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Developing a Strategic HR Capability "I believe that the HR function can and should add value as a totality, where the sum of the fragments can be greater than the fragments on their own. To do this, we have to learn the lessons of integration. In other words, we have to learn how to put Humpty Dumpty together again." Lynda Gratton 1. This briefing highlights the development of skills and competencies that enable HR to play a strategic role in the organization. At a time when more companies are turning to shared services and outsourcing to allow HR to focus on more value-adding activities, it underlines the risks of losing control over service delivery. 2. How BAE Systems reskilled its HR function to act as business advisers after outsourcing administrative HR services. 3. The new management agenda for HR that has resulted from the adoption of shared services and outsourcing and why the key to success is close interaction between managers from group HR functions, business units and service providers. 4. A case study on BT shows how HR separated its value-adding business role, retained in-house, from delivery of personnel services, outsourced to Accenture. The case study illustrates the importance of retaining sufficient control inside the organization to ensure business satisfaction with service delivery. 5. Business Intelligence's survey findings show that HR functions are typically lean in staffing, with few £500m plus companies relying on more than 100 HR staff and a fifth with no more than 20. 6. The research findings also show that HR functions can achieve far more with less today, thanks to better e-HR capabilities, devolution of HR responsibilities to line managers and effectively managed outsourcing or shared services. 7. Despite the growing emphasis on delivering strategic value, service delivery to business units and the delivery or effective management of transactional HR still dominate the capabilities and skills agenda. However, those who have achieved greatest success in implementing strategic HR put a higher value on business literacy and strategic awareness than the survey average. 8. The case study on recruitment company Kelly Services shows how HR gained credibility Ð once it was upgraded specifically to enhance the company's commercial proposition. This provided a service that could be drawn on by both clients and internal business units. Case Examples: BAE Systems, British Telecom, Kelly Services If you are a subscriber, click here to read the full briefing. Click here to find out how to subscribe. |
