Five Things HR Can Do
(March 13, 2009) The line between HR Basher and patriotic critic is lost on some. While many seasoned HR professionals are an active part of their company’s strategy design and execution, many more are not.
I spoke with a colleague last night who said, there are three types of HR professional:
- Tactical … managing and controlling administrative problems, monitoring compliance, managing organizational conflict, most training.
- Tactical but Wants to be strategic … understands HR is mostly a cost center and wants to return more value than they receive
- Strategic … part of the heart of the business making playing field decisions and competitive distinctions
A fair part of the HR mandate involves getting lots of little administrative details right. From payroll and benefits to recruiting information and scheduling, these details are critical to the smooth functioning of the organization. Screw them up and the world falls apart. Get them right and no one notices. Like most great logistics problems, the tactical part of the HR workload is thankless and mission critical. Things really do fall apart when this stuff doesn’t get done. Great progress is measured in incremental cost reductions.
It’s the tactical part of HR that uses measures like “cost per hire” to determine value. In tactical matters, improvement is incremental and measured in single digit percentage improvements. At the other end of the spectrum is value multiplication. Imagine that there is a bar. Above it, pennies multiply into dollars. Below it, dollars turn into pennies. Above, value. Below Cost. Above strategic. Below tactical.
The strategic part of HR might include identifying a major competitive advantage in a plant location decision. Or, it might be seeing that an average of five hours of overtime causes a systemic decrease in productivity. A strategic picture helps redeploy the existing team in a new venture. It knows where to find synergy. It understands real multidimensional planning. It manages itself the way that other C-level functions are managed…to targeted performance values with out of your control variables.
If the HR profession is to move ahead and put an end to the annual cycle of profession bashing (see yesterday’s piece), here are some practical suggestions.
- Be curious about the business.
Always ask questions like “how does the staffing level affect performance”. Get people to help you understand what they do. You don’t have to be an engineer but you do have to know what makes one tick. Understand the core functions of the business. Learn to tell which kinds of people are good at those jobs and why. - Measure stuff.
The currently available metrics are wretched. Don’t focus on cost, focus on benefit. Metrics are your friend, you just have to figure out what to measure and what it means. Being able to show quantitative impact makes you a part of the team. There are really valuable bits of information stored around the organization. Measuring helps you find them. Invent crazy metrics and see if they mean anything. (Number of bald men per thousand lines of code) - Stop focusing on cost cutting and expense
These are not bonus activities, they are the basic job. Survival is all about expense management, strategy is about growth and multiplication. Do the basic job, focus on contributions that change the game. - Free people to manage themselves
One of the greatest contributions HR can make is to unencumber workers from overbearing procedures and forms. Throw away the job descriptions. Reduce the number of categories. - Plan, Plan, Plan
It’s not a strategy if there isn’t a plan. No one ever expects the plan to come completely true. Making it is an act of vision. Learn about scenario planning. Anticipate the next five years of hiring requirements and reorient your operation to navigate there. Make a list of everyone you’re going to hire in the next five years.
Be prepared, it’s HR Bashing season and a really good time to demonstrate the Strategic value you offer. Avoid the mistake of responding to criticism by saying “You’re wrong”, or, “Stop whining and become a resource.” The first step in recovery is admitting you have the problem.
The Human Capital Institute offers useful training to HR professional who are trying to move from tactics to strategy. Find out more about them. (They don’t know I’m a fan)
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