How can human resource professional become strategic business partners?

Strategic business partner is the latest jargon doing the round in human resource field. While this is a dream role for most human resource professionals, how to go about achieving the same is still ambiguous. The following 10 points has been summarised post discussion with top HR professionals from the industry.

1. Understand business: this is probably common sense but in reality most HR managers have no clarity on the type of business, revenue, profit margin etc of the company. While HR managers create induction programs, this is the most important information that should be a part of a HR professional’s induction.

How to achieve the above : Spend as much time going through the company website , working along side your line managers & being part of their business review meet (if you are not invited , get yourself invited). Understand the revenue & profit model.

2. Be data driven : The biggest problem that HR departments face is poor data orientation. Basic HR statistics like recruitment numbers , sourcing channel % , cost per hire , attrition figure etc should be in the finger tips .

How to achieve the above : Most HRs manage all their data on excel. However as long term solution, its best to either create an in-house automation tool (if your IT department can create one) else look out for various options available in the market.
Refer to my blog on cost-quality parameters on the top HRMS (human resource management systems) available in the market

3. Every HR initiatives should have a MOE (measure of effectiveness) : So has HR you have launched “fun Friday”. How you can showcase this event as a success story ? Share data points on number of participation , % of participation verses the number of employee , employee satisfaction score/event feedback score . With reference to point number 2 , always workout some form of measure that showcases the effectiveness of the program. However remember the golden rule , never manipulate the data , else as HR we will lose our integrity .


4. Innovate : For HR departments to prevent itself from becoming extinct or getting outsourced , its very important to keep innovating. Remember never hesitate to seek advise/inputs/feedback from your line managers/colleagues/peers etc. Be active on networking space and keep track of the HR best practises of your competitors. The best HRs in the industry and ones who get 10 solutions to every problem & implement the best.


Refer my blog on top 10 innovation in the space of human resources in India & internationally.


5. Ensure there is value addition /process improvement in every activity : Ok , so your company has be best performance management system , you have an excellent automation tool to ensure all appraisal details are captured ,you have an excellent communication channel to ensure all managers & the employees complete their appraisal on time. So what next ? Exactly , this should be the approach for every efficient HR manager “what next”? How about linking performance management with competency management or proactively identifying new portfolios for high performer post appraisal. The options are unlimited as per the business requirement. Our role in HR is to ensure there is constant value addition in every existing activity.

6. HR department should be more cost effective : Keep identifying areas where costs can be saved and simultaneously, where best to invest . To start with create an annual cost tracker of all HR activities i.e. recruitment, training & development, PMS etc . Then identify areas of cost cutting , if there is increase in manpower requirement as per business requirement , then cut cost on recruitment consultancy and increase the % on resume sourcing via job portals/networking/employee referrals etc. If there is an increase in the requirement for a particular form of training , then cut cost by training top performing employees as trainers and create an in-house training centre.


7. Keep taking feedback : For HRs to become change agents , we need to create platforms where we keep taking feedback from all levels i.e. from the junior most trainee to the CEO.