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HR has been making great strides to strategically align itself as a business partner in order to increase its impact. Being strategic means designing and operating HR programs and initiatives with the goal of making a direct contribution toward meeting overarching business objectives. Rather than reacting to HR “issues” or simply processing HR “transactions,” a strategic focus means addressing business problems. It is less about controlling the HR budget and more about contributing to top and bottom line growth. The words “strategic” and “business partner” are universally used and accepted as positive descriptors.

Yet there is a fundamental and underappreciated barrier. In our pursuit to become more strategic, we often gloss over the undeniable truth that HR has been simultaneously working exceedingly hard to streamline costs, to systematize processes and to benchmark (i.e., copy) practices of other successful organizations. Organizations are under tremendous pressure to do more with less—the concepts of employee self-service and “Total HR Outsourcing” promise efficiency and cost savings. But when does the “total” include strategic contribution to an organization’s unique path to success?