commerciality

5 HR mindsets for the future (and right now)

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1) Adaptability – HR has been built on creating fixed structure and immobility. That’s where we used to add value, but no more. The frustration that we hear in a lot of organisations is that the world is demanding more flexibility and yet the profession is slow to catch up. We need to be more adaptable, able to turn our hands to anything and make decisions based on the immediate circumstances that face us, to help our businesses move forward.

2) Tech Savvy – I can’t repeat this too many times; if you don’t understand technology then you’re going to find yourself obsolete pretty damn quickly. It isn’t a case of being an expert, although having some coding experience in your team is never going to hurt. Our experience as human beings is increasingly influenced by technology, so if you want to be in HR you need to understand that experience.

3) Commerciality – Before I lose you….I’m not talking about the stupid linear relationship that most people draw when they talk about HR and commercial reality. I’m talking about the big global issues that you need to understand to help your organisation navigate the next ten or twenty years. Demographics, pension legislation, immigration and emigration, skills and education. Changes in FX rates, inflation and interest rates. You’re on top of them right?

4) Creativity – If we are going to adaptable, tech savvy and commercial then we sure as hell need to be creative too. We too often look down our noses at creativity and view pragmatism as the holy grail of HR. Remind me the last time you went to a party and talked to your friends or family about this amazing piece of pragmatism. Then ask yourself the same question about creativity. It matters.

5) Connectivity – Our ability to see inter connections, relationships, to look inside and out and see how things relate, to understand the impact of one element of practice on another is critical. Our ability to think systematically and understand that neither our organisations nor our practice can operate in isolation. We need to be the organisational glue, not the institutional porridge.

Can you make the case?

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There are two truths that I’ve learnt through blogging:

– If you write enough words the statistical odds are, that at some point, you will land on something that makes sense.

– If you reread that particular “thing” enough times, you’ll wish you wrote it slightly differently.

On this occasion, the specific phrase is one that I wrote in January 2013,

“We need to accept that you don’t get influence through control, you get influence through other people’s positive experience of you. Get influence through people wanting you involved not by telling them you have to be.”

Fast forward two and a half years and I’m sitting with some fellow HR Directors listening to the Conservative “political beast”, Kenneth Clarke MP, speaking about the challenges of winning the debate on continued involvement in the European Union. Critiquing the state of current politics, one particular statement he made really stood out (and I probably paraphrase a little),

“We used to look at the opinion polls and think, ‘how do we win the debate and convince people our arguments are right’, but now we look at the polls and say, ‘let’s do what they want’.”

In some ways, I think this is an argument that the HR profession needs to heed and particularly when we think about how we use data and analytics as a force for good work and organisational performance and success.

There’s a lot of pressure within organisations for HR to do what the “voters” want, and this has undoubtedly been one of the biggest weaknesses of the drive for HR to be more, “commercial”. Being truly commercial is more about leading the debate than it is following opinion, it’s about having a strategic direction and understanding the steps that need to be taken to achieve it, it’s about cohesive “policy making” and having a view.

One of the things that we overlook in our discussions on data and analytics is the, “so what?”. We can have all the data in the world, but what if it indicates something that is against the prevailing mood of the organisation or the leadership team? What then? Do we have the influencing skills to really carry the debate forward?

The fact is that data is only half the argument, how we use it, how we create the experience of the profession that positions us as experts of everything relating to the employment experience and how we develop the platform of knowledge and insight is as important as the data itself.

Sometimes, as in politics, we’re going to need to be brave and take forward an argument, a belief, a perspective that won’t be immediately welcome or in line with the prevailing opinion. At that point, we’ll test our ability to use insight and data to win the debate and convince people our arguments are right.

That’s when we’ll truly test our mettle and our organisational worth.

The focus of HR isn’t to be commercial: Day three of #cipd2012

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A time for some final conclusions from the CIPD conference, before I jump on the train and head back to the world of work, emails and slightly irate family members wondering why I’ve been living it up in Manchester. Living it up is probably too grandiose a term, but from the time of some of the text messages I received last night/this morning, there was a party going on…..somewhere.

