Commercial acumen - the business gene
It is about a 'growth mindset'. To survive, a company needs to be financially viable. Also, shareholders expect a dividend (cash flow) on their invested cash (risk) and a growth in share price. Our mission is business growth, operate in a social responsible and sustainable manner, and generate and maximise value for the company and its shareholders.
Hence, HR also needs to have a strong commercial acumen on a number of issues:
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where within the organisation values are generated
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what the profit and growth drivers are and how they are internally and externally influenced
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how today's business models are disrupted
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changes in client behaviour in this changing world
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understand innovations and possibilities with technology
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how to measure the results of the steps taken (ROI)
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capture changes in requirements and align capabilities (see 3. below)
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an HR strategy has o be a direct derivative of the company's strategy
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business needs overriding HR processes (due process) should not be regarded as undermining HR.
In practice, it boils down to deploying capabilities, competencies and measures which support the strategy and generate a positive 'return of Investment'. 'ROI' is still not common thinking in HR in Norway. My thinking may be more Catholic than the Pope, but I dare say most HR actions are measurable, also financially. All HR measures should either have a positive 'ROI' or of a proven strategic (quality) importance. A periodical scrutiny of HR measures should take place to align measure with changes in the (rolling) strategy.
HR must be "business potent" and apply business strategy thinking in all situations.
Confidant
Commercial
acumen
Client
perspective
Capability
Culture
Commitment
