Is the \’HR Business Partner \’ An Oxymoron

Type the word “Why we hate” in Google and it auto suggests “Why we hate HR” as first option that completes the sentence. And then throws up about 10, 50,000 results in 0.72 seconds

This is not an isolated case alone. The famous comic strip Dilbert has a character named Catbert: the “Evil Director of Human Resources”.

People all over the world do not seem to like HR.

The HR profession has often been accused by business that it is not adding substantive value of business and it is only a cost function.  Thus it is a function that apparently loses its charm in the larger scheme of things.

In context of this, the mother lode of Dave Ulrich and the phrase “HR as a business partner” was born in the year 1997. In one of his most acclaimed books – “Human Resource Champions”, he introduced the world to HR Business Partners, the new titans who were to substantiate the existence of an otherwise largely outdated function.

Was this more of rechristening of same outdated function, more like ‘old wine in new bottle’?

Was it more like those childhood memories when kids at school formed a band and spent more time on picking a name than learning to play their instruments?

It was apparently a rush to embrace the new found terminology that companies raced to implement the HR business partner model.

Critics argue that functions like Marketing, IT, Projects, Operations, Sales, Legal or engineering don’t call themselves business partners never feel the need to call themselves business partners. They are the business, or at least they don’t feel endangered.

Traditionally, HR has grappled with similar issues: –

• Functions which are powerful as they control money
• Neither of them really contribute directly to how this money is made
• They exercise control over critical organizational processes & are blamed for playing the cop

HR Business partners were supposed to bridge the gap between traditional HR thinking and the modern strategic business requirements. The question is – has that really happened?

Current HR Business Partners often state this –

Question 1

In late 2012, a KPMG report, produced in conjunction with the Economist Intelligence Unit (EIU), revealed that only 17% of business leaders believe HR does a good job of demonstrating its value. The report , ‘Rethinking HR for a Changing World’, based on the views of over 400 C-suite executives, suggests that organisations will continue to regard HR as “a non-essential department” unless the function succeeds in meeting the challenges of today’s business environment

Should a meaningful conversation emerge between business and HR, it is important that the HRBP understands the vagaries of the business as much as the line manager.

Business often asks questions like

 

• Do HR Business Partners keep track of daily business revenue?
• Do they lose sleep over revenue figures?
• Do they ever show the inclination to move into mainstream roles?

Question 2

Does HRBP address the transactional issues – Employees often ask

• Why don’t I get response from HR without repeated follow-ups?
• Why is my name spelled wrongly in my work email ID?
• Why is there a higher deduction from my salary this month?
• Why is it so complicated to apply for medical insurance from my company?

Unless HR is efficient in managing transactions, how can it become strategic?

Answer to Question 1

To answer the first question- HRs can actually adopt the ‘Consigliere’ model.

The nomenclature is derived from the Latin term – consilium (advice)

It is a position within the leadership structure of Sicilian, Calabrian and American Mafia. The word was popularized by the novel The Godfather (1972), and its film adaptation.

A consigliere is an adviser or counselor to the boss, with the additional responsibility of representing the boss in important meetings both within the boss\’s crime family and with other crime families. The consigliere is a close, trusted friend and confidant. In some depictions, he is devoid of ambition and dispenses disinterested advice. By the very nature of the job, a consigliere is one of the few in the family who can argue with the boss, and is often tasked with challenging the boss when needed, to ensure subsequent plans are fool-proof.

The HRBP will thus be more counsellor than technical expert; the person who is there to listen and provide advice on the very complex subject of human behaviour, but who also understands legal requirements and other aspects of HR.

It can try navigating the journey from lagging to leading business partners.

Answer to Question 2

Technology, outsourcing and COEs (Centres of Excellence) have thrown up ways where HRs can manage/outsource transactional work and thus focus more on adding value to business. There is thus a way where they can get more effective in transactions, in relationships and as leaders of the business. That\’s a real change for HR – from the early industrial relations experts of yesterday to the growth leaders of tomorrow.\”

Rays of Hope

In almost all change efforts, there is a 20-60-20 grouping of those involved. The top 20% of individuals asked to change are already doing the work the change requires. With training, coaching and support, the other 60% can make the move. The lower 20% will never get there.

Let not the negativity and inertia of the 20% be extrapolated to mar the image of the entire HR profession

A support function will always face this challenge of questions around its value addition. So it is not just IT but finance, IT, Legal etc. who all face the brunt of this criticism.

A survey ‘Human Resources Technology and Service Delivery Trends in 2014’ states that 32% respondents felt that HR function is poised to make a greater contribution to their company’s strategic and reputational objectives, ahead of even talent acquisition and retention (19%) and delivering on cost reduction targets (10%).

The defence and aerospace company BAE Systems undertook a serious commitment to enhance the competencies of its HR professionals. As a result of the developmental programme, HR\’s perceived impact on business performance increased dramatically, with the percentage of line managers rating HR as four or five in business effectiveness increased by 120%.

According to a recent study by Dave Ulrich, a professor at the University of Michigan\’s Ross School of Business, and Ellie Filler, a senior client partner at executive recruiting firm Korn Ferry. Ulrich and Filler found that at top companies, CHROs are not only among the top three highest paid professions, just behind CEOs and COOs, but also they exhibit leadership qualities that significantly overlap with their CEOs.

Take the example of Nigel Travis, who is the CEO of: Dunkin\’ Brands Group (2009-Present)

Nigel Travis became the Head of HR for Burger King when it was owned by Grand Metropolitan (now Diageo), and after two years became the managing director of EMEA. He went on to become president and CEO of Papa John\’s International, Inc. from 2005 to 2008. In 2009, he became the CEO of Dunkin\’ Brands Group.

He says – \”I ran Europe, the Middle East and Africa for Burger King. At the time I didn\’t know one end of a balance sheet from another. But my people skills got me through. The lesson there was, don\’t be afraid to say what you don\’t know and don\’t be frightened to be ignorant about something.

Conclusion

In the current era, the new reality of work is raising the stakes, the bar, and pushing the boundaries on how companies need to operate and compete. Probably, at no other time, has the C-suite needed the HR to step forward and be front and centre to connect perhaps the biggest dots of all: finding people solutions to eventually drive business solutions and innovation. Thus HRBPs can emerge to be evolved partners who will function fluidly as trusted advisor, business guru, chief supporter, devil\’s advocate, brain-stormer and creative problem solver.