Identifying and Developing

HR Competencies for the Future:

Keys to Sustaining the Transformation of HR Functions

Arthur Yeung, Patricia Woolcock, John Sullivan; The California Strategic Human Resource Partnership
Human Resource Planning. 1996. Volume 19. Number 4. Pages 48-58.

In the last few years, many human resource functions
have strived to reinvent themselves through new
visions, strategies, structures, processes, and systems.
However, to sustain the transformation of human
resource functions, HR professionals must develop
and demonstrate a new set of competencies to
fulfill their changing roles and responsibilities.
Based on in-depth interviews with ten senior HR
executives, this article proposes a HR competency
model which is both generic (i.e., able to encompass
the key competencies that are frequently used by
companies in different industries) and specific (i.e.,
able to highlight the competency differences in various
HR roles). As our research indicates only 10-35% of
HR professionals possess the required new compe-
tencies, this article also reviews and discusses ten
strategies that ten prominent companies use to bridge
the competency gap of their HR professionals.
Important levers for competency development include
planning and assessment, communications, perfor-
mance management, training, and development.

48 HUMAN RESOURCE PLANNING

Overview

Many human resource (HR) functions have been undergoing unprecedented changes in the last few years; new HR visions
are being formulated, innovative HR strategies implemented, advanced HR information systems installed, HR structures
redesigned, and HR processes reengineered. To add higher value to their corporations, many HR functions are being
driven to lower HR costs, enhance the quality of HR services, and forge stronger linkages with business needs (Schuler,
1990; Yeung, Brockbank, & Ulrich, 1994; Yeung & Brockbank, 1995). All these changes, however, call for revamped
roles and new competencies among HR professionals. Without aligning the skills of HR professionals with the changing
HR visions, strategies, structures, systems, and processes, it is inevitable that the transformation of HR functions will be
crippled.

In view of the strategic importance of these issues, The California Strategic Human Resource Partnership - a consortium
of senior HR executives in 31 leading California companies - commissioned a research study to systematically examine
the following two questions with regard to HR competencies required in the future: 1. What essential competencies will
be required of senior HR professionals at both corporate and business unit levels? 2. How can corporations most
effectively acquire and/or develop these new competencies?

Although many studies have been conducted regarding the changing competencies of HR professionals (Lawson, 1990;
McLagan, 1989; Ulrich, Brockbank, Yeung & Lake, 1995; HRM Special Issue, 1996), this study is unique in three ways.
First, while almost all existing studies of HR competencies have primarily focused on the identification of appropriate
competencies, very few have ever addressed the specific strategies to develop those required competencies among HR
professionals. This article extends beyond the mere identification of specific HR competencies and specifically discusses
strategies that a diverse group of prominent companies have used to bridge the competency gaps. Second, instead of
relying on case studies (Blancero, Boroski & Dyer, 1995; Morris, 1996; Gorsline, 1996) or large-scale survey research
(Ulrich, Brockbank, Yeung & Lake, 1995), this study conducted in-depth interviews with senior HR executives in the
following ten companies: Apple Computer, Bay Networks, DFS Group Limited (Duty Free Stores), HewlettPackard,
International Paper, Kaiser Permanente Health Foundation, National Semiconductor, Oracle Corporation, Quantum
Corporation, and Transamerica Corporation. (Please see Appendix I for the names of interviewees.) While this method
does not justify the generalization of research findings to every kind of company (such as those smaller in size or those
located outside the U.S.), it does provide sufficient depth and breadth to develop some insights, projections, perspectives,
and observations regarding the competencies required of HR professionals in the future. Third, this study targeted only
senior HR executives for interviews, excluding HR professionals at lower levels. This focus was motivated by the
rationale that these senior HR executives are in a unique position to envision the changing roles of their HR functions and,
consequently, to articulate the competencies required of their HR professionals. We believe senior HR executives can
indeed provide the most accurate predictions regarding the competencies needed by HR professionals in the coming three
to five years. (Each interview typically lasted for about one to one and a half hours. All interviews were tape-recorded and
completely transcribed.)

By highlighting and discussing the key findings of the study, this article aims to share ideas and information that may
prove invaluable to companies undertaking the challenging processes of identifying, developing, and refining
competencies required of HR professionals in the years ahead.

What Are the Key HR Competencies Needed In the Future?

