Harnessing Human Capital: How Strategic HR Drives Competitive Advantage, by Jonathan H. Westover PhD

The HCL Review Podcast

Abstract: The article explores the evolution of HR leadership from an administrative function to a strategic business partner that is indispensable to organizational success. It examines how strategic human resource management (SHRM) views people as the primary source of sustainable competitive advantage, and highlights extensive research confirming that strategic and aligned HR practices drive key outcomes like employee engagement, productivity, innovation, and financial performance. The article outlines three core responsibilities for HR to function as a true strategic partner: aligning HR strategies with business goals, creating a high-performance culture, and developing strategic workforce capabilities. It provides practical recommendations for HR leaders to execute on these responsibilities, such as attending executive meetings, embedding culture into people processes, and using capability audits to identify and address future skill needs. By partnering with the C-suite and strategically optimizing human capital, the article argues that HR can position the organization for consistent competitive advantage through its greatest asset - its people.