| Human Resources, with its diverse internal and | | | | To fulfill a strategic business partner role, HR leaders |
| external customer base, the ability to touch all levels of | | | | must understand the organization's business. In addition |
| the organization and the legendary understanding of | | | | to fully understanding the business, HR must |
| the organization's environment could not be more | | | | understand the environment in which it operates, the |
| suited for the critical role of a strategic business | | | | competition, and the circumstances that could influence |
| partner. | | | | the progress of the organization. HR can no longer |
| In General Electric's recently published 2008 annual | | | | focus on its own internal tasks. It must be responsible |
| letter to shareholders, the CEO Jeff Immelt stated the | | | | for ensuring that HR's strategy, goals and priorities are |
| following: ".....The secret to all of these dimensions of | | | | driven by and aligned with the overall business needs. It |
| developing leaders is to have a great team of human | | | | must establish key business partnerships with senior |
| resource professionals. Enduring companies must have | | | | management, as well as key figures in other functions |
| a passion for people. GE has a great HR team that | | | | within the organization. Although the operational role of |
| protects our valuable human assets. I want to give | | | | HR, the day-to-day tasks required to run an |
| them special recognition this year...." For years, GE has | | | | organization are not strategic in nature, the |
| acknowledged the success of Bill Conaty, their Senior | | | | responsibilities must mirror the goals of the organization. |
| Vice President of Corporate Human Resources. Bill | | | | There needs to be a more integrated global |
| Conaty is highly valued for his continued contribution to | | | | company-wide process that considers how each of |
| the organization. His insight and input have been | | | | the HR programs can help move the entire |
| invaluable. In a 2004 article written by Anne Freedman, | | | | organization in the right direction. |
| Conaty himself stated: "I consider my real core | | | | In addition to HR increasing its own knowledge of the |
| competency and my value to the organization as | | | | organization and creating solid partnerships through |
| being a human resource leader, but without having the | | | | collaborative communication efforts, increasing its |
| business grounding, I don't think I would be an effective | | | | knowledge in other areas is extremely important to |
| HR partner." | | | | being a successful strategic business partner. HR must |
| Organizations that consider their employees to be the | | | | increase its knowledge of Finance and Accounting, |
| most valuable asset cannot afford to not have human | | | | Marketing and Sales, Operations, and Information |
| resources functioning in a true strategic business | | | | Technology and hone in on key business skills. Almost |
| partner role. Human Resource professionals are | | | | every activity in an organization can be referred to as |
| equipped with the knowledge, skills, and abilities, the | | | | a project. That is why it is important for professionals |
| talent to partner with senior leadership to not only be | | | | in HR to improve their project management skills. In |
| involved in the strategic management of the | | | | addition to project management skills, strategic HR |
| organization but drive the implementation of it. As | | | | business partners must fully understand the strategic |
| stated in "The 8 Practices of Exceptional Companies, | | | | planning process. HR must be able to manage change, |
| How Great Organizations Make the Most of Their | | | | perform environmental scanning, and understand the |
| Human Assets" by Jac Fitz-Enz, "Strategic plans must | | | | importance of outsourcing and the process associated |
| be laid on a core strategy, a solid wall of values. Core | | | | with outsourcing. Being able to manage technology and |
| strategies lead to strategic plans, organizational charts, | | | | measure the effectiveness of all company-wide |
| operating plans, quantitative objectives, and ultimately, | | | | programs and efforts are equally important. HR should |
| to specific human behavior and task performance." | | | | also be playing a vital role in leadership coaching, should |
| Business oriented HR professionals can help design a | | | | be responsible for implementing strategies to become |
| strategic plan that balances the needs of the | | | | an employer of choice, and should be responsible for |
| organization, its employees, and other stakeholders. It | | | | leading programs to safe guard your company |
| can help align the efforts of the various functions in the | | | | performance from external elements. |
| organization with the plan's strategic goals, and it can | | | | To summarize, Human Resource professionals touch |
| support those functions by ensuring that they can | | | | every level and every department in the organization. |
| recruit, develop, and retain the necessary company | | | | Due to the involvement across the company, |
| team members. HR, as strategic business partners | | | | employees at all levels get to know and trust the |
| should be the drivers of the organizations values thus | | | | members of the HR team. Because of HR's familiarity |
| the drivers of the strategic plan. | | | | with the change management process and human |
| HR should be made responsible for owning the | | | | capital development, successful companies benefit |
| leadership and employee development, as well as | | | | from having HR fully functioning in a strategic business |
| direct all communication efforts, especially as it relates | | | | partner role. If your company is not already doing so, |
| to the pulse of the employee population. Succession | | | | allow Human Resources to be represented in |
| planning is an area that a strategic HR business | | | | meetings along side other senior leaders. There is not |
| partner should be involved in. As discussed in "Good to | | | | a more suitable functional group within the company to |
| Great" by Jim Collins, having the right people on the | | | | be responsible for leading the development of strategic |
| bus, the wrong people off the bus, and the right people | | | | plans, implementing key tactics, and measuring the |
| in the right seats is the key element to the success of | | | | organizations success in executing its plan than Human |
| any organization - who better than to manage the | | | | Resources. |
| people process than a strategic HR business partner. | | | | |