New skills needed to become the catalyst for change in the workplace.
Just as many HR executives are making it to the “executive table,” the bar is being raised. Studies of leadership capability have concluded that to be effective, HR executives must be engaged as “full” senior members of executive teams — as significant contributors at the executive level.
Unfortunately, a recent survey by international assessment firm Management Research Group found that most HR executives lack the competencies needed to be a successful executive leader in today’s organizations. The report, HR Leaders at the Crossroads, polled more than 25,000 business leaders and managers worldwide, and concluded that most HR executives are not sufficiently visionary, innovative, risk taking, hard driving, independent or results oriented.
The research has shown that the competencies of most HR leaders do not align with the competencies expected of senior executives today. It was noted that HR leaders are hampered by a reluctance to push vigorously enough to achieve results. To be effective HR executives need to see the big picture and create business impact as well as being a forceful advocate for doing things differently even if it means challenging the rest of the executive team.
There is no question that some of the traditional competencies are still important to be successful in HR leadership roles. However, some new competencies are becoming critical for organizations to be successful in an increasingly volatile global economy and in winning the war to attract, retain and manage talent.
What are the critical competencies? Although space does not allow the exploration of all of the key competencies, there are some of note that are rapidly gaining prominence.
Business acumen and leadership
HR professionals have been historically criticized for not understanding the businesses they serve. To be a full contributing member of the executive team, an HR executive must understand the businesses of the organization. Business acumen is being knowledgeable about the trends, issues, challenges, competition and strategies of the organization’s various businesses. The HR executive demonstrates business acumen through the ability to customize HR practices and services to align and support changing business needs of the organization. It is also demonstrated through the HR executive’s critical leadership role of managing the communication of the organization’s vision. Engaging staff today involves vigorous and visible senior leadership that regularly helps employees understand how they contribute to achieving the organization’s mission and vision. Employees also need senior leadership to explain how the organization is responding to the current challenges and opportunities.
Championing effective change
Too often HR has been viewed as a barrier to change by playing the role of “corporate police.” In the dynamic socio/economic environments buffeting organizations today, HR must become the catalyst not the barrier to change.
Senior HR professionals need competency in change leadership. This includes helping an organization “un-learn” its traditional culture, myths and practices that have become barriers to progress. HR executives are uniquely positioned to provide senior leadership in innovation management, particularly in organization, process and work redesign.
Culture management
Historically work cultures evolved slowly and under the influence of the shared behaviours and attitudes of long-service employees. Today, organizations need the capability to actively shape work cultures to align with organizational priorities. HR executives need competency in identifying and challenging inappropriate aspects of the work culture. A related competency is organizational agility, which involves being knowledgeable about how the organization really works, the organization’s culture and the informal structure.
A change in focus for HR negotiation skills is also required. Today, the goal of negotiation needs to be on “getting to yes” in a way that produces an effective solution and helps the groups improve their working relationships.
Confrontational labour relations negotiation skills need to shift towards collaboration and resolution of differences.
Measurement capability
Skills in quantitative and qualitative measurement methodologies have become critical. HR credibility is increasingly dependent on the ability to measure the range of HR contributions, the impacts of people management policies and programs, the consequences of investments in staff and the value that people and teams bring to organizations. HR needs to develop the capability to measure the organization’s return on its investments in the workforce.
Technology utilization
Almost every organization is rapidly becoming technology intensive and technology has become critical in virtually every organization. With every employee impacted by technology, HR executives need to be knowledgeable about the technologies used within their organizations, as well as the people, cultural, health, process and organizational impacts of technology in the workplace. Since HR processes themselves are information intensive, HR needs to demonstrate leadership through the effective use of information technology in every HR process and practice. In addition, HR professionals need to be competent in assessing how to effectively apply, deploy and leverage technology to enhance the productivity of staff.
Knowledge and information management
As the breadth and intensity of intellectual work increases in organizations, HR professionals need to develop competency in knowledge and information management. HR executives need to understand the broad range of implications for organizations increasingly dependent on the expertise of staff. Increasing competency in organizational learning, knowledge and information management is critical to the future success of HR.
HR’s opportunity
HR executives have the potential to be vital and substantial contributors to organization success. The HR executive can contribute through coaching fellow executives in enhancing their own leadership and managerial skills, facilitating effective change, enhancing organizational performance, winning the war for talent, and through personal leadership. HR executives also need the competencies of line executives while aligning the organization’s business and people management practices. Along with the Chief Human Resource Officer hat, HR needs to be the organization’s Chief Work Officer.
