Most leaders don’t need a PSA to tell them that human capital management is becoming way more complicated. It’s hard to keep everything “running smoothly” when you’re juggling hybrid workers AI/human teams, and an awkward combo of legacy and modern tech.
The biggest problem most businesses overlook, though, is misalignment between their staff. They still assume HCM is something that only HR teams need to worry about.
It’s no wonder so many teams end up frustrated. Deloitte has even warned us that up to 70% of HCM implementations don’t deliver the expected ROI, and a huge chunk of that traces back to ownership issues. Realistically, if your HCM team isn’t built like a cross-functional task force instead of a “tech upgrade committee,” you’re never going to get the outcomes you need.
Why HCM Projects Need Cross-Functional Ownership
It’s honestly far too easy to make everything related to employee experience “HR’s job”. Really, though, modern HCM systems connect with so much more than you’d expect. They deal with payroll, identity, compliance, workforce planning, analytics, benefits, scheduling, and even security.
That means one configuration tweak in HR can ripple through Finance’s cost centers, IT’s identity management, Legal’s privacy commitments, and even frontline operations.
We’ve already spoken a lot about how workplace and employee experience needs to be a “team sport” these days. When HR, IT, Finance, and Legal don’t show up as one unit, performance drops and innovation disappears. But cross-functional setups drive 60–70% higher effectiveness in large-scale transformations.
Honestly, the stakes are getting heavier. Hybrid work created this weird tug-of-war between digital access, security, and flexibility. Then the EU AI Act arrived, and suddenly Legal’s at the table asking pointed questions about model explainability and automated decisions. Finance is sweating over the HCM contract because payroll accuracy hits the P&L. IT wants cleaner data before they migrate anything. Everyone’s got skin in the game now.
Just look at BT Group: they unified HR, IT, Legal and Data around one SAP SuccessFactors program and wound up saving 1 million productivity hours, just with proper ownership.
When no one owns the whole puzzle, nothing fits. When everyone owns their piece, the system finally starts to make a difference.
Building Your Cross-Functional HCM Team
When an HCM project doesn’t have clear ownership, it doesn’t implode dramatically. It just unravels. It starts with tiny delays: HR is waiting on IT, IT is waiting on Finance, Finance is waiting on Legal, and Legal is waiting on “more information.”
Meanwhile, the implementation partner keeps asking questions nobody feels authorized to answer. I’ve seen projects lose six to nine months to this strange limbo where everyone’s technically involved but nobody is accountable. It’s like organizational purgatory.
Data migration is usually the first real casualty. Without a dedicated owner, it becomes an endless game of “who knows where that lives?” Duplicate records, mismatched job codes, old cost centers that someone forgot to retire in 2018, they all come crawling out of the shadows. You can’t configure anything properly when the data’s a mess, so the delays compound.
Then integrations start failing because no one mapped them end-to-end. Or managers refuse to adopt workflows because nobody trained them early enough. The moment the system doesn’t meet expectations, employees go hunting for workarounds (hello shadow AI again).
So let’s look at the teams that really do need to be involved.
HR: Process Owner, Experience Designer & Workforce Architect
Starting with probably the most obvious part of your HCM team: HR. These are the people often buried under unrealistic expectations. People assume HR will “own the system,” “manage the vendor,” “fix the data,” “rewrite the processes,” and somehow also “keep business-as-usual running.” It’s impossible. But HR does play the most foundational role: they shape the work itself.
- Redesigning every major people process, from onboarding to mobility to performance to pay cycles.
- Mapping employee journeys and removing friction (because employees notice every tiny snag).
- Defining people data standards: job architecture, competencies, fields, naming rules, lifecycle triggers.
- Interpreting EX signals like survey feedback, sentiment analysis, and ticket patterns.
- Setting the “human judgment” boundaries for AI-driven recommendations.
Patagonia proves what happens when HR actually leads the design side. After they rebuilt performance and mobility processes around real user behavior, managers finally had visibility they’d been begging for, and engagement lifted because workflows made sense again.
IT: Architecture, Integrations, Security & AI Governance
IT usually walks into an HCM project with both concerns and confidence. They know the tech side better than anyone, but they also know the system is going to touch 40 things nobody told them about yet. This is why IT isn’t a “supporting” function in an HCM team.
They’re a core owner, especially when it comes to architecture, identity, and security. They’re the ones building the integration blueprint from the ATS to Finance to UC platforms like Teams and Slack. Plus, they’re the ones doing the data cleansing nobody else wants to admit is necessary.
