There’s a right way to silo HR? Well, perhaps silo is the wrong word. Certainly in many HR organizations, silo is procedurally correct as recruiting doesn’t talk to compensation who doesn’t talk to training, and they don’t agree about direction anyway. We’ve actually come a long way reducing the total HR practices sitting around – we now have total rewards, talent management, HR service delivery, etc. But we still may be thinking about this all wrong…
Instead of the functionally base approach we’ve always used, how about a 3 pronged approach using:
- The HR Business Partner
- The Corporate Strategy Center
- The Tiered Service Delivery Center ((Johnson, Bruce; White, David. Adapted from a presentation delivered at the 2006 Cognos conference: “Transforming Human Capital Management))
The HR business partners (generalists we call them today) are focused on the business units with a detailed understanding of the local strategies, HR expertise, and corporate strategies. They are able to negotiate not only the linkages between the above 3 competencies, but also broker deals between the organizations as necessary.
The corporate strategy center is focused on planning, policy and risk mitigation. With planning in the lead, they are accountable to the senior executives to provide direction based on trends presented by data.
The tiered service delivery center coordinates with both of the above centers, enabling technology and service at a cost effective premium.
Rather than the segregation of functionality, we should be distinguishing based on the different ways we impact the business, all the while acting in a coordinated fashion.