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Human resources leaders continue to explore ways for HR to create value for stakeholders, such as employees, customers, investors, communities, and boards. However, determining which HR-related work disproportionately unlocks this value can be challenging. Dave Ulrich shares six key actions to help HR leaders and their teams shift from activities to outcomes and drive stakeholder value. Among the insights, Dave offers three criteria that can help determine which human capability investments can create the greatest value: Impact (how much value an initiative delivers to stakeholders), Weaknesses (how effectively it is currently executed), and Variance (how much opportunity exists for improvement). Together, these three components help identify where HR efforts can drive the most meaningful results—ensuring resources are allocated to the highest-return-on-investment opportunities. As you evaluate your HR priorities for 2025 against these three criteria, where do you see strong alignment, and where are the biggest gaps? This reflection can help you identify opportunities for delivering increased stakeholder value. As a bonus, I’m resharing a 42-page playbook from the RBL Institute, which comprehensively reviews the factors that drive HR effectiveness. Thanks to Dave Ulrich for permission to share.
