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HDA Opinion Paper: HR Models and the Link to Business Partnership

Introduction

There are many different organisational models for delivering HR functions and the choice of model for any organisation will often depend on a rather crude and basic measure – its size. Any business start up will have specific HR needs that do not need a sophisticated HR operation (for example creating new employee contracts). As the business grows, an increased level of HR support is needed and different models will evolve. This paper outlines five incremental models that define HR’s changing contribution as a business grows.

We also suggest that the new roles for HR Professionals as Business Partners (pioneered by Dave Ulrich and Wayne Brockbank) link with the models outlined, expanding in influence as the HR function grows. This is not meant to imply a perfect match as some natural crossover of roles is inevitable in different businesses at different stages of growth.

Nevertheless, we are advocating that Business Partnering is highly relevant to any size or sophistication of business/organisation and its HR function.

Model 1 – Essential HR

When a company reaches a certain size (say more than 5 employees) it will be necessary for HR responsibilities to be allocated to one or more people on a full or part time basis. That person may or may not be an HR professional and some of the services might be outsourced or part of a shared services arrangement. In this model, essential HR services would include:

• Processing employee contracts
• Payroll, benefits and pensions administration
• Providing advice on HR policy and employment law
• Assisting in the provision of skills training

Opportunities for Business Partnering in this model may be focused on the Employee Advocate. These Business Partners see the world through the eyes of employees while at the same time understanding the needs of managers and communicating those needs.

Model 2 – Reactive HR

In this model, the HR function may take on a recognisable structure and employ specialists in particular areas. Teams would be formed to address specific issues and each team would operate independently of the others, albeit with some interaction at an administrative level. The model might include:

• Distinct teams looking after: Recruitment; Compensation and Benefits; Employee Relations; Learning and Development.
• Introducing streamlined delivery options e.g. e-HR solutions
• Formalising policy and processes for recruitment, training, reward, and appraisals
• An overview commentary on the organisation’s efforts to retain talent

In addition to the Employee Advocate, Business Partnering at this level provides further opportunity for the Functional Expert. These people work with a specific body of knowledge helping improve decisions and deliver results.

Model 3 – Tactical HR

At this level of contribution, the HR team builds on the reactive model described above but focuses its efforts on helping the business to become more efficient and effective. This means helping to optimise employee productivity. Specifically the HR department would be responsible for:

• Introducing Performance management systems including use of workforce analytical tools and metrics
• Targeted recruitment campaigns
• Succession planning
• Career development
• Employee redeployment across business streams
• Developing non-financial reward and retention schemes
• Implementing systems for knowledge capture and shared learning

Business Partners in this model may be Employee Advocates, Functional Experts or indeed HR Leaders. The HR Leader is a recognised leader in their specific function who also establishes an agenda for the way people and the organisation come together to drive business success.

Model 4 – Proactive HR

In this model, the level of contribution by HR to the business increases significantly. In the previous three models, the HR effort has been internally focused. In this model HR helps the business to understand its position in the market and in comparison to its competitors. It helps the business define and increase its unique competitive advantage. Additional services in this model would include:

• Workforce planning and productivity forecasting
• Implementing a Talent Management policy
• Employee Branding
• Leadership development
• Competitive analysis of HR programmes in competitor organisations
• Market intelligence gathering

At this level, the concept of Business Partnering starts to come into its own as a radical new way of providing HR services. This may influence the shape of the HR functional structure and balance of internally provided and outsourced services. For example, it may be appropriate to reform the HR department along the lines of a Shared Services function and a number of Centres of Excellence.

A new type of Business Partner will emerge in this model – the Human Capital Developer. This person focuses on the future and how employees develop to match desires with opportunities. The Human Capital Developer will also provide coaching for business leaders.

Model 5 – Strategic HR

Here HR works alongside the business at a strategic level to jointly address issues such as product and service development; quality levels; customer service and satisfaction; strategic positioning and planning. New areas of focus in this model could include:

• HR involvement in Board composition and performance
• HR consultation in new product/service design and implementation
• Management of performance culture
• HR operating across the business as ‘OD Consultants’
• Leading contribution in merger and acquisition planning

In this model, all previous Business Partnering roles remain relevant but a new role will be prevalent – the Strategic Partner. This person is business savvy and will partner with line managers to help them reach their goals. As internal consultants and facilitators, Strategic Partners advise leaders on what should be done and help manage the process of change.

Summary

The introduction of Business Partnering and the new roles for HR is connected to the size of the business and the sophistication of its HR function. New types of Business Partners will emerge as the business grows but the links and new roles are not prescriptive - much depends on the ambitions of an HR Director to push for change in his or her organisation.

More on Dennis Preston

Dennis Preston is Senior Consultant with HDA, with a focus on developing HDA’s business coaching and organisational change capabilities - and a special emphasis on thought-leadership - and the development of new consultancy solutions in these areas.

Dennis has been involved in business for more than 30 years and most of his roles have included some responsibility for change, including accountability for both the commercial/strategic and people elements of change. He has worked at director-level for a range of large multinationals, in roles ranging from Head of Training and Development, to Director of Strategy and Planning, and Director of Management Services. He has held key roles in the London Stock Exchange, Bank of England, Abbey National, Orn Capital, Stiell plc, FT Knowledge Ltd, William M Mercer, Dresdner Kleinwort Benson and Marsh Insurance Services - and has delivered human capital projects in the UK, Japan, Hong Kong and the USA.

He is a member of MENSA and is non-executive director on a number of Boards. 

More on Kaye Thorne

Kaye Thorne is Senior Consultant with HDA, with focus on business coaching, employer branding and HR Business Partnership development.

As a skilled organisational development consultant and facilitator, Kaye manages across a broad range of organisational change interventions. Kaye also scripts, designs and delivers a wide range of Train-the-Trainer, supervisory and management development programmes and learning products specialising in creativity, motivation and personal development. She enables organisations to identify ways of developing a more customer focused brand and how to become an employer of choice. She also works with small groups in team building and offers personal coaching for senior executives and individuals. 

Kaye has worked as a management consultant since 1984 across most industries and all sectors. She is a winner of a National Training Award in 1992, and was nominated for an Outstanding Contribution to Learning by WOLCE in 2001. She is a prolific business author with a range of business coaching, training, employer branding and talent management titles.

 

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