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Leadership systems that
create powerful companies
The Five Stages of Human Resources Evolution
From Administration to C-Suite
Presented by: Heather Hilliard & Anne Dranitsaris, PhD
Behavioral Change & Leadership Experts
What you will learn
Normal growth trajectory of human resources
Stages of development of human resources in
organization life
Normal crisis points during development
How to navigate the Stages and take human
resources to the next Stage
Implications for HR practitioners
While to many, it may seem that
moving HR through the Stages is a bit
like pushing a rock uphill, it doesn't
have to be that way!
Stages of HR Development
5 distinct Stages of Development that the Human
Resources function grows through in organizational life
Stages go from administration to a C-Suite office and seat
on the executive team
Each Stage coincides with the:
growth of the business
readiness of the executive team / entrepreneur
number of people employed
capabilities of the leader of the HR function
Stages of HR Development
Each Stage has a crisis points that indicates when it is
time to:
bring the right HR talent aboard
redefine the HR function
decide what needs to be built, i.e. HR team, HR
department, strategic partner.
The challenges that both the leaders and the HR
employees face are symptomatic of needed growth and
development of the function, leaders and HR employees.
5 Stages:from Administration to C-Suite
Stage 1:
Infancy
Stage 2:
Foundation Building
Stage 3:
Building the HR Team
Stage 4:
Building the HR
Function
Stage 5:
Strategic Human
Resources
Infancy
Start-up or small business
Leader or leaders are workers
Focus on survival of the business
HR is done by the owner/leader
or Administrative Assistant
Outsourced support for accounting, payroll, hiring
No defined practices, systems, policies
Stage
1
Crisis of Growth & Stuck Point
Growth of the business leads to:
Leader spending too much time resolving
employee conflict
Turnover due to wrong hires
Lack of policies and processes
Employees salaries determined by need
HR delegated to inexperienced or untrained
employee leads to more issues
Stage
1
To Move to Stage 2:
Recognize the need to:
Determine company policies & procedures
Create job descriptions and salaries
Standardize recruitment practices based
on job requirements
Hire an HR Generalist to:
perform administration of HR
support recruitment
handle employee conflict
Stage
1
What Gets in the Way
Promoting a non-HR person to set
up and run the new HR function
Hiring a new HR grad to minimize
costs instead of investing in
experience
Not defining “how” HR should
actually work
Stage
1
Foundation Building
Administration of policies and procedures by standardization
Employee manual
Policies for time off, vacation, etc.
Process for writing up employees, i.e. late, failure to comply, etc.
Standard policy for raises, cost of living, 2 – 3 percent, etc.
Safety policies
Stage
2
Crisis of Growth & Stuck Point
Growth leads to:
Unpredictably, chaos,
confusion
Firing weakest employee;
stuck in rehire cycle
Failure to manage
performance
Leaders blame employees,
employees blame leaders
Stage
2
Crisis of Growth & Stuck Point
Growth of the business leads to:
Too many employee issues to deal
with
Too much time spent in hiring, no
time for onboarding
Turnover due to lack of definition,
poor management
HR Generalist feels they can
never do enough
Stage
2
Shift HR to Stage 3
Recognize the need to move from HR administration to a defined functional area by:
understanding how people practices limit organizational cohesiveness and growth
aligning to the needs, vision and values of the business
linking performance management with company goals
deciding on an HR identity with clear mandate, functions and services
Stage
2
What Gets in the Way
Leaders want to keep it ‘fun’
No clear HR framework or design
Leaders absenting themselves
from HR program design
decisions
Too much emphasis placed on
policy and not enough on
performance
Staying reactive
Stage
2
People & CultureEmployee
Experience
HR Core Services Full Suite HR
What should ‘HR’ look like?
