In brief
- Based on our work in guiding organizations through implementing an HRBP model, we have determined five critical factors to drive successful partnering across your organization.
- Criteria 1: The HRBP model is adapted to fit the business context.
- Criteria 2: Business partnering is not just a role but a capability.
- Criteria 3: Structured HR reskilling is implemented in a phased approach.
- Criteria 4: Pro-actively working with the business as a key stakeholder.
- Criteria 5: Rallying leadership around one HR vision.
The term ‘strategic business partner’ is often used to describe the goal and objective of HR today. Several organizations have adopted the HRBP operating model to solidify HR as a strategic partner to the business and increase its value and impact.
Unfortunately, for many HR functions, the shift to becoming a strategic partner has only been in name, with little changes in the activities or impact of HR. Gartner reports that 82% of HRBPs are not effective at strategic activities. At the same time, various studies highlight reasons such as a lack of capability, supporting structures, and inadequate technology as the root cause. The HRBP title has also become a “catch-all” and is frequently used inconsistently across various organizations, leading to confusion regarding the role’s responsibilities and focus.
The positioning of strategic HRM as a business driver
In the late 1990s, Dave Ulrich’s pioneering work led to the strategic business partner movement in HR. The intention behind this repositioning was to drive increased strategic value to stakeholders, closely align HR priorities with business objectives, and move the function beyond the scope of traditional transactional HR.
The movement to become more strategic as HR included several significant changes:
- A revised HR operating model comprised of Centers of Excellence, Shared Services, and Business Partners
- The identification of HR as a strategic partner, change agent, employee champion, and administrative expert as HR personas that drive value to business
- The introduction of the HRBP role with the focus on being more closely integrated with business.
- New competency requirements for the HR function strongly emphasize business and strategic acumen
- A strong focus on employee self-service supported by technology and operating according to a tiered support structure.
These changes ushered in a new era for HR, and many organizations have invested in HR Transformation projects to adopt changes to the HR function. However, despite the model being considered the standard today, organizations have still not effectively transitioned their teams to this new reality.
Through our experience helping organizations implement the HRBP model and guiding our clients through successful transformations, we have identified five themes for success when implementing an HRBP model.
The success criteria for transitioning to the HRBP model
Successfully partnering with the business requires more than adopting the HRBP model. Organizations that have successfully become strategic business partners acknowledge the importance of creating an enabling environment that considers multiple levers and tactics.
We have found that organizations that implement the HRBP model successfully share the following success criteria:
Success criteria 1: The HRBP model is adapted to fit the business context
Based on our experience, HR teams that successfully partner with the business typically adopt a tailored version of the HRBP model that aligns with their business context. This involves structuring HRBPs to mirror the organization’s design, aligning shared services with available technologies, and grouping Centers of Excellence to match key HR strategic priorities. This approach helps the HR function seamlessly integrate with and support the broader business structure and goals.
Achieving a contextual fit within the business hinges on a well-defined and aligned HR strategy. Many organizations don’t embark on the operating model design with a clear strategic intent. They also fail to articulate the future value to the business if the model’s implementation is successful. This impacts business buy-in and support in transitioning to the business partnering model.
Put into practice
A hospitality business operates various casinos across sixteen locations. The locations differ in size, number of employees, and business revenue. There are six large properties, four medium-sized properties, and six smaller locations.
The HR team is structured in alignment with the business needs. The six large locations have an HR Director who partners with the General Business Manager and forms part of the leadership team at each location. Medium-sized locations each have a Senior HRBP partnering with the General Operations Manager, who is accountable for those locations from a business point of view. The smaller properties only have a Senior Manager from a business perspective, and each location has an HRBP that takes accountability for that location.
Large locations have their own Learning and Development teams, while medium and small locations share learning and development teams based on their proximity to each other. Other Centers of Excellence are also structured in the same way, thus ensuring that all locations have access to specialist expertise.
