The Future of HR - Why “Do Nothing” Is An Option
Let’s face it people. When it comes to fundamental change, many of us are not self-starters. Unless we know that there is some impending event that will result in overt embarrassment, financial duress or physical peril, we find it difficult to get off our duffs and dig into many of those perpetual issues that plague us.
This is on my mind as I prepare to lead a session at the upcoming HRevolution. My enviable topic? Just a little something called, “The Future of HR”. No biggie. You know me…. I’ll just dust off the ‘ole crystal ball and help facilitate a discussion prognosticating the fate of the industry. No problem. We’ve got this one covered. 
There has been an incredible amount of chatter lately regarding HR’s future/fate and it makes for a very good read. In the past few weeks alone HR was declared dead and then rose from the ashes. Maren Hogan wrote a nice post with the catchy title, “Slow dancing in a burning room“. And don’t forget when the smart folks at Harvard Business tackled an age-old missive by asking, “Do HR managers have the skills they need?“
The underlying assumption by each and every writer is the premise that HR must fundamentally change. That may be true, but my sense is that “do nothing” is not only an option, it’s a likely outcome. Here’s my logic:
1. The Drivers For Transformation
HR is not being pressured to evolve from within, and when it does “transform”, it tends to be largely tactical in nature. Take Deloitte’s HR Transformation Survey as an example. They interviewed C-level executives from 150 of the world’s largest corporations. The findings that concerned them (and me) were this - “HR transformation is still about systems and processes. The business driver are still cost savings and effectiveness. These are not “bad” or unimportant drivers; they are merely solutions in a vacuum.”
The other item of note was that when a trigger was pulled for improving HR, it was largely due to external factors imposing themselves on the function. These include:
- A New Executive: 24.6%
- Corporate Restructuring: 22.3%
- Mergers & Acquisitions: 9.2%
2. Plenty Of Work To Do Already
Don’t get me wrong, HR has a lot on it’s plate these days. Dealing with the recession, layoffs, employee dissatisfaction, changes in benefits programs, social media, outsourcing, talent management, branding and a globalized workforce is enough to keep any HR exec on her toes. This is, of course, in addition to risk mitigation, compliance, labor relations, compensation planning, learning, development, performance management and 50,000 other things that keep HR running to stand still. And don’t forget all the technology and systems that need to be constantly updated to make the transactions run smoother.
So who has time to think about what HR should be, could be or will be?
3. “Don’t Fix It If It Ain’t Broken”
It has been the rare occasion to find a senior HR executive who feels the function is off the rails and decides to do something about it. A lot of the chest beating and cry for evolution comes not from the senior most, but instead from those who are service providers, consultants, analysts, bloggers or pundits.
But do take note. I’m also seeing entry level or middle management HR pros starting to wonder where their career path will lead, and my bet is that if HR does fundamentally change, it will have to come from the bottom up. Like any change, there are some early adopters who “see the light” and want to preemptively strike and change the largely negative and parodied image of HR. But the mass of HR executives who drive the daily agendas do not appear to be leading the charge beyond the much-belabored “seat at the table” discussion.
4. No Push From Associations
Associations are intended to serve as the representative and collective voice of their membership. However, in this instance, it’s my belief that reacting to the professed needs of the current constituency will only serve to hamster-wheel this needed evolution. Organizations like SHRM must continue to serve the current needs of it’s population while simultaneously forcing a difficult conversation surrounding what’s next for our industry. And when I say “force”, I mean it. The catalyst for an overhaul of our function must be driven by those with the resources, clout and certifying entities to make people stop long enough to self-reflect, agree to change and get into motion.
So Now What?
In my opinion, HR can and will continue to serve an important role, but this evolution must gain mindshare and begin now. Many people will likely take issue with what I’ve stated above and I’m sure I’ll catch an earful in the comments section. I’m not an HR basher and hold no hatred for the function. Moreover, I admire those who have put themselves ahead of the languishing pack.
