
By Tony Deblauwe
I’ve been curious about the state of the HR field lately. For a long time now we have heard about HR’s “seat at the table” particularly as the evolution of the HR Business Partner role has become more and more prominent in organizations. The HRBP is a role that aligns very closely to the business much more than a Generalist or Administration oriented role. As such, companies have put several requirements on HRBPs most notably requiring (or desiring) MBA’s and experience in non-HR roles. In fact, this trend towards in-the-trenches HR folks to be more, well, non-HR, corresponds to many executive level HR hiring decisions in recent years where the individual came from a non-HR role, usually with zero HR acumen.
As frustrating as this is to many HR professionals, I wonder how ill-advised this approach is considering that most HR professionals continue to drive value through mostly operational methods. This is not an indictment of such efforts, but they can’t stand alone as the reason HR provides value, or strategic impact, to organizations. Nor does it mean that only executive level HR has the ability to make strategy decisions because of their rank and proximity to the business leaders. It simply means what we think of as strategic HR is confused through mostly everyday operational (i.e. tactical) excellence.
So what’s the difference in approaches? Martina Laudahn of Head of HR Interim Management & Global HR Consulting at PeopleExcellence described it best in a response to the strategic HR question posed on a June 1, 2010 blog entry by Donna Mason on www.focus.com. She compared tactical versus strategic HR in several core functional HR areas:
Function: Employee Relations
Tactical HR: Policies and records, compliance and discipline, company events and community relations, complaint resolution.
Strategic HR: Engaging employees to drive business results, recognizing teams and individuals strategically, seeing employees as an investment.
Function: Attraction & Selection
Tactical HR: Recruiting and hiring, testing and background checks, college relations, temporary staffing.
Strategic HR: Creating a compelling employment brand, workforce planning focused on talent needs, developing talent pipelines.
Function: Development
Tactical HR: Basic skills training, new hire orientation, values and competencies.
Strategic HR: People strategies that drive results, succession planning and onboarding, creating career and development plans.
Function: Performance & Rewards
Tactical HR: Performance management, compensation administration and surveys, job descriptions, executive compensation, benefit administration.
Strategic HR: Assigning goals and metrics aligned to the business strategy, rewarding employees for business results, measuring the results of deploying people, rewarding employees for their value, executive compensation tied to business results and shareholder value.
Laudahn summarizes strategic HR this way:
“Strategic HR practices need to translate the business strategy into action, engage employees at all levels to drive results and be transparent so everyone uses them every day to run the business. Strategic HR practices can result in a competitive advantage for the company in the marketplace, profitable revenue, innovation and strategic alignment.”
So do HR leaders recognize the difference? In a recent article for Forbes online, Steve Denning, author of The Leader’s Guide to Radical Management: Reinventing the Workplace for the 21st Century outlined the disconnect between HR focus and executive and strategic business imperatives:
“Thus the heart of HR’s problem—that HR is not at the center of the firm—is that HR leaders are spending their energy supporting of a failing business model.”
“The solution to the problem of HR requires a fundamental shift in the way the firm is being managed to one in which the people doing the work are able to contribute their full talents and energy to the goal of delighting the customer.”
HR has the capacity to delight customers by staying focused on the strategic connection to business needs and not get distracted by the compliance and regulatory necessity of the role. This is a fundamental point of view difference. HR professionals should know that the everyday tactical items must and will get done, but not as an end in itself. That is the problem in most cases – getting caught up in the short term fires and treating longer term strategic programs as an annual exercise usually reserved for the senior HR team and subject matter experts.
Strategic contribution is every HR professionals focus and needs to be a requirement of the role (not just HRBPs). The inspired HR leaders out there understand this and diligently follow a framework of competency assessment, job rotation, and targeted hiring to maintain a strategically focused HR talent pool.
What is your organization doing to clarify operational and tactical HR versus strategic? How are you measuring it and what policies are being adopted or created to maintain HR as a true partner not simply a support role?