White paper by Dr. Dave Ulrich




HR does not start with HR. HR shapes business value in leading companies because it starts with the business. The scorecard of good HR is the business scorecard. HR investments help deliver growth through product innovation, geographic expansion, and customer connection. But beyond strategic HR where business strategy is a mirror in which HR reflects business goals; strategy can be a window so that HR work is being connected to external customers and to investor confidence (called HR outside in). Customers are increasingly involved with staffing (sourcing and interviewing candidates), training (designing, attending, and teaching), performance management (doing 720 more than 360), and leadership (leadership brand). Investor confidence increases when they monitor the quality of leadership through a leadership capital index assessing individual leaders and human capital systems.

Often those critiquing HR are like those who wonder why the 20-year-old telephone, computer, or television does not deliver against modern standards. They rely on the dated straw man of HR as an administrator of benefits or policy police which is as out of date as old electronic devices. With an HR outside in perspective, HR starts and delivers customer and investor value.

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