Collaborating with HR
The biggest obstacle to the development of a true knowledge organization is the silo that divides strategy from Human Resources. In the new world of electric utilities, strategic capacity and dexterity depend on the development of flexible talent infrastructures. Knowledge can become embedded in the processes, practices, and fabric of the organization only if it is fully integrated into business units. For this to occur in a coordinated way, HR must become a partner in developing the organization’s strategy.
This requires a new mindset among business unit leaders who have become accustomed to thinking of HR executives as “staff,” expert only in their specific discipline or domain. It also requires a mental shift among HR managers who have become comfortable being categorized in this limited way. HR leaders seeking to break down silos and gain credibility as strategic partners must sharpen their business skills and focus their efforts on actively promoting the growth of the business. At the same time, management of the transactional and customer service aspects of the HR function must continue, often with greater demands than before.
HR is most effective when it models a collaborative approach with business units while emphasizing its commitment to people. There are many tactical ways to achieve this, including developing programs that support career mobility and deploying systems for housing internal résumés that support cross-referencing. On the strategic level, HR should take the lead in identifying business opportunities that result from the skillful leveraging of human capital and in positioning itself as the standard-bearer for transformative change. HR should also work to do a better job of selling this vision throughout the organization.
A forward-looking strategic partnership starts with a proactive evaluation of the critical workforce capabilities needed over the next decade and the creation of maps that identify talent gaps before they arise. These maps can provide a basis for detailed plans that identify which capabilities can be developed, added to the existing pipeline, or offshored.
No time to lose
As is often the case, the aging workforce crisis is actually an opportunity—for utility leaders to transform their approach to the recruitment, management, and development of human talent. Cultural change will inevitably spark resistance that leaders must counter by addressing leadership and succession issues to ensure that those in leadership positions understand the scope of the present transformation.
It’s also critical that top managers understand how quickly the transformation must occur. Although the aging of the utility workforce has long been on the industry’s radar screen, the need to address it is becoming acute (see table). Nothing less than a fresh understanding of how talent is leveraged will ensure utilities’ sustainable competitiveness in the years ahead.
That big boom you’re hearing. Utilities have higher-than-average percentages of older workers and smaller-than-average percentages of younger workers, which leaves them more vulnerable to the effects of baby boomer retirements. Data are for electric power generation, natural gas distribution, and water and sewage utilities combined. Source: Bureau of Labor Statistics, U.S. Department of Labor, Career Guide to Industries, 2008–09 Edition
—Jeff Akin (akin_jeffrey@bah.com) is a principal with Booz Allen Hamilton, where he leads the firm’s Human Capital Management business for private-sector clients.
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