4 min read
During the last years the focus of HR functions has dramatically changed. Ten years ago most HR functions haven been busy developing concepts and iteratively improving processes regarding all people management areas. HR now has a much larger stake when it comes to value creation and the pressure to show results, proving top and bottom line impact, is mounting.
Focus on line management
Our research shows that in the most successful organisations HR functions no longer develop concepts and have shifted their focus to their most important customer group, line management, to ensure the implementation of people management processes. Most HR functions buy in proven practice from outside and apply the solutions to their needs.
The importance of measuring and tying the results to the top and bottom line is increasing – as a result, HR functions gain a better standing within the organisation and reach the goal of being a real business partner (as postulated since Dave Ulrich launched the first version of his HR business model).
Understanding value drivers
HR functions are shifting their attention towards identifying and understanding the value drivers according to an organisation’s life cycle. They are focusing on results rather than optimising the processes – especially where line management has to take accountability in their execution. This area is the most difficult one for HR to control and make successful – and here, hard facts, metrics and business cases give the right basis for an effective dialogue with managers on equal terms.
Only what you can measure – you can manage
HR now has a key role in value creation – pressure is increasing to show top and bottom line impact. “Only what you can measure you can manage”
A dashboard to start with (and of course strong analytics supporting data driven management) is one of the tools helping HR to gain speed. Creating high value metrics focusing on impact rather than process adherence is key. As a second step defining target ranges and linking deviations to monetary terms is equally as important.
Having that in place enables HR to pro-actively drive value creation demanding line management to live up to their accountabilities in people management. After all, like almost everywhere it is the final results that count!