However, like many, I want to see a “new HR”. Whether that requires a name change (such as the move from personnel many years ago) and a new face or brand may be up for debate. Some of my colleagues have had very interesting discussions about the face of HR lately. And truth be told, there isn’t a strong spokeswoman/spokesman who represents the aspirational nature of what HR could be. Maybe you’re that face. If so, welcome aboard! We’ve been waiting for you.
I look forward to spending time on this issue next month at HRevolution. In the meantime, what do you think? Is “do nothing” an option? Please share your thoughts and let’s keep the conversation going.
October 22nd, 2009 at 9:11 am
From my September 29th, 2009 blog:
You’ve read lots of stuff lately about HR’s presumed “death.” If opinions are based on expectations, all this doom-and-gloom and hand wringing indicates that HR is not what people need it to be. Either its purpose needs redefining or expectations need lowering; therefore, as the latter is a losing strategy, I go with redefinition and a Back to Basics agenda.
We all know the dangers of “scope creep” — and HR has been experiencing it for the last 40 years. Its responsibilities continue to grow, prompted by external cultural pressures: Attitudes about work; increased government regulation; the impact of changing societal value systems; the list is long and growing. And that’s wreaked havoc as HR scrambles to cope with a lengthening list of what organizations expect it to manage.
The SHRM site today lists 13 HR sub-disciplines; in addition to its traditional mandates, HR now oversees ethics and sustainability, business leadership, safety and security, and HR technology. Time to get back to basics.
As a former newscaster and public relations flack, I’ve always considered HR a type of communications strategy with one mission: increased productivity. HR “communicates,” if you will, with each interaction, the organization’s membership and values culture. It’s a big responsibility.
Most HR people might not consider themselves advocates and guardians of an internal culture, but they are. The question for HR and organizations is: “Since HR is now tasked with managing a complex socio-cultural system, what implicit message do you wish to send with each — seemingly unrelated — transaction or service it provides?” My point is that each transaction or service IS related to the other; and the message should be “in this organization we value individual and team contributions which lead to self-fulfillment and a profitable company.”
Today’s HR is providing both ministerial and strategic services in increasingly equal measure; that means a redesign shift to a more interdependent service architecture and more unconventional thinking. This is a rare moment of opportunity; however, a critical time when, to quote Stafford Beer, “Acceptable ideas are competent no more and competent ideas are not yet acceptable.”
It will take imagination and courage. Does HR have enough of each to change itself in order to survive?
October 22nd, 2009 at 9:48 am
Great analysis of the current state of HR Mark and nice job of putting a veiled challenge on the table for HR Pros! “What? Do Nothing? We won’t do that!”
I’m glad to see the discussions that have been going on in some ways for years being held in more public forums now. Now with bloggers such as yourself and the others mentioned in your post debating the issues, it’s causing some to think, some to think about acting and some to act. Battleships do indeed take a long time to turn and much analysis on setting the course is usually done before the Captain actually takes action to change direction. As you’ve pointed out, the “official leaders” of HR aren’t really plotting the course for a new direction yet, so it’s good to see some critical mass starting around the discontent in the belly of the ship.
I look forward to participating in your discussion at HRevolution! I’m sure to leave there ready, willing and able to participate in the mutiny!
October 22nd, 2009 at 11:02 am
Great and thought provoking post, Mark. I get the sense, as Jennifer pointed out in her comments, that the discussions are happening online and spreading to events and conferences, and a bit of a groundswell is starting. In fact the HRevolution event has largely taken root due to this strong feeling that something has to change and the traditional mechanisms to drive that change are either not interested or incapable.
Of course ‘Do nothing’ is always an option, but whether it is a sustainable and survivable option for this field is debatable.
I look forward to continuing this discussion at the HRevolution, With a gathering of so many tremendously intelligent people I am sure we can all sort it out
October 22nd, 2009 at 2:08 pm
“Do nothing” is absolutely an option. In fact, it is the decision that thousands of companies make every day and will continue to make.
I think the important emphasis is that choosing to do nothing and choosing to put something off is a choice. It isn’t one devoid of risk or consequences. It doesn’t mean reality stays the same just because you have made that choice.