Anyway, I digress. Back to the matter in hand. Or the matter that should be in hand, but strangely isn’t. And by that I mean, the standard of our profession.

It seems almost a lifetime ago now that I was watching Gary Hamel on stage as the opening keynote to the conference. Gary was inspirational he was challenging. he built on the opening address from Peter Cheese. They both talked of setting a high bar for the profession, of re-engineering our purpose for the future world of work. It was heady stuff and long overdue.

But so much of what I’ve seen and experienced since then has reminded me how far we have to go. Slipping back into our comfort zone of process and procedure, of task and activity, of compliance and control. I attended a session yesterday entitled, “Commercially focused HR Business Partners” partly because I wanted a laugh and partly because I’m kind of curious about why we are still having this particular conversation. I wrote about “Commercial HR” a while back for the kind people at XpertHR. You can find that series of posts here. I also had a great conversation with FlipChartRick about this and his experience of another session, “How can HR improve its influence with the Board” and he has written a post about it here.

The thing that strikes me most is this; we should be bringing something unique to our organisations, something that other departments can’t bring and which outsourcing can’t do more cheaply. At the session on Commercial HR, I asked a question of the speakers – whether the debate about commercial HR wasn’t actually defunct and redundant and shouldn’t we talk about values led and culture led HR instead? The general consensus was that yes it was….and then they went back to discussing “commercial HR”. You see, I don’t understand how anyone can get any joy out of work without being interested in the operation of their organisation, the purpose, intent and performance. It would be like driving a car without looking out of either the windscreen or in the mirrors. In order to be of any sort of use, you need to be commercially aware, but that isn’t the same as being commercially focussed.

As Rick points out in his post, “you don’t need to do the CFO’s job but you at least need to learn his language”. Correct. You don’t need to try to outdo the experts in the room, but you do need to understand the conversations that are going on and be able to contribute. However, our focus should not be commercial. It should be something else that brings something new to the table. Can you imagine how things might have been different in some of the companies that have recently encountered “credibility” issues if they had experienced a strong voice talking about the importance of values, culture, integrity and sustainability? What is they had experienced someone working with the senior team and coaching them on tackling their challenges in a different way? Both because they understood the business, the challenges but also because they brought a different angle, a different approach to solving them?

I don’t buy this constant banging on about being commercial. I’ve never been anything else and nor have the people who I’ve recruited into my team and have worked with. I get that there are HR professionals out there that aren’t and they will never be successful, but it isn’t and shouldn’t be the focus of our profession – it is a pre-requisite to being a good business person. Our higher purpose, our contribution should be something else. Our focus should be on performance through people and the culture, values and leadership of our organisations. Really, it should. Trust me.

Create value

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If you had to rank the professions on their level of creativity, where would you rank the HR profession? Probably somewhere on the continuum between accounting and marketing, probably closer to the former and further from the latter.  Creativity doesn’t figure highly in any core competencies I have ever seen and the nearest that we get is the more “business acceptable” innovation.  Somehow creativity feels soft, it raises images of artists and writers and nebulous concepts, whereas we of course want to look hard and mean and commercial and worthy of the much vaunted “seat at the top table”.

Of course, we deal in a world full of commercial imperatives that cannot be denied.  Most of us work in businesses that either need to make a profit, balance the books, or make savings regardless of the sector.  The question is not the what, but the how and creativity is a much undervalued tool in the drive for commercial solutions.  We need an answer, we look to past experience, to other businesses and to the HR press seldom do we look at our business, look inside ourselves and search for a new or different way. A way that is bespoke to our business and provides a competitive edge.

I’d suggest the first step any HR professional should ever take in considering a solution is to ask what the real problem is and only then to consider whether a solution is actually required and why? What value will it add? Is this driven by business need or by some other force.  What is the least intervention that would solve the problem and how does it fit culturally with the way that the business behaves?

Creativity requires you to be brave. It requires confidence and self belief and a willingness to plot a unique course.  But it also requires a closeness and in-depth understanding of your business and a desire to make a difference. Being creative isn’t the antithesis of being commercial. It is the start.