Leading HRDs and CIPD’s research have focused on the importance of HR professionals really understanding their business to succeed. So do we have the people in the profession who can do this?

One problem with taking the question at face value is its assumption about what business needs are.  Businesses have lots of needs we 'really must understand' to survive and prosper, which can be prioritised in different ways and different times by different groups of stakeholders differently - customers, various categories of employees, functional managers, suppliers, government, communities and shareholders etc. Unfortunately, we are bounded by backgrounds, values, rationalities, selective perceptions and interests, which is why businesses are such complicated organisations to run, full of competing interests, tensions and 'wicked problems', incapable of being solved by one group alone, no matter how much magical power (and pay) we invest in our 'stars'.  If it weren't so, most of us would be out of jobs. To be 'business savvy' we need to understand these  complications,  the limitations of our abilities and perspectives, and what it takes to lead in situations where we don't know the right questions to ask, let alone the answers.  'Commercial' savvy is important, yes, but it is only one limited logic (and set of tools) that HR people need to grasp.  I would like much more emphasis placed on HR, and indeed all senior managers, becoming 'well rounded' and able to deal with complex realities, including thorough grounding in finance and business models, but also in technology and know-how of the business,  and the expectations, desires and perspectives of those who produce the core products and services.   Do I see it in HR people I have worked with and taught?  Probably no more or less than other groups of managers I've dealt with (though I do have a sneaking admiration for engineers, doctors and accountants who can count - not usually the strong suit of HR - and for HR practitioners who read beyond 'airport' books that dominate management literature).      

In short, yes and no.  Yes there is a new generation of HR leaders that have focused hard on establishing their business credibility and strategic thinking to earn their hard won place on the Board.  But there are still too many that have more traditional skills who are not interested in developing their knowledge of the business side at all. A balance needs to be struck as non commercial HR professionals undermine and may even damage the profession but equally there is now a danger of throwing the baby out with the bath water. Once at HRD level many are quick to distance themselves from anything branded as either operational or HR including the CIPD and can get rapidly out of date.  Leadership and management still has a currency and is often the half way house.  In other professions such as law, accountancy or medicine there would be an outcry if the same approach were taken. We need more HR professionals that can re-establish the function with savvy business knowledge but a razor sharp ability to get quickly at the people issues.  And we need to better understand what businesses want from their people experts.      

Our strategy in IKEA is grounded in the principle of 'Growing Business and People together' as we fully recognise that our success as a retailer is reliant on our co-workers and how they interact with our customers. If we develop our co-workers in line with the business, they will develop our business. Therefore, it becomes more evident every day that in order to be effective HR business partners, we need to demonstrate a positive correlation between our people activities and the business results. We cannot do this unless we have an in-depth understanding of the business; being an HR subject matter expert is no longer enough. This has ultimately shaped our HR recruitment in recent years with a much more balanced focus on HR technical competence, commercial awareness and a passion for retailing.      

Yes we do - but it is a question of a) attitude on the part of the HR professional and b) willingness of the organisation to ensure HR people are active participants, rather than passive dolers-out of policy. HR professionals at all levels need to be proactive in acquiring knowledge about their organisation, their sector and its external context.  This means networking and relationship building and essentially being inquisitive – you need to get to know all parts of the business, at all levels, attend business meetings and speak to people about their jobs and their experience of working in that organisation.  If you encounter any resistance, surprise or even suspicion, you quietly explain that you really want to understand their problems and needs, in order to better serve them.  Most people are delighted to have interest shown.  More junior HR staff will need championing in this. Any opportunity to become more closely involved with the actual business should be seized with alacrity.   My own experience in the petrochemicals industry as the HR Manager responsible for ISO9000 Quality Assurance, and therefore directly involved with customers, was invaluable and prevented any danger of being ‘ivory tower’.