The HR function as a catalyst for transformation

Recent decades have seen a rethinking of the HR function globally. Pressed to respond to highly dynamic market, technological and geopolitical developments, companies are realizing what a crucial role people management and their needs play in the transformation of organizations. With the unique ability to define a company's culture, structures and processes and strategically develop its talent, HR professionals are becoming central figures in the transformation process. We invited Rada Yosifova, HR Director at AG Capital, to talk more about the role of the HR function as a catalyst for transformation.

How do you define the role of the HR function in transformational initiatives and processes in a company?

Rada: Change and transformation are part of the DNA of the HR function by definition. I see myself as a transformational manager as throughout my career I have been involved in initiatives related to major restructuring, workforce optimization programs, post-merger and acquisition changes, implementation of new processes and software applications, digitalization, regulatory changes, and many other organizational changes that accompany the life cycle of any organization.

Over the last 20 years, the HR profession has undergone a general transformation, and the work of professionals has been enriched with many new responsibilities and skills. The profession, which started as a payroll and contract administrator, today manages employer branding projects, hefty training budgets, and acquisition-related restructurings, and stands confidently at the table along with other management functions. The dry title of "human resources" has been replaced with "people," and "culture" and even "happiness" have been added to people management. The focus shifted from processes to people and their needs, in sync with those of the organisation.

One evidence of this rapid development is the emergence of university and certification programs that prepare young professionals or upgrade the skills of experienced experts, as well as strong professional communities. Even the emergence of jokes about HR also speaks to the legitimization of the profession as one of the popular ones in society.

This natural progression has tempered HR professionals and made them open to change, adaptable, and willing to learn. Often HR departments are either the drivers or at the helm of major change.

What alignment between HR strategy and overall company strategy is needed to achieve transformational goals?

Rada: It's well known that the most challenging element of any transformation or optimization process is winning people over to change their heads and hearts. I've often heard from colleagues that it's easier to implement new technology for millions than to get people fired up to work with it.

The HR function in an organization can be very helpful in:

• Planning the entire change management process
• Resource planning - identifying the need for new or surplus resources
• Defining the communication plan
• Planning training and other initiatives to support change adoption processes
• Identifying change ambassadors and activating opinion leaders
• Assisting middle management in dealing with resistance from people

The meaning of change

For a transformation to be successful, it must correspond to the organisation's strategy so that people see its purpose and meaning clearly. The results the organisation wants to achieve must be aligned with its values, mission and vision, and there must be no apparent conflict with other initiatives. If this alignment is missing or difficult to understand, people will not be able to find meaning and therefore motivation to embrace and work for change.

For example, if an organisation places excellent customer service as its value, but at the same time optimises its store network, people assume that such optimisation will lead to queues and therefore to dissatisfied customers. In this case, the store network optimization program must be very well justified and the customer service processes optimized and explained accordingly to all concerned. The HR function must partner with a communication plan and management support, as well as resource planning for stores with increased customer volume and stores that will release or reassign staff.

How does HR contribute to shaping the corporate culture needed to support transformational processes?

Rada: The HR function is the custodian and carrier of culture in the organisation. While senior management is the main driver of culture, HR structures the environment for it to exist, build on, and spread in the best way for the company.

Building a culture based on psychological safety is a key prerequisite for how people in the organization perceive change, and how willing they are to take risks, to experiment so that they discover new and better ways to do their jobs. When there is a lack of certainty and trust in management, transformations are difficult and sometimes impossible because resistance to change is fierce. If senior management does not manage communication and relationships in the organization, if it does not consciously influence the processes that shape culture, it will compromise the success of its strategy.

To close, I leave you with a favorite quote of mine to underscore how critical it is to maintain a high level of adaptability in an organization:

"It is not the strongest of the species that survives, nor the most intelligent, but the one that responds best to change."

Charles Darwin