Building an HR IdentityStage
3
Crisis of Growth & Stuck Point
Growth of the business leads to HR having
to deal with negative results of:
inexperienced and ineffective managers
off-the-shelf performance management & incentive
programs
Much reinventing the wheel & solving same problems
Leadership doesn’t participate in decision making on
HR programs (leaves HR on own too much)
Management wants HR to solve people problems
without spending any money
Stage
3
To Shift to Stage 4:
See HR as critical to the growth of the business
Leadership recognizes that they must participate in
programs
See the value in investing in people’s training and
development
Recognize issues are due to not taking a holistic
approach to aligning people, systems and processes to
organizational goals
Stop blaming individuals for issues that are systemic in
the organization
Stage
3
What Gets in the Way
Not defining HR; letting the work or
external factors define the function
Promoting existing HR Generalist
without development support
Adding more HR generalists to
cover the workload vs. HR
specialists
Not building a plan that focuses
HR’s efforts and outcomes
Stage
3
Alignment of the HR Function
Recognition that HR is a business function that must be
aligned with business goals
HR leader must be able to influence leadership team
Ensure HR policies and programs are followed and that
overall performance is aligned with goals and objectives
Oversee cohesive systems and people practices
throughout the organization
HR hub: ensures communication between management
& employees, as well as planning, directing, and
coordinating work tasks to achieve business goals
Stage
4
Crisis of Growth & Stuck Point
Senior HR leaders fall short of really understanding
the business challenges
Focus on policies and programs that are impractical
or even irrelevant to the bottom line of the business
Lack of centralization of HR activities throughout the
organization
Failure of leaders & managers to align themselves
with HR function or use advice from HR, creating
significant challenges for HR when goes wrong
Stage
4
Crisis of Growth & Stuck Point
Lack the assertiveness to drive their agenda
Lack the business skills to build a business
case for necessary programs or changes and
as a result, are easily dissuaded or rebuffed
Champion the needs of employees to senior
management; run the risk of creating and “us
vs. them” position, with HR siding against the
leadership team they are a part of
Stage
4
To Shift to Stage 5
Leader of the Human Resources Department has to
make a significant change in the way they lead
shift from champion of employees to a business leader
who is responsible for HR
ensure all of their functional areas add value to the
bottom line
Determine how to maximize the company’s human
capital and lead their managers in a way that ensures
HR is seen as a strategic business partner
Leaders need to understand when HR is not
embedded in the organization, it is not as successful
as it can be
Stage
4
What Gets in the Way
Failure to take an holistic approach
to the business of HR
Lack of understanding
organizational identity and what it
needs HR to be
Inorganic approach: focusing on
best practices programs vs.
solutions to business needs
Inability to overcome resistance of
leaders to develop
Stage
4
Integration of Human Resources
HR in the organization has evolved organically and an
integral part of the business identity
HR Leader is a business leader first; focus on business
metrics, reporting and analytics and how human capital
affects bottom line results
Integral part of strategy execution, helping to move
strategic objectives to action plans throughout the
organization.
Create a competitive advantage through workforce and
talent systems
Stage
5
Integration of Human Resources
Work with the executive team to determine business
goals, objectives and strategies
Enforce a comprehensive planning process and ensure
work is organized and executed, delivering administrative
efficiency to ensure that costs are reduced while quality is
maintained
Identify desired behaviors, aligning processes and
evaluating performance against it espoused culture
Advise, counsel, coach, challenge and mentor the CEO
and their peers on the leadership team
Stage
5
What Gets in the Way
Not educating executives first
before presenting plans
Personalizing executive
decisions
Lack of change management
Use of subjective vs. objective
language
Stage
5
Growing Your HR Function
Whatever the Stage of Development
your Human Resources is at, it is
critical that you identify it and take
steps to build a solid, cohesive
function that will serve you as your
business grows
Not making the investment in your
human capital can create significant
blocks to organizational performance,
regardless of the size
Why Caliber Leadership Systems?
Our experience helping organizations set up the HR
function to create greater alignment of people to goals and
business outcomes allows us to come into an organization
of any size and assess what needs to happen to secure
HRs ultimate place as a strategic business partner or
service centre, adding value to people and bottom line
performance.
At Caliber, we show business leaders how to cut
through the noise in order to build powerful
companies and amplify their business results.
Why Caliber Leadership Systems?
We help by...
Facilitating strategy development, business planning and retreats
Building authentic, high performing leadership teams
Designing & implementing organizational structures
Designing & implementing HR framework
Leading cultural change
Designing & implementing succession, performance, reward &
recognition systems
Leveraging personality assessments
Selecting candidates for key roles
Providing individual coaching and career counselling
Questions?
For more information, contact us:
Heather Hilliard
416.406.3939
www.CaliberLeadership.com
www.StrivingStyles.com
