An oft-repeated, powerful statement by Henry Ford reads, "You can take my factories and burn up my buildings, but give me my people and I'll build the business right back again." Its relevance and realization has only increased over a period of time. Extending this logic further, the people with the responsibility of 'talent management' should be even more valuable because they take care of this most important asset of the organization. But, is it really so? And if not, why not?

First of all, we need to recognize the fact that with time, the paradigm of business has changed. While capital and cash flows remain important; brand, technology and intellectual capital have become the new measures of success. The role of HR has also changed accordingly. It is becoming increasingly important for an HR manager to understand business & what drives it. The HR has to move up from day-to-day operational level to the role of change agent and strategic partner. It may be perfectly alright for HR to focus on aligning employee-oriented processes; but what they need to ask themselves is the very purpose of this exercise... and the answer is very clear - Whatever does not make business sense, can not make HR sense!

The challenges before HR can not be seen in isolation. HR professionals need to understand the challenges before their organizations. They must respond to the requirements of today and prepare for tomorrow as well. With ever increasing use of technology, transactional functions are now much better performed by automated systems. Computerized processes can add a lot of speed and accuracy to data capturing and analysis, and facilitate decision making in much improved manner. As such, real value addition from HR will come from rising above the transactional level and operating at the strategic and transformational level.

HR is responsible to ensure that good people are adequately rewarded; but more important than that is realization that the rewards must come out of earnings. Performance Management System must be able to measure human capital's contribution to business performance. HR role has to be as a consultative business partner rather than an employee advocate or people police. To repeat, whatever does not make business sense, can not make HR sense. HR needs to command respect, which is not available 'on demand'. And to command respect, HR has to be an influencer, which is possible only by adding value and thus increasing its credibility.

The bottom line is that it is impact and not intention that matters. It is not how good your intentions are or how much you want things to improve; it is how measurable a difference you are making for the organization to achieve its business goals. HR people need to come out of their dream world of self admiration and reorient themselves for acquiring business acumen to understand operational systems and how to support and leverage these systems through their proactive approach, so as to achieve organization's business objectives.

Ashok Grover is the Director, Skillscape. His last assignment was with the JBM Group as Corporate Chief Human Resource Officer. He has over thirty-eight years experience in operations, materials, information technology and people development with Parle Group, Mohan Meakins Group, Hawkins Cookers Limited and JBM Group..

Ashok Grover is a great motivator. His expertise includes evaluation of the people and focused individual counseling. He has also trained thousands of people in the area of Organizational Philosophy, Interviewing Skills, Time Management, Team Building, Effective Communication and Coaching Skills. Get in touch with him at akgrover@hotmail.com