Then there’s the AI avenue they need to deal with. Every automated recommendation, every predictive model, and every workflow that leans on machine learning falls under IT’s guardrails. If IT doesn’t provide safe, sanctioned AI tools, employees will find their own.
Look at the City of Los Angeles. Their Workday + AI retention work only succeeded because HR and IT co-owned data governance from day one. Without that partnership, the models would’ve been unreliable noise.
Finance & Payroll: Accuracy, Cost Control, ROI
If HR carries the emotional weight in an HCM team, Finance deals with the operational risk. Then payroll carries everyone’s stress. It’s so easy to underestimate how many downstream calculations depend on the tiniest configuration choice.
Finance owns the money flows: comp, budgeting, GL integration, tax rules, so when they’re not involved early, the whole system feels like a house built on quicksand. Same with Payroll. They’re the ones who know the quirks: union rules, region-specific allowances, and statutory reporting weirdness that only makes sense to people who live inside payroll systems. Ignore that experience, and you’ll pay for it, literally, on go-live day.
Payroll accuracy isn’t a “nice to have.” It’s the bedrock of trust. Miss one cycle, and employees question everything else the system does. Workers will tolerate a lot, but not mistakes that hit their paychecks.
Finance also holds the ROI lens. They’re the ones modeling cost-per-hire reductions, turnover savings, process efficiency gains, and the ripple effects of better EX. When Finance is fully engaged, HCM optimization becomes measurable.
Legal & Compliance: Privacy, Contracts, Regulatory Alignment
We’ve said it already, but it’s worth repeating because people forget just how much lives inside an HCM system. You’re talking about pay details, performance notes, medical leave info, right-to-work checks, all the way down to how someone behaves at work if you’re using any kind of AI analytics. It’s basically the most sensitive drawer in the whole company.
Legal’s role is to keep the company out of the headlines. Between GDPR fines, pay transparency rules, biometric data restrictions, and now the EU AI Act tightening expectations around automated decisions, Legal’s involvement is more important than ever.
They’re the ones who review the vendor contract and spot the clause everyone else skipped.
They ask, “Where is this data stored?” and “Who has access?” and “Can this model explain itself if an employee challenges a decision?” Plus, they’re the people who push for a formal risk register instead of the “we’ll deal with it later” approach that destroys so many projects.
When Legal isn’t at the table early, the HCM setup becomes a legal liability waiting to surface. When they are there, the HCM team builds something defensible, trustworthy, and future-proof.
Internal Communications & Change: Clarity, Adoption, Manager Enablement
This is one of the groups in the modern “HCM team” that often gets the least attention. People act like internal comms is just sending a few emails and recording a couple of how-to videos. Meanwhile, the entire success of the rollout depends on whether employees understand what’s happening, trust what’s happening, and actually use the system the way it was designed. None of that happens by accident.
Adoption isn’t a training problem. It’s often a clarity, timing, and communication problem. So Comms needs to be the connective tissue of the HCM team. They build the narrative that keeps everyone grounded when workflows get messy.
They translate legal-sounding updates into something normal people can digest. Plus, they prepare managers, who are absolutely the make-or-break audience, with talking points, Q&As, and reminders delivered where they actually work (like within Teams or Slack).
Then there’s visibility. People want to know the system’s actually getting better. They want to see items move from planned to in progress to done. If that little window into the work disappears, folks start assuming the team’s asleep at the wheel, even when everyone’s sweating in the background trying to make it all run.
PMO: Governance, Risk, Timeline & Cross-Functional Coordination
The PMO is probably one of the most important leaders in any HCM team. They’re the ones holding the whiteboard markers, the timelines, the risk logs, and the emotional support responsibilities others ignore. A good PMO creates the conditions for every other function to stay sane.
PMOs can save a doomed project simply by forcing decisions to happen. Not in a pushy way, more like, “Alright, we’ve circled this for three weeks. Who’s signing off today?” That kind of discipline is what gets an implementation live. Because without someone coordinating HR’s redesign work, IT’s integration plan, Finance’s validations, Legal’s contract cycles, and the vendor’s ever-changing requirements, the whole thing dissolves.
