Business-driven HR instead of a support function

My day-to-day work involves supporting managers, handling operational issues, and resolving problems that arise along the way. Initiatives related to skills development, leadership, workplace environment, or organizational development often take a back seat to more immediate business concerns.

HR is becoming a function that supports rather than dictates the direction. It is expected to be a business-driven function, but it is not always utilized in that way.

The question many HR managers ask themselves is: How do you make the transition from a support role to a true business partner?

In most companies, this isn’t a matter of ambition or competence. HR departments often have both the insight and the desire to work more strategically. The challenge lies instead in how these issues are framed and how the organization functions in practice.

There are a few common causes.

• HR issues are not linked to business
  Issues related to culture, leadership, and the work environment are crucial to performance, but are not always perceived as business-critical. When the link to growth, risk, or profitability is not clear, they are easily deprioritized. 
• The focus is on activities rather than impact
  HR becomes a function that “takes care of whatever comes up.” When an organization lacks structure, many issues end up with HR—everything from training initiatives to internal conflicts, regardless of where responsibility actually lies. At the same time, it is common for HR to identify needs and initiate activities, but it is not always clear what impact these activities are intended to have on the business. 
• Responsibilities for people and the organization are unclear
  HR issues are sometimes treated as the sole responsibility of HR, rather than a shared responsibility among management. In many companies, it is also not entirely clear what falls under the managers’ purview and what is HR’s responsibility. The result is that HR is expected to support, drive, and sometimes even implement initiatives.
• The company lacks the capacity to implement
  Even when the direction is clear, the organization often lacks the time and resources. Initiatives are launched but not carried through to completion. As a result, HR often ends up being the one trying to keep everything together.

In the short term, this approach may work. HR solves problems, supports the business, and gets things done. But over time, it creates a number of challenges.

Strategic issues related to organization and leadership are given less attention than they should. Development tends to be reactive rather than proactive. Change initiatives lose momentum or have limited impact.

At the same time, HR runs the risk of being perceived as a support function, even though its work actually impacts the company’s bottom line.

There are some clear signs that HR’s role isn’t quite living up to expectations:

• HR is involved late in major decisions
• HR initiatives are postponed or deprioritized
• Managers expect HR to address issues that fall within the scope of their responsibilities
• HR has a broad scope but lacks clear priorities
• Change initiatives lack clear ownership
• The organization has difficulty implementing the decisions that are made

Making the transition from supporter to business partner is rarely about doing more.
It’s about working differently.

For example, this could mean that:

• more clearly link HR efforts to business objectives and results
• focus on fewer initiatives and ensure that they are based on concrete business cases
• communicate the value of HR in a way that drives decision-making
• ensure that there is sufficient capacity to implement the initiatives that have been decided upon

In our guide “How to Link HR Initiatives to Business Goals and Results” we describe how many HR managers are working to strengthen their role within the organization.

Want to quickly get an idea of how business-oriented your HR function is today?
Then download the checklist: “7 Signs of How Business-Aligned Your HR Function Is”

In many cases, the challenge isn’t that HR lacks ideas or initiative.
It’s about the organization’s ability to implement what has already been decided.

When managers are overburdened, roles are unclear, or the capacity for change is limited, this also affects HR’s ability to work strategically.