What does the C-level expect HR to know about the business side of your organization?

By Julie Wolpers | August 12, 2024

Business Skills for HR Leaders featuring Interplay, a recent event spearheaded and facilitated by Advantage Partner Steven Orova in July of 2024, included a panel discussion about the critical skills HR leaders need to thrive in today's fast-paced business environment.

Many thanks to the members of our panel:

Mike Horne, PhD

Former head of HR at Gilead Sciences Research Division, Dr. Horne developed and implemented HR strategies that supported Gilead’s M&A initiatives. He is an associate professor at Golden State University and an executive coach for many business leaders.

"I think it’s about showing that you’re interested. That’s the whole point of it, you know, show that you’re interested in some domain. ... People don’t expect you to be a technical expert, but they do expect you to be interested. And that interest can go a long way in advancing people initiatives in an organization, people and culture initiatives.

... I would just add that it's really a great privilege ... in HR leadership, influential work, to keep people involved in the growth and innovation business. That is a way to which you can add tremendous value to individuals, to teams, to other systems in organizational life, in organization development – getting people to stay engaged in the growth and innovation game."

Hermie Neri, MBA

Former SVP, Divisional Head of Human Resources at DHL Corporation, Ms. Neri has over 25 years of HR leadership experience in logistics, financial services, and manufacturing. She has contributed extensively to business through HR strategy, leadership development, and performance management. She has trained, coached, and mentored numerous individuals and leaders within and outside these organizations.

I think, for us as HR folks, it’s not something that we breathe and live every day, right? It’s not that the business knowledge or the financial acumen comes to us so naturally as it would to a finance leader or to an operations leader or the CEO. So initially, it is really trying to figure out okay, what's the shortest or probably the most expedient way to learn and to be knowledgeable enough to really ask the right questions. A few things that I found really valuable, and I did this through all my roles, was walking the floor, talking to people, and seeing what they do. For example, in logistics, it was the delivery folks or the operations team; in manufacturing, it was walking the shop floor and talking to the individuals. You pick up so much that you can build on as you relate to the business.

HR is there, in my interpretation, to achieve business results through people, and therefore it is relevant to understand some of the fundamentals about the business so you can help identify and shape solutions that can address these needs."

Michelle Prince, PhD

Former SVP HR at Randstad, First Data, and Ciba Vision, Dr. Prince has held executive HR roles in multiple industries globally. She continues to advise organizations and provide one-on-one executive coaching.

One great learning from a CEO that I was coming to work with was, 'Don’t be an order taker.' I asked her what advice she had for me, and she said, 'I want to see you challenging, I want to see you asking questions, I want to see you bringing data, I want to see you having an educated opinion, and I was to see you influencing the leaders.' ... So that's what I did. I made sure that whenever I was in the room, especially when she was there, I had data and an opinion based on the data....

I had the amazing opportunity to work with leaders who expected HR to have as much business acumen and as much business impact as every other department."

Interplay is a game-based experience by our thought leader partners at 10,000 Feet LLC that's like getting a mini-MBA in a day. Available to experience on-site or virtually, it teaches participants how to think and act like a CEO as they compete in teams to run a company and meet specific business challenges. The popular simulation was once voted best session at HR Indiana.

Originally created for both Apple and Microsoft, Interplay has subsequently been used by many other leading organizations.

Watch the replay of our Business Skills for HR Leaders flyover here.

. Ask us how to bring Interplay to your organization.

Discussion summary

Summary of the panel discussion:

The discussion focused on the evolving role of HR professionals and their increasing need to understand and align with business strategies. The conversation explored the expectations of HR leaders from top executives, the impact of AI on HR practices, and how HR can contribute to organizational success by integrating business acumen, data-driven decision-making, and a focus on measurable outcomes. Panelists shared personal experiences and offered practical advice on becoming more effective HR leaders, emphasizing the importance of curiosity, continuous learning, and aligning HR initiatives with business goals.

Top 5 points:

Business acumen in HR: HR leaders must understand key business metrics, competitive landscapes, and organizational goals to contribute effectively. This involves moving beyond traditional HR roles to become strategic partners in business decision-making.
Impact of AI on HR: AI is transforming HR practices, particularly in recruitment, talent management, and productivity. HR professionals need to balance efficiency, effectiveness, and ethical considerations when implementing AI-driven processes.
Data-driven decision-making: Successful HR initiatives rely on data to drive decisions and demonstrate impact. For example, using data to analyze the effectiveness of leadership programs or employee engagement efforts can provide valuable insights and guide strategic adjustments.
Strategic communication: HR leaders should communicate their contributions in terms of business impact rather than just HR outcomes. Framing initiatives like performance management or leadership development in terms of how they drive organizational success is key to gaining executive buy-in.
Continuous learning and adaptability: HR professionals should constantly seek to learn about their organization's operations and challenges. This includes building relationships with key stakeholders, understanding financial reports, and staying informed about industry trends to remain effective and relevant.

These points capture the essence of the discussion, highlighting the critical skills and approaches needed for HR leaders to thrive in today’s fast-evolving business environment.

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Julie Wolpers

A content marketing specialist and web developer with a background in journalism, Julie is also the creator and writer/editor of the Talent Development Tuesday weekly email newsletter. Offline, Julie loves to swim and shares her home office in Missouri with her rescue shepherds Lulu and Sammy.