Over the last few days, two pieces have appeared in HBR, about the change agenda for HR. One is written by Ram Charan, which talks about splitting HR, while the other, written by Cathy Benko and Erica Volini, about what it will take to fix HR. At the most fundamental level, both these pieces acknowledge the fact that there is a problem with the HR function in the organization. And since they agree on that, they also agree that something needs to be done about it. And thats where, more or less, they move in different directions, as you would see from the blogs.
Lets step back, and take a look at some of the reasons why these problems are there, coming from the perspective of HR practitioners. The first aspect we need to understand is that in today’s world of business, with a steady level of complexity, and increasing levels of disruptive changes, HR managers need to understand details of the business, both internal and external to the organization. Only then can HR managers play a meaningful role in defining organization strategy. In other words, HR managers need to be at the confluence of business management, and people management. However, most of the HR practitioners I talk to are nowhere close to this point. Most HR practitioners are generalists, and not SMEs when it comes to business operations. This means that they need to take guidance from business managers, and formulate practices based on this guidance.
Because that might sound a bit abstract, let me take an example. Lets say a business manager decides that there are some skills lacking in his team. The manager would reach out to the L&D team, tell them what type of training is required, and the L&D team would search through a catalogue, identify the training, and execute the logistics to deliver the training. The L&D team, in this example, has no understanding of the reason for the training requirement, the objective that is to be met, or the outcomes that should come out of the training for participants. In this scenario, the team is essentially fulfilling requirements, rather than giving strategic inputs into the forecasting of medium- to long-term training needs, how these would help address business objectives, and address employee development.
To summarize, it is at the intersection of business and people management that there is a gap, and filling this gap is the need which needs to be addressed. To address this, we need people who have a sound understanding of the complexity and challenges of business, and how people practices can help to address those challenges and meeting that complexity. Whether this is to be achieved by splitting the HR function, I dont know, though the debate throws up more questions than just that. It raises the point that I am talking about here … that in stead of HR practitioners only taking guidance and fulfilling requirement, HR practitioners need to be in a place where they can add strategic value, and that this requires a change in the way HR managers look at the intersection of business management and people management.
This one is something probably a lot of folks wont agree with. Something that sounds logical, and yet, something which is quite contrary to the popular picture we have built today. The idea that humility is a greater gift for leaders than arrogance is. Something I have read, and thought about before, and something which came up again in this article. The popular picture seems to equate arrogance with getting things done, and somehow, the assumption seems to be that leaders who are more humble dont command respect, that people dont look up to them. This, in my experience, isnt true, though we still hold on to this notion in spite of many case studies, personal experiences, and plenty of research.
The importance of humility is underlined by the business environment we are operating in. In the past, when business environment and markets were more static, leadership wasnt too complex a subject, but today, as forces working on a business, both external and internal, strategic or structural are far more diverse, the information and skills required by a leader to understand, assimilate, analyze, and act upon these is humungous. Its just not possible for many people to be able to do this, and that too, in double quick time. This is why, a leader needs the ability to be able to let go, so to say. To summarize, a leader needs to:
- Understand that they dont necessarily have to understand all the dynamics and analyze their impact on the business.
- Be able to accept that they need to rely on the advice of experts who are far more capable of handling these.
- Build a team of capable, motivated people to support the decision-making.
- Listen to the advice of these experts, even if the leader doesnt like it.
- Learn to accept advice, and act upon it, while at the same time taking ownership of the advice.
All of this requires tremendous humility, as this requires the leader to accept their limitations, and to listen to, appreciate, and accept viewpoints of others. This also requires leaders to understand the importance of continuous learning, which is an important ingredient to continuous improvement. Most importantly, this requires the leader to let go some influence. All of these require humility in large doses.
Over a period of time, the concept of Talent Management has become a hot topic in HR circles, and many people are talking about the idea. However, I dont quite know any two sources which give the same definition of Talent Management. A number of things I have read include:
- Talent Management is strategic while HR is transactional
- Talent Management is about retaining high-flyers while HR is for lesser mortals
- Talent Management is about managing skills while HR is about managing the policies related to people
- Talent Management is old wine in new bottles
- Its a term coined by clever management consultants to make a quick buck (no I havent read that but thats always a pet theory of quite a few people, isnt it?)
Are these true? I dont quite think so. To some extent, I feel Talent Management is the natural progression from the HR philosophy. Essentially, I feel the difference between HR and TM are more to do with how the organization looks at its main asset … people! In the earlier, HR world, people were one of the factors of production, and of creating value for the organization in a sort of undistinguished way, somewhat (though this is not exactly an accurate parallel, but just to create an illustration) like one machine is interchangeable with another machine, and none the wiser.
TM is based on the understanding that each individual is a distinct one, and each one has a distinct personality, a particular set of talents and skills, aspirations and potential which is unique to each one, and so, need to be treated iondividually. This means that the growth needs, based on their aspirations, would be different for different people, which means that development plans, both in terms of skills development and individual growth in the organization need to be tailored to the individual needs of the particular person. And this, I feel, is the primary difference between TM and HR.