To identify the key competencies which will be required of senior HR professionals at both corporate and business unit
levels, we asked the HR leaders to list those competencies critical to their HR professionals in the next three to five years.
Usually, many HR leaders do not conceptualize a difference between the competencies required of senior HR generalists
at the corporate and business unit levels. With an increasing emphasis on aligning HR with business needs, senior HR
professionals in business units are increasingly taking on strategic HR leadership responsibilities comparable to the
corporate HR leadership role. However; the senior HR executives we interviewed do make a distinction between the
competencies of HR generalists and HR specialists, the latter typically located in corporate offices and responsible for the
delivery of shared services.
The shifting roles and competencies of HR professionals are succinctly explained by Deborah Barber, SVP of HR and
Organizational Excellence at Quantum: "I think traditionally the more strategic level HR plan has been developed in
corporate and then it gets executed or implemented in the business. And now I'm saying we've got to turn this thing upside
down. Because they are close to the business, the senior level HR professionals at the business level need to be prepared
to do the in-depth kind of organizational diagnosis and assessment, and then be able to determine what are the critical
organizational capabilities that business needs to be able to execute, both short-term and long-term, against their business
plans. They have to put together both the strategic level and operational level organizational plans that are required to
support the business. Now, corporate is there to provide some of the specialized resources or some of the expert
knowledge that is needed to both develop and implement these kinds of plans. But the driver, the leadership has to come
out of business. And that is a tough switch because we haven't been developing that kind of leadership in the businesses."
Barber's comments elicit the vital question: What are the required competencies for senior HR generalists at both the
corporate and business levels? A majority of HR leaders identified the following three competencies as critical: (1) solid
knowledge of business or business acumen; (2) a capacity to facilitate and implement change; and (3) influencing skills.
These three competencies were mentioned by 90%, 60%, and 50% of HR leaders respectively. (Please refer to Exhibit 1.)
Interestingly, only 30% of HR leaders considered technical HR expertise critical for senior HR generalists. Forty percent
of HR leaders selected leadership, organizational effectiveness, consultation/OD skills, and strategic/systemic thinking as
essential competencies for senior HR generalists, Overall, the competencies highlighted by HR leaders are quite similar to
those suggested in previous studies of HR competencies (e.g., Lawson, 1990; Ulrich, Brockbank, Yeung & Lake, 1995).
The only items not mentioned elsewhere are fact-based perspective, and process management and improvement. These
competencies point to two emerging trends in HR functions: (1) the importance of measuring HR effectiveness and
impact; and (2) the process orientation in the delivery of HR services. Hence, these two competencies have become more
and more important in new HR organizations.

For HR specialists, process management, information technology expertise, and technical HR expertise are considered
critical competencies. Other essential competencies include customer service, financial management, organizational
effectiveness, and measurement of HR effectiveness.

50 HUMAN RESOURCE PLANNING

Two important insights were gained from the interviews with senior HR executives. First, HR competencies should be
role-specific rather than generic. The requisite competencies needed by senior HR generalists are quite different from
those required of HR specialists. With the evolution of HR organizational structure into four major components - HR
leaders at the corporate office, senior HR generalists at business units, HR specialists at the shared service center, and HR
experts at centers of expertise such as those focusing on organizational change, organizational effectiveness and program
design (CSHRP, 1994; Ulrich, 1995) - future models of HR competencies should be able to account for the competency
differences resulting from the differing roles of HR professionals. A recent study within Eastman Kodak (Blancero,
Boroski, and Dyer, 1995) has come to a similar conclusion in developing a role-based competency model.

Second, the list of key competencies identified by HR leaders is generally consistent with the competencies suggested in
the University of Michigan study (Ulrich, Brockbank, Yeung & Lake, 1995) and the SHRM study (Lawson, 1990). This
suggests that a consensus exists among HR researchers and practitioners regarding future HR competencies. Thus,
although different competencies are emphasized in different HR roles, the overall list of competencies is quite consistent
among companies in various industries in our sample. This, in turn, points to the value of developing a new HR
competencies model that is both generic (i.e.-, able to encompass the key competencies used by companies in different
industries) and specific (i.e., able to highlight the competency differences in different HR roles).

