The Partner That HR Needs for the Company to Understand Our Impact

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HR’s most urgent challenge for the future is to transform itself by gaining an entirely new skill set. The administrative skills and humanistic attributes of the industrial age are now obsolete. Attention must be paid to learning how to define and lead change that is guided by a deep understanding of the value creation for an organization. If HR is unable to accomplish this, then it is destined to become obsolete as well.

Our belief is that it’s not actually a question of HR transforming itself so much as it is the emergence of a new function that will blend two critical business competencies: HR and Finance. The fact is, many business leaders, especially entrepreneurs and start-up CEOs, have a visceral reaction to the notion of “Human Resources.”

They will do almost anything to avoid hiring HR people because they equate them with bureaucratic minutiae and administrivia. Netflix, which has been credited with “reinventing” HR by doing away with many traditional HR practices like paid time-off policies and formal performance reviews, is a prime example of a company that has taken this tack.

Yet, these same business leaders clearly recognize the importance of talent to their success. Their resistance to

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