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Expertainment about Leadership & Management

Human Capital vs. HRBS

June 12, 2008

I’m about to say something that is common knowledge, but here’s the crazy thing: this post may actually be a little bit risky. HR is my client in many organizations, and I have good friends who lead HR organizations. I myself am a part of the HR machine. Anything I say here could likely raise the ire of a client, tick off a friend, and/or get used against me at some inopportune time in the future. And what I’m about to say, while true and well known, is not popular news.

Oh, well… that’s my cue to stir the pot.

Background: Integrated talent management systems are becoming the rage now. Even my own business, which has historically been purely consulting, is moving the direction of integrated methodologies, technologies, and systems. More companies are wanting these tools to help with assessment, management, and development… leaving vendors and consultancies to differentiate ourselves based on the secret-sauce we imbue our systems with. (Mine focuses on simplicity, driving commitment and personal responsibility at every step… in case you were wondering.)

And now the anti-news flash:

If all your integrated talent management does is transfer the same policies, methodologies, and systems that weren’t working when they were on paper onto an online system, guess what: they still won’t work.

Regardless of what you call the process, unless you fundamentally approach the shift from “Human Resources” to “Human Capital” as a strategic and cultural shift, and unless it’s driven from the top (read “CEO,” not “VP HR”), and unless it’s rolled out in a way that allows people to digest what’s being asked of them on an emotional level, and unless a groundswell of support is created that allows the organization to pull the technology through rather than have corporate cram it down everyone’s desktops, and unless people already (1) buy the need for talent development AND (2) recognize and agree with their own deficiencies in managing to greater levels of employee commitment, then all your system will do is transfer your company’s confusing reporting structure, oppressive management review process, and invasive development programs to an online tool.

You’ll have spent a bunch of money to go paperless. You’ve solved an operational problem, but not the people one.

A few key things to keep in mind when looking at any kind of HR system:

  1. Make sure your system solves a problem. Shifting the review process from paper to online doesn’t solve a problem, it just shifts it to a new place. Giving managers not trained in performance reviews pre-packaged phrases to use doesn’t solve a problem, it just shifts it to a different place along the communication continuum (from the write up to the discussion).
  2. Make sure your system fits with the way business is done. If your culture is informal, don’t inundate people with a rigid system that boxes them in.
  3. Do not, under any circumstances, let a single feature in that shifts onus for the system’s success from staff to the line. HR is there to support the line. Managers are busy enough as it is; make their job simpler by helping them OFFLOAD administrative and development requirements… don’t take a whack at their precious schedules by giving them more forms that have to be filled out.
  4. Be the expert. Nothing replaces a good person! Don’t expect a manager who is not schooled in motivators and feedback and assessment and psychology and group dynamics to know what the hell to do with your system after 1, 2, or even 10 hours of training. Let that person focus on making money, and do them the courtesy of standing behind the system yourself. Make yourself available for calls!

An example of a good idea gone awry: I have in my possession no fewer than three competency models that show how developing effective team building skills leads to greater employee engagement. Sounds good, but it’s an empty statement. You might as well say that having sharp pencils will lead to better scores on standardized tests. The magic is in knowing what to do with those pencils–or in this case, the team–and while a system can track behaviors and actions, having the right tools will no more make me an expert than having sharp pencils will make me smart. Having a system that codifies this particular team building competency will have codified… nothing of value.

Be careful how you design and implement the system… no matter how slick it is, success is still about the people.

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