HR Magazine (08/12) Vol. 57, No. 8, P. 57 Lawler, Edward E.; Boudreau, John W.

HR practices will need to change if HR professionals are to rise to the occasion and address their organization’s talent management issues such as knowledge management, change management and capability building. HR professionals can add value by providing administrative support services; serving as business partners who help to implement business systems and practices; and becoming strategic partners who help corporate leaders develop business strategy. However, senior HR and other executives from more than 200 U.S. corporations were repeatedly surveyed on HR operations and effectiveness from 1995 to 2010, and the results indicate that HR executives are largely administrators and, on occasion, business partners. In order to handle areas that are critical determinants of organizational performance, HR might need to develop better metrics and analytics by using efficiency, effectiveness and impact to connect decisions about resources such as money and customers to organizational effectiveness, as well as to understand HR measurement. The survey shows the most effective HR functions assess their organization’s readiness to implement different strategies and have data-based talent strategies integrated with the business strategy, which enables them to make rigorous data-based decisions about human capital management and to engage in discussions with senior executives based on business strategy and data. Although there is little indication that HR professionals are linking business strategy with talent management, the challenge presents a tremendous opportunity for HR leaders to improve their status and responsibilities.

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EDSI Commentary

The new role of HR is as a business partner for the talent development and management team.