih, and Sher, 2007). The role of HR team must require in all staff transactional HR
activities across the company like preparing and processing HR documentation and ensuring
the delivery of effective HR services within the organization. In respond to line managers,
they also play animportant role in the managing of the people and HR team so that the

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business objectives can be effectively achieved. The external contractor also helps in the
delivery of HR services by creating a smooth flow of HR resources within the organization
and thus maintains a balance between demand and supply.

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References
Basioudis, I.G. and Francis, J.R. (2007) Big 4 audit fee premiums for national and office-
level industry leadership in the United Kingdom. Auditing: A Journal of Practice &
Theory, 26(2), pp.143-166.
Boroughs, A. and Palmer, L.(2016)HR Transformation Technology: Delivering Systems to
Support the New HR Model. New York: CRC Press.
Goo, J., Kishore, R., Rao, H.R. and Nam, K.(2009)The role of service level agreements in
relational management of information technology outsourcing: an empirical study. MIS
quarterly, pp.119-145.
Huang, H.C.(2009)Designing a knowledge-based system for strategic planning: A balanced
scorecard perspective. Expert Systems with Applications, 36(1), pp.209-218.
Kornberger, M., Carter, C. and Ross-Smith, A.(2010)Changing gender domination in a Big
Four accounting firm: Flexibility, performance and client service in practice. Accounting,
Organizations and Society, 35(8), pp.775-791.
Lin, C.H., Shih, H.Y. and Sher, P.J.(2007)Integrating technology readiness into technology
acceptance: The TRAM model. Psychology & Marketing, 24(7), pp.641-657.
Miethe, J. and Pothier, D.(2016)Brexit: What's at Stake for the Financial Sector?. DIW
Economic Bulletin, 6(31), pp.364-372.
Muratovski, G.(2015)Paradigm shift: Report on the new role of design in business and
society. She Ji: The Journal of Design, Economics, and Innovation, 1(2), pp.118-139.
Murray, S.(2014)Inside View: Deloitte Digital. Available from
https://www.businessbecause.com/hear-from-recruiters/2963/inside-view-deloitte-digital
Accessed on 18 September 2018.

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Muzio, D. and Tomlinson, J.(2012)Researching gender, inclusion and diversity in
contemporary professions and professional organizations. Gender, Work &
Organization, 19(5), pp.455-466.
Schwarz, J.L. and Murphy, T.E.(2008)Human capital metrics: An approach to teaching using
data and metrics to design and evaluate management practices. Journal of management
education, 32(2), pp.164-182.
Zott, C. and Amit, R.(2010)Business model design: an activity system perspective. Long
range planning, 43(2-3), pp.216-226.