One Shared Services team operates across all sixteen locations from a centralized office.
Success criteria 2: Business Partnering is not just a role but a capability
The HRBP is often a catch-all term to describe various HR activities. Organizations that successfully become strategic partners effectively differentiate between the role of the HR Business Partner, business partnering as a function that consists of multiple roles within HR, and business partnering as an organizational capability.
This differentiation creates internal clarity for HR and communicates HR’s value and contribution to the business.
HRBP as a role refers to the revised scope and responsibilities of the professional within the HRBP role, highlighting several new expectations that are different from those in the past.
These include acting as a strategic advisor to senior leaders, aligning HR strategies with business objectives, and ensuring compliance with HR regulations. Additionally, HRBPs develop and execute programs to enhance employee engagement, analyze HR data for actionable insights, and collaborate with talent acquisition for effective recruitment.
The HRBP also facilitates performance management processes, offering guidance on goal setting, reviews, and professional development. HRBPs coach managers on effective leadership practices and manage employee relations, including conflict resolution and disciplinary actions. They are also crucial in supporting organizational change initiatives and working closely with managers to ensure successful implementation.
Collectively, the HRBP function refers to a clustering of HR roles that are business-facing and partners with various leaders and managerial teams. This could include the following roles (this will depend on the business structure and subsequent HR model alignment):
- The CHRO as a partner to the CEO and Executive team
- HR Director or Senior HRBPs partnering with Heads of Departments
- HRBPs are allocated to senior managers within different lines of business.
Together, these roles are often referred to as the BP function. The BP function is one of the key “legs” in the Ulrich model, together with Centers of Excellence and Shared Services.
Put into practice
Savings Inc. has strategically implemented the HRBP model to ensure alignment with all levels of its financial services business. At the top, a Group CHRO partners directly with the CEO, establishing a high-level connection essential for strategic alignment.
A dedicated HR Executive supports each Business Unit CEO, fostering solid partnerships within specific business units. At a lower level in the hierarchy, senior HRBPs are appointed to work with department heads.
Smaller departments are grouped under a single senior HRBP to maintain efficiency, while larger or more complex units receive dedicated HR support. This structured approach enables tailored HR support that meets the unique needs of different business areas.
Success criteria 3: Structured HR reskilling is implemented in a phased approach
The proficiency of the HR team’s skills is essential for executing the strategy independently and engaging effectively with the business. This includes fostering a culture of continuous development, proactive succession planning, and cross-skilling to develop broad expertise. It also means that HR career development and mobility have to enable and support the structured development of relevant skills that can be deployed within the business.
Successful organizations intentionally reskill their HR teams aligned to a competency model that reflects the expectations of this new way of working. Our T-shaped competency model is an excellent example of a standardized competency model that can guide reskilling efforts aligned to new ways of work.
Reskilling goes beyond formal education and classroom training and incorporates various learning experiences that build competence and confidence over time. This includes rotations, on-the-job learning, performance coaching, and project-based exposure. Successful organizations focus on a structured learning approach that introduces new competencies over time, ensuring they can be mastered effectively.
Put into practice
Cost-a-Corner, a global retailer, has systematically developed an HR Academy to enhance the skills of its HR team across multiple locations. This academy’s multi-phased approach combines classroom training, on-the-job learning, project rotations, and in-house assignments. The initial phase concentrates on building business acumen among HRBPs, requiring them to thoroughly immerse themselves in various business segments to grasp operational and strategic dynamics.
Subsequent phases increase the complexity and specialization of training. The second phase introduces HRBPs to advanced data handling through three masterclasses covering data manipulation, business challenges application, and data storytelling. In the third phase, HRBPs engage in a workplace project using basic consulting methods to identify and analyze business issues and present potential solutions to the leadership.
The program culminates with an online course focused on strategic thinking and enhancing employee experience, ensuring that HR professionals are technically proficient and strategic in their approach to HR management. This comprehensive training regime equips them with robust skills and insights, enabling them to support and advance organizational goals effectively.
