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Taking a Place at the Table

Taking a Place at the Table: The Future of HR

HR's time has come! The competitive forces that organizations and managers face today, and will on a continuing basis, require organizational excellence -- and HR is finally poised to help. Dave Ulrich, the highly regarded HR expert, says "HR has never been more necessary." It's not just any kind of HR work that is needed but rather strategic partnering with internal clients.

Forces such as globalization, profitability through growth, and technology are the entrée points into strategic work for HR. Each of these forces and many others like them have a significant people component to them. This is a perfect time for HR professionals to elbow their way into these issues and show how they can contribute.

No guarantees that HR can change

The role of HR has many facets: Administrator, champion for employees, agent of continuous transformation, and executor of strategy. Traditionally HR has spent most of its time on administration and transactional activities. Work in this area has often left HR on the sidelines of key decision making. Management didn't believe the function could operate at an executive level.

It now appears that HR is finally and significantly "worming" its way into the executive suite. Recently Workforce Magazine reported that 70% of its survey respondents saw a significant-to-dramatic positive change in HR during the past three years. Sixty percent believe HR is better respected. Ninety-eight percent of the respondents feel they’re gaining ground on becoming more strategic.

But hold on a minute! Not everything is on the positive side of the ledger. Almost 30% in the survey said current workloads are unrealistic. HR folks still get mired in day-to-day minutia and are unable to move into the higher-level, more sophisticated work. But the lack of strategic HR work goes deeper than just heavy workloads. Not more than 15 to 20% of HR professionals possess the necessary consulting skills to do strategic work. Getting a place at the table will require a retooling of HR pros at all levels. It's not just the top HR executive who must possess a sophisticated tool set. The entire staff must have these skills.

It's good news that more and more HR directors are being spotted working hand in hand with top corporate leaders to tackle the biggest challenges in their organizations. Phyllis Mayo, director of HR and diversity for the The Seattle Times, hears talk about becoming strategic business partners less frequently and about being one much more. This is a great sign of the hefty progress that HR has made.

Strategic HR work

What does being strategic look like? Based on the opinions of over 150 top-level HR executives, we've identified the profile of an effective business partner.

Five dimensions

  • Strategically align people to support the organization in attaining its goals. Under the leadership of HR, company management develops a strategic plan for how it will use its people. Make every manager an HR professional.
  • Have expertise that the organization needs to meet the challenges in the market, such as organizational change and external workforce dynamics. Just as in law and finance the HR staff must have impeccable credentials, well-seasoned judgment, and up-to-date knowledge of the field. Train HR staff to be business partners.
  • Build a collaborative relationship with management to improve the productivity of the organization and work towards a common outcome. This relationship must be focused on the client's needs, based on trust, and clarity. Don't be afraid to say no, when appropriate. In other words, define HR's role clearly.
  • Provide customer support and business knowledge to help the organization successfully solve problems. Every policy and every program out of HR should be perfectly aligned with corporate direction. You do this by digging for what the core issues are -- and not what programs people want.
  • Develop an HR structure that is willing and accessible to support organizational goals. Structure HR so that it's easy to get to the services. Advertise and market the function throughout the company. Tell employees/managers how to use HR. Make sure that structures, such as telephone systems, don't get in the way and stifle accessibility.

No time to waste

Human Resources professionals who are able to make the transition from "gatekeepers" to "strategic players" will have the most significant impact in their organizations. But earning a seat at the "head table" is challenging. HR people will have to have a "can-do" attitude, unlike Groucho Marx when he said: "If at first you don't succeed, try, try again. Then give up. No use being a damn fool about it."

In the case of HR, it will mean refocusing and realigning actions with the strategic business needs of the organization. HR professionals who are able to make these changes will become key players in the strategic management and thinking of their companies.

Must reading

  • Dave Ulrich, "A New Mandate for Human Resources," in Harvard Business Review (January-February 1998), p. 128f. (reprint 98111).
  • Human Resource Champions: The Next Agenda for Adding Value and Delivering Results by Dave Ulrich (Boston, MA: Harvard Business School Press, 1997).
  • Built to Last by James C. Collins and Jerry I. Porras (New York: Harper Business, 1994/1997).
  • See position pieces on leadership and organizations at http://www.themcg.com/takenote.htm and the parameters of a People Plan at http://www.themcg.com/people-plan.htm.
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