Develping a Model of HR Competencies

Based on our interviews with ten HR leaders, a summary of previous research studies (Lawson, 1990; Ulrich, Brockbank,
Yeung & Lake, 1995), and a frequency analysis of HR competency items used in seven companies(1), we propose a new
model of HR competencies that corresponds to the emerging HR structure in many corporations. As summarized in
Exhibit 2, it is a four-domain competency model which includes Core, Leadership, HR Expertise, and Consultation
competencies. Depending on their roles (corporate HR leader, senior business unit generalists, HR specialists at shared
service centers, HR experts at centers of expertise), different domains of HR competencies are critical for different HR
professionals.

At the center of the model are the Core competencies which every effective HR professional should develop. These
competencies include:

business knowledge - capacity to understand competitive issues impacting the business (e.g., market, products,
technology, processes) and to understand how business can create profit and value

customer orientation - ability in viewing issues from the perspective of customers

effective communication - the ability to provide both verbal and written information clearly, consistently, and
persuasively

credibility and integrity - to walk what you talk, act with integrity in all business transactions, and honor personal
commitments

systemic perspective - the ability to view problems and issues in the context of the bigger picture and understand the
interrelationships among subcomponents

negotiation and conflict resolution skills - the capacity to reach agreements and consensus in spite of different goals and
priorities
HUMAN RESOURCE PLANNING 51
These Core competencies distinguish a highly effective HR professional from a typical one.

1. Critical competencies for senior HR generalists

For both corporate HR leaders and senior HR generalists in business units, the critical competencies lie in the domains of
Leadership and Core competencies. Competencies in Consultation and HR Expertise are also desirable, but not as critical
as the other two domains. Leadership competencies include:

leadership styles - the ability to empower and trust others, to coach and develop subordinates, and to twat others with
respect
leadership skills and attributes - self-confidence, a willingness to take risks, the ability to develop and articulate vision,
lead change, and sell ideas
change advocacy - the ability to identify environmental changes that impact business and to translate them into requisite
organizational changes

2. Critical competencies for HR specialists in shared service centers

For HR specialists working in shared service centers, the performance goal is to develop an efficient infrastructure that
can deliver HR services consistently, responsively, and cost-effectively. Hence, HR Expertise competencies, in addition to
Core competencies, are required though the other two domains are also desirable. HR Expertise competencies include:

knowledge - of ''best-in-class" HR practices through benchmarking and environmental scanning

ability - to design and deliver HR services effectively through process management and improvement
ability - to apply information technology to HR
capability - to measure the effectiveness of HR practices

3. Critical competencies for HR experts in centers of expertise

For HR experts working in centers of expertise such as those focusing on organizational change and new program design,
the critical competencies are Consultation and Core. Competencies in Leadership and HR Expertise are desirable but not
as critical as the other two domains. Consultation competencies include:

influencing skills - the ability to help others accept your viewpoints and proposals
consulting skills - the ability to diagnose/solve problems, and contract with clients
change facilitation and implementation skills - the ability to conceive, design, and implement programs in spite of
resistance
collaboration and team building skills - the ability to motivate team members in working toward common goals

The proposed model of HR competencies is unique in several ways. First, it differentiates the critical competencies from
desirable competencies for HR professionals in the four major roles, offering corporations a guide to a systematic and
focused development of their HR professionals. Second, the importance of these competencies was found to exist, quite
consistently, across a broad spectrum of industries we studied. Thus, the competencies may be considered generic and the
model can be applicable to a wide range of companies. Third, the model integrates research findings from a variety of
sources, including interviews reported in this study, previous survey research projects (Lawson, 1990, Ulrich, Brockbank,
Yeung & Lake, 1995), and an analysis of HR competencies used in seven companies. As a result, the model's reliability
and value are greater than a less expansive study would be.
How Do Corporations Acquire These New Competencies?

While quite a few research studies focus on the identification of critical competencies of HR professionals, very few
studies discuss the strategies corporations can use to acquire or develop these new competencies. However, this neglected
topic is critical for two reasons. First, a competency gap was observed in all the companies we studied.
The HR leaders we interviewed estimated that only 10-35% of their HR professionals possess the required new
competencies. Second, all HR leaders we interviewed agreed that it is much harder to develop new HR competencies than
to simply identify them. Clearly, identifying the critical competencies is only the first step. Inculcating them - especially
among those HR professionals who have become accustomed to the previous modus operandi - requires a significant
investment of time and effort, involving the deployment of creative developmental approaches and strategies.

