HR: Getting to the core of Business

Most organizations view the HR driven Performance Management System as a set of discrete processes & tools deployed for a defined period of time for a specific purpose linked to business (such as development of individual personal development plan or basis for reward or career progression or compensation decision). Very few organizations leverage the power of a holistic & integrated people performance process in delivering business value.

The fact is that the People Performance processes in an organization provide opportunity for functions to stay centred around the business purpose and goals. It is the means for HR to get to the core of business not merely as a service provider or business partner but as co creators of business value. However, to do so HR should look beyond performance processes and tools to the People Performance Architecture (PPA). PPA encompasses the whole process of defining, communicating and deploying performance frameworks and supporting organization systems so every member / participant in the organization is continuously aware of and comprehends the organization vision, goal, objectives and targets, understands what is critical to business performance, and importantly knows exactly how his/her work relates to those goals, has the facilities and tools to do what is required and does what is required to achieve goals. At the heart of the PPA is defining the critical success factors for the business, identifying key performance areas and key result areas, developing the performance cascade to the smallest unit level, defining the cross functional and cross departmental collaboration nodes & deploying supporting HR processes.

By anchoring around the People Performance Architecture, HR can ensure that all members/constituents of an organisation have clear visibility into business goals & performance and are constantly alive to the purpose of the organization and their role within that purpose and that all HR strategies, structures, policies, processes and programs are not merely aligned to business requirements but are also centred around business performance.

There are several benefits of anchoring the HR role around effective deployment of a robust People Performance Architecture.

Alignment: It serves as a basis for aligning all resources, people efforts & energies to the business goals and contributes to developing a motivated work force that is likely to make that extra effort in delivering goals as they are more aware of how their actions can impact business. Every employee is able to answer two key questions: (a) What does your company do?, and (b) What do you do? in a coherent way while establishing the contribution of his role to the organization's purpose.
Preparedness: Enhance people preparedness for change; by making them more business attuned, helping them understand factors & changes in the business environment that have potential to impact their and the organization performance. Thus strengthening the organisation’s ability to be better prepared to adapt to change.
Innovation: Strengthen people’s ownership to performance and their ability to develop insights around their and their team performance that could help in generating innovative & new ways of working to achieve goals
Credibility: It ensures that HR stays at the center of business not merely as a business partner but as an integral part of business making sure that resources, processes and systems facilitate business growth.

There is no one-size-fit-all, PPA. The architecture has to be specific to the organization business and context. A successful architecture is one that is able to effectively engage employees in the performance process. It is one that is, dynamic and which provides employees value by giving them the ability to navigate through self monitoring, learning, changing course where performance imperatives so demand and growing through the process. For its full value to be leveraged it is important to ensure that the performance architecture

• Is simple and easy to understand and implement and is delivered in a way that promotes trust and positive relationships with Managers
• Provides goal, objective & target clarity to the smallest unit within the organization; Provides clarity in measurement parameters and objectivity in measurement
• Defines capabilities required for people to contribute meaningfully and effectively
• Integrates feedback and learning, recognition & reward mechanisms and all those systems that go to strengthen the people facet of organizations.
• Is a critical part of the organization DNA as evidenced by a continuous & daily review of progress and is not an annual exercise in compliance

By defining and developing the People Performance Architecture within their organisation as the starting point in their journey to getting to the core of business HR folks would create value not only for the business but for themselves as co creators in business success.

There is no better time than now to start this journey. Creating a performance culture remains a key priority for all organisations in good times and in difficult times; through the effective deployment of a robust Performance Architecture HR can ensure that people performance becomes the basis and the organisation mantra for creating value