HR As a Strategic Business Partner

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Question 1: Many Human

Resource professionals

express the desire to have

“a seat at the table.” What

exactly does that involve?

Answer: Over the years, the human resource function has

evolved from what was previously referred to as the

personnel department, which was viewed primarily as

"processors." It has taken considerable time to transition into a valued department.

A "seat at the table" is not granted; rather, it is earned over

time as the executive team begins to recognize the value in

having HR involved and part of the decision-making

process. HR professionals are asking to be viewed as a

partner with the CEO and executive management team,

performing at a more strategic level. In doing so, the HR

department must demonstrate the benefit of keeping them

at the level of business partner. This includes showing the

direct financial impact and the impact on productivity and

maximization of resources.

Question 2: What is the

value in being viewed as a

strategic business partner?

Answer: Knowing that payroll is generally one of the larger

expenses the business will incur, there is tremendous

opportunity for HR professionals to add value, in terms of

managing the costs associated with the workforce. It is the

desire to support the needs of the business through

effective management of "human" resources (i.e., the

employees) that positions them as strategic business partners.

As companies map out their long-term initiatives, there is

real value in having HR presence in that process. For

example, if the company anticipates a 30% growth rate in

the next 5 years, that will require effective forecasting and

planning to ensure adequate staffing levels. That is just one

example of the role HR plays in this type of strategic

planning.

With any goal the organization sets, there is likely to be an

effect on the workforce. This may include the preparation of

training programs to address performance/skill deficiencies.

It may also include a review of the compensation program

to be sure it effectively drives performance. When the HR

professional is a part of these discussions, he/she will be

able to take advantage of the opportunity for action in

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support of the company vision.

Question 3: What are

some of the barriers for

the HR professional to overcome?

Answer: One of the initial barriers human resource

professionals may face is the perception that the

management team can perform the HR function. Many

managers have not experienced the value that HR can bring

to their business units. In other cases, they may have even

felt their ability to manage their team had been "stifled" by

HR in the past. Therefore, one barrier to overcome is

changing the perception of the HR function to one that is

positioned to "support," rather than "dictate." This is a

process that takes time—after trust is built and value is demonstrated.

Other barriers are more controllable, such as not having a

good feel for the business and the industry. Not having a

good feel for the business and the industry can be a real

detriment to HR professionals’ ability to be viewed as credible business partners.

Fear of stepping up and asking to be a part of the team is

another barrier. Human resource professionals should be

prepared to take risks and speak up to voice ideas and concerns.

Again, some of the barriers are external and may take time

to overcome while others are internal, such as fear and no

confidence. However, it is up to the HR professional to

change these perceptions by adding value to him/herself and to the management team.

Question 4: What steps

can the human resource

professional take to ensure

they will be viewed as a

true strategic business partner?

Answer: We have learned that certain barriers/challenges

may be present as the HR professional strives to be viewed

as a strategic business partner; however, where there are challenges, there is also opportunity.

There are many steps an HR professional can take to be

seen as a valuable business partner. One of the critical

steps is to take the initiative to learn the business and learn

it well. This includes reading trade journals and publications

and learning about the industry trends and competitors.

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Being able to "speak the language" and understand internal

operations will provide more credibility to the opinions and

recommendations being offered.

Once the HR professional knows the business, he/she will be

more likely to speak up in meetings and feel confident in

the recommendations and guidance offered. This may also

open up the opportunity to request a seat in the executive meetings to which they were previously not invited.

Another method to establish presence as a business partner

is to position recommendations in such a way that the CEO

and executive team will clearly see the return on

investment (R.O.I.). For example, when suggesting a new

process for reducing turnover, the manager may see that as more work on their part.

It is important to the HR professional to demonstrate,

through objective facts and figures, the value the program

will bring. In this case, it would include a decrease in

turnover which will impact productivity, time spent replacing positions, and cost for replacing staff.

With any recommendations made, it will be important for

the HR professional to show the value in terms of impact on

the company’s ability to remain competitive.

Question 5: One aspect of

being viewed as a strategic

business partner is

developing relationships

with the management

team. What are some ways

to build that type of relationship?

Answer: Initially, there may be skepticism when the

Human resource professional asks to get more involved.

Management may have a concern that HR will implement

changes that will work against what they are trying to

accomplish within their business units. One way to

overcome that perception is to build relationships with the

management team. Building a relationship will provide an

opportunity to establish trust in one another and to

understand that both parties truly want what is best for the

organization.

Relationship building may begin with face-to-face meetings

held individually with members of the management team.

This type of meeting will provide an opportunity for the HR

professional to get a feel for the managers’ leadership

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styles, functions of the departments, and current needs.

That initial meeting can serve as the springboard for follow-

up meetings where the HR professional will continue to

learn and begin to offer suggestions and solutions for

maximizing employee productivity. The relationship will

continue to develop as the manager sees firsthand the

results of the support HR provides.