HR Still Isn’t Strategic

For two decades we have been hearing that HR must become a strategic partner to the business. And the fact that we’re still hearing it suggests that in many organizations it hasn’t happened.

The need to align HR with the business has become more urgent than ever. Financial markets exert relentless pressure for growth, especially in emerging markets. Customers demand more and better service at lower cost. And cost-efficiency, resource conservation and regulatory compliance have become issues for almost every organization. Turnover among top talent is expected to increase in 2012; globalization is requiring stronger regional HR capabilities; and demographic shifts across the world are dramatically affecting availability of qualified people.

Yet, all too often, business leaders still wonder aloud why their organizations even have HR departments. For their part, many HR leaders are willing to partner with the business, but given the unique situation of each individual company, they have little in the way of concrete guidance about how to fulfill that role.

Let me suggest a way to start. Of every action you take as an HR leader, ask this simple question: does it cause friction in the business or does it create flow? Friction is anything that makes it more difficult for people in critical roles to win with the customer. Flow, on the other hand, is doing everything possible to remove barriers and promote better performance. The question applies to virtually any company in any business and it will take you farther down the road faster than the hazy, abstract injunction to become a strategic partner. Even in what appear to be routine HR responsibilities, you can inject the business perspective simply by asking whether what you are doing is going to enhance the flow of the business or impede it with friction.

Why is it so difficult to inject that business perspective? Because as HR leaders we feel ourselves to be near the pinnacle of the organization. The organization reports to us. It must meet our demands for information, documents, numbers.

In fact, that’s backwards. We are far removed from the points and people that make a difference with customers and a difference to the business. Our perspective should be that of seeing to it that the people at those points can perform as smoothly, productively, and frictionlessly as possible…

via Why HR Still Isn’t a Strategic Partner – J. Craig Mundy – Harvard Business Review.