“This Isn’t Your Mama’s HR”

Does HR Need an Identity Crisis?

I just had the pleasure of reading Keith A. Hammonds’ 2005 cover article for Fast Company, “Why We Hate HR.” I know, I know, you are probably wondering what rock I have been living under for the past three years? 

In my defense, I was in graduate school then and didn’t have time—or interest—in reading about HR. Having been a business consultant advocating the outsourcing of HR for a while now, I concur with every reason Hammonds gives for the average employee’s so-labeled hatred of HR.

The sad thing is, not a lot has changed since that article was written, especially in the small-to-medium-sized businesses I work with; not to mention corporate America. The solution to this corporate “axis of evil” now affectionately referred to as “HR,” is an identity change. In other words, I believe HR departments everywhere desperately need to have an identity crisis—the sooner, the better! 

Let’s Help HR Get Out from Mama’s Shadow

So, if HR is going to get out from under its Mama’s shadow and create its own identity, how is this revolution going to happen? Well, it starts in one place, and that is in the corner office.

As a business consultant, I have learned a great deal from other small-business owners and their stories. In fact, many business owners have invited me to visit with them in their corner offices to discuss HR strategies. When we talk about HR and how it can potentially affect their bottom line, they’re the first to admit; they can no longer sit back and giggle about the HR hate mongering expressed in Hammonds’ article on the golf course or at the spa anymore.

As a small business owner, you realize that the greatest truth to emerge from Hammonds’ article is that true HR professionals need a place in the boardroom. This brings me back to my idea in the opening paragraph—HR needs to have an identity crisis and the Business Owners of America have got to kick this crisis into gear—pronto!

Let’s Have a Productive Crisis

Based on my business-consulting experiences and educational background, in order to have a productive identity crisis, you have to:

1. acknowledge there is a problem;
2. decide what your goals are to alleviate this problem; and
3. strategize your identity to accomplish them.

So let’s acknowledge the problem of Your Mamma’s HR mistakes and work to avoid them---post identity crisis.

These mistakes are clearly outlined in Hammonds’ article, but I will summarize what I think they are here: 1) Your Mamma’s HR is too busy paper-pushing to understand the employee needs of the company. 2) Your Mamma’s HR does not recognize that successful and productive businesses do directly attribute that success and productivity to having the top talent in their industry. 3) Your Mamma’s HR could not define nor implement the true meaning of “strategic HR.”

 First Step

Okay, now we know what not to do.  So, what is the first step towards Your Mamma’s HR becoming the Strategic HR adult we all know it has the potential to become? Again, Mr. or Ms. Business Owner must start the process.

Now that you have given this strategic-HR straight talk some thought, Mr. or Ms. Business Owner, what are we going to do about it?  I respect the risks you’ve taken in starting your own business and the investments you make in hiring people to represent you.  Now, I want to help you make sure those people develop into the most talented and productive employees ever employed.

Let’s Take a Deep Breath and Then . . .

You need to reassign the HR department employees according to their talents and outsource the administrative duties they handle: medical benefits, 401(k), recruiting, general training and development, payroll, etc. (If you are looking for the best company to do that, shoot me an email. I am happy to give a recommendation.) Once the administrivia, or the responsibilities formerly known as “HR”, are taken care of, reassign those people to other positions within your restructured organization.  

Voila, instant identity crisis. I don’t care what titles you give their new positions; just make sure you have the best people in place for this new area of responsibility—talent productivity management.  I further recommend that you appoint these reassigned-group leaders to places in the board room—they are going to be that valuable of an asset to you and your company.

Second Step

The key performance indicators (KPI) of these reassigned people are simple—increase the company’s bottom line through measurable human capital management. For example, your new TMO (Talent Management Officer—it’s a working title) needs to validate at each board meeting—by presenting hard numbers—that they are maximizing the talent and productivity of your employees.

Say for example, after reviewing these hard numbers, you determine that Bobby’s department has experienced a 75 percent turnover after six months. That turnover is then traced to a 7 percent increase in product damage.  

Then the TMO needs to have a meeting with Bobby and his employees so they can strategize (there’s that word again).  Next, the TMO will develop ways to help these employees be the most productive and talented they have ever been.

Strategic HR Produces Results

During the monthly meeting, the TMO explains that as a result of that strategy session and its implementation, Bobby’s people improved their performance and they are producing successfully.  They show a decrease in the turnover numbers for Bobby’s department, as well as a decrease in damaged product.

Remember, too, that strategic HR is about directing leaders to coach and inspire increased performance levels. Obviously, Bobby had some responsibility for his department’s disappointing numbers.  In this case, my suggestion is that the TMO evaluates Bobby’s role in the team’s poor performance.

Then, the TMO needs to determine if Bobby’s leadership abilities match the position expectations or requirements. If the TMO thinks Bobby can lead his team to increased performance levels, the TMO charges Bobby with his next assignment.

Of course, you could have many assignments being strategically handled at any given moment by the new group who you have so intelligently appointed.  As you can see, planning an HR strategy and executing it with specific tactics are ways to demonstrate your HR vision.

Identifying Pain Produces Gains

Okay, I know I have barely scratched the surface here; but, I hope the point is made that HR needs to have an identity crisis—and pronto! I hope I also communicated that the responsibility for this crisis does not rest in the hands of Your Mamma’s HR alone, but also with the small business owner strategizing in the corner office, down the hall.

I just had the pleasure of reading Keith A. Hammonds’ 2005 cover article for Fast Company, "Why We Hate HR".