Challenges in transforming HR

transforming HR

Over the years, much has been written about the changing face of HR, and the shift - from that of a largely administrative organization to HR's role as a more strategic business partner - has been nothing short of stratospheric.

But today, as the move - referred to as HR Transformation (HRT) - is recognized as being more than two decades old, many analysts are beginning to predict how HR leaders must now ask themselves what more can be done to help their organizations achieve their strategic goals.

In fact, as the movement reaches its milestone 21st birthday, analysts are suggesting that HR's real challenges are only just beginning.

HRT has now become the standard way of doing business for human resources. According to some analysts, viewing HR as a strategic partner has not only required the organization to adopt its own language and methodology, but also rely on its own tools, software, service providers and consultants.

The concern in the beginning, when HRT was nothing more than a grassroots concept, was that business leaders wanted proof that an investment in such a HR initiative would lead to substantial returns: a concern largely unfettered by the fact that prior to this shift, HR investments were generally unheard of.

What's more, it has been well documented that in the beginning there was a lot of concern about what exactly the term HR Transformation really meant. As such, many practitioners became frustrated when listening to presentations about projects that they did not consider to be true HR Transformation.

In addition, while when HRT began it primarily focused on the US, Canada and a handful of countries in Western Europe, today many large companies have implemented HR service-delivery models on a global basis and the reason is simple: the people of any company are their greatest asset, and that has to be driven by HR.

So what's next? Well, the concern is that while many HR organizations have done a commendable job in developing a service-delivery model, some businesses remain despondent by the results of HRT; the argument being that, despite their initial investment, HR still isn't providing the kinds of services the business really needs.

As a result, HR leaders need to ensure that business strategy is aligned with HR strategy: and it has been argued by some analysts that it is of great importance for business leaders to talk to HR managers and explain exactly what they require from the HR function. From here, an HR strategy can be directly linked to the business strategy and long-range plan of the organization.

Only then, suggests the lessons learned from the last two decades, can HR truly develop the capabilities required to build a new service, truly become a strategic partner to the organization and truly be "transformed".

29/09/09

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