Final Exam Essay
Bill Taylor
William C. Taylor is cofoun Company magazine and coa Mavericks at Work. His nex Practically Radical. Follow h twitter.com/practicallyrad.
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Why We (Shouldn't) Hate HR 8:53 AM Thursday June 10, 2010 | Comments (12)
I spend much of my time giving talks to companies, trade
associations, and professional societies from the worlds of
marketing, IT, and human resources. And whenever I talk to
an HR audience, there's someone after the event who wants
to talk to me about an article we published in Fast Company
way back in 2005. The essay, designed to stir up discussion,
was titled "Why We Hate HR" — and it's left a mark. To this
day, human-resource executives want to praise it, denounce
it, dissect it, and debate it. I guess that's a sign the essay
succeeded — and that many HR leaders remain frustrated
with their roles inside their organizations and determined to
do more.
So here's a proposal. As this provocative essay approaches
its fifth anniversary, perhaps it's time to change the debate.
The real problem, I'd submit, isn't that HR executives aren't
financially savvy enough, or too focused on delivering
programs rather than enhancing value, or unable to conduct
themselves as the equals of the traditional power players in
the organization — all points the original essay makes. The
real problem is that too many organizations aren't as
demanding, as rigorous, as creative about the human
element in business as they are about finance, marketing,
and R&D. If companies and their CEOs aren't serious about
the people side of their organizations, how can we expect
HR people in those organizations to play as a serious a role
as we (and they) want them to play?
This is a lesson I've learned and relearned from all kinds of
companies that are winning big in tough economic
circumstances. You can't be special, distinctive, compelling in the marketplace unless you create
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something special, distinctive, compelling in the workplace.
Your strategy is your culture; your culture is your strategy.
The most successful companies I know understand that the
most important business decisions they make are not what
new products they launch or what new markets they enter.
What really matters is what new people they let in the door
— who they hire — and how they create an environment in
which everyone in the organization can share ideas, solve
problems, and develop a psychological and emotional stake
in the enterprise.
For example, business strategists rave about Cirque du
Soleil and the ideas it has embraced to reinvent the circus and invent a whole new genre of
entertainment. But Cirque is every bit as serious about the performers themselves as it is about
the logic of the performances. It has developed the most creative and rigorous methodology for
recruiting and evaluating new talent I have ever seen, and it is obsessed with making sure its
talented recruits understand and embrace how Cirque works. It makes an explicit connection
between the people it attracts and the product it delivers, between how it does business and who
it invites to become part of the business.
Lyn Heward, Cirque's director of creation, explains it this way: "There are no stars here. The show
is the star. That's why our evaluation goes deeper than a talent evaluation. We need to learn
about the person behind the artist. How many somersaults you can do is not as important as an
open-mindedness to our process, the tough-mindedness to get through the job, and what we call
a 'fire to perform.' That's what we're looking for."
Or think about Pixar, the Hollywood hit factory. A few years back, when I first got to know Pixar,
what struck me was not the power of its animation technology but the power of its culture —
specifically, the mission-critical role played by Pixar University, a one-of-a-kind training complex in
which all of the company's people, from security guards to programmers to finance executives,
rub shoulders and learn together.
"Most companies eventually come around to the idea that people are the most important thing,"
says Randy Nelson, who spent 12 years as dean of Pixar University. "It's fine to have wildly
talented individuals. But the real trick, the higher degree of difficulty, is to get wildly talented
people to make productive partnerships." At Pixar, he concludes, the most urgent question is,
"How do you do art as a team sport?"
Or consider the experience of DaVita, the kidney-dialysis provider. This company's remarkable
business turnaround was driven almost exclusively by a transformation of how it approached the
people side of the business. Under CEO Kent Thiry, one of the core themes of the culture is that
"Everything Speaks." That is, even the most trivial issues — what its treatment facilities look like,
how colleagues communicate with one another, small gestures of individual kindness or
selfishness — send huge signals about the health of the entire organization. Another theme is "No
Brag, Just Fact." Thiry and his colleagues know that plenty of companies with toxic workplaces
talk a good game about the level of commitment among their people. But the only thing that
matters at DaVita are the day-to-day realities of the quality of care it is delivering and the quality
of the culture that delivers the care.
