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Trend 2: HR Becomes the Incredible Shrinking Function

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Human resources (HR) departments will continue to attenuate. Their transactional functions (benefits administration, relocation, and so forth) have been outsourced successfully over the past two decades. That leaves the transformational functions (change management, organizational redesign, succession planning, and so on), which, by and large, HR has been excruciatingly awful at fulfilling, following every loony fad and buzzword written by every academic and training company guru. If you don't believe that, then consider the market in front of you and around you. It's not being satisfied within the organizations that need you. And at this writing, I can't think of one HR executive promoted to CEO in a Fortune 500 company over the past decade. It has become a dead end. (That is a consistent fact since the first edition of this book.)

What it means for consultants: We are cost‐effective responses to transformational needs. We come, we improve, and we depart, with no benefits package, no vested political interests, and no intent on a corner office or retirement fund. Change management and organizational development skills will be in great demand, often best delivered by solo practitioners, rather than by outside firms descending with 50 people and creating a pseudo‐HR department!

The Consulting Bible

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