Some ogsnization leaders still believe in this statement, even if they do not stated publicly, but their decisions and the manner in which they manage the organization shows their conviction of the saying, but is it correct? Does human resources only doing operations, policies and processes? Is it a center of heavy costs and the number of its staff should be reduced and reassign tasks on the few staff? Should the organization support only the other profit departments?
If we look at the last twenty years economic and financial transformations with the development of technology, we find that organizations suffered from crises and fluctuations in succession, some of them went bankrupt and out of the market and some suffer and some of them were able to promote and seize opportunities.
If we want to analyze this situation acoording to Dave Ulrich book The HR Scorecard: Linking People, Strategy, and Performance we will find, seven steps in terms of achieving the strategy and adding value as shown in the picture. Therefore, the organization that adopt the above statement will suffer from the loss of their employees and talents, impact of financial and economic crises, competitors and their inability to meet stakeholders expectations.
The seven steps model to use HR as strategic assests:
Clearly define the business strategy
Learning more about the organization’s strategic objectives and goals. The HR Department should align its objectives and goals with organization. To do this the HR staff must get to know the management team and their challenges, barriers and constraints. HR needs to conduct an audit of the HR function to determine if it has the competencies and skills necessary to help the organization achieve its Mission, Vision, and Strategic Objectives.
Build a business case for HR as a strategic asset
Many managers perceive HR to be an administrative function. HR must make a proative effort to educate the leadership team about the potential HR has as a strategic business partner. Return on investment (ROI) approach, KPIS, customer feedback can be used to HR activities. The idea here is to talk the same language of the leaders and provide information base on figures, finance and statics as profitable departments.
Create a strategy map
HR needs to provide a value proposition for its activities and change the perception that HR is overhead, strictly an expense generating department. HR should take the time to map out each of their processes, such as benefits administration, to ensure that the processes are streamlined, provide a quality product or service, and are targeted to meet specific organizational objectives.
Identify HR deliverables within the strategy map
HR preceived as intangable value, things cant be put in numbers and figures or statics like marketing and finance, therefore HR must consider changing from output concept to deliverables concept, it mean HR services must be architect to provide value added for other departments, can be quantified and easy to understand and spot for leaders the addrd value creat by HR.
Align the HR architecture with HR deliverables
HR education and training focuses on HR role as polic policy maker, recruitment and selection and fire, or administrators keep personnel records. This concept cant help HR to make value added deliverables, therefore recruit8ng, training and practicing HR should be base in strategic HR role, deliverables and strategic partner.
Design the strategic measurement system
Hr must study organization inside and out in order to constract the right measursesthat will capture the value added deliverables HR contribut in the organization, the measures must be as well reflicting organization need, environment, strategy and align with business units.
Implement management by measurement
HR leadership needs to be diligent in first selecting, and then consistently measuring, the appropriate success criteria. It may be helpful to set process checkpoints at three or four times during the year to honestly discuss how HR staff is doing in relationship to their strategic objectives.
Usually organization strategy is excellent in its formulation by corporate leaders and officials but the organization and staff are not in touch with it and how it is related to them and their work and goals because the finance and investment manager, sales manager or regional manager can not do the alignment of the organization and staff.
The chart shows how human resources achieve added value by measuring profitability. The question of measuring indicators is no longer confined to other departments. Human resources have a scientific methodology and measurement indicators that prove their contribution and the value they add to the organization especially in achieving and activating the strategy. Is this convincing enough?
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