Brian Orr is managing director of OrgArchitect Inc. He can be reached at (416) 453-8633 or [email protected].
Unfortunately, a recent survey by international assessment firm Management Research Group found that most HR executives lack the competencies needed to be a successful executive leader in today’s organizations. The report, HR Leaders at the Crossroads, polled more than 25,000 business leaders and managers worldwide, and concluded that most HR executives are not sufficiently visionary, innovative, risk taking, hard driving, independent or results oriented.
The research has shown that the competencies of most HR leaders do not align with the competencies expected of senior executives today. It was noted that HR leaders are hampered by a reluctance to push vigorously enough to achieve results. To be effective HR executives need to see the big picture and create business impact as well as being a forceful advocate for doing things differently even if it means challenging the rest of the executive team.
There is no question that some of the traditional competencies are still important to be successful in HR leadership roles. However, some new competencies are becoming critical for organizations to be successful in an increasingly volatile global economy and in winning the war to attract, retain and manage talent.
What are the critical competencies? Although space does not allow the exploration of all of the key competencies, there are some of note that are rapidly gaining prominence.
Business acumen and leadership
HR professionals have been historically criticized for not understanding the businesses they serve. To be a full contributing member of the executive team, an HR executive must understand the businesses of the organization. Business acumen is being knowledgeable about the trends, issues, challenges, competition and strategies of the organization’s various businesses. The HR executive demonstrates business acumen through the ability to customize HR practices and services to align and support changing business needs of the organization. It is also demonstrated through the HR executive’s critical leadership role of managing the communication of the organization’s vision. Engaging staff today involves vigorous and visible senior leadership that regularly helps employees understand how they contribute to achieving the organization’s mission and vision. Employees also need senior leadership to explain how the organization is responding to the current challenges and opportunities.
Championing effective change
Too often HR has been viewed as a barrier to change by playing the role of “corporate police.” In the dynamic socio/economic environments buffeting organizations today, HR must become the catalyst not the barrier to change.
Senior HR professionals need competency in change leadership. This includes helping an organization “un-learn” its traditional culture, myths and practices that have become barriers to progress. HR executives are uniquely positioned to provide senior leadership in innovation management, particularly in organization, process and work redesign.
Culture management
Historically work cultures evolved slowly and under the influence of the shared behaviours and attitudes of long-service employees. Today, organizations need the capability to actively shape work cultures to align with organizational priorities. HR executives need competency in identifying and challenging inappropriate aspects of the work culture. A related competency is organizational agility, which involves being knowledgeable about how the organization really works, the organization’s culture and the informal structure.
A change in focus for HR negotiation skills is also required. Today, the goal of negotiation needs to be on “getting to yes” in a way that produces an effective solution and helps the groups improve their working relationships.
Confrontational labour relations negotiation skills need to shift towards collaboration and resolution of differences.
Measurement capability
Skills in quantitative and qualitative measurement methodologies have become critical. HR credibility is increasingly dependent on the ability to measure the range of HR contributions, the impacts of people management policies and programs, the consequences of investments in staff and the value that people and teams bring to organizations. HR needs to develop the capability to measure the organization’s return on its investments in the workforce.
Technology utilization
Almost every organization is rapidly becoming technology intensive and technology has become critical in virtually every organization. With every employee impacted by technology, HR executives need to be knowledgeable about the technologies used within their organizations, as well as the people, cultural, health, process and organizational impacts of technology in the workplace. Since HR processes themselves are information intensive, HR needs to demonstrate leadership through the effective use of information technology in every HR process and practice. In addition, HR professionals need to be competent in assessing how to effectively apply, deploy and leverage technology to enhance the productivity of staff.
Knowledge and information management
As the breadth and intensity of intellectual work increases in organizations, HR professionals need to develop competency in knowledge and information management. HR executives need to understand the broad range of implications for organizations increasingly dependent on the expertise of staff. Increasing competency in organizational learning, knowledge and information management is critical to the future success of HR.
HR’s opportunity
HR executives have the potential to be vital and substantial contributors to organization success. The HR executive can contribute through coaching fellow executives in enhancing their own leadership and managerial skills, facilitating effective change, enhancing organizational performance, winning the war for talent, and through personal leadership. HR executives also need the competencies of line executives while aligning the organization’s business and people management practices. Along with the Chief Human Resource Officer hat, HR needs to be the organization’s Chief Work Officer.
Brian Orr is managing director of OrgArchitect Inc. He can be reached at (416) 453-8633 or [email protected].
