Biography

David ULRICH

2009 ranking: 31

Dave Ulrich

David O. Ulrich (b. 1953) is a noted expert on Human Resource Management. He is Professor of Business Administration and Director of the Human Resource Executive Program in the Stephen M. Ross School of Business, University of Michigan, Ann Arbor. He is also a co-founder and partner of The RBL Group, a human resources and leadership consultancy, and has carried out consultancy work with many Fortune 200 companies. He was the editor of Human Resource Management Journal for nearly a decade between 1990 and 1999.

In Why the Bottom Line ISN’T, co-authored with fellow RBL partner Norman Smallwood (2003) the authors argue for a re-assessment of share-holder value. They explain that the book began when they asked a simple question: ‘How can two companies in the same industry with similar earnings have vastly different market values?” Increasingly, sustainable shareholder value comes from building long-term value through items that don’t show up on a balance-sheet or other financial statement. In short the bottom line is about far more than just earnings. These assets are by their nature intangible. They include a company’s overall reputation, both as an innovator and leader in its business, its brand development record, its corporate culture, its ability to attract and retain the right people, and how quickly it can respond to new opportunities in its business. The book looks at each of these intangibles, arranging them in a hierarchy. It also uses examples from the business world of the positive contribution of intangibles in driving market value. The authors demonstrate how an understanding of intangibles impacts on today’s leadership; successful leaders must have a clear perception of the role they play in company valuation. They must also see their own roles in the context of a new, bigger picture. The book sees the search for “tangible intangibles” both as a game, as well as a military campaign.
Business leaders aren’t the only ones who can benefit from this new approach. They are useful for people in any organization, be it a governmental agency, a church, or a school.

In The HR Value Proposition (2005) Ulrich returns to idea expressed in earlier books like Human Resource Champions (1996). Human Resources “must either give value or give notice.” He believes that “the ultimate test of HR and leadership is value created.”

A lot of the mundane “back office” aspects of HR, such as payroll and benefits administration have now been outsourced. This means that HR departments and their leaders are compelled to validate themselves and their existence. Ulrich sees this as not only achievable but absolutely necessary, though it may not be easy. The HR professional can add significant value to a company, and so deserves to be viewed as a strategic partner. But having a permanent seat on the board is only the beginning. The gains made must be consolidated and expanded upon. The HR Value Proposition sets out an agenda for HR in the 21st century where the HR professional’s value is no longer confined to just employees and managers, but is also vital for outside stake-holders like investors and customers too. HR departments must transform themselves into forward-looking parts of every firm whose agenda is seamlessly aligned with overall corporate strategy.
Individually HR managers must concentrate less on what they do and more on what they deliver. Their goal must be the development of value-added HR practices.

There are a number of HR criteria that add value. These include:

• Monitoring external business realities and adapting HR to them.
• Creating clear line-of-sight between HR activities and value creation
• Prioritizing HR practices according to value creation
• Ensuring good governance of HR departments
• Upgrading the skills and competencies of HR professionals

From 2003 to 2006 Dave Ulrich took a three-year sabbatical from teaching to act as President of the Canada Montreal Mission for the Church of Jesus Christ of Latter-day Saints.

Essential Reading:

Human Resource Champions: The Next Agenda for Adding Value and Delivery Results, Harvard Business School Press (1996)

Why the Bottom Line ISN’T, co-authored with Norman Smallwood) John Wiley & Sons (2003)

The HR Value Proposition (co-authored with Wayne Brockbank). Harvard Business School Press, (2005)

How Leaders Build Value: Using People, Organization and Other Intangibles to Get Bottom-Line Results (co-authored with Norman Smallwood), John Wiley & Sons (2006)

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