I think that has to be repeated over and over to people who want to drag their feet. The risk of not changing may be as high or higher than not changing.
October 22nd, 2009 at 3:27 pm
Look at the choice the State of NJ made in the last year during their budget crisis. The HR Department was dismantled and put under the Department of Treasury. And then those HR functions turned into separate divisions within the Treasury Department. http://www.state.nj.us/treasury/div_agen.shtml
State of NJ Hiring and Training is under an entirely different department. http://www.state.nj.us/csc/index.html
Fragmented HR is happening. Is it because of the “do nothing” choice? Is fragementation good or bad? Rather than seeing HR die, maybe it just gave birth within certain corporate structures? And those “children of HR” need to grow up and own their function because it has become bigger than the HR umbrella can cover in certain circumstances.
The core is still Human. Is there such a thing as a HR Mission Statement? No doubt it will look as unique as each corporate culture and business strategy. Maybe unique HR missions are the kind of differentiation/change/fragmentation that should be pushed and celebrated and the strategy to create those missions has core HR fundamentals?
Just thinking… I’m just not one to do nothing. And I have way more questions than answers. I look forward to hearing what you have to say about this at HRevolution. It is conversations like that that make revolution possible. See you in Louisville. @designtwit
October 22nd, 2009 at 4:18 pm
Nice post, Mark (of course, I’m a little biased). I wanted to say that HR and Communications are the only two functions I know that sit around the corporate table and ponder their value, continually stressing about how to get more recognition. Why is that? Why doesn’t the CFO lay awake at night, wondering if they can get the ear of the CEO or if their team will be dismantled in the next year. It is probably a gross exaggeration to say that it might be because HR and Comms people are the most removed from understanding how the business operates - how it makes money and what it means to compete in its market. However, I will also say that I made the same error when I was in HR (not really understanding the dynamics of the business) and it’s been my experience with every HR person I’ve worked with since.
Also, I really wish people would drop the “HR is so busy” argument for why change doesn’t happen. I also heard this same argument for low adoption of social media among HR people. Everyone in every function, especially with all the recent layoffs, is busy. Everyone can barely keep their head above water. What’s really different about HR that makes change of this type especially challenging? Or is it equally challenging for all functions?
October 22nd, 2009 at 9:12 pm
I don’t know Mark, you makes some great points but Do nothing is never an option. We are in a constant world of change, so change and evolution is necessary everyday at all levels. I run HR for a multinational. We don’t have a large budget or resources, however we do cool things everyday, we are resourceful not just because we have to be, but because we want to be…that is true in a lot of places big and small, not just HR but every function in businesses across the globe…
The new HR arrived already, most of us just haven’t realized it yet…don’t sell the profession short. I meet and work with hard working dedicated professionals every day who “get it”…If HR was such an after thought it wouldn’t exist (period).
PS - I like your posts and your making people think about topics!
M
October 23rd, 2009 at 11:43 am
Mark - I really enjoyed this post! You’re right - there is no overt pressure to change. There often isn’t and when it is present it tends to produce a reactive response rather than a well crafted, sustainable strategy. There is, however, a call to action - and that can be even more powerful. Does it take more drive and effort to gain attention around the why? Yes! Does it then afford the luxury of either building before the need or by taking a co-evolutionary path? Yes!
The question I have is whether or not HR is evolving in sync with the broader transformation taking place in business? With the societal and cultural shifts taking place locally, regionally, nationally and globally? This is the call to action. It may not be coming through as the pounding drums of the pressure felt during the dot com and post 9.11 days of start-ups, new work styles and labor shortages but it is in fact even more significant because HR has a significant opportunity to deliver transformative leadership in organizations that will not only affect the future of the company but positively impact the work experience, growth and commitment of its employees. The talent - business intersection could benefit significantly from transformational HR leadership. The opportunity to craft and accelerate collaborative engagement and processes to drive innovation is at the heart of what HR could do to contribute greater value and drive organizational effectiveness.
