Is your business run by accountants? Are your budgets being squeezed or controlled? Are staff (and everything that is done for them) seen purely as costs on the Profit & Loss Account?
How does this help HR?
One of the phenomena of the post industrial age, one that applies to most of the developed economies – has been the rise in importance of accountants and accountancy.
Recent surveys of publicly quoted companies in the USA and the UK as well as NHS Foundation Trusts show that some 60%+ of them are run by people whose discipline is accounting.
Accountants understand the relationship between revenues (that are earned through sales), costs and profit – which may in turn influence the share price.
The element that is easiest to control is costs. And in most organisations, where are the greatest costs? People! – Salaries, pensions, training, development and associated areas.
People, Staff, talent and everything associated with them are treated as costs on the Profit and Loss account.
People are not treated as Assets on the Balance Sheet. The nearest you get to that is “Goodwill” or Intellectual Property.
Time for a wake up call
It is people – either individually or collectively that make the difference between business success or failure.
How can you prove that people are Assets? That expenditure on people is an investment and not just a cost. That is HR’s biggest challenge today, and is answered by proving HR is a strategic business partner.
Prove that everything HR does is focused on achieving business results and that HR make a positive financial contribution to the achievement of business results. As we said in last month’s newsletter, HR’s greatest challenges today are: -
1. Change Management
Evolving an organisation and staff within it who are capable of the sustainable achievement of the results and outcomes needed by the organisation in a world of constant change. Prove in financial terms the value of any change initiative.
At all levels in the organisation leadership must be aligned to the business strategy. Professional managers by doing the right things will dramatically deliver the right sustainable business results. Too many still act as administrators or policeman. Now you can have evidence of the impact each leader has on business results and what to do differently to achieve even better results
3. HR Effectiveness
Being able to prove in business and financial terms the value to the organisation and the ROI on new hires, on engagement, coaching, learning and development, change.
4. Organisational Effectiveness
Able to diagnose precisely what helps and what gets in the way of delivering the results the business needs, the culture, systems, structures, leadership, staff productivity etc – being able to do something about it and then prove in business/financial terms the value of what you have done. In other words focused, rigorous, successful strategy implementation – making a measurable difference to your organisation.
If you are ready take up the challenges or have already done so and would like to share your experiences, early in the New Year we are planning to run a series of 4 showcases, one devoted to each of these challenges.
Each showcase will give you a chance to discuss each issue with other HR professionals who face similar challenges to yourself.
We will explain the relevant Verax solution to the particular challenge.
You will hear from organisations that have faced the challenge, what they have done, and the results they have achieved.
You will take away: -
- Ideas that you can implement yourself
- Documentation and case studies and presentation notes
- A voucher offering a discount on your first order of Verax Diagnostic measures subsequent to the showcase
There will be a small fee for each showcase of £40.00 plus VAT per head. Places are genuinely limited, so it would help us if you would indicate your interest in any of the above topics.
All showcases will be held at Wyvols Court, Swallowfield, Reading, RG27 1WY and will be held on a Friday. Times are 12:30 for a 1:00pm start. Finish time 4:00pm. Light refreshments will be available on arrival.
Please register your interest by completing the events form
- Change Management - Organisational Effectiveness aligned with Business Strategy
- Leadership Development - Aligning Leaders with Business Strategy
- HR Effectiveness Management - Measuring the effectiveness of H.R.
- Business Effectiveness - Assessing & Measuring Organisation Culture Effectiveness