4. Responding. Accepting any of the above critical observations of the HR function that exist in your organization is fundamental to the future improvement of its business reputation, worth, and influence. For each critical observation listed in 3. above (a. through q.), I will offer some corresponding corrective actions and advice on how to address and/or correct the inherent flaw.
a. Typically, every fiscal year the CEO and top-line management executives establish various financial, strategic, and operating objectives for the company and each subordinate organization. Uncover these business objectives and seek to find some unique and innovative HR projects and/or services that will help facilitate their accomplishment. Also, meet with the CFO to understand the key financial priorities for the company and each subordinate organization, all of whom will likely relate to one or more of these business objectives. See section 6. for several examples.
In the end, if a business objective and its financial worth are important enough to have warranted a business objective for the CEO and/or the appropriate line management executive, HR should examine it in greater detail to see if there is some new or existing HR program, project or service that can help to facilitate its accomplishment.
b. For HR to be considered an equal business partner, it must get much more directly involved in the operational and strategic mainstream of the company like all the other functions. Simply performing your traditional administrative duties will not do it. In far too many companies, HR is considered an administrative afterthought, far away from the hectic yet critically important aspects of the business. Getting involved in such matters will send a loud and clear signal to the CEO and your executive management peers about HR’s desire to work with them to help the company achieve some of its critical business objectives.
c. Once the entire organization observes that HR is playing a much more important role in helping the CEO and the company to achieve some of its critical business objectives that it is accountable to the Board of Directors for achieving, HR will have much more influence and power in the company’s management hierarchy and its viewpoint on many companywide plans and issues will be given much more serious consideration.
d. In most companies, achieving these business objectives is the top priority of Sales, Marketing, Operations, R&D, Manufacturing, Finance, etc., but it simply is not for HR. Initially, line management might be skeptical of HR getting involved, but once HR demonstrates that it can provide meaningful assistance regarding the achievement of any of their business objectives, that viewpoint will change. Then, line management will seek out HRs help when appropriate.
These business objectives are usually established when the financial budgets for the fiscal year are established. That is time for HR to uncover them and determine where and how HR can provide its help.
e. Most current Leadership Development programs cover only the basic soft leadership skills used by first-level supervisors, do not cover the hard skills that line management value far more because they are more predictive of job success and, most importantly, do not cover the specific hard and soft skills needed to achieve some of the company’s business objectives. By providing important and meaningful assistance that helps line management to achieve some of its quantitative business objectives, HR will help achieve a meaningful return on investment while teaching the right mix of hard and soft skills together.
f. Most current leadership development programs avoid the hard skills that line management executives value while providing little or no practical business value. Ron Carlucci’s article illustrates the critical importance of hard skills to company’s financial and market performance. Such hard and soft skills need to be developed and enhanced through appropriate skills training for line management.
As strongly implied in his article, a major paradigm shift is critically needed in Leadership Development program content, especially for those in middle, senior, and upper management, so that the relevant hard and soft leadership skills are taught together within the practical context of meeting some of the company’s critical business objectives. HR must accept the inherent importance of hard skills and embrace their development, rather than dealing almost exclusively with soft skill development for first-level supervisors.
Such a major paradigm shift will require a significant makeover in the staff’s background and skill set, a reallocation of all budgetary resources, and the use of outside business experts, especially for programs intended for senior to upper management.
g. As stated in Jeff Pfeffer’s article, the overwhelming emphasis on singular soft skill development in current leadership programs substantially oversimplifies the complexity of the leadership dilemmas and choices that leaders face. The title of his article says it all. HR should reduce the emphasis and time spent on such programs and use that time to incorporate the appropriate hard skills into the program content. You cannot effectively teach soft skills devoid of their associated hard skills.
In the end, the leadership challenges and issues faced by a first-level supervisor are vastly different than those faced by a middle to upper management and this difference should be reflected in the program content.
h. HR should develop and present leadership development programs that reflect the appropriate hard/soft skill mixes by incorporating more hard skills into them. To facilitate this major paradigm shift, HR should reduce the time, resources, and effort associated with soft skill development to help accommodate the inclusion of hard skill development for middle, senior, and upper management, especially when the program is directly related to the achievement of one or more of the company’s business objectives.
i. There is no valid reason why most leadership and management development programs cannot correct most if not all four of these reasons for failure in the eyes of line management executives. All that is needed is a commitment to the business and not a commitment to HR.
j. HR can provide practical business value regarding some of these business objectives when it trains line management on the hard and soft management skills that are directly related and relevant to the achievement of one or more of them. From fiscal year to fiscal year, the skills needed are likely to change somewhat so accept this fact in planning your program development content.
These business objectives are established when the financial budgets are developed, usually about two to three months prior to the start of the fiscal year. Uncover these objectives and determine if and how various HR projects or services can assist to help achieve them.
k. Despite this fact, HR typically avoids conducting such hard skills programs, rather than embracing them, especially those management and leadership programs intended for senior and upper management that are needed to facilitate the achievement of some of the company’s critical business objectives. Once you witness the business value of conducting hard/soft skill content, you will never return to only soft skills.
l. HR can become an equal business partner when it follows the advice noted in 4. f. above. In doing so, it will earn the respect of its peers by working with them to help them achieve some of the company’s critical business objectives which will clearly demonstrate its business legitimacy and worth.
m. Simply carrying out their traditional administrative duties, even in an effective and efficient manner, will not achieve that much-desired seat at the C-Suite table. To achieve it, CHROs and HR Leaders must get more directly involved in helping the company to achieve some of its business objectives, like all other functions.
Since many of these business objectives affect the company’s financials, they should understand the key financial priorities listed in the Income Statement. Understanding these financial priorities and the various business objectives will provide a quantum leap in your business acumen and allow you to meaningfully interact with other executives on these business matters without necessarily having to discuss the HR aspects of them … business person to business person, and not HR person to business person.
