I like quantitative data that provides empirical answers. But I also like qualitative data that enables me to investigate questions without clear answers. Recently, I was interviewing a new CHRO who came into HR with a systems and manufacturing background. As he reflected on his first 90 days as CHRO, he noted that HR folks seemed consumed with improving talent processes. He observed that they had developed many good disciplines for bringing people into the organization and helping them be productive. He said that he felt that they were 65 percent to 75 percent up the “S curve” of managing talent.
He also realized that the challenge in his organization was not about talent alone, but about building a culture. He shared that his organization was changing its business focus and merely getting good people into the organization was not enough; the organization needed to create a more adaptive culture. He believed the tagline “Culture eats strategy for lunch,” and he felt that HR should be the steward of culture as well as talent.
In the last 15 to 20 years, the HR profession has been shaped by remarkable work captured in the “war for talent.”1 Many have built systems for bringing people into the organization (sourcing, having a value proposition), moving them through the organization (development, performance management, engagement), and removing them from the organization (outsourcing).2 The war for talent was a great battle, but we now need to turn to victory through organization.
Talent is not enough. HR professionals need to establish organizations that leverage individual talent through collective actions. The whole organization should be greater than its separate parts. United states are stronger than individual states. Teams outperform individuals. Individuals are champions, but teams win championships.
I believe that in any business dialogue (being at the table), an HR professional can proffer three unique contributions:
In today’s rapidly changing business world, the challenge of building the right organization complements and supersedes the talent challenge.
The implication for HR professionals: While talent may be 65 percent to 75 percent of the way up the “S curve,” creating competitive organizations is likely only 15 percent to 25 percent up the “S curve.” As HR professionals bring similar rigor to organization as they have to talent and leadership, they will add even more value to their organizations. Through ensuring talent, HR enters the business game; through building organization, HR wins the business game. The wars for talent will be changed into victories through organization.
Read about the three-step process Dave Ulrich proposes for creating victory thorough organization in the full article at www.riseofHR.com.
1 Ed Michaels, Helen Handfield-Jones, and Beth Axelrod, “The War for Talent” (Cambridge, MA: Harvard Business School Press, 2001).
2 Justin Allen and Dave Ulrich, “Talent Accelerator: Secrets for Driving Business Growth in Asia” (Singapore: RBL Group and Ministry of Manpower, 2013)