Organisations are living entities and need to adapt constantly to their changing environment.  However, many human resources managers seem to confine themselves to becoming processors of hr systems rather than enable senior managers to tackle the issues they face in surviving and growing their companies/services.

In any profession, getting the basics right is key to ensuring matters run smoothly.  In HR that means ensuring staff are paid correctly, terms of employment promote flexibility; training (leaning and development) is appropriate, but not gold plated.  Even the basics should reflect the needs of companies to be able to adapt to change and help to achieve the goals of the organisation.  Sadly, many hr individuals stop at that stage of the hr management spectrum.

Employment law events are the most well attended and requested in my local CIPD branch.  A comment often heard from individuals is that the individual must keep up to date in case the CEO asks a question. Although well intentioned this type of hr manager tends to adopt a process driven approach to organisational life – compliance to legal processes is important but often becomes an end in itself.  Thus, such hr managers miss opportunities to look at matters in context and help the management team adopt more innovative ways of addressing issues and challenges. At a senior management course, I can remember clearly how senior hr managers would search the employment law reports for cases with similar facts to the situation they faced rather than standing back, identifying and then applying the legal principles to their context and resolve the issue.  The focus on process and employment law often squeezes out attention to other topics that would benefit the organisation.

Moving Beyond HR Processes

The balance of the global economy continues to change and businesses still need to become more fleet of foot to respond to new and existing markets.   The Chartered Institute of Personnel and Development is celebrating its centenary this year.  The CIPD has changed dramatically from its roots when Welfare Officers were the main thrust of personnel to the commercially focused transformation hr roles of today.  However, without gaining that competitive, commercial focus hr professionals will not gain the confidence and trust of board colleagues; who in turn want to see clear added value from the contribution of HR at all levels of the organisation so that it is not consigned to a process role.

HR = Business Nous and HR Expertise

Over the years, a key complaint about ‘hr’ is that it is not in tune with the business needs and environment.  That criticism is made by both senior management teams and by senior hr managers about their own professional colleagues [1].  Businesses have to grow in different ways.  For some that will mean developing new revenue streams through new services or products while others that will require acquisitions to increase market share – the problem then may be whether those are in synergy and, if not, adopting different ways of ‘managing’ the new entity.   Sometimes, planned strategies have to give way to sudden opportunities which have to be seized in a tight time frame.  This is part of the ‘business nous’ [1] that aspiring senior hr managers must acquire.

Developing Business Nous

HR professionals need to expose themselves to situations in which they can gain such business experience.  How can pure hr individuals gain exposure to the business issues to develop their commercial focus and become more confident and knowledgeable about the overall business?

For some that will start from their early career in general management roles before moving to hr.   All HR professionals should heed the principles that David Maister has advocated for years for forming sound client relationships especially in service organisations [2].  I have paraphrased those for the hr profession.  HR individuals must get to know the business issues in detail faced by the senior managers of their organisation;  to that end they should following avidly developments in the company’s market sectors, the company’s development, key issues, barriers and opportunities so that as an HR professional you are passionately involved as part of being a key source of advice and, in turn, influence on the management team.

Those HR individuals who have always worked in HR will need to gain exposure by becoming involved in business wide projects or taking up a secondment to a general business role.  In such ways you will gain first hand experience of the business and will find more doors open to understand the wider business needs and strategies.

Translating strategy into operational plans is a skill that iis in short supply as often strategic aims go awry due to mistranslation. The HR professional will not only need to develop this skill for the HR function but also advise operational managers as they seek to implement such strategies.

CEOs and board colleagues should also consider opportunities for their aspiring hr professionals to join business wide project teams or even secondments to a general business role so that their future senior hr managers gain exposure to the business and can thus translate their HR expertise to the business context(s).

HR professionals who wish to help their organisations to transform will need to go through a self transformation first.  By developing a strong ‘business nous’ as well as expertise in HR management skills, you will be more able to provide insightful advice and suggestions to influence senior management colleagues and stakeholders in the wherewithal of ensuring the company has the capability, agility  and confidence to survive and grow.

Sources:

[1]  David Smith former People Director, ASDA  interview by Tim Smedley in People Management April 2009.

[2]  David H Maister, Managing the Professional Service Firm 1993 and seminar notes.

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