Business becomes more competitive every year and as it is a highly globalized business environment today where business conditions, product improvements and customer demands change ever so rapidly and the revolution in information technology over the past decades have made it crucial for businesses.
Today most of the administrative work has shifted to the HR service center. HR professionals have to come out of their shell and go beyond - executive hiring, pay - outs, training, talent identification and development, succession planning, organizational design, and strategic workforce planning etc. HR has to be included in the conversations where the future of the business gets determined and have a real voice in those conversations. Do you think and act like a business partner which means : do you really understand the business, do you get out of your box, are how valuable are you to the organisation and what all have you been contributing to the business. Do people take you as an entrepreneur?
It is time for HR to make a change and take a step ahead. Yes, a firm decision to turn the table around. This will change the image and make HR the most critical business player. There are so many things which the HR function needs to change to become a business partner. It starts from the top HR leadership profile and take it down to the HR executive level to turn into a business partner. Simple test for the HR to understand where they stand in the business partnering portfolio is to know what is the following live status of Finance & Accounting, Production, Sales & Marketing, Commercial, Business Development, etc status of these information in the form of numbers on the finger tips. The HR those are able to leverage on these numbers are going to be more successful.
Knowing the business goes beyond knowing how many divisions or departments you have in the organization and what type and standards of products and services that the business have to offer. He will need to take the trouble to know about competitors in the business, substitutes, customer demographics, market size and market share and governmental influence. The HR manager who is going to function as a business partners must necessarily know about the company's business strategy in the market along with updates on the daily/monthly sales, the average profit margins, Finance Management, be able to perform Strategic Analysis, know the Operations and the Technology. To be effective as a business partner, the HR manager must also learn about the business delivery process and the technology that goes into it.
Significantly, during the past few decades the HR business partner role has evolved. Hence, the current HR has yet to become a real business partner who can relate and contribute to the profits of the company directly.