Enable growth and minimise risk what could be simpler?

18 Jul 2011
Has HR a future? Are CEOs lying awake at night worrying about it? Are the folks in Marketing, IT and Finance worrying about the future of their respective professions? Or is it just us HR guys and gals who spend time on it. The answers, from my corner of the world are: Yes, No, Ive seen no evidence of it and Yes. Might well I trumpet that HR has a future, because Im biased. I think that HR is one of hardest roles in any organisation. If it was easy, everyone would want to do it. Its hard because HR, when done well, is almost as broad a role of as that of a CEO. The really good Heads of HR lead their teams to appreciate and understand all aspects of an organisation, all the functions, and how they all fit together to ensure achievement of organisational goals. Just like a CEO should. To me, really good HR reaches into all aspects of an organisation and has influence up and down and across. To do that, and do it well, requires special capabilities, and at the core is the capability to ensure that any decision which impacts people either enables organisational growth or minimises risk or and this is where the really great are separated from the pack it does both, at the same time. Thats why I think HR has a real future. Balancing the drive for growth against the ever present element of risk are the two main issues confronting organisations today, and any function which can have impact on one or both will be valued. Those that dont will be disbanded. So the challenge is clear for Heads of HR and their teams: To continue to be valued and have influence means that every HR strategy, policy, process, endeavour, decision, idea and activity must be able to clearly demonstrate its impact on growth and risk. Anything that does not meet these simple criteria has no place in HR of the future. Well, thats what we have to do. The big question is How to do it. And those who do the How piece better, will reap the rewards. HOW it is done will differ from organisation to organisation but for now, heres my basic seven starting points: I call them the Seven Strategic HOWS of HR. 1. Clarity of Vision and Purpose: Define what HR is in your organisation, what it does and what it does not do. 2. No Fads! Align HR outcomes with organisational priorities:

Establish a Fad Free Zone in your HR function. Align strategies, priorities and capabilities with the organisations needs and focus on deploying the limited resources where they will make the largest impact on the success of the organisation. 3. Add visible, useful value to all decisions which impact people: Develop value added decision support tools and use metrics to tell the narrative. 4. Be Highly Capable and Credible: Develop high calibre business oriented, Personally Credible HR Professionals, and be one yourself. 5. Watch the Future: Be prepared, particularly regarding governance, ethics, social responsibility, social media and knowledge management. 6. Dont Boil the Ocean: Less is always more. Go for the quick, quality-laden wins. 7. Its Time: It is time to: Stop professing and start being professional business leaders. Add value not write value statements Build competitive not comfortable organisations Be proactive, not reactive Act, not be acted on Perform, not preach Deliver outcomes, not dialogue Set Strategy, not procedures

David Burrell is the founder of LDKS Consulting and works with CEOs and senior HR professionals on Strategic HR, succession and career planning and leadership performance.

Sustainability & HR: A 3-D approach

HRM 17 Jun 2011
Sustainability involves people or human resources, capital or financial resources, natural resources, institutions, and the environment. Sustainability, in short, can be defined as the integration of three core elements:

1. economic growth or financial performance, 2. social responsibility or progress, and 3. environmental performance of a corporation. Many understand sustainability is critical to future-proofing the corporation. The underlying challenge is developing a sustainability-oriented organisation. In developing a sustainability-oriented organisation, there are three major challenges: 1. the lack of consensus on what sustainability means, 2. the lack of shared understanding and commitment on sustainability across the organisation, and

3. the lack of imagination in achieving a sustainable future. HR can play a pivotal role in addressing these challenges by adopting a 3-D approach. As the challenges of developing a sustainability-oriented organisation are highly complex, multi-faceted and multi-dimensional, it is appropriate that HR view sustainability from a 3-D perspective: 1. 1-D think again, 2. 2-D think across, and 3. 3-D think ahead. The first challenge is the lack of consensus on what sustainability means (and the variations in motivation). Sustainability is a many-splendored thing, like a rainbow, with a whole range of meanings and different shades and hues. As there are different shades of green, there are also different shades of sustainability. Some corporations are concerned with all three core elements of sustainability while others are concerned with one or two core elements, focusing more on economic or financial performance and/or social responsibility. Some corporate leaders are of the view that companies can only be socially responsible when they are financially sustainable. Other business leaders think that sustainability is a great PR and marketing tool.

In a recent study of the top 100 US corporations report on sustainability by Alexandra Rousseau, there was significant variation on what sustainability means. Here, HR can help organisations adopt the 1-D perspective to think again (rethink) what it means to be a sustainability-oriented organisation (and the driving force behind it), and to achieve greater consensus among all the key stakeholders. The second challenge, which is closely related to the first challenge, is the lack of shared understanding and commitment on sustainability across the organisational hierarchy. Sustainability is not equally understood, and the commitment to sustainability is not equally shared across all levels and functions in the organisation. HR can help organisations adopt the 2-D perspective to think across, by fostering stronger alignment and closer integration of sustainability across the organisation. HR strategies systems, policies and tools can help connect the dots, and build shared cross-level and cross-functional understanding as well as accelerate stronger commitment on sustainability across the organisation. The third challenge is the lack of imagination in achieving a sustainable future. In order to develop a sustainability-oriented organisation, it is important to think again and think across, in addressing the first two challenges. However, to develop a truly sustainability-oriented organisation, it is even more vital to think ahead, that is, to adopt the 3-D perspective in envisioning what the sustainable future holds for all stakeholders. HR can help organisations think ahead, and in the process, help create a sustainability-oriented culture that will attract, motivate, and retain talents that ultimately become the source of sustainable competitive advantage.

Associate Professor Joo-Seng Tan Dr Joo-Seng Tan is Associate Professor of Management at Nanyang Business School, Nanyang Technological University Singapore. Hes actively involved in human resources consulting, global leadership training and development, and executive education. Hes been Chair of the Cornell-Nanyang Institute of Hospitality Management (CNI) Human Resources Thought Leaders Roundtable.