"Unless you figure out, together, how people should behave at work, and create the kind of
language and rituals and systems you need to reinforce that behavior, you never get there," Thiry
told me. "At DaVita, we do a lot to remind people that despite the crushing realities of their
day-to-day professional lives, we want to treat each other differently. We want to care about each
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PREVIOUS One Hospital's Radical Prescription for Change
other with the same intensity that we care for our patients. "
So the next time you, as an employee, get frustrated with HR, or you, as an HR executive, get
frustrated with your role inside the company, stop sweating the small stuff and start asking the big
questions: Why would great people want to be part of your organization in the first place? Do you
know a great person when you see one? Are you great at teaching people how your organizations
works and wins? Does your organization work as distinctively as it competes?
If your company and its leaders can answer those questions, then you'll have an organization that
is capable of winning — and an HR organization that everyone can love.
More on: Human resources, Talent management
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Hammond nails the HR conundrum. I too have presented on HR to thousands of CEO's over the last 12 years. I've also ran a forum for stategic HR execs for many years. Here's what I’ve heard from CEOs nationwide which mirrors Hammonds’ article:
1. HR is busier telling us what we can’t do with our employees than what we can do with them. 2. HR costs me far more money than it makes me. 3. HR couldn’t read a financial report if it hit them in the head. 4. HR hasn’t helped us to hire better nor has it reduced our turnover. 5. I don’t need an employee advocate, I need a business advocate. 6. HR has done very little to help us do things faster, better and cheaper. 7. The last thing that I need is another bureaucrat in my life. 8. They are more interested in making sure that everybody feels good than getting things done. They are reactive, not proactive. 9. Our performance evaluation process does nothing to improve performance. 10. If I wanted a cheerleader I would’ve brought my daughter to work. 11. They don’t have a clue about the business we are in. 12. They don’t have a clue about change management or strategic planning. 13. They measure activities not outcomes.
Why We (Shouldn't) Hate HR - Bill Taylor - Harvard Business Review http://blogs.hbr.org/taylor/2010/06/why_we_shouldnt_hate_hr.html
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And, of course, there is more. The point is this—are you going to seize the opportunity and do something about it?! Are you holding yourself back? Use this checklist to see how you compare with the HR Quotient of strategic HR executives:
1. I probably spend more time reading about HR activities performed at other companies than conducting experiments at my own. True___ False ___ 2. I am probably not really trying to promote myself or my potential for strategic initiative, as much as I could, because I am not sure it is worth the hassle. True___ False ___ 3. I probably do not try as much as I could or should to initiate contact with other executives in my company to better understand their needs. True___ False ___ 4. I would avoid giving a presentation to the executive team if I could. True___ False ___ 5. I know how to read a financial statement inside out. True___ False ___ 6. I have at my fingertips the following: the cost of new hires, cost of poor hires, turnover rate, cost of turnover, the increase in our productivity over the last year, our Work Comp MOD, employee job satisfaction and other critical HR benchmarks. True___ False___ 7. I provide my CEO and executive team with a monthly or quarterly scorecard addressing the above factors. True___ False ___ 8. I seem to need some time to “psych myself up” before I approach my CEO. True___ False ___ 9. I am concerned about testing new programs or procedures for fear they may backfire on me. True___ False ___ 10. I have a fear of outsourcing administrative functions because I may not have work to do afterwards. True___ False ___ 11. I spend time learning from the hands on experience of strategic HR executives in my community. True___ False ___ 12. I help my CEO communicate the company vision, mission and goals through the ranks. True___ False ___ 13. I have designed a process for assessing the employee experience. True ___ False ___ 14. I know the three most significant issues affecting our workforce and have a plan to address them. True ___ False ___ 15. I have our hiring process reduced to writing. True ___ False ___ 16. I have our orientation process reduced to writing. True ___ False ___ 17. I have our disciplinary process reduced to writing. True ___ False ___ 18. I have our termination process reduced to writing. True ___ False ___ 19. I have started a project to help “brand” our company from the employee perspective. True ___ False ___ 20. I work with my marketing department to help with the branding process. True ___ False ___ 21. I refuse to work in an environment where I can’t fully exploit my talent. True ___ False ___ 22. I read at least two books per month: One on HR and one on a completely unrelated field. True ___ False ___
Conclusion If you can’t answer at least half of numbers 1-10 with “false” and numbers 11-22 with “true”, it is time to seriously reconsider your value to the organization. The great HR executive will of course be able to answer all 1-10 with “false” and 11-22 with “true”. What’s your HRQ?
