Business partnering

Business partnering (BP) comes in many forms. Often referred to simply as HR Business Partnering, we in fact see a much wider application of this model across multiple people practices. The essence of business partnering is how the people function effectively works alongside other parts of the organisation to deliver people solutions. Business partners work closely with leaders to help build organisational and people capabilities. The original business partnering model was conceived by Dave Ulrich in the late-1990s and although it has evolved as both a model and practice, it has become fundamental to the way many organisations deliver HR as a solution and service.

At the true heart of business partnering is context. This is about understanding the organisation’s strategy and goals, how the organisation works, how it conducts its business, and then developing people solutions that help drive business objectives whilst enabling employees to flourish. This is achieved through developing meaningful relationships with key people across the organisation, using data to be more evidence-based in practice, and delivering a portfolio of business relevant solutions that meet the evolving needs of the organisation.

Our Profession Map sets the international benchmark for the people profession and aligns closely with business partnering as a practice.

Business partnering has been seen as a great way for HR to change the dynamic from being a transactional back-office function, to being integrated with the business and helping drive business success through people. BPs get closer to the business and ensure that their expertise is used effectively to shape positive change, deliver people programmes, and build productive relationships with key stakeholders.

Some of the main reasons organisations implement the BP model, or consider doing so, are:

• Enabling the business – People professionals should work proactively as strategic enablers. Working closely at the right levels and with the right people, the BP model can ensure strategic objectives are achieved by helping shape strategies that connect people practices to high performance.
• Cost-effective – business partnering by its very nature focuses expertise where it’s needed. People professionals then work closer with the business to co-create solutions that increase efficiency and reduce costs. This also builds credibility with stakeholders.
• Connected – Effective business partnering builds productive relationships that improve collaboration. If people practitioners can help break down internal silos, it facilitates a more connected way of working. Through championing and driving this, people professionals can create a more networked, agile, learning organisation that many thought leaders believe is the future of work.
• Strategic – those working as BPs are aligned to business leadership and in a prime position to assess, influence and develop the right people solutions to help leadership achieve their objectives and vision. HR then becomes both a strategic partner and enabler in one.

Business partnering should not be simply defined as a role. It’s both a capability and a mindset that encourages people professionals to design and align the right capabilities and solutions as the organisation evolves.

There's no standard way to implement business partnering because context is incredibly important – what works in one organisation may not be right in another. However, the two most common ways are through aligning individual business partners, or through implementing the ‘three-legged stool’ model. The best chance of success will always be if you work with the business to define what your model will look like for your organisation.

Standalone business partners – embedded or aligned to a business unit, their focus is to ensure people practices are aligned effectively with the teams and individuals they support. BPs are facilitators and business consultants, ensuring that the HR value proposition and supporting capabilities are tailored to the needs of the business.

Three-legged stool model - this is the most common model that has been implemented and works as follows:

The most effective way to create a BP model is to consult with the business to define the right way of working and HR operating model that’s both understood and supported by the business. Too often, the business partnering concept is delivered as a solution without any consultation. This just creates confusion.

There are four key areas to consider in being an effective business partner:

• Understanding the business model at depth – getting to know how the business operates, its strategic drivers, and the underlying financials are a baseline.
• Generating insight through data and evidence – using and applying evidence to design solutions and strategies, as well as then measuring the impact of the work they deliver.
• Connecting with curiosity, purpose, and impact – by asking the right questions, building relationships, and understanding where HR can add tangible value makes all the difference.
• Leading with integrity, consideration, and challenge – having the courage and confidence to challenge the business and its leaders.

Our report Business savvy: giving HR the edge looks at these four foundations, and offers further ideas on what people professionals need so that they understand their business better.

However, BPs also need to be able to take ‘an outside look in’. Ulrich talks about this in his book 'HR from the outside in: six competencies for the future of human resources' (see Further reading) and this was also cited in research by Orion Partners which has shown that there are five main criteria for success:

• Self-belief – HR needs to believe in its own capabilities and how it adds strategic value to the organisation.
• Independence – HR needs to be courageous enough to challenge business leadership, even when it might not be the most popular option.
• Knowing the business – HR needs to understand the organisation and be able to have meaningful conversations about its operations and its performance.
• Relationships – HR needs to be able to build and facilitate relationships across the organisation that are based on trust and are productive for all stakeholders.
• ‘One HR’ – HR needs to connect its capabilities so that the business sees a seamless service. This is internal partnering in practice.

