HR Operating Model Complexity

HR operating model complexity refers to unclear, overlapping or excessive division of accountability across HR centres of expertise, business partnering, shared services and centre-led teams, such that the intended structure creates confusion rather than clarity. This differs from having a multi-tier operating model in principle, which can be effective when roles are clearly defined and understood.

Unclear operating model boundaries slow decision-making and create duplicated or dropped work between HR teams, which is often blamed on individuals rather than diagnosed as a structural issue. It also makes it harder for the business to know who to approach for a given HR need, undermining HR's credibility as a partner. Complexity tends to increase over time through incremental restructuring unless the operating model is periodically and deliberately reviewed.

• Business leaders are unsure which HR team to approach for a given need
• The same piece of work is duplicated by two HR teams, or dropped because each assumed the other owned it
• Decision rights between centres of expertise and business partners are contested or unclear
• HR shared services handles escalations beyond its intended scope because business partners are unclear on boundaries
• Organisational charts exist but do not reflect how work actually happens

• No current, accurate documentation of decision rights across HR teams
• Operating model design inherited from a previous organisational size or structure
• Incremental restructuring layered on top of the model without a full review
• Centres of expertise, business partners and shared services measured on inconsistent or conflicting objectives
• Limited change management when operating model changes are introduced

• Operating model designed for a different organisational scale or complexity than currently exists
• Repeated incremental restructuring without periodic full operating model review
• Absence of a clear, published RACI or decision rights framework across HR teams
• Growth through acquisition bringing in additional HR structures without integration
• Leadership turnover disrupting continuity of operating model intent and communication

• Slower HR decision-making and service delivery to the business
• Duplicated effort and cost across HR teams performing overlapping work
• Reduced business confidence in HR's ability to deliver consistently
• Talent attrition within HR due to unclear roles and career pathways
• Difficulty scaling HR services consistently as the organisation grows

• A clearly documented and communicated HR operating model with defined decision rights
• Reduced duplication and dropped work between HR teams
• Faster, clearer routing of business needs to the right HR team
• Consistent objectives and measures across centres of expertise, business partners and shared services
• An operating model that is periodically reviewed as the organisation changes

• Document current decision rights and accountabilities across all HR teams
• Redesign the operating model against current organisational scale and complexity, not historical structure
• Publish a clear, simple guide for the business on which HR team to approach and for what
• Align objectives and measures across centres of expertise, business partners and shared services
• Establish a periodic review cycle for the HR operating model tied to major organisational changes

Technology is considered last, after the problem and target outcome are agreed. These are capability areas to evaluate, not product recommendations.

• HR service catalogue and routing tools
• Case management systems that make cross-team handoffs visible
• Organisational design and workforce modelling tools
• Shared HR performance dashboards spanning all HR teams
• Governance and decision rights documentation platforms

1. 01Can a typical business leader correctly identify which HR team to approach for a given need?
2. 02How often is the same piece of HR work duplicated or dropped between teams?
3. 03Is there a current, documented decision rights framework across HR centres of expertise, business partners and shared services?
4. 04When was the HR operating model last reviewed against current organisational scale?
5. 05Are HR teams measured on consistent or conflicting objectives?

Illustrative examples — not claims about any named organisation

HR Shastra validates operating model complexity by tracing real requests through the organisation rather than reviewing the organisational chart alone, since charts frequently describe an intended structure that does not match how work actually flows. We connect the complexity to Root Causes such as incremental restructuring without full review, then define Target Outcomes around clarity of decision rights and reduced duplication before proposing any structural or technology change. Structural redesign is treated as the primary Transformation Act, with technology such as service catalogues supporting the new model rather than substituting for the redesign itself.

Is a multi-tier HR operating model inherently a problem?

No. Centres of expertise, business partnering and shared services can work well together; complexity becomes a problem specifically when decision rights are unclear or overlapping.

How often should an HR operating model be reviewed?

Effective practice ties review to major organisational events such as acquisitions or significant restructuring, rather than a fixed calendar alone.

Can technology alone fix operating model complexity?

No. Service catalogue or case management tools can support a clear model but cannot substitute for defining decision rights and accountabilities.

• Public Governance Reviews

  OECD

  Reference on organisational accountability and decision rights design.

• Public Sector Organisation and Management

  World Bank

  Context on operating model design in complex organisations.