Although recruiting HR professionals with the required new competencies is always an option, in actual practice it has not
been a major thrust or high priority for many companies for two reasons. First, because of their corporate cultures and HR
philosophies, some companies may choose not to adopt a fire-and-hire strategy. Instead, they prefer to help existing HR
professionals to retrain for a new set of competencies. For example, Hewlett-Packard believes that, among its own HR
professionals, new opportunities for personal growth and higher business impact can serve as a catalyst to the
development of new competencies. Hence, a variety of competency development programs are offered to meet the needs
of existing HR professionals. Second, while some companies may take the position that the retraining of HR professionals
is too costly and/or difficult and thus, the recruitment of those with the requisite competencies is a more viable alternative,
these companies often encounter difficulties in recruiting HR professionals with the necessary competencies. As one
would expect, the demand for HR professionals possessing the new competencies far exceeds the supply.

Because of these reasons, the HR leaders we interviewed employ a variety of strategies to ensure that the new HR
competencies will be in place within three or five years. Exhibit 3 summarizes the strategies some companies are currently
using. The strategies can be categorized into planning and assessment, communications, performance management,
training, and development.

Planning and Assessment

Most companies begin their competency development program with a competency audit. The purposes of the audit are:
(1) to assess the competency level of existing HR professionals in the critical competency areas; (2) to identify
competency gaps and to prioritize developmental efforts; and (3) to monitor the progress of the competency development
program on a regular basis. Companies such as Oracle, Transamerica, and Quantum Corporation have utilized
competency audits to plan and assess their competency development program. The typical approach involves 360 degree
competency assessment for individual HR professionals. These professionals receive personal feedback reports to assist
them in prioritizing their developmental needs. To determine the overall competency level of an HR function, the average
scores of all HR professionals across the identified competency items can be calculated.
HUMAN RESOURCE PLANNING 53
The overall competency scores are often compared
with established benchmarks, such as industry
average, or historical trend (Ulrich, Brockbank &
Yeung, 1989).
Communications
Once companies have identified the critical com-
petencies; and the competency gaps, they must
communicate, clearly and consistently, their
demands and expectations regarding new requisite
HR role& and competencies, the availability of
resources to support competency development
programs, and the consequences of not meeting
their expectations/goals.
David Lietzke, VP of HR at Bay Networks,
believes that a solid competency development
program "starts with the necessary demand from
senior management of expecting higher value from
the HR department. My boss, as the CEO, views
my job as equivalent in value to the CFO, to the
VP of engineering, to the VP of manufacturing,
and expects me to deliver the same amount of
value. I don't think people will last a long time in
senior HR jobs here who don't have this perspec-
tive." With the ongoing need to deliver higher
value to business, HR professionals at all levels are
expected to sharpen their competencies to meet
the new demands and challenges for HR function.
Communicating success stones and recognizing
role models are other approaches which can be
invaluable catalysts and strategies to reinforce
the development of revamped HR competencies.
At Hewlett-Packard, the worldwide personnel
community uses an internal magazine, Exchange,
to reinforce the new HR competencies that are
valued within the function. As elaborated by Pete
Peterson, senior VP of Personnel at HP: "Every
issue will feature some human resource person or
organization who is being highly effective in
linking with line management to improve organiza-
tional effectiveness, lead change, whatever. That's
reward, it's recognition, but it's also education.
It's sharing best practices and offering examples
within HP of where that's being done."
Performance Management
The impact of communications would be com-
promised if HR professionals do not clearly
understand the vital linkages which exist between
the new HR competencies and their personal career
and rewards. At DFS Group Limited, for example,
Jim Wiggett, SVP of HR, uses performance reviews
to encourage HR professionals to bridge compe-
tency gaps. "We've put specifications together
The impact of communications would be compromised if HR professionals do not. clearly understand the vital linkages which exist
between the new HR competencies and their personal career and rewards.
54 HUMAN RESOURCE PLANNING
for each of the human resource jobs, not full job
descriptions, but 4 listing of competencies and
skill sets. Each year when we meet to do the
updates, the performance review, and the develop-
mental plan, all my HR people create an
individual development plan. It addresses those
things in which they excel and those in which
they need to improve. I require they attend two
outside seminars, practicums, or advanced pro-
fessional programs during the year. If they don't,
they get marked down significantly in the perform-
ance review." By incorporating competency
development into performance reviews, companies
can ensure that HR professionals will address
their competency development needs at a personal
and relevant level.
Training
While corporations are demanding that HR pro-
fessionals revamp their competencies through
communications and performance management
