Conversation with the Guru
Cullen Scholefield Newsletter Editor Chris Ball speaks to University of Michigan’s Professor Dave Ulrich. Ulrich is one of the world’s foremost HR gurus and a creative analyst of the roles of HR professionals. He talks about how we can contribute to business success.
Chris Ball: Have you ever been a human resource manager yourself?
Dave Ulrich: Only vicariously. At some level every manager is an HR manager, but I have never worked full time as an HR manager.
CB: Where do you get your ideas from?
DU: Listening and learning. I am consumed and obsessive about observing and trying to learn. I like questions that people have without answers. I like to identify a few thought leaders and pick their brains. I like to look at data that is not easy to interpret and try to make sense of it. I like to read widely outside business and make connections. I like to integrate the ideas of others. The more I learn the more I have yet to learn.
CB: Is there an overarching theory to your approach to HR?
DU: In one word: value. HR (practices, professionals, and functions) must add value or they won't continue to exist. Value is defined by the receiver more than the giver, so we have focused on the receivers of HR work (investors, customers, line managers, employees) then tried to figure out how to adapt HR to those requirements.
CB: Can I ask you about your work with Dave Brockbank and your most recent book, The HR Value Proposition. You have been looking for about fifteen years at the competencies of HR professionals, what have you discovered about the main ways in which they add value to their businesses?
DU: We have learned that HR professionals add value when they make a strategic contribution. They can achieve this by helping to make strategy happen, helping to manage change and adapting internal practices to customers. Secondly they add value by earning credibility through their trust and confidence. Thirdly, by knowing the business, for example finance, marketing, IT etc. Fourthly, by mastering the latest HR practices, and fifthly by managing the IT and HR interfaces.
CB: What are the main competencies we should strive for as HR professionals?
DU: Every manager is an HR manager by definition, and line managers are the owners of HR work. But HR professionals are coaches who give feedback and advice, architects who produce blueprints for action, deliverers who accomplish work, and facilitators who help manage processes. HR has a body of knowledge that is required to do good HR work. HR professionals bring that body of knowledge to the business leader and partner to deliver results.
CB: What are the big changes we are going to have to make as a profession, do you think?
DU: Firstly, HR with an attitude. As a profession, we are too shy about what we know and do. We need to work with confidence based on our competence. Secondly, we must align and drive business results. A body of knowledge is being created about how HR affects financial results. We need to build on this research to focus on the right HR practices. Thirdly we have to keep focused on the external customer and investors. Too often HR folks say that their ‘customers’ are employees. Unless HR work creates value for the business customers, it won't be a part of the business. Fourthly, we must build organizations not just individuals. We focus on organisation capabilities and individual abilities. When HR is just about the individuals, we miss a major source of the impact we have.
CB: How important are moral beliefs to HR professionals?
DU: Values are inherent in the creation of value. Douglas MacGregor talked about theory x and theory y assumptions about people. These persist today. HR professionals need to be grounded on integrity as a moral principle, but also see the inherent good in individuals. Values provide a sense of direction and a moral compass to what needs to be done. Values give credibility and continuity.
CB: Have you worked with small organisations or organisations in the non profit sector? Do your ideas apply equally to them?
DU: In many ways, HR professionals in smaller companies
play a more
strategic role because they must integrate many areas. They are part
of
the management team. They manage the flow of people. They build performance
systems. They manage information and organisation of work. They are
both specialists and generalists. They are likely to have customers
they serve and have a voice in the allocation of capital. In not
for profit organizations, the human capital is the primary asset and
the knowledge and/or ability of people make all the difference in results.
CB: Would you want your son or daughter to be an HR professional?
DU: Yes and no. Yes, HR is a noble profession. Yes, I would and do enjoy working with my children. No, they seem to want to create their own agenda and direction which is a good thing and I respect their desires.
