The importance of understanding the business and speaking the same language
While technology can be an important aid in freeing up HR’s time, the function’s skills and approach need to change as well in order for HR to be a successful strategic partner to the business. As many respondents emphasised, understanding the business and being a central part of the organisation that works collaboratively towards a shared strategic vision and shared organisational goals is essential if HR is to be a valued discussion partner at a strategic level.
HR directors’ ability to operate as a strategic business does not solely rely on understanding the context and goals of the business; it also requires being able to communicate effectively with other senior internal stakeholders. By discussing problems and opportunities in terms of financial implications and risk profile, HR directors may find their conversations with the wider executive become more fruitful. Using data analysis and management information to support advice and decision-making is becoming ever more important in this context. The key is to avoid generating data for its own sake, but to use it as the basis for sensible decision-making across the business.
On the other hand, HR directors often feel the soft skills element of their role is important as well, but can struggle to convince the wider executive who may be more focused on the bottom line. Besides learning to better speak the language of finance and risk that the rest of the business employs, it is also HR’s challenge to teach the business the language of HR, and to show to the wider executive how the ‘softer’, human side of the function adds value to the business in a real and measurable way. In essence, there is a need to build mutual understanding between HR and the wider executive, to ensure that any differences in background or in short term focus are bridged in pursuit of the common goal of running a successful business.
“What makes people tick, how do we motivate people, drive performance, engage people, make leaders effective and make managers be good managers? HR needs to understand all of this and make sure we provide interventions, whether it’s coaching, learning, mentoring or something else, to enable businesses to understand the psychology of their people and leadership skills.”
Louise Fisher, HR Director, Xerox EMEA
“I often hear HR people talk about “the business” as if it’s something separate - but if HR don’t see themselves as the business then that’s a problem. They have to be interconnected, have proximity to what’s happening and really understand the industry they operate in, such as what drives it and what the levers are and what the economics of their industry are. Otherwise it’s like the team out on the pitch kicking the ball around but HR are still sat in the changing room wondering what the game is and why they’re not being invited to play.”
Jeremy Phillips-Powell, Group Director of Talent and Organisational Effectiveness, RSA
“HR functions have struggled to be credible round a board table and I think that is improving because the language which they use is becoming more relevant to businesses. … I think HR functions have got to understand the notion of value, they’ve got to articulate this sort of stuff at the right level and sometimes it’s hard. But I also think that they should build up very strong relationships with managing directors and leaders. I think if they can educate and help and get a dialogue, get a conversation going with the leadership team and help them understand some of the fun part of the HR function, some of the interesting elements, then you’ll find that you can break down those traditional barriers.”
Chris Burns, HR Director, Neopost
HR directors’ ability to operate as a strategic business does not solely rely on understanding the context and goals of the business; it also requires being able to communicate effectively with other senior internal stakeholders. By discussing problems and opportunities in terms of financial implications and risk profile, HR directors may find their conversations with the wider executive become more fruitful. Using data analysis and management information to support advice and decision-making is becoming ever more important in this context. The key is to avoid generating data for its own sake, but to use it as the basis for sensible decision-making across the business.
On the other hand, HR directors often feel the soft skills element of their role is important as well, but can struggle to convince the wider executive who may be more focused on the bottom line. Besides learning to better speak the language of finance and risk that the rest of the business employs, it is also HR’s challenge to teach the business the language of HR, and to show to the wider executive how the ‘softer’, human side of the function adds value to the business in a real and measurable way. In essence, there is a need to build mutual understanding between HR and the wider executive, to ensure that any differences in background or in short term focus are bridged in pursuit of the common goal of running a successful business.
“What makes people tick, how do we motivate people, drive performance, engage people, make leaders effective and make managers be good managers? HR needs to understand all of this and make sure we provide interventions, whether it’s coaching, learning, mentoring or something else, to enable businesses to understand the psychology of their people and leadership skills.”
Louise Fisher, HR Director, Xerox EMEA
“I often hear HR people talk about “the business” as if it’s something separate - but if HR don’t see themselves as the business then that’s a problem. They have to be interconnected, have proximity to what’s happening and really understand the industry they operate in, such as what drives it and what the levers are and what the economics of their industry are. Otherwise it’s like the team out on the pitch kicking the ball around but HR are still sat in the changing room wondering what the game is and why they’re not being invited to play.”
Jeremy Phillips-Powell, Group Director of Talent and Organisational Effectiveness, RSA
“HR functions have struggled to be credible round a board table and I think that is improving because the language which they use is becoming more relevant to businesses. … I think HR functions have got to understand the notion of value, they’ve got to articulate this sort of stuff at the right level and sometimes it’s hard. But I also think that they should build up very strong relationships with managing directors and leaders. I think if they can educate and help and get a dialogue, get a conversation going with the leadership team and help them understand some of the fun part of the HR function, some of the interesting elements, then you’ll find that you can break down those traditional barriers.”
Chris Burns, HR Director, Neopost
“One of the things that I would always
recommend is that the Chief Exec, Finance
Director and HR Director work closely
together as a very strong and connected
team. I always work very closely with my
finance colleagues but in order to do
that you need to have good business
understanding, be numerate and able to
speak the same business language.”
Louise Fisher, HR Director, Xerox EMEA
“I think in the past we have produced teams of HR people who look at what they think the business needs on the basis of best practice rather than listening to what the business is going through and what it’s dealing with, what dilemmas it has, what challenges it has, and we’ve been saying it for years that HR people have to get much more business savvy. They really need to understand the dynamics of budgets and what levers the business pulls to get different types of outputs from a revenue perspective.”
Julie Coates, People Director, Human Resources, Lockton Companies LLP
“It is trying to make sure that businesses understand the frailties of the human being and the softer stuff, which is not fashionable in some respects, is still absolutely critical to the success of businesses. ... If you feel safe and you are communicated with you are much more likely to be happy. If you are happy you are more productive and the more productive you are, the more likely you are to stick around. So that element of the frailties and the softness of the human being is something that HR functions should own.”
Chris Burns, HR Director, Neopost
“Get out there and network with other organisations and other HR people. Find yourself an external mentor, or a coach, or a buddy so that you’re not alone and have got a sounding board. To use an analogy, it is like the frog in the boiling water. The water boils, if you’re in the pan with the water just getting nice, warm and cosy and before you know it you’ve boiled to death. But if you have an external approach, focus and you’re networking, and you come back and bring fresh thinking and new ideas, you bring energy and oxygen, enabling you to challenge the business.”
Louise Fisher, HR Director, Xerox EMEA
Julie Coates, People Director, Human Resources, Lockton Companies LLP
“It is trying to make sure that businesses understand the frailties of the human being and the softer stuff, which is not fashionable in some respects, is still absolutely critical to the success of businesses. ... If you feel safe and you are communicated with you are much more likely to be happy. If you are happy you are more productive and the more productive you are, the more likely you are to stick around. So that element of the frailties and the softness of the human being is something that HR functions should own.”
Chris Burns, HR Director, Neopost
“Get out there and network with other organisations and other HR people. Find yourself an external mentor, or a coach, or a buddy so that you’re not alone and have got a sounding board. To use an analogy, it is like the frog in the boiling water. The water boils, if you’re in the pan with the water just getting nice, warm and cosy and before you know it you’ve boiled to death. But if you have an external approach, focus and you’re networking, and you come back and bring fresh thinking and new ideas, you bring energy and oxygen, enabling you to challenge the business.”
Louise Fisher, HR Director, Xerox EMEA