strategies, they are also providing training resources
for their staff through such diverse means as
internal courses, external executive programs,
and collaboration with universities.
Hewlett-Packard, for instance, has developed
an ongoing course called "Personnel as a Compet-
itive Advantage," targeting personnel managers
and senior HR generalists worldwide. It is a
dynamic five-day program built on how person-
nel can provide a competitive advantage to an
organization and what kinds of new skills are
required to make it happen - i.e., stimulating and
leading change within the organization, improv-
ing organizational effectiveness, consultation, and
leadership development. In addition to outside
speakers, the chief financial officer discusses the
financial aspect of the business while the senior
vice president of personnel ensures that HR pro-
fessionals understand the role, purpose, direction,
and strategy for human resources in the company.
For HR specialists in shared service centers,
Hewlett-Packard offers other courses to strengthen
their skills in their respective roles. Courses such
as information technology, process management,
and customer satisfaction are designed and deliv-
ered to ensure they have the right skills in place.
In addition to internal training, some companies
are sending their HR professionals to external
executive programs where they are exposed to
managers from other functional disciplines or HR
professionals from other companies. For example,
DFS Group Limited has a policy requiring its
senior HR professionals to attend two outside
seminars or programs every year. Transamerica
sends its HR professionals to Human Resource
Planning Society for strategic HR programs.
Increasingly, companies are asking universities
to redesign their 14R curricula to reflect the chang-
ing competencies. As David Lietzke, at Bay
Networks, observes: "Academic training for HR
people has to shift away from what I perceive to
be a primary emphasis on traditional labor rela-
tions and human relations to a broader business
context. We've had a few HR positions open where
we were bringing in entry-level professional HR
people who were right out of school or had only
one or two years' experience. If you ask them
what they've learned about HR, they'd mention
labor laws and the kinds of questions you can
and cannot ask in interview situations. But that's
only the bottom line - things you can learn in
two months. What you can't learn so easily is the
business context, how to relate business elements
to issues associated with human resources. So,
you need to bring in the content knowledge
about HR, the knowledge about your business,
and financial knowledge. Then, you have to syn-
thesize all three kinds of knowledge. You can't
just know one of them - a focus which typically
reflects academic training in HR." Therefore,
universities should work closely with corporations
to ensure that their HR graduates are well prepared
for a set of competencies that will allow them to
succeed in the coming years.
Development
It is intriguing to note that while only ten percent
of business learning often occurs through formal
training, seventy percent usually takes place
through on-the-job development (Robinson &
Wick, 1992). Through systematic job assignments,
peer learning networks, coaching and mentoring,
corporations are creating exciting immediate
learning opportunities for HR professionals. All
these strategies can be powerful tools to expand
the breadth and depth of knowledge among HR
professionals.
According to Phil Wilson, SVP of HR at
Oracle, "the best way to educate people is by mak-
ing them work on the work. I set expectations for
people. I get them involved in work that requires
them to have these skills. I coach them. I mentor
them. I support them to the best of my ability with
resources and others. But I expect them to be
successful."
What are the opportunities for HR professionals
to learn on the job? Companies are using three
HUMAN RESOURCE PLANNING 55
kinds of job assignments. The first is the "stretch"
assignment in which HR professionals, in addition
to their regular responsibilities, work on special
projects or teams that demand critical skills and
competencies, such as designing and implement-
ing an important business initiative, setting up a
new business in the Asia-Pacific region, closing
down a facility, or getting involved in a turnaround
situation. The second kind, job rotation, requires
HR professionals to rotate between different HR
roles (e.g., generalist vs. specialist) and specialties
(e.g., compensation vs. staffing), thus expanding
their versatility. The third kind, one which is
increasingly popular, is to rotate HR professionals
between HR and line responsibilities. In this way,
HR professionals can gain business knowledge,
develop customer orientation, and enhance their
credibility.
Another innovative approach for developing
essential competencies is to organize HR pro-
fessionals into peer learning networks. At Quantum,
HR managers get together once a month in internal
application groups and review each other's work.
They might say: "Here's an organizational issue
I'm working on and this is the approach I'm trying
out." Then, they consult with each other- "Well,
did you work with such and such a model?" Or:
"Why didn't that model work?" The purpose is
to offer consulting resources for each other, to
learn collectively and collaboratively from each
other's successes and failures.
The concept is being pushed even further at
AT&T where the HR Professionalism Group
designed and deployed an interactive action
learning project known as the "CRITTER" (Colla-
boration and Reflection for Innovation: Teaming
Together for Excellence in Results). The purpose
of CRITTER is to improve business results beyond
what is currently expected by having HR managers
learn with and from each other in a process of
