HR urgently needs to refocus its efforts to remain relevant in today’s business environment. A major study by the Corporate Research Forum, CRF, a membership organisation representing 120 HR directors, argues that HR is uniquely qualified to help the organisation develop a people strategy that delivers value to the organisation. Mike Haffenden, a CRF founder director, lists the six major challenges HR needs to meet for this goal to be achieved.

1. 1.    “HR needs to create the environment for people to flourish

• Work to improve  the organisation as well as the people
• Currently too much time is spent on “improving” people, and not enough on improving the context in which they work
• This is more difficult work and requires a new skill set based on principles of organisation development

1. 2.    “HR has to define its core processes and deliver against them

• Injecting more rigour into people processes, and co-creating them with ‘customers’ to ensure greater ownership
• Too much HR work is ill defined, with lack of stated outcomes or clear evaluation criteria
• Evaluation and measurement is an Achilles heel for HR and clear process definition will improve this
• HR’s thinking and initiatives need to be more joined up
• Processes need to be relevant, fit for purpose and organisationally distinct

1. 3.    “Management not HR is responsible for people management

• HR should be an enabler for effective people management
• clearer responsibilities for both the ‘line’ and HR should be defined  and a clear charter for “People Management” is required
• Serious work on people management skills – at all levels of management should be undertaken

1. “HR strategy is an integral part of business strategy

• A more compelling people strategy – embedded in the business strategy is required
• HR has to demonstrate its ability to input to the Business strategy
• All HR initiatives should support or be linked to the business strategy
• HR should follow the disciplines of the business planning cycle

1. 5.    “HR has a clear responsibility for Talent, Performance, Change and Operations

• Delivering accurate HR services
• Managing both incremental and transformational change
• Equipping organisations to be resilient, capable of reinventing themselves
• Building tomorrow’s leadership and expert talent
• Championing individual and organisation performance

1. 6.    “Enhancing HR leadership

• Capable of implementing a new vision for HR
• Taking on important roles in enabling top team effectiveness and better corporate governance – able to ‘hold up the mirror’ and guide behaviour
• Role modelling for HR leaders of the future
• CEOs need to know what ‘good’ looks like

“Whilst there is clear evidence in a number of organisations that progress is being made,” says Haffenden, “HR has much to do and few organisations can be listed as examples of ‘best’ practice.”

In reaching its recommendations, CRF consulted a spectrum of 40 senior managers, HR directors and thought leaders. There is, it says, no lack of ambition for HR to perform a valuable role in the organisation.

The full report, “Configuring HR for Tomorrow’s Challenges” is available only to CRF members. www.crforum.co.uk