The HR Expert-Generalist

AdobeStock_91768118In one of my regular recent blog reads, The HR Capitalist Kris Dunn, recently wrote about how Warren Buffet’s most trusted business partner, Charlie Munger, attributes his success managing Berkshire Hatheway’s stock market portfolio by “knowing a little about everything.”  Basically, being a generalist.

Here is the article about Munger from The Hustle.

Dunn, being an HR Blogger, of course related Munger’s successful philosophy to the HR Generalist function compared to the HR Specialist.

Dunn’s definition of an HR Generalist is the following:

HR Generalist – a HR pro at any level who is in charge of a client group of employees -meaning they provide HR services to a location, a business unit, a functional area or geographical area.  As part of this role, they provide counsel, service and insight across the HR Body of Knowledge – comp, benefits, recruiting, employee relations, legal, etc.

An HR Generalist can exist at the individual contributor level or manage people, as well as exist at the HR Rep, HR Manager, Director, VP and CHRO level.

As Dunn noted in his post, many attribute HR Generalists as more of an entry level HR position. It’s not. As he defines it, it exists at the individual contributor, Manager, Director, VP, and CHRO levels.

Back to Munger, his work-ethic theory is known as expert-generalism which is the opposite of the Gladwell’s famous 10,000 hour rule.  What Munger does is to focus “on studying widely and deeply in many fields, including microeconomics, psychology, law, mathematics, biology, and engineering, and applied insights from them to investing.” rather than just focusing all of his time on investment theory.

The originator of the term expert-generalist, Orit Gandish, chairman of Bain & Co defines the term the following way:

Someone who has the ability and curiosity to master and collect expertise in many different disciplines, industries, skills, capabilities, countries, and topics., etc. He or she can then, without necessarily even realizing it, but often by design:

  1. Draw on that palette of diverse knowledge to recognize patterns and connect the dots across multiple areas.
  2. Drill deep to focus and perfect the thinking.

In addition,

Research shows EG’s have:

Hmm, sounds like the world could use a few more EG’s.

I enjoyed both Dunn’s and The Hustle’s articles because I’ve had the most success in my career as a Generalist. First as an award-winning General Manager for Macy’s (The Bon Marche’) and as an HR Director and HR Consultant.

As a matter of fact, at Macy’s (The Bon Marche’), I regularly told my Department Managers that I expect them to be the experts/specialists in their area of responsibility because I joked told them that there was no way that I could know as much as they did – I was the General Manager.

I literally said the same thing as Munger,  “I have to know a little bit about everything” in the store. This meant knowing a little (but enough) about each department’s assortment, staffing, employee capabilities, and merchandising; customer service performance; current and upcoming sales events; sales and profit performance; local and national economy; store operations; capital improvements; customer, community, regional & corporate relationships; etc.

The philosophy worked (*self promotion alert!*) because my store earned the Store of the Year award twice during my 13 year stint as a General Manager.

Dang! I just remembered how hard (but rewarding) it was to be a General Manager!

I’ve also always proudly worn the moniker “HR Generalist” when I transitioned from running a Department Store to doing HR. But I often felt a little uncertainty reading articles and blogs touting how the future of HR is specialization.

After researching and writing this post, I now officially call myself an HR Expert-Generalist. I like it.

Dunn closed his post with the following wise and comforting words:

If you’re an HR generalist at any level, be proud.  You’re a trusted adviser that understands that the world is gray, and you also know how important you are in helping those in your client group navigate all the complexity and chaos that comes with managing a workforce.

Simply put, HR Generalists are the most important cog in the HR world.  Be proud, because you are irreplaceable.  

As always, it’s nice having a little confirmation bias every once and a while!

Oh, and just I added “HR Expert-Generalist” to my LinkedIn profile headline.

What is a Strategic Plan?

This week I’m going to talk about what exactly a strategic plan is.

A strategic plan is a written statement about the future direction and goals of an organization or HR department based on an analysis of the organization’s current status, strategy, strengths, limitations, threats, and opportunities in the current and future business environment.  

An effective strategic plan helps the organization understand where it is now, where it would like to be in the future, and how it’s going to close the gap between its current reality and the desired future status in order to get to where it wants to be.

All good strategic plans support the organization’s vision, mission, and values as well as identify its strategic goals and needed resources.