inquiry, reflection, and coaching based on their
actual work.
As a participant in the CRITTER program, a
person joins a group, known as an Action Set, for
the purpose of engaging in a process of inquiry and
reflection about their own specific work project.
Participants enter into a committed partnership
for at least a six month period, to work with and
learn from each other. Members learn to help each
other, to challenge Action Section members' views
and approaches, clarify actual meanings, and see
problems in, a new light from multiple perspectives.
By learning to surrender defensive approaches
to communication, members maximize their
knowledge and problem solving capabilities
through their diverse interactions with other Action
Set members. Each Action Set also has an assigned
"learning coach" to support and maximize the
learning that occurs on the team.
The program was developed in response to a
need to integrate HR professional activities with
real work tasks. It encompasses three fundamental
principles of action teaming: (1) learning means
to take effective action; (2) learning needs
to be expressed through actions on problems which
involve implementation as well as analysis and
recommendations; and (3) learning is a social
process through which individuals learn with and
from each other. By creating an open and safe
learning environment, CRITTER offers HR
professionals unusual opportunities to learn import-
ant skills of inquiry, reflection, and coaching; to
develop critical competencies in thinking strate-
gically; and to become catalysts for change, and
effective business partners.
Finally, coaching, mentoring, and support pro-
vided by senior HR professionals are crucial to
competency development initiatives. In some
companies like DFS Group Limited, senior HR
executives have personally committed time to
develop their direct reports on a one-on-one basis.
Jim Wiggett at DFS Group Limited explained how
it works: "We pick a subject area for each of my
direct reports in an area that is not in the HR pro-
fessional's area of responsibility. That person and
I spend a day going through all the background in
that subject, reviewing materials that the function
manager produced during the year, and talking
about what the company strategy is in that area.
The goal is that, over the course of about a three
to four year period, I will have been cross-briefing
them so that, in fact, I've got all the direct reports
on a level playing field. This expands my options
if I want to do some rotations and/or just be able
to have dialogues in our staff meetings in which
people understand where we are on a particular
activity - let's say the development of a long-term
incentive plan. I don't have to watch the employ-
ment person get glazed eyes or the employee
relations person go for coffee, or whatever, be-
cause we all understand why that's important to us,
overall, from a strategy standpoint and what we're
trying to accomplish. It also invites questions and
gets people involved. Finally, it encourages the
use of peer groups as sounding boards; you now
know that those people have some exposure to and
real knowledge of your subject area. That creates
the kind of teamwork which is very helpful for a
56 HUMAN RESOURCE PLANNING
function." By investing time with their direct
reports on a one-on-one basis, senior HR execu-
tives can not only help them develop critical HR
competencies, but also create strong rapport to
facilitate their personal growth and transition.
Implications
This article has identified a broad range of critical
HR competencies and suggested ten developmental
strategies corporations can use to bridge the
competency gaps among their HR professionals.
Given the dramatic changes many corporations and
HR functions are facing, it is clear that the "good
old days" of HR functions have gone. Simply poss-
essing good social interaction skills is no longer
sufficient for handling increasingly complex and
challenging HR roles and responsibilities. Nor
will HR functions that focus on routine operational
HR activities be useful in the decades ahead. They
simply will not survive for long. They may either
be outsourced, automated, or eliminated altogether.
For HR professionals, complaining about the
changes or missing the old ways of doing things
will not help. To embrace the changes and make
the transformation successful, both HR professionals
and HR organizations need each other.
Given the new employee covenant and the
many complex pressures the HR function is facing,
HR professionals have little choice but to make a
commitment to retrain themselves as soon as
possible. Otherwise, their skills and contribution
will quickly become obsolete. As mentioned ear-
lier, the demand for professionals with new HR
competencies far exceeds the supply. Hence, the
earlier he/she can make a transition to attaining
the requisite competencies, the better one's career
opportunities will be. HR professionals need to
think through the roles for which they want to
position themselves. They must utilize, to the
fullest, every possible resource and opportunity
to expand their skills - whether it be on-the-job,
off-the-job, from their boss, their peers or even
from internal customers. The psychological and
physical costs of managing the transition may be
hard. But the costs of not changing are likely to
be even harder.
Many companies believe they need to identify
those competencies which they perceive as relevant
to a particular industry and compatible with its
unique culture, management philosophy, and
HR function. However, as this article has noted,
research studies have shown that many HR
competencies are fairly generic to companies,
regardless of the particular industry.
By all means, time must be spent in identifying the critical competencies. However, even more time and energy should be
devoted to develop those competencies. The secret is: "Just start doing it."

