Our world of work has changed. The world economy, business environments, the competitor landscape, and the pace of technology and innovation, including the influence of AI, culminate in a volatile and unpredictable world where we can barely plan 6 months in advance.
In addition, our customer, THE EMPLOYEE, is changing. Boomers have left the building; Gen Xers are fewer. Millennials and Gen Zs are the predominant generations, and they have different needs and expectations.
How should HR change to effectively respond to the needs of today’s organizations and employees?
Enter Agile.
Applying Agile principles to HR practices provides practical solutions to creating a more client-centric, responsive, and adaptable HR function.
To build this future reality for HR let’s consider potential influences and past practices that could be barriers to change.
1st Wave: 1950-1970
- Organizational strategy was influenced by the minds of Peter Drucker and Alfred Sloan where the focus was on long-term planning (5-10 years…what a luxury!)
- We saw the emergence of corporate departments, and the rise of the SWOT analysis, while HR practices focused largely on administrative tasks, personnel management, and labor relations, lacking strategic involvement and alignment to organizational goals.
- This first wave was referred to as the Planning wave.
2nd Wave: 1970-1990
- The second wave was called Positioning.
- Porter’s 5 forces model was used to analyze the competitor and environment to determine an organization’s attractiveness and competitive positioning.
- During this period, we saw a shift in focus from form to substance, where HR started gaining global recognition for the influence of HRM on organizational performance.
- The goal: To get the best performance out of a human ‘asset’.
3rd Wave: 1990-2010
- The 3rd wave, referred to as “Spanning”, was recognized for its transformative shift in strategic perspective toward meeting the needs of the customer, underpinned by resource-based theory.
- Capabilities became the linchpin for establishing a sustainable competitive advantage.
- Simultaneously, HR strategies witnessed an evolution into strategic human resource management (SHRM).
- SHRM aimed to forge a connection between HRM practices and strategic management.
- This was the era where HR thought leader Dave Ulrich positioned the 3-pillar HR operating model, comprising business partners, centers of excellence, and shared services, providing both strategic insights and administrative efficiencies.
4th Wave: 2010-now
- We are currently in the 4th wave and we see organizations having to navigate increasing environmental complexity and technological innovation.
- There is a clear shift toward dynamic perspectives on strategy to enable agility, and adaptability, with operations becoming leaner.
- The goal: Customizing at scale.
- In the context of HR strategy, the last three decades of research have prompted reflection, with empirical evidence supporting a strong correlation between HRM practices and organizational performance.
Agile HR Practices
Agile for HR is one of the proposed operating models that could help both HR and business navigate environmental turbulence.
In comparison to Traditional HR Practices, Agile HR looks something like this…
Iterative development involves breaking tasks and projects down into smaller, manageable chunks. This paves the way for continuous improvement—a stepping stone toward excellence.
Collaboration and empowerment are at the core of Agile. Implying self-organized teams and decentralized decision-making.
Short planning cycles allow swift adaption and responding dynamically to feedback and evolving requirements. Flexibility becomes HR’s superpower.
Cross-functional teams comprising diversity in skill set, experience, and vantage points – unlock the full potential of collective intelligence.
Embracing change as opposed to trying to maintain a stable status quo. This enhances the ability to be nimble in the face of constant change.
In essence, Agile principles are guiding philosophies that can help HR to shape a new era of work—one that’s dynamic, collaborative, and adaptable.
