Dave Ulrich

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What is the real difference between an HR department that simply functions and one that truly delivers value? As my colleagues and I have worked with leadership teams over the last year, we have found that the answer often lies in how we define our "customers." In many organizations, HR focuses inward on employees and internal processes. While this is necessary, it is no longer sufficient.

In our latest research on human capability, we propose a shift toward what we call "Outside-In HR." This approach requires HR professionals to look through a window rather than into a mirror. When we align our internal actions—hiring, training, and culture—with the expectations of external stakeholders like customers and investors, the impact on business results is both measurable and sustained. It moves HR from being a cost center to being a value creator.

In the article linked below, we outline four specific steps to help your team make this transition, including how to conduct stakeholder interviews that actually change your internal priorities. We have seen this framework help firms navigate everything from digital transformation to leadership transitions with greater clarity and confidence.

How are you and your team connecting your internal HR work to external stakeholder expectations? What is one thing you have changed in your approach after listening to a customer or investor? I would love to hear your insights and learn from your experience.

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