The PMO owns the master timeline, and that timeline is a living thing. It changes every time someone discovers a rogue legacy workflow or an ancient cost center. They also run the governance rhythm, steering groups, design decisions, risk reviews, and testing cycles. And that last one is critical: testing. HR testing, IT testing, payroll testing, UAT: the PMO is the referee making sure each part hits the field at the right time.
Also, with AI sitting inside many workflows today, the PMO is also orchestrating approvals, guardrails, and go/no-go calls.
The HCM Team Model
A healthy HCM project needs structure; it’s still possible to have “too many” voices in the mix. Splitting the team into three parts makes it manageable. One team builds, one team sanity-checks, and one team steps in when big decisions need support. They all sit at different levels, and that spacing keeps things moving instead of piling up.
Core Team (The Daily Deciders)
The Core Team is made up of the people who spend their days wrestling with workflows, integrations, data fields, and vendor calls. A strong group usually includes:
- HR Lead
- IT Lead
- Finance/Payroll Lead
- Legal Partner
- PMO Lead
- Data Lead
- Testing Coordinator
- Vendor Partner
What makes this team effective is the mix. HR spots process gaps. IT spots integration risks. Finance catches payroll landmines. Legal catches privacy issues. And the PMO forces decisions instead of letting things drift.
Extended HCM Team (Specialists & SMEs)
The Extended Team knows the messy, real-world details the Core Team can’t always see. It usually includes:
- HRBPs
- Regional HR/payroll
- Facilities / workplace
- Manager champions
- Internal Comms & L&D
- D&I or ethics partners
They’re the guardrails that prevent a theoretically “perfect” workflow from blowing up. They’ll say things like, “Managers won’t use that,” or “This breaks our union rules,” or “Frontline staff won’t touch this unless it works on mobile.”
They’re also critical during testing. Extended Team members spot the stuff nobody else catches, like old tax rules, mismatched job codes, weird scheduling edge cases. Their feedback often saves the project from painful post–go-live surprises.
Executive Steering Group (The Blocker Removers)
The Steering Group isn’t in the weeds, but they control the altitude. A typical group includes the CHRO, CFO, CIO/CTO, Chief Legal Officer, and sometimes the COO or CEO for large transformations.
Their job is simple:
- Approve budgets
- Reset scope when needed
- Solve cross-functional deadlocks
- Own AI and compliance guardrails
- Review ROI, adoption, and risk
When the Steering Group is engaged, the HCM team moves with confidence. When the Steering Group shows up, the project stabilizes. When they don’t, even the best tech can’t save it.
Quick Governance Tips for your HCM Team
Governance is what decides whether your HCM project holds together or collapses. Good governance keeps the HCM team moving, prevents rework, and stops one bad workflow from nuking payroll. You don’t need a giant framework. You just need five things nailed down:
- Decision Rights & RACI: Nothing slows a project like “Who’s signing off on this?” A clean RACI solves that. Spell out exactly who owns everything. Choose one accountable owner per decision, and stick to your plan.
- Documentation Discipline: Documentation sounds tedious until something goes wrong. Then everyone wishes they had more of it. In an HCM project, one tweak can hit payroll, provisioning, analytics, or compliance, so you need records.
- Risk management: HR, IT, Finance, and Legal need one shared risk log. AI adds even more weight: you need rules for where AI helps, where humans decide, and how you protect employee data. Good risk management keeps the company safe and keeps employees trusting the platform.
- Rollout and change management: Rollout is all about honesty. Are you really ready for a big bang? Or is a phased rollout safer given your data, payroll rules, and integration maturity? Most organizations overestimate their readiness. Activation matters as much as configuration: managers need early training, talking points, and in-flow reminders.
- Post implementation governance: Strong teams run 30/60/90-day reviews, track adoption and EX friction, clean data regularly, and keep a steady improvement backlog. Steering groups stay involved, not disappear after launch.
The New Model for Your HCM Team
Modern HCM work can’t live inside HR alone. If you want these upgrades to actually land, the teams around them have to be aligned for real.
Before anyone installs a single thing, sit down and sort out who owns what and how each group will stay connected as the work moves. When people plug in properly, everything starts running smoother. Payroll errors drop, data gets cleaner, AI stays inside the guardrails, adoption goes up, managers stop fighting the tools, and employees get workflows that make sense. Good HCM alignment creates good results. It really is that simple.
If you’re serious about HCM optimization, about modernizing how your organization works instead of just replacing a platform, then you need a team built for it.
Want to make sure you’re ready to create a system that actually works? Start with our complete guide to human capital management.