Success criteria 4: Proactively working with the business as a key stakeholder
Effective stakeholder management is critical to the success of business partnering. It enables HR to build trust with key partners, ensuring their inclusion in crucial discussions and decision-making processes. This positions HR as a trusted advisor integral to organizational success rather than a decision-making barrier.
Practically, transitioning to the business partnering model implies that some activities that HR has inherited will move back to business. This requires that HR sets boundaries about what the function will and will not do and that points of contact and processes are changed to reflect the model in the ways of working.
The HRBP model relies on a capable management community. Several of the people’s management responsibilities are moved back to managers, who are the conduits of the relationship with their employees. We mention this because many HR professionals have fallen into the trap of accepting responsibility for bad manager behavior and often intercede as a “faux” manager.
Put into practice
At TechGlobal Inc., a global technology company, the HR department overhauled its functions to support rapid growth by implementing an HRBP model emphasizing strategic over operational tasks.
This transformation began with extensive stakeholder engagement to build trust and ensure alignment on the need for HR transformation. HR sets clear boundaries on its roles, shifting routine administrative tasks back to managers, and focuses on strategic areas like talent management and organizational culture.
TechGlobal launched targeted training programs in people management, conflict resolution, and communication to equip managers with the necessary skills for their expanded roles. Continuous feedback mechanisms were established to monitor the transition and adjust as needed.
The result was a more empowered managerial staff directly engaged with their teams, relieving operational burdens for HR and allowing it to focus on strategic initiatives. This shift significantly improved organizational effectiveness and employee satisfaction, aligning HR functions with the company’s growth objectives and enhancing agility.
Success criteria 5: Rallying leadership around one HR vision
Leadership within HR plays a pivotal role in driving strategic value and setting the course for HR. A credible and capable leadership team provides support, understands various HR portfolios, and makes decisions promptly and responsibly. This fosters transparency and collaboration within HR and across the organization.
Organizations that successfully transition to the HRBP model have a strong, integrated, and aligned HR leadership team. The team is consistent in their messaging about driving one HR agenda, leaning on each other, and being open to where responsibilities need to shift and change. In our experience, these teams manage to leave “ego” at the door and make collective decisions that benefit all of HR and the business, not themselves.
Put into practice
Peter leads a team of 24 HR consultants and administrators across the various regions of the business.
Given the implementation of a Shared Services Center as part of the HRBP model change, Peter has to transition all the HR Administrators reporting to Anne, who will lead the new Shared Service. This change comes with headcount movements, budget reallocation, and a diminishing scope for Peter’s role.
The HR team is structured in alignment with the business needs. The six large locations have an HR Director who partners with the General Business Manager and forms part of the leadership team at each location. Medium-sized locations each have a Senior HRBP partnering with the General Operations Manager, who is accountable for those locations from a business point of view. The smaller properties only have a Senior Manager from a business perspective, and each location has an HRBP that takes accountability for that location.
Initially, Peter was hesitant to “let go,” believing that the new model would place him at a disadvantage in terms of status, pay, and influence within the business. His team was also reluctant to move, preferring to remain with him instead of moving to a new, unknown leader in a bigger area.
Peter and Anne, guided by the CHRO Ashnie, have agreed that this is the right direction for the team. Peter and Ashnie have also contracted in terms of his role, and he has publicly expressed his support to Anne. He has also reinforced this message with his team members, and he is playing a crucial part in the change management transition.
Take action
Business partnering still holds great promise for organizations. However, successful adoption requires carefully considering the critical criteria outlined earlier in this article.
Whether your organization has already transitioned to this way of working or is considering doing so in the future, evaluating the effectiveness of your current environment is a good starting point. AIHR’s HR Boot Camp can help you take the right step in successfully transitioning to the HRBP model.