Why We (Shouldn't) Hate HR - Bill Taylor - Harvard Business Review http://blogs.hbr.org/taylor/2010/06/why_we_shouldnt_hate_hr.html
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William..your statement.."Your strategy is your culture; your culture is your strategy"..is the essence of a sustainable and successful organization...When an organization starts losing it's culture of accountability and it is replaced by blame games and scapegoats,you are in an organization that will fail no matter what their business startegy is..
Mr. Taylor,
I love this blog in that I have seen and experienced some of the very same things you have. In my brief career to date, I have seen an org flourish in spite of lackluster HR, because the underlying culture was one in which everyone wanted to see the organization succeed. I have also long wondered how much better the organization would have been had HR been more proactive in the company, or maybe they would have spoiled the soup. In any event it wasn't until I earned my Master's in HR while living in Ireland that I realized the role of HR comes in only two flavors, Active and Gone-Fishing. I always use the example where the former head of Global Comp and Bens for Dell spoke to our class and showed how an active HR can make a company better by using information to convey meaning and message to senior executives. I also never forget the "class chosen leader" who responded to his presentation by saying "I never knew how important information could be in an organization." And nothing for nothing but this "class chosen leader" was chosen because they were already a pretty senior HR person in a notable company... so as you can see... active and gone-fishing.
Now my only question to what your propose here is what does HR do? What can HR do? I think a lot of times in orgs the senior HR people see the bigger picture but junior level HR folks haven't a clue. So how can HR begin to change the organization to create a culture, when people within its own ranks don't even get the message?
Apart from an established, embedded and an independent part of any organisation, HR's effectiveness is hugely driven by what the organisation really wants it to deliver....meaning thereby expectations from all stakeholders. Having practiced strong strategic and operational HR all these years, I have strongly felt that most managers take human issues very lightly and put them on last priority till situations get explosive. Also they tend to exhibit populist personality styles when dealing with teams and blaming everything dysfunctional or unproductive on HR policies or strategy. A collaborative process environment with strong business HR focus always delivers.
Mr. Taylor, I love this article along with the comments that follow. I have been fortunate in my life to build my own company that I believe is another example of what you are illustrating, I am sharing this article, http://www.inc.com/magazine/20100201/lessons-fr..., as another case study of the potential any company can acheive when they believe in their people (almost 200 for us) and create a culture of trust. Thank you, -Nick
Culture eats strategy for breakfast.
Why We (Shouldn't) Hate HR - Bill Taylor - Harvard Business Review http://blogs.hbr.org/taylor/2010/06/why_we_shouldnt_hate_hr.html
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What does it have for dinner?
CEOs. Case in point: http://preview.bloomberg.com/apps/news?pid=news...
This phrase all HR had heard “Everything that shines is not gold” or “Looks can be deceptive!” Hate should never be. HR is the spokesperson of all the organisational decisions, whether good or bad, fair or unfair. Why we should mix-up in that matter. Be proper,puntual and regular. The Job of HR is to find right person for right Job and help the executive to define the Job. Our HR has keep both the employees and the organisation happy,I have seen in my company.Hope they will keep in the future also.
Bill.... great to hear from you again and what a great revisit to your original paper. You had dinner in my home a few years ago in the Florida Keys and since that evening, I have been keen to hear what you're thinking. I will use elements of this in my next all managers session in a few weeks. We are all about talent and culture here... and winning. I hope all is well with you, Ron
Ron,
What a treat to hear from you! Ain't social media something!!! I hope all is well.
"Everything Speaks." So true! To the point about "even the most trivial issues,” I would add, especially the most trivial issues.
As a communication consultant and keen observer of the workplace, I can’t tell you how many times I’ve seen working relationships (and thus, team performance) damaged by a cavalier remark or gesture from one associate to another – not just in the usual arenas such as staff meetings, but especially in places that are meant to be fun and place all associates on equal footing: the office holiday party, the golf outing, the staff picnic.
What HR and anyone else in power need to remember is that not only does everything speak, everything gets magnified, remembered and retold -- particularly the negative. This is especially true in cultures that lack, in the words of Kent Thiry, the language and rituals and systems to reinforce acceptable behavior.
Some questions HR executives might ask themselves:
* How does our workplace culture treat those who may lack formal authority? (This is best answered from the
Why We (Shouldn't) Hate HR - Bill Taylor - Harvard Business Review http://blogs.hbr.org/taylor/2010/06/why_we_shouldnt_hate_hr.html
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