HR as the Heart of Business Growth: Beyond Numbers and Processes

"HR is not about HR. It’s about delivering value to the business through talent, leadership, and culture."— Dave Ulrich,

In the world of business, there’s often an overemphasis on functions like finance, marketing, and supply chain as the primary drivers of success. While these areas are undeniably important, my experience has shown that the true force behind long-term business growth lies in Human Resources (HR).

Today, the term “Human Resources” is often exchanged with phrases like “Human Capital” or “People Operations.” While the terminology has evolved, the essence of the function remains the same: enabling organizations to harness the full potential of their people to drive sustainable success.

For over 30 years, I’ve had the privilege of managing multinational corporations and local conglomerates, and for the past seven years, I’ve worked as an HR consultant. Across these roles, I’ve seen firsthand how businesses thrive when HR is positioned as a strategic partner rather than a supporting function. HR is not just about managing people—it’s about aligning talent, culture, and organizational goals to create a sustainable foundation for growth.

HR as a Strategic Driver

In my career, I’ve witnessed organizations struggle to move forward despite having strong financial strategies or impressive marketing campaigns. The missing piece was often their ability to connect these efforts to their people. HR—or Human Capital, if you prefer—plays a critical role in ensuring that employees are engaged, empowered, and aligned with the company’s vision. Without this alignment, even the best-laid plans can falter.

This is where HR transcends its traditional administrative role. It’s not just about hiring or managing payroll; it’s about cultivating a culture where people feel valued, developing leaders who can inspire teams, and ensuring that the organization is agile enough to adapt to change.

The Agile HR Advantage

Agile HR is a concept I’ve found particularly relevant in today’s fast-changing business environment. It’s about embracing flexibility, collaboration, and responsiveness in HR practices. Whether it’s adopting real-time feedback systems, shortening recruitment cycles, or fostering cross-functional teamwork, Agile HR enables organizations to stay ahead of the curve.

I’ve seen the transformational power of Agile HR in action. It fosters an environment where employees are not just contributors but co-creators of organizational success. This approach not only drives performance but also strengthens the company’s ability to innovate and adapt.

HR as the Driver of Organizational Purpose

Another critical function of HR is shaping and nurturing an organization’s purpose. Purpose gives a business its identity—it’s the reason employees come to work beyond just earning a paycheck. HR plays a pivotal role in embedding this purpose into the company’s culture and operations, ensuring that employees at all levels understand how their work contributes to the broader mission.

In my experience, organizations with a strong sense of purpose tend to attract and retain top talent, foster higher engagement levels, and deliver exceptional results. HR becomes the steward of this purpose, translating it into meaningful policies, practices, and initiatives that resonate with employees and align with the organization’s vision.

A Lesson From My Journey

If there’s one thing my career has taught me, it’s that HR—no matter what name you call it—is the bridge between people and strategy. It’s the department that takes the company’s vision and brings it to life through its people. Time and again, I’ve seen organizations succeed not because of their marketing or financial strategies alone, but because of their ability to invest in and leverage their human capital effectively.

During my consulting years, I’ve had the opportunity to work with businesses undergoing major transformations. Whether it was guiding a company through a merger, designing leadership development programs, or helping organizations adopt Agile HR practices, the results were clear: when HR steps into its role as a strategic partner, it can transform the entire trajectory of a business.

The Heart of Business Growth

In my view, HR is the heart of any organization. While finance fuels the engine, marketing steers the wheel, supply chain builds the road, and operations ensure efficiency, it is HR that keeps the entire system alive. HR—or Human Capital—is the pulse that ensures every function works cohesively, every individual is empowered, and every strategy is aligned with the company’s mission.

As businesses navigate an increasingly uncertain and competitive landscape, the role of HR will only grow in importance. It’s not just about managing the workforce—it’s about unlocking potential, driving innovation, and building a culture that thrives on change. This, in my experience, is what makes HR the true driver of business growth.

Bogor, December 17, 2024

Coach and HR Consultant: Marulam Sitohang