Since I brought it up, let’s take a minute to define vision, mission and values even though most readers probably already know but it never hurts to revisit the definitions.

An organization’s vision statement provides a clear perspective of what it wants to have happen in the future. It includes a description of its operations as well as a compelling explanation of how the organization will look and function once the strategic plan has been implemented.

The organization’s mission statement is a clear description of it’s overall purpose. It identifies the essential reasons the organization exists and the principal products and services it provides to the marketplace.

Finally, the values of an organization represent the key core priorities of it’s culture. It’s what drives the organization’s priorities and how employees honestly behave.  An organization’s values typically remain the same over time.

A complete business strategy is made up of three parts – an operations strategy, a financial strategy, and most importantly IMO a people strategy.  I’m focusing on the people strategy, or HR Strategic Plan, as it provides the foundation of all the other strategies with the ability to identify, build, and reinforce the organization’s capabilities.  

The justifications for creating an HR Strategic Plan are that it provides a solid framework for value-added action, helps establish priorities, allows for the all important measurement of results, and creates a way for reallocating resources from the organization’s low producing activities to its high producing activities.

In addition, it helps increase and improve HR’s credibility within the organization by showing its positive impact on the organization’s bottom line. Which is always a good thing especially since, as I recently mentioned in a previous post, HR is still thought by many business leaders as pretty much an administrative function that operates separately from the rest of the other functions in the organization

In order for HR to take on a strategic role and be a strong strategic business partner, it must be represented in the leadership of an organization and be involved in defining the organizational issues before the strategic decision are made.  HR must be involved in turning those decisions into a set of organizational actions.  

According to my favorite HR thought leader, Dave Ulrich, there are several things an HR professional must do in order to be an effective Strategic HR Business Partner:

  • Understand and communicate that improvements are typically very difficult and complex and will take time to accomplish so watch out for quick fixes as they are typically very seductive but rarely work.
  • Align the HR Strategic Plan with the Business Strategic Plan which will ensure HR being seen as adding value to the organization.
  • Keep the strategic plan top of mind instead of shelving it and forgetting it.  The plan must be executed and managed in order to be effective.
  • Create a Capabilities Focus within the organization.

I want to focus a little more on that last bullet, Capabilities Focus, since the first three bullets are fairly self explanatory.

Capabilities are an organization’s ability to effectively manage its resources in order to gain a competitive advantage in the marketplace. They are anything the organization does well that improves business and creates a competitive advantage in the organization’s marketplace.  

Strategic HR Professionals are able to effectively identify and improve an organization’s capabilities that will help execute the organization’s strategy and leverage new products and services.

Some examples of organizational capabilities include knowledge, innovative designs, adaptability, cost competitiveness, and strong leadership.

Defining deliverables and showing how they can be measured and what actions need to be taken is critical in the strategic planning process. The Strategic HR Professional must focus on the deliverables which are, in other words, value added results.

The HR strategic plan is developed from looking, listening, questioning, clarifying and knowing what needs to be done.

The plan must include ways that HR can help the organization add value to its key stakeholders (employees, customers, and investors), improve organizational capabilities, improve employee competence, fulfill regulatory compliance, determine processes and activities that can be retained or outsourced, and align HR programs with organizational goals.

My next post in this series will discuss how the strategic HR Professional must be able to speak the language of business and define a few important strategic business terms that will need to be understood. Then after that, I’ll get into the steps of how to actually develop an HR Strategic Plan.

Introducing Hard Hat HR mobile!

Screenshot_2014-08-30-12-05-47Now you can easily access Hard Hat HR on your mobile phone.

I’m excited to introduce Hard Hat HR mobile because nearly 25% of the traffic to Hard Hat HR is through a smartphone.  The responsive design of the  HHHR website automatically adjusts to and optimizes the display to your device.

Accessing the internet via mobile devices is continuing to grow and will probably soon be the majority of internet traffic.

According the the Pew Research Internet Project, 58% of American adults have a smartphone and 34% of cell internet users use their phones the majority of the time to go online.  Yes, I know most of the time they are checking email and social media or getting directions, but the comfort level of using smartphones for other online behavior is only going to grow.

So it’s important for HHHR to be optimized for this behavior.

I gotta stay on the ‘cutting edge’ of technology.  I’ve always been kinda geeky that way!