Abstract The HR Value Proposition Dave Ulrich and Wayne Brockbank. 2005, Harvard Business School Press, Boston CourageousHR works with HR leaders and Communities to identify their distinctive contribution and then make it, both culturally and operationally, an organisational reality. Contact Details + 44 (0) 845 862 1767 or enquiries@courageoushr.com www.courageoushr.com
Overview: Importance to HR: A follow up to Ulrich s seminal book Human Resource Champions, Ulrich and Brockbank have significantly expanded the ideas presented in 1997. Easy to read with more reference to academic research, Ulrich continues to paint his vision of the future of HR using a combination of pop psychology and case studies. However, unlike previously, the authors also recognise the complexity of organisations in the current environment. The book includes a lot of (simplistic) tools, audit questions and development options for HR professionals to apply in their own organisation. Summary: Transformation of HR begins with defining HR value, but value is defined by the receiver HR work begins with the business The ultimate receivers are the marketplace the organisation serves e.g. customers, investors HR can be a source of competitive advantage HR must align practices with internal and external stakeholder requirements HR professionals must acquire personal knowledge and skills to link HR activity to stakeholder value HR professionals have a unique (and powerful) perspective view Elements of the HR value proposition Knowing external business realities Serving external and internal stakeholders Crafting HR practices Building HR resources Ensuring HR professionalism External business realities Key areas technology, economic and regulatory issues, workforce demographics and globalisation (which cuts across the other three areas) Trends within each area are covered, as is what the authors believe HR professionals should know plus a short self assessment test Stakeholders External stakeholders (customers and investors) CourageousHR Ltd (2010) unlocking hr s potential www.courageoushr.com Page 2
Investors HR should become; investor literate, understand the importance of intangibles, create HR practices that increase intangible value, highlight the importance of intangible value to total shareholder return, design and deliver intangible audits, align HR practices and investors requirements Customers HR should; develop customer literacy, think and act like a customer, measure and track the firms share of targeted customers and the customer value proposition, align HR practices to customer value, engage target customer in HR practices Internal stakeholders (managers and employees) Managers HR should help managers build organisation capability through; resolving misconceptions about HR, building relationship based on trust, focus on deliverables and not do-ables, prioritising capabilities and creating actions plans for delivering them Employees HR should help employees build personal ability through; creating an employee value proposition that lets employees know they are valued and are allowed to add value, represent employee interests to line managers so that employees are heard, deliver administrative support that genuinely serves and cares for employees, ensure that employees have abilities to deliver organisational capabilities HR practices General groupings of HR practices that are central to organisational success; Flow of people into, through, up and out of the organisation Flow of performance management linking people to work through standards and measures, rewards and feedback Flow of information keeps employees aware of the organisation, what is happening and why, and shares collective knowledge Flow of work who does work, how and where work is done Basic concepts are covered such as action planning, choices within each of the general groupings and simple self assessment audits HR resources HR strategy a simple six step development process is outlined and key questions identified HR organisation tries to define how the HR organisation might look for different types of business organisations e.g. single businesses support functional HR teams Brief overview of embedded (HR Business Partner), shared services and centres of expertise structures, including the use of technology, common issues and risks. HR professionalism HR roles. Introduced the updated HR roles; CourageousHR Ltd (2010) unlocking hr s potential www.courageoushr.com Page 3
Employee Advocate (previously Employee Champion) care for, listen and respond to employees Human Capital Developer (previously Employee Champion) develop the workforce and individual employees to ensure employee have the skills to meet future organisational needs Functional Expert (previously Administrative Expert) able to fulfil the functional needs of their organisation Strategic Partner (previously Change Agent and Strategic Partner) bringing business, change, consulting and learning knowledge to their partnership with line managers to create value Leader (new role) HR must lead and value their own function, earning credibility, creating an HR community HR competencies; Based on 4 studies from 1987 to 2002 (the last two of which have not been made available to academic review), the authors suggest that there are 5 key competencies Strategic contribution: The key competency, accounting for 43% of HR s total influence on business performance; Includes culture management, fast change, strategic decision making and market-driven connectivity Personal credibility: The second most important competency of HR s influence on business performance with 23%; Includes achieving results, effective relationships and communication skills HR delivery: Third key competency making 18%; Includes staffing, training and development, organisational design, performance management, HR measurement and legal compliance Business knowledge: Fourth importance with 12%; Includes knowledge of the value chain, of the organisations value proposition and labour knowledge HR technology: The smallest grouping with only 5% impact on overall influence on business performance; Includes the use of technology to increase efficiency and effectiveness The final chapters cover basic principles and concepts in how HR professionals and the HR function can be developed in the key competencies and skills, and learn how to add value to the organisation. Reason for rating: A significant improvement on the original, this book has yet to be taken up by consultants and management writers. Despite the improvement however, a lot of the material remains superficial and we are left with the distinct feeling that despite the many references to best practice, the authors have never personally understood the realities of HR in organisations. CourageousHR Ltd (2010) unlocking hr s potential www.courageoushr.com Page 4
Strengths: Ulrich and Brockbank again provide an interesting mix of philosophy, short case studies, self help assessments and generic processes in a very readable book. Weaknesses: This book has a number of issues. The authors set out to promote a personal vision of what HR should do to add value to organisations. While the use of selected case studies is supported by reference to research, there continues to be a lack of academic rigour to the work. There is a lack of depth to most of the material. Although easily readable, there is little to use from a practical sense and complex subjects e.g. the HR transformation process covers 2 ½ pages. Some of the new material doesn t seem well thought through e.g. credibility is presented as a competency and yet is a measure of trust while there continues to be a theoretical link between increasing HR value and actually highlighting what that means to organisations. In essence, light reading rather than a foundation for delivering real change to an HR function. Importance to HR Functions: This book is of some value to HR functions. The authors have updated their previous work and presented new models which try to capture the greater complexity of the HR role and function than previously given. However, the self assessment tools (personal and organisation) are simplistic but will give HR functions a starting point for beginning their own journey. Importance to HR Professionals: Low. The description of the competencies that lead to high value are limited but more extensive than seen in most other texts. There are also many titbits that can be taken from the material. CourageousHR s view: This book is an important addition to the work of Ulrich and while we believe it is still too visionary to be of significant value, most HR functions and professionals will learn from the wide sweep of material presented and be inspired by its central messages. About CourageousHR At CourageousHR we work with HR Professionals like you to help you create innovative people solutions and courageously apply them. We help you to bridge the gap between academic vision and consulting rhetoric to guide and inspire you and your HR Community to move from being 'followers' to leaders. Our passion and thinking comes from our experiences, research and a belief that tomorrow doesn t have to be the same as today. Our reach is global and we happily work with clients throughout the world and across a wide range of industries CourageousHR Ltd (2010) unlocking hr s potential www.courageoushr.com Page 5