Month: October 2008

HR work is no longer HR’s work – from an HR Strategy perspective

[Rob Scott writes] – I attended a dinner function in the last week with a couple of colleagues. During the evening we got onto discussing my favorite subject ~ HR strategy, and were having a debate about the usefulness of HR departments. The chap I was chatting to was in a typical mid-management line function and was complaining about the lack of HR support he was receiving and how much “HR work” he was doing.

I immediately said to him that this was a good thing, which took him by surprise. I continued to put my argument forward that it is not HR’s role to be managing his staff, and that the concept of HR being the department that deals with “People matters” is old and not contributing to organisational growth.

His counter argument was that he is there to make sure his business unit achieves its output goals and all this other HR mambo-jumbo is wasting his time. I did concede that if HR is dumping a lot onto him that is not value adding then he may have a point and should push back on doing stuff that fails to help him achieve his outputs. But, achieving his goals involves people, and he could not abdicate this role to HR or anyone else. Management of a business includes effective management of people. I asked him about his HR department in some more detail and how they had got to this point.

There are a number of interesting take aways from this discussion that took place. Firstly this is not a unique situation and its been an ongoing debate for many years. What it does tell me is that the role of HR in that organisation in not understood or positioned properly. Even though HR is trying to do the right thing by getting line management to take accountability for their staff in a holistic manner, they are fighting an uphill battle and will continue to do so until the executive reposition the HR department correctly.

The second point I would make is that the HR department does not realise the long term damage they are creating when they execute an approach without the proper backing and strategy. It backfires like we have seen with this line manager. His view of the HR department is not positive and he sees them working against him. Correcting this is now going to be a bigger problem than before.

Thirdly this does highlight a major concern with the level of strategy knowledge within HR departments. HR folk tend to be good at designing and executing activities inside the “HR space”, but can do with some support in executing programmes into the larger strategic realm. It points typically to the lack of business understanding and how to position HR strategically.

The forth point is about line managers themselves – I personally think that most of the push back to managing all aspects of their staff is related to fear and uncomfortableness with dealing with difficult people situations. This highlights the need to select management correctly, and not just appointing the good salesman into the sales manager role. Not all people are good and dealing with people matters, but it must be a requirementfor management and supervisory positions, and training and development in this space is a necessity.

Lastly it is also senior managers responsibility to measure people correctly to achieve particular behavior changes. If this line manager is rated on how he achieves his output goals, then that’s what will drive his behavior, however, if he is also measured on how he effectively manages people and gets the best out of them then that will drive another set of behaviours – but its all part of a well thought out HR strategy.

Some of you may be thinking whether there is a need at all for an HR department if line management become super proficient in managing people. The answer is not as simple as a Yes/No, but I do think that you can get rid of the HR department as we know it today. Concepts such as HR shared services and other components that are administrative and transactional in nature can be owned by an inclusive services division. But HR strategy and expertise groups would still need to exist, but could be intertwined into the organisation in other ways than a separate department. Sounds like a good topic for a later discussion.

Check out the poll below about how you feel about your HR departments.

What HR systems will need to support in the next 10 years

[Rob Scott wrote] An interesting statement indeed. For the last decade most vendors have focused on giving us more and more transactional capability in their HR systems because that’s what they thought HR departments needed.

To be frank about this, we have far to much functionality in most products  and vendors are struggling to keep up with the competition created to have the “Most Functionality” ~ Companies buy into products only to discover that the “core” of that particular system is fine, but the additional functionality tends to be weak, poorly integrated and is basically a “Pig with lipstick”. Future HR systems will need to refocus and support HR departments in different ways.

This is the paper I presented at the last IHRIM conference in Orlando, Florida (refer to previous blog). Its proved to be a very popular talk and we will be presenting it again via a web cast on 5 November 2008. If you are keen to enrol, click on this link http://www.ihrim.org/index.php?option=com_content&task=view&id=395&Itemid=1.

HR Technology needs to be thought of as Strategic

[Rob Scott writes] OK, I first need to set the scene….Earlier this year I was presenting a paper at an HR Technology conference in Orlando, Florida. The conference was attended by a spread of various levels of HR people. I did a presentation on the future of HR Technology and had a good turnout at my session (about 150 delegates).

Although the focus of the conference was on HR technology, my presentation naturally included links to HR Strategy, as I hold the firm belief that you can’t separate the two concepts and still expect to get the best value from either your new HR Strategy or your HR Technology (pretty obvious I thought). Now here is the key observation. I was amazed at the amount of people that I chatted to after the presentation who did not see this as an obvious link. They liked what I was saying about HR Strategy and HR Technology and were agreeing, but had not really thought through the implications before.

On reflection of this, It got me wondering why so many HR people still see HR Technology as a separate part of their lives, and have not generally started to question life beyond HR Transactional systems – why are they not asking what HR Technology can offer them at a strategic level ? This is an important question when one sees many HR departments starting on a transformation journey to add better value to their organisations, building HR Shared Service Centres, new age Centres of expertise and the all important HR Business partner. None of these components will ever reach the level of value-add that they potentially can offer, if the technology supporting these new HR organisations is not looked at with a strategic lens.

Not that I’m blowing my own trumpet, but my feedback ratings from the conference showed that 4.5 out of every 5 attendees found the presentation insightful, very useful and thought provoking. Mmmmm that’s more than 80% of the audience who found this strategic focus on HR Technology a “new and interesting concept”

So for every story I write about, I always try and look for some key learning’s for fellow HR Strategists, HR Technologist and HR Executives. Here are a few of my thoughts.

  • Senior HR VP’s need to consider raising the profile of HR Technology in their organisations beyond the transactional level
  • Appoint an HRIS strategist or create this as a part-time role for someone – the key skill here is not one of technical proficiency, but rather the ability to know how HR technology can be deployed to support strategic initiatives
  • Senior HR employees need insight and skill building on Strategic HR Technology
  • Senior HR employees who are driving out new HR strategies in their organisations need to be aware of the positive impact that a strategically focused view of HR Technology can have on the ability of HR to deliver better value to their organisation
  • Reposition HR Technology in the minds of HR folk and staff beyond that of a transactional system
  • Lastly, if you need help, get it – its worth it!