Sunday, November 16, 2008

HR as a Business Partner

In today’s world a strategic HR role demands proactive, competent leadership. HR professionals should take an active role in determining direction, influencing the team and aligning it with the organizational goals and strategy. However, there are still a few organizations which regard HR as a business partner. The problem comes from both sides – the organization and the HR professionals themselves.

The expectations from the HR have shifted tremendously. However, in lots of organizations the “place” of HR is still low on the corporate ladder. On one hand, the leadership holds HR responsible for delivering true business value, on the other – top HR people still are not included in Sr. Management team, getting the updates on the strategy from a “second hand”. HR professionals should not be expected to only “execute” what has been decided, but should be regarded as partners in crafting the strategy itself. It’s the only way to enable them make a strategic contribution to the success of the organization. Instead HR is given a tactical role – Sr. management delivers the message ‘why?” and expects to get a “how?” plan.

Another problem lies in HR professionals themselves. I tend to agree with Jay Jamrog about educational incapacity. Human Resources people are stuck in a traditional mindset vs. strategic approach. I see HR function as “glue” which brings different layers together: the goals of the business, team and an individual. Instead, quite a few professionals tend to take sides: executing the goals set by the C suit of the organization and treating people as expenses or taking a role of employee advocate. It is absolutely critical for the HR professionals to focus on acquiring and developing leadership competencies: being proactive vs. reactive, the ability of mastering “business language” quantitative analysis and business case instead of high “rhetoric”, adapting to constant change vs. focusing on securing stability, etc.

The role of HR in business has evolved from administrative function to strategic partner. However, the transition has been effectively implemented only in a few organizations. To be successful in strategic partnership HR professionals should “have a seat at the executive table” and focus on constant development of their leadership skills and competencies, including business expertise.

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