By DAVE ULRICH

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I want to offer a positive view of HR’s 2016 value by discussing HR’s POT: Perspective, Outcome, and Transformation.

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Dave Ulrich

3©The RBL Group | HR Trends and Directions: 2016

HR does not start with HR. In leading companies, HR shapes business value because HR starts with the business. The scorecard of good HR is the scorecard of the business. HR investments help deliver product innovation, geographic expansion, and cus-tomer intimacy growth strategies. But beyond strategic HR where business strategy is a mirror in which HR reflects business goals; strategy can be a window so that HR work is being connected to ex-ternal customers and to investor confidence (called HR outside-in). Customers are increasingly in-volved with staffing (sourcing and interviewing candidates), training (designing, attending, and teach-ing), performance management (doing 720 more than 360), and leadership (leadership brand).

Investor confidence increases when they monitor quality of leadership through a leadership capital index assessing individ-ual leaders and human capital systems.

Often those critiquing HR are like those who wonder why the twenty year old telephone, com-puter, or television does not deliver against modern standards. The dated strawman of HR as an administrator of benefits or policy police is out of date. With an HR outside-in perspective, HR starts and delivers customer and inves-tor value.

Perspective

CUSTOMERS

BUSINESS STRATEGYMIRROR

BUSINESS STRATEGYWINDOW

STRATEGIC HRACTIVITIES

INVESTORS

4©The RBL Group | HR Trends and Directions: 2016

HR is not just about talent. For 20 years, HR has been focused on tal-ent (called labor force, workforce, employees, staff, and people). The

“war for talent” has been the domi-nant metaphor for HR as fueled by the McKinsey study War for Talent. Some even want to change the name from “human resources” to

“talent.” However, leading organi-zations are now pivoting from an exclusive focus on “war for talent” to a perspective called “victory through organization.” Individuals are champions, but teams win championships.

I would advocate that there are three generic outcomes of great HR work: talent, leadership, and capability.

Talent audits mean that employ-ees have the right competence (knowledge, skills, and abilities), commitment (behavioral engage-ment), and contribution (emotion-al engagement and meaning).

Capability refers to the organiza-tion which may be called culture, systems, process, or teamwork. Capability audits ensure that the organization has the right systems and culture to meet stakeholder requirements.

Leadership bridges talent and capability. Employees (talent) will often do what leaders do. Leaders embody the culture or capability of the company and perpetuate it through their thought and actions. Leadership audits ensure that leaders at all levels make choices for future success.

Outcomes

LEADERSHIP

TALENT

CAPABILITY

5©The RBL Group | HR Trends and Directions: 2016

HR for HR has arrived. HR invest-ments emphasize governance, practices, competencies, and an-alytics. HR governance is handled increasingly through professional services units within their orga-nizations where HR experts turn their insights about people, perfor-mance, information, and work into line manager client value. They deliver foundational work through HR technology and strategic work through business partnerships.

Additionally, innovative HR practic-es have facilitated business results by focusing less on bureaucratic processes and more on simple and integrated solutions. Com-

plex performance appraisals are replaced with informed conversa-tions which ensure accountabil-ity. Technology-enabled hiring, training, and compensation help deliver the administrative work of HR so that more attention can be focused on strategic HR.

HR competencies ensure that HR professionals have the unique skills to deliver business results and demonstrate personal cred-ibility. HR analytics have helped make HR investments that have business impact.

Transformation

GOVERNANCE

PRACTICES

COMPETENCIES

ANALYTICS

BUSINESS RESULTS

Strategic HR Investments will drive business results

6©The RBL Group | HR Trends and Directions: 2016

After decades of research, we know how to invest in HR governance, practices, competen-cies, and analytics so that HR shapes talent, leadership, and organization outcomes that deliver strategy and build customer and investor value.

Dave Ulrich is a professor at the Ross School of Business at the University of Michigan and the co-founder of The RBL Group. When it comes to helping HR realize its full potential, he sets the agenda, and we’re constantly building his latest research and ideas into products and services that work for your business.

Click the link below or visit www.rbl.net to see how we can help.

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