Why is it important for HR management to evolve from the administrative and operational roles to the strategic one?

The HR function has, for many years, been seen as a tactical department much like accounting. Everything they do is for the present time. What could they possibly add to a future perspective? A lot!

Every strategic plan requires human capital that the organization may have to develop or acquire. Let's take an example. Suppose a company develops a strategic plan to have thirty percent of its revenues coming from Europe in four years. At the present time, it is zero. All the major components of the plan like, manufacturing, distribution, sales, marketing, purchasing, and finance would be included in the development of the plan. Each would develop strategies that are required to successfully implement the strategic plan. What is missing? A human capital strategy.

How does each of the major components of the business plan for having the right people on the bus at the right time? Therefore, it is critically important that HR management develop the competencies and capabilities to not only contribute to the strategic plan but also be part of its development. That means that they should be involved from the beginning, so they have a solid understanding of the future human capital requirements over the next four years. In the end, HR will develop its own strategy that shows how they are going to support the other strategies.

The hardest part of doing this is getting HR invited to the party. Executive management must recognize HR's needed contribution and make them part of the team. Furthermore, this isn't something HR 'evolves' to, it must be an expectation by senior management. Develop the skills and get on the team.

Human Resources

A strategic perspective is an important competency of all major components of a corporation when developing a strategic plan. Each component must determine how it is going to contribute to that plan.