Last month we brought together key thinkers in the HR profession for our annual HR Directors symposium, Redefining Business Value Through a Talent Centric Approach, and the debate certainly raised a few issues. One key trend throughout the day was the acknowledgement that HR is under growing pressure to enable growth whilst making operations leaner, faster and more cost effective to run, pressure which shows no signs of fading.

As this pressure has grown there has been a nagging suspicion building that the Ulrich model, an application which was put in place to help HR grow and develop, is no longer having the desired outcome. At a time when HR needs to connect on all levels within a company, the Ulrich model has in some cases removed the all-important middle and created a disconnect between process and strategy, an important connection which can be rebuilt as the profession reacts to the changing business climate.

A partnership approach

One of the speakers at our event, Gyan Nagpal, former head of talent in APAC for Deutsche Bank and now CEO of the consultancy, PeopleLENS, emphasised the fact that corporate boards are looking for greater involvement and depth of insight from HR, which means it is now more important than ever that the profession presents its business case in a more structured and robust manner.

In a challenging and ever changing economic environment where it is difficult to forecast skills and organisational needs, CEOs are looking to strategic outsourced business partners for assistance, but, in many instances, they still do not see the HR function in this role. To counter this, HR professionals either within or outside the organisation need to align talent strategies with real industry needs.

In the first instance there is a level of education needed on both sides. For senior line management a better understanding of how talent management can contribute to the bottom line is desirable, whilst HR professionals in return needs to learn the inner workings and language of corporations to be able to quantify the business impact of talent management in a way the board easily understands. Using the people agenda as an example, HR professionals need to be able to put this HR topic into more quantifiable, commercial terms, for board members to see the incentives behind it before they can agree to such an investment.

The new opportunity

Over the next year or two, external and internal talent management specialists alike will need to take more risks when it comes to talent management in order to retain the right talent needed to keep up with the changing environment. Instead of working separately, HR professionals and line managers should be combining their talent management efforts to maximise success and support each other as strategic business partners should.

It’s no longer an option for a company to simply outsource the talent management function externally and take a step back. The ideal approach is instead a partnership whereby both parties draw on their experience to work together to develop robust strategic principles which provide the talent for a business which is yet to be defined. This is a great opportunity for HR professionals to be the guide business leaders are looking for and achieve the board room credibility desired by talent management professionals both as an outsourced function and internal resource.

The full analysis of the HR Directors Symposium is available in the Ochre House White Paper Redefining business value through a talent centric approach. For a copy of the report please contact Prashanie Dharmadasa: prashanie.dharmadasa@ochrehouse.com