To be sure, revamping HR's visions, strategies, structures, systems, and processes cannot proceed or be sustained if the
new competencies required of HR professionals are not being developed. Hence, it is imperative that each company's HR
function creates an overall plan for enhancing the competencies of its HR professionals. Senior HR executives must
communicate clearly and consistently their demands and expectations to HR professionals, offer resources to support
competency development of HR people, and hold them accountable through periodic performance reviews. They need to
be cognizant of the pitfall of paralysis by analysis; analysis is only valuable if it is combined with an action plan. Thus,
while identifying the requisite competencies is critical, developing those competencies is even more important. The fruits
of these efforts are likely to be harvested for years to come.
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HUMAN RESOURCE PLANNING 57
Biographical Sketches Patricia Woolcock, formerly Managing Director
of the California Strategic Human Resource
Arthur Yeung is a core HR faculty member at Partnership, is currently HR Programs Specialist
the University of Michigan's Executive Education at Bay Networks Inc. She has done consulting
Center, the Director of Executive Learning of the with major high technology companies in Silicon
California Strategic Human Resource Partnership Valley. After receiving her MBA from the Univer-
independent consortium consisting of senior sity of Michigan she was the manager of the
HR executives of 31 leading Northern California Organizational Studies Laboratory Mae (a facility
companies), and an associate editor of Human founded by a grant from IBM), supporting the
Resource Management Journal. Dr. Yeung received Michigan Human Resource Partnership and the
his bachelor and master degrees from the Univ- Global Leadership Program. Ms. Woolcock has
sity of Hong Kong and his doctoral degree from worked overseas for more than ten years.
the University of Michigan.
Dr. Yeung's areas of specialization include HR John Sullivan is a Professor of H.R. and the
process redesign/reengineering, the transforma- Coordinator of the Human Resource Management
tion of HR functions, changing competencies of Program at San Francisco State University's
HR professionals, developing organizational College of Business. He is also an advisory to the
learning capabilities, and designing HR practices California Strategic Human Resource Partnership.
for Asia-Pacific operations. He is the project Dr. Sullivan has over 25 years experience as a
manager of an award-winning study - Human consultant to management. His current research/
Resources Competencies for the 1990's - which consulting interests include HR “best practices”
established one of the largest databases in the and increasing HR's business impact. Dr. Sullivan
fields of human resource management and compe- received his Ph.D. in Human Resource Manage-
tencies. His article on HR reengineering was also ment from the University of Florida.
recognized by Human Resource Planning Society
as "The Best Research Paper of the Year" in 1995.
In addition to research and teaching, Dr. Yeung
has also been involved in training and consulting
projects for numerous major American and Asian
corporations, including Philips, AlliedSignal Inc.,
Carrier, Hewlett-Packard, Tandem Computers,
PG&E, Boeing Corporation, Sam Lee Corporation,
AMOCO, GE, Reynolds & Reynolds and Univer-
sity Hospitals of Cleveland.
He published more than 15 articles in journals
such as Human Resource Management, Human
Resource Planning, Research in Personnel and
Human Resource Management, Research in
Organizational Change and Development, and
Personnel Administrator. In addition, he is a co-
author of three books: Human Resources as a
Competitive Advantage, Organizational Learning
Capability: Key to Continued Success in Today's
Business Environment, and Strategic Human
Resource Management.

58 HUMAN RESOURCE PLANNING