These points should help people practitioners re-evaluate, rethink, and refresh their professional practices, but also position HR as a true partner to the organisation.

Business Partnering continues to evolve and the CIPD engages with organisations to understand how it is evolving to ensure learning programmes meet the needs of current and aspiring business partners.

HR needs to continually evaluate the BP model to ensure it is fit for purpose. Further to the research outlined above, HR needs to consider the following when assessing or implementing the model:

• Credibility – If the stakeholders are not committed to business partnering as a way of working, HR’s credibility, and ability to deliver effective solutions will rarely be realised. Business leadership, management and other key stakeholders need to be engaged and consulted to build the right BP model. It’s essential that those working in BP related roles are able to deliver against business needs.
• Capability – Being a business partner requires a certain set of competencies, the right blend of knowledge, capability, and experience. People functions need to be able to assess, align and develop the right people for the role to ensure it’s a success. Not everyone is suited to the role.
• Community – Effective HR business partnering is as much about creating connections internally via HR teams as it is with the wider business. Despite effective process mapping and ownership things can still slip between the cracks where there is no defined responsibility. Working with colleagues and creating a collaborative approach helps bridge these issues, build solutions, and proves HR itself puts business partnering into practice.
• Context versus content – Effective business partnering is about connecting HR capabilities and specialisms to meet business requirements, driving business value, and helping the business achieve success. HR needs to focus on business imperatives if it is to be deemed a credible business operator.
• Focus – BP roles should not get distracted or trapped by low value work. Whilst it’s important to do occasional case or project work to maintain currency and help build trust with new stakeholders, the real value is achieved by working towards more strategic business opportunities.
• Strategic ‘road mapping’ – Business partners need to understand change, change frameworks, identify quick wins to build credibility, celebrate milestones achieved, as well as measure the potential and eventual impact of supportive people solutions. Developing a road map that aligns to and that helps shape the overall strategy is key. Tracking transition as it progresses through agreed milestones will help ensure success.

Books and reports

DALZIEL, S., STRANGE, J. and WALTERS, M. (2006) HR business partnering. Toolkit. London: Chartered Institute of Personnel and Development. 

GRIFFIN, E., FINNEY, L., HENNESSY, J. and BOURY, D. (2009) Maximising the value of HR business partnering: a practical research based guide. Horsham: Roffey Park Institute.

REILLY, P. (2015) HR business partners: yes please or no thanks? A paper from HR in a disordered world: IES Perspectives on HR 2015. Brighton: Institute for Employment Studies. 

ULRICH, D., YOUNGER, J. and BROCKBANK, W. (2012) HR from the outside in: six competencies for the future of human resources. New York: McGraw Hill.

Journal articles

FRIEDRICH, T. and RAJSHEKHAR, T. (2018) The evolving role of HR business partners. Workforce Solutions Review. Vol 9, No 1. January/February. pp24-25.

McCRACKEN, M., O’KANE, P., BROWN, T.C. and McCRORY, M. (2017) Human resource business partner lifecycle model: exploring how the relationship between HRBPs and their line manager partners evolves. Human Resource Management Journal. Vol 27, No 1, January. pp58–74.

PRITCHARD, K. (2010) Becoming an HR strategic partner: tales of transition. Human Resource Management Journal. Vol 20, No 2, April. pp175-188.   

STEPHENS, C. (2015) Are HR business partners a dying breed?  People Management (online). February. pp36-37.

YOUNGER, J., YOUNGER, A. and THOMPSON, N. (2011) Developing the skills of HR business partnership: consulting and change management. Strategic HR Review. Vol 10, No 1. pp6-14. 

CIPD members can use our online journals to find articles from over 300 journal titles relevant to HR.

Members and People Management subscribers can see articles on the People Management website.