This paper has been drawn from the research and experiences described at various events, including the HR Benchmarking Club, the HR Society President's Forum and FiSSInG HR Strategy Meetings, and the illuminating discussions that followed.

The report looks at why the contribution of strategic HR practitioners must contribute to both:

§         operational business performance, and

§         corporate capital wealth creation.

These are not the same thing.  Nor is human resource the same as human capital.  Indeed, for strategic thinking they should be further sub-divided into:

-          Human resource management

-          Human resource development

-          Human capital management

-          Human capital design.

These four areas relate to each other and the organisation thus:

The position taken by this paper is that it is all or nothing.  Either we are able to contribute meaningfully to all four areas, or HR will wither as a distinct, professional discipline (as prophesied by Charles Handy). 

Five key personal capabilities are needed to prosper as a separate discipline:

1.   Relating Credibly

The HR Team

The Practitioner

2.   Thinking Strategically

Perspectives on Strategy

Human Resource Strategy

Human Capital Strategy

The Business Strategist

Integrating HR and Business Strategy

3.   Managing Risks

Relationships, Knowledge, Power

Contractual Safety

Corporate Survival Strategy

 

4.   Designing Capital Value

Value in Business Modelling

Value in Ethical Modelling

Value in Human Resource Modelling

 

5.   Measuring Impact

Investment Decisions

Metrics

Human Capital

The first three capabilities enable us to close in on the action.  The last two provide the torque to leverage our specialist expertise. Unless these capabilities are honed by HR professionals, they will be excluded from core strategy and confined to operational human resource support. 

These capabilities are therefore explored in some depth by this paper.

A Glossary of Terms in Strategy and an Example HR Business Partnership Agreement are included in the appendices.