Rethinking HR – Building a New Operating Model for the 2020s

For more than two decades, HR has been guided by variations of the Ulrich model – a structure that helped professionalise the function, but one that now struggles to keep pace with today’s complexity. I recently interviewed Perry Timms, Founder and Chief Energy Officer of People & Transformational HR Ltd, on my HR Means Business podcast, to talk about the concepts outlined in his new book The HR Operating Model.

Perry believes that the HR profession needs a blueprint built for the world we actually work in – not the one we used to. “It still feels like HR is an order-taking, administrative function. We’ve been knocking on the strategic door for a long time. It’s time to redesign the house.

From Function to System: A Holistic Redesign

Perry’s new model doesn’t simply tweak existing structures – it reimagines HR as an interconnected system, built around four intersecting circles Systems, Products, Science, and Technology – reflecting how people, processes, and performance actually interact inside modern organisations.

At its heart sits People Experience – a concept that connects every stage of the employee journey, from candidate to alumni. It’s not about engagement as a “soft” idea, but about creating value at every touchpoint. As Perry puts it, “People experience isn’t a supercharged version of wellness. It’s high performance, but sustainable — evidence-led, inclusive, and grounded in business outcomes.

From Data to Decision

One of the model’s key intersections is People and Performance Analytics. HR leaders have talked about data for years, but Perry’s approach brings it into the operating system itself. The idea isn’t to build separate analytics teams, but to embed insight everywhere – translating data into business intelligence that guides decisions in real time.

This shift moves HR beyond reporting on “what happened” toward understanding “why it happened” — and ultimately shaping “what happens next.

Redefining High Performance

In the previous model, high performance would often meant results at any cost. Perry argues for a more complete definition – one that includes social, human, and intellectual indicators.

High performance shouldn’t be one-dimensional,” he says. “It’s about thriving teams who deliver results and sustain themselves through learning, balance, and purpose.

The outcome is regenerative performance – where success fuels energy and capability, rather than exhaustion and turnover.

Technology as a Collective Responsibility

Technology, in Perry’s view, must move from being an HR project to being an HR practice. The most effective organisations he studied didn’t silo innovation; they built open, participatory infrastructures that tested tools in real use cases, gathered feedback, and aligned technology with the data they actually needed.

AI plays a role here too – not as a disruptor, but as a smoother of operations. When automation handles routine, rule-based work, HR professionals can focus on relationships, creativity, and context – the human edge that technology can’t replicate.

The Meaning Maker: HR’s New Purpose

One of the model’s most powerful ideas is the Meaning Maker role — a function dedicated to ensuring organisational purpose remains alive and visible.

“The purpose of an organisation ought to make people think, ‘I’m glad I’m here because I believe in this’” Perry explains. That sense of meaning is the new psychological contract.

In a world of automation and flux, meaning-making becomes HR’s bridge between strategy and soul – helping employees understand why their work matters.

Getting Started: From Products to Purpose

For HR teams wondering where to begin, Perry offers some clear guidance – start small, but start differently

Think of your HR services as products,” he says. “Ask: if people had to buy this service for the value it provides, would they?” Then build it to that standard.

This product mindset signals seriousness, relevance, and innovation – and begins to shift how the rest of the business perceives HR.

HR at the Front, Not the Back

Perry’s challenge to boards is equally direct: Let HR Lead. “You can’t ask HR to deliver what you want when you don’t know what you need,” he says. “In uncertain times, HR should be out front – interpreting signals, shaping workforce strategy, and helping organisations prepare for what’s next.

The Future: Adaptive, Human, and Purposeful

The new HR operating model isn’t just a redesign of roles and processes. It’s a cultural transformation – one that blends systems thinking, human science, and technology to build organisations that are fit for the 2020s and beyond.

And the journey doesn’t end here. “If HR can get ahead of the curve for a change,” he says, “we can help build organisations that are adaptive by design — not just efficient, but alive.

You can listen to my full conversation with Perry Timms here – https://www.hrhappyhour.net/episodes/creating-a-new-operating-model-for-hr/ – or through the image below:

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