Leaders Wanted: The Trend Toward New Models of HR
Most multinationals think the HR function will need to be "revitalized" within the next five years, according to a recent study from KPMG Management Consulting.
Respondents from European companies are the most likely to believe this, with 65% anticipating the need to change, compared with 55% and 50% of their counterparts in the U.S. and Asia, respectively. Specifically, respondents expect HR professionals to move beyond the traditional attributes of being "organized" and "good listeners" to become full-fledged leaders who demonstrate creativity, strategic thinking, and vision.
This survey supports some of the trends that HRI highlights in a recently published report, The Evolving HR Function. The report notes, in fact, that most HR departments are already in the midst of transforming themselves. In many cases, the changes are part of restructuring efforts. For example, some HR departments are breaking into four evolving components: 1) a small corporate staff that supports senior management and addresses HR issues that transcend individual businesses; 2) administrative centers that provide cost- effective services to all parts of the company; 3) HR groups within individual business units that provide change leadership and HR consulting services; and 4) "centers of expertise" that provide cost- effective HR consulting services to help business units or the entire company gain a competitive advantage.
But HR changes often go beyond the mechanics of restructuring. In some organizations, HR is striving to become faster, smarter, and more forward thinking. In part, becoming faster means using any trick in the book - call centers, outsourcing, intranets, etc. - to provide quick and efficient service to whoever needs HR, whether it be an employee or a manager at any level of the organization. But it means more than that. Being fast also means becoming smart and creative enough to anticipate what's around the corner. Some firms, such as Rockwell International Corp., have gone so far as to form internal committees designed to identify future trends, determine how these trends will affect the company, and decide what actions the company can take today to prepare for tomorrow's people management challenges.
By being able to analyze and anticipate trends, HR also becomes a better strategic partner. In fact, a recent study from the Center for Effective Organizations found that, compared with five to seven years ago, HR professionals are already spending much less time keeping records and much more time serving as strategic business partners. This sometimes means becoming an internal consultant. In 1998, 52% of Fortune 1000 company HR executives surveyed by PricewaterhouseCoopers said that their departments had begun to offer "consultative/operational" services to line managers. Fully 84% were hoping to offer more of these kinds of services in the future.
Whatever "revitalization" efforts are made, however, they won't always come easily. In many firms, senior and line managers still view HR professionals more as administrators than as partners or strategists. Changing HR may mean changing internal mindsets. Moreover, many HR professionals are still so caught up in handling day-to-day problems that they simply don't have the time to revitalize their function. HR managers spend less than three hours each day on critical HR tasks that boost sales, profits, and productivity, according to "Best Practices Benchmarking Study of HR," a study of 1,050 international companies by the Hackett Group, a management consulting firm. Too often, HR managers are "being drawn into solving administration problems that eat away time needed to position the company for the future," said Greg Hackett, president of the firm.
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For more information on the KPMG study, Click Here
Respondents from European companies are the most likely to believe this, with 65% anticipating the need to change, compared with 55% and 50% of their counterparts in the U.S. and Asia, respectively. Specifically, respondents expect HR professionals to move beyond the traditional attributes of being "organized" and "good listeners" to become full-fledged leaders who demonstrate creativity, strategic thinking, and vision.
This survey supports some of the trends that HRI highlights in a recently published report, The Evolving HR Function. The report notes, in fact, that most HR departments are already in the midst of transforming themselves. In many cases, the changes are part of restructuring efforts. For example, some HR departments are breaking into four evolving components: 1) a small corporate staff that supports senior management and addresses HR issues that transcend individual businesses; 2) administrative centers that provide cost- effective services to all parts of the company; 3) HR groups within individual business units that provide change leadership and HR consulting services; and 4) "centers of expertise" that provide cost- effective HR consulting services to help business units or the entire company gain a competitive advantage.
But HR changes often go beyond the mechanics of restructuring. In some organizations, HR is striving to become faster, smarter, and more forward thinking. In part, becoming faster means using any trick in the book - call centers, outsourcing, intranets, etc. - to provide quick and efficient service to whoever needs HR, whether it be an employee or a manager at any level of the organization. But it means more than that. Being fast also means becoming smart and creative enough to anticipate what's around the corner. Some firms, such as Rockwell International Corp., have gone so far as to form internal committees designed to identify future trends, determine how these trends will affect the company, and decide what actions the company can take today to prepare for tomorrow's people management challenges.
By being able to analyze and anticipate trends, HR also becomes a better strategic partner. In fact, a recent study from the Center for Effective Organizations found that, compared with five to seven years ago, HR professionals are already spending much less time keeping records and much more time serving as strategic business partners. This sometimes means becoming an internal consultant. In 1998, 52% of Fortune 1000 company HR executives surveyed by PricewaterhouseCoopers said that their departments had begun to offer "consultative/operational" services to line managers. Fully 84% were hoping to offer more of these kinds of services in the future.
Whatever "revitalization" efforts are made, however, they won't always come easily. In many firms, senior and line managers still view HR professionals more as administrators than as partners or strategists. Changing HR may mean changing internal mindsets. Moreover, many HR professionals are still so caught up in handling day-to-day problems that they simply don't have the time to revitalize their function. HR managers spend less than three hours each day on critical HR tasks that boost sales, profits, and productivity, according to "Best Practices Benchmarking Study of HR," a study of 1,050 international companies by the Hackett Group, a management consulting firm. Too often, HR managers are "being drawn into solving administration problems that eat away time needed to position the company for the future," said Greg Hackett, president of the firm.
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For more information on the KPMG study, Click Here