We have been seeing various HR conferences and seminars around the concept of – HR as a Strategic Partner for a business, and the need for HR to evolve as a strategic contributor etc. These conferences, seminars etc. see lots of participation, discussions; round tables where in leaders speak and share their perspectives related to “how” and “what” is essential for HR leaders to be strategic partners for their business. With all the learning’s, when most of the participants, especially those in the HR Heads role for their business, get back to their offices, they realize that their hands are tied and their option of being a strategic partner to their business as HR professionals is extremely limited.
Is HR an essential component of the business strategy?
The HR aspect or the people & talent aspect is of course a strategic business consideration for all businesses big or small. HR aspect, here implies – the relevance of people and the value that the people can bring to a business in form of performance, productivity & growth.
If, that’s true, why don’t businesses allow the HR function to act as strategic business partners?
Why have, I as an HR professional not been able to support my business as a strategic partner?
Even though we regard that the HR aspects are an essential strategic business consideration, HR as a “job function” may or may not act as a strategic business partner to a business. For the “HR Function” & a “HR Leader” to be a strategic business partner for a business the following conditions must be met.
Condition 1: The Business Need & Expectations – There has to be a business need!
Condition 2: The HR Leader & the HR Team – The HR guy should to be capable!
1. The Business Need & Expectations
The “need” & “purpose” for the “HR function” as ascertained by the management & business leadership determines the expectations. If the business leadership believes that the business need for the HR function is administrative support, so it is – as long as it serves the business purpose.
The contribution from the HR function is aligned to what the business leadership believes and decides is relevant. The business leadership, the board and the promoters are the people who have a pulse of a business and they are the best people to decide if the business needs a strategic contribution from the HR team. Even if there is no formal HR set up, as in case of growth stage businesses & start up’s, the business leadership is already factoring the essential “HR aspect” in their strategic decisions.
One fine day, when there is some realization and the business leadership, appreciate the need for HR function as a strategic partner, he hunt for a capable HR leader begins. In such cases, the business leadership prefers to look for not just great HR guys, but HR professionals who are as much a “business” professional. The search is for people who are able to understand the ins and outs of the business, the drivers, the inhibitors, and the success factors of a business.
2. The HR Leader & the HR Team
The business leadership & management of a business will only trust an HR function or a HR leader to act as a strategic partner – if the concerned person & his/her team is able to talk the business lingo. The functional teams & the business leadership need to have a reason to respect the expertise and understanding of the HR guys. The business leadership needs to have a justification to appreciate the perspectives from the HR Leader and the HR team.
If all that the HR guys do is to talk about fancy concepts, models and processes – the business leadership may not actually treat them as a strategically important piece of the business. The HR guy is expected to talk numbers, performance metrics, and productivity and quantify the HR value to the business.
It is expected that the HR Leader is able to talk to the business leadership in their language about business vision, products, customers, growth, profitability, market share etc. Once the trust and rapport with business leadership is established & a buy in is generated, the HR leader can start working on relevant HR strategies and interventions that can add value to the business.
It’s a two way process
Just the way, it is important for business leadership to appreciate the need for a strategic contribution from the HR function/ team / leader, it is important that an HR professional in a leadership role is able to influence business leadership to appreciate and understand the relevance of HR function as a strategic contributor to the business. The HR leader has to be strong, and should have capability to drive, influence and lead based on his / her knowledge, expertise and abilities.
When you see companies that respect their HR function and recognize their contribution as an essential ingredient to the business strategy, it just implies that there is a business need for the same, and there is a capable HR leader who has been able to convince his business leadership of the value that the HR function can add as a strategic partner.
If you as an HR Leader are unable to add value, wait for the right opportunity and upgrade yourself meanwhile …
If you are in a business, where in the business leadership does not regard the need for HR function to support the business as a strategic partner, the talk of HR Function as a strategic partner may not be relevant. Similarly, if you as a professional cannot convince the business leadership of the need to respect the value of HR function as a strategically important piece in the organization structure, again the talk of HR Function as a strategic partner is too pre mature. Wait for the right time, the right organization and upgrade your own learning’s about business – not just HR.
Write to us, with your experiences if you can relate to the thoughts or even if you differ in part or completely with our thoughts presented in this article.
Praveen is the Founder & Principal Consultant of KHEdge, a boutique HR & Business Process Advisory firm. Over last 15 years he has advised & worked with promoters, founders, business leaders, HR leaders in areas of - Business Strategy, HR Strategy, Organisation Design etc.
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