This reminds me as well that we need to catch up on the phone! Thanks for the great post and I’ll reach out soon.
October 24th, 2009 at 12:14 pm
Great comments thus far everyone. This is exactly the type of dialogue I was hoping to spur. This makes me think that perhaps we should organize a “Future of HR Summit” post-HRevolution. Let me know if that would be interesting to you all.
October 24th, 2009 at 2:10 pm
@Mark - It will definitely be interesting to see what comes out of HRevolution - and I’m also interested to see the information that will come out of the recent #talentcamp led by Susan Burns. There seem to be a lot of really smart and engaged people discussing the future of HR and Recruiting. Maybe this has always been the case (discussing), but I know that many of those beating the drums loudly at this point are people of action - so I do expect that some change will begin as a result.
I’d be very interested in participating in a Future of HR Summit. While I may no longer be a daily HR practitioner, I’m an HR pro at heart and in my soul. I still believe…
October 24th, 2009 at 5:18 pm
Mark - definitely interested in exploring your thoughts on a Future of HR Summit. This topic was our main focus for Talent Camp and there will be a number of ways to share the content and see the conversation expand further. More info coming soon and I’d be delighted to find time to chat as well. I’d love to make it to HRevolution but have a schedule conflict. Will you be at the Social Recruiting Summit?
October 25th, 2009 at 2:56 pm
Mark -
very interesting discussion. I have a hypothosis that the HR “evolved” you are discussing and the do nothing crew are as different as finance and accounting are as functions - and therein lies the challenge for the function. I feel it stems from the very nature of success in HR (up to a certain level) that very much requires the skills that are “accounting” like - compliance mindset, transactional focus, saying “no”, undue focus on rules and fitting things in the box or program; these are the very things that hold these practitioners back and almost by definition keep them away from the business and solutions mindset that they need for a seat at the table. Contrast this accounting focus versus the finance team which is always dealing with uncertainty, looking forward vs back and working on analyzing business issues. Given the divergency of perspective of these two numbers focused teams, it is no wonder HR struggles when truly to achieve ultimate success, you have to cross over from one mindset to the other mid-career, thus leaving behind all the behaviors that made you successfull up to now, for a new set that is much less easily defined. Viewed this way, it is easy to see why the group as a whole is not considered as “strategic”. I’d be interested in your views?
Shannon
October 26th, 2009 at 10:43 pm
@Jennifer - It’s a deal Jen! Consider yourself hereby recruited to be part of a planning committee. Details to follow.
@Susan - As Jennifer stated, I’ve head great things about your Talent Camp and can’t wait to hear about your findings and conclusions. And Susan, I’d love to chat live when you get a breather. Just drop me a note to mark.stelzner@inflexionadvisors.com and we’ll set it up.
@Shannon - I really like this analogy and have heard it from no less than ten people in the past week. I think you (and others) are on to something. It begs the question on whether one group is “tainting” the reputational possibilities of the other. Both are necessary, but should we call them all “HR”? Which is in higher demand? How do we train HR accountants/comptrollers versus HR finance teams? Good discussion here Shannon, thank you.
November 2nd, 2009 at 2:17 am
I think the key change that is required has to happen with both constituents:
HR and Line managers
The one key skill that HR folks have not yet been able to bring to the table successfully, is the ability to influence line management. For most of Employee Engagement, Talent Management has to be owned and implemented by Line. HR is at best a consultative partner.
Secondly, HR folks keep taking on their KRA sheets what ideally needs to be on the KRAs of line managers. Attrition is not something that should be owned by HR. How can I guarantee the retention of someone who reports to and works with another manager? It’s insane!
Thirdly, I would love to see B Schools rework HR curriculum to work on these issues, as well as educate the next generation of line managers on their role in managing culture and people.
HR has to learn to be assertive, facilitative, interventional and proactive. That’s all that ails HR.
Most line managers will say HR does do nothing! On the contrary, I would like to say the opposite.
November 18th, 2009 at 6:20 am
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