Monday 6 August 2007

Talking metrics and people evaluations is not enough

This is letter of the month in August's Human Resources, responding to their coverage of Deloitte's survey Aligned at the top which I have already covered in a previous post:

Last month’s magazine rightly drew attention to the huge disconnect between the opportunities inherent in a strategic approach to people management, and the current focus of many HR functions.

Your editorial noted that HR should be working closely with the MD to jointly agree the people management agenda but this clearly is not happening. In fact, the research you referred to indicates that only 19% of executives in Western Europe agree that their HR teams play a crucial role in strategy formulation and operational success.

For me, this is the most important point in the research. If HR is not involved in developing an integrated business / people management strategy, then it is never going to have a strategic role.

However, I don’t agree with what seems to be your conclusion that HR needs to start talking business, demonstrating it contribution to bottom-line value. Well yes, of course HR does need to do this, but it’s not going to be enough. Taking metrics more seriously and conducting people management evaluations is a waste of time unless HR is capable of creating more value as a result.

This is about significantly increasing HR’s contribution, not just demonstrating it. And doing this requires more than just improving skills in developing leaders, talent, motivation and organisational culture. It requires HR to take responsibility for making significant, positive changes to these critical organisational capabilities too.

Jon InghamDirector, Strategic Dynamics Consultancy Services

1 comment:

  1. Hi Jon

    Until HR Directors sit on the board and are contributors to business strategy, as well as architecting people and HR strategy - HR just won't be taken seriously in large corporations.

    First - make sure you know how your company makes money

    Then - Get the basics right - make sure the payroll runs without a hitch and HR Systems and technology are user friendly & flawless.

    Then - Make sure that you know your subject matter and can deliver really good people practices to the business

    Finally - Find every way possible to make your organisation as successful as it can be - through your business knowledge and your Specialist HR skills and of course your passion for excellence!!


Please add your comment here (email me your comments if you have trouble and I will put them up for you)