COVER STORY From “trusted advisors” to “credible activists” While Victory Through Organisation acknowledges the success of Ulrich’s past models at making HR a “trusted advisor” to business, his latest research has found this will not be enough in tomorrow’s workplace. Using data from 32,000 survey respondents across 1,400 organisations, Ulrich shows that the single biggest predictor for HR to get a “seat at the table” in 2017 and beyond lies in being a “credible activist”. So what exactly does this label mean? And what qualities help to build it?” Ulrich’s further probing found two separate sets of specific skills and actions HR professionals should take to be seen as “credible” in their organisations and to become “activists”. The first requires individuals to build trust with internal and external stakeholders alike, deliver outcomes as promised, and keep confidence across the business high. Having a point of view, taking a stance and challenging ideas, will further put HR professionals a step closer to becoming “activists”. “It is the combination of credibility and activism that allows HR professionals to establish trusting relationships with those they support, as well as their HR colleagues,” Ulrich explains. Credible individuals who are not activists may be respected for their insights or expertise, but have relatively little impact. Activists who are not credible may have good ideas, but may find it difficult to get others in the business to pay attention to them.
“Credible activists are (both) respected and proactive,” Ulrich says.
Value paradox But Ulrich adds that a paradox actually arises here. That’s because while being a credible activist secures HR a seat at the table and gets it involved in key business dialogues, it does not really add value to stakeholders. To add value and deliver actual business results, HR professionals have to progress to the next competency level of “strategic positioners”. The essence of being a strategic positioner, Ulrich says, is that HR professionals must be able to move beyond “knowing the business” to positioning the business to win in its marketplace. To be able to drive the business forward and position itself as a strategic department, it is key that HR first master another area of business - since its work tends to cross disciplines and functions. It is most advisable to gain knowledge of finance, but Ulrich says any category central to the business’ success, whether it is marketing or information technology, would also suffice. Beyond this, strategic talent managers also need to know how the business makes money and the key differentiators between it and its competitors. Ulrich adds that strategic decision-making, infrastructure design, and culture management are among the specific key competencies required at this level. The final and most important tool true HR strategists should possess is a deep understanding of the company’s external
“The quality of the organisation has four times the impact as the compentencies of the individuals” 20 MAY 2017
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stakeholders, including customers, competitors, suppliers, investors and regulators. “HR needs to know who they are, how to build relationships with them, and utilise them to set criteria for effective people management,” says Ulrich. Understanding external environments and contexts also allows practitioners to anticipate business trends and design strategies accordingly. For example, recruiters can hire candidates who display good customer service qualities, based on their understanding of the business’s specific customer expectations. HR can also plan promotion structures around how well individuals communicate with customers and vendors, which will help the organisation retain its best talent.
Organisation matters most Ulrich says one of Victory Through Organisation’s most ground-breaking insights, which he will further detail at HRM Asia’s Smart Workforce Summit 2017 in September, is that the workplace of tomorrow will be one where “talent matters, but organisation matters more”. That is because a smart workforce requires a great workplace with superior organisation. “We found out that the quality of the organisation had four times the impact on business results as the competencies of the individuals,” Ulrich says. He explains that “organisation” is not about structure or alignment of the various parts within an entity, but about building capabilities that allow the entire body to succeed and win in the given market. Some of these capabilities include: managing information, managing change, facilitating culture change, customer service, and creating a collaborative environment. “When HR professionals can work with general managers to create these capabilities, the war for talent morphs into a victory through organisation,” Ulrich says.