A trend, we’ll see is, ‘HR impacting business success through an outside/in approach’.
In the same article, Ulrich wrote that this approach is the next “wave” in the evolution of HR’s contribution.
“The outside-in wave moves from value creation to value delivery when HR ‘customers’ are not just employees, leaders or business strategies inside the organization but also stakeholders such as customers, investors (debt or equity), and communities outside the company. HR value delivery is captured when HR analytics are not about activities with scorecards, dashboards and insights but about the impact of HR activities on key stakeholders.”
This HR contribution spans three core areas: talent, organization and leadership. And while Ulrich pointed out that these spheres aren’t new, he said, “They are even more critical in responding to current challenges and discovering future opportunities.”
Here are a few key takeaways:
Talent: “[Traditional] talent-related efforts can evolve to be viewed outside-in to respond to changing times
by ensuring that the right competencies are those that deliver customer and investor value, and by linking employee experience to customer experience.”
Organization: “Our research (The RBL Group and University of Michigan) found that the capabilities
of an organization have four times the impact on business results than the competence of individuals. For example, teams with individuals who work well together as a team will outperform a team of individual all-stars that
don’t work well together.”
Leadership: “Employees often mimic what their leaders do, and organization capabilities often reflect
leaders’ personalities. More importantly, leadership at all levels of the organization signals thoughts and actions that get attention. In the current uncertain world, it is more important than ever to ensure that the
right leadership exists to create value for customers and investors.”