· Features

HR needs to ascend to the strategic engine room

The ongoing climate of economic austerity has changed the world of work, fundamentally altering the priorities and methods of organisations as they struggle to thrive, or even just to survive. That change has been felt across all functions, but the wide range of people challenges this tough environment creates has put the pressure squarely on HR departments tasked with generating additional value out of people.

Now, more than ever, HR professionals are expected to deliver 'more with less', and many simply won't succeed, especially if they rely on outmoded methodologies and models. The days of 'straight line' job descriptions within highly structured, ordered departments are almost over, with more fluid models required to match the speed and scale of change.

While there are some unquestionably valuable elements of best practice to be carried over from the past, reliance on historically-popular models might have impaired the ability of HR professionals to show flexibility, adaptability and entrepreneurialism - all characteristics needed to design, implement and embed change in the new normal.

In large and even medium sized organisations, for example, there is a growing movement toward HR centres of excellence working with local business unit HR departments. This model allows enterprise requirements to be more closely adapted to business needs. The level of flexibility and responsiveness this brings with it is the cornerstone of the new HR landscape.

To explore that landscape, Green Park, in partnership with Henley Business School, set out to identify and define the key elements of successful HR provision required in today's exacting environment. The results were clear: our new world demands a different set of skills, a new way of approaching challenges and an appreciation of the big picture.

Throughout the research project, a number of 'capability gaps' were highlighted, with four major themes commonly recurring.

The first of these is an old favourite. Over the years there have been many calls for HR to have a genuinely influential presence at board level. But now it's an imperative, rather than a 'nice to have'. The HR function needs to ascend to the strategic engine room, offering 'organisation-level' solutions rather than piecemeal strategies that sit across parts of an organisation. There is a compelling need for a stronger focus on business priorities, with HR priorities driven by business drivers. It sounds easy, but the reality is that a large proportion of HR departments are somewhere around six months to a year behind the strategic focus of the organisation.

Following on from that, HR departments need to be realistic and flexible. The current environment is not the time for rigid five-year plans: it demands more relevant activity with shorter, more measureable ROIs. Every HR pound spent needs to trace a straight line back to value - which is where flexibility and on-the-ground HR presence will be required to drive improvements and efficiencies at local level. Put simply, everything needs to save or make money, or perhaps more correctly, deliver sustainable value.

Of course, while we are embracing more fluid, responsive models, it isn't a case of throwing out all the learning, best practice and principles of the recent past. Many still remain valid and applicable, particularly in the foundations of HR infrastructure, communication, and implementation. Getting those vital basics right and using established models, or parts of them where relevant, is the crucial foundation to HR effectiveness. It's about mending holes below the waterline before talking about strategic partnership and future investment in capability. Essentially, this is about a greater need for pragmatism in an extremely challenging environment.

Finally, there needs to be a widespread move toward what we call pragmatic commercialism: professionals will have to learn to operate in a context where there are constantly shifting priorities as organisations adapt to survive, or to pursue opportunities. It's difficult to feel you're acting without a detailed roadmap, but it's the world we now live in. At the same time as they're dealing with ambiguity, and demonstrating adaptability, people will also need to improve their decision-making processes and make swifter, more accurate judgments. It's that pragmatic commercialism that will ensure HR professionals are at the forefront of driving their organisations forward.

While the economy is presenting an extremely tough environment for professionals in all sectors and functions, it's also a compelling chance to proactively engage and deliver at strategic level. The best HR professionals are already thriving in the new climate, and the future holds both challenge and opportunity in equal measure.

Raj Tulsiani (pictured) is co-founder and CEO of interim management company, Green Park