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Friends,

I love spotlighting cool stuff happening in the people space. So here’s one for you.

I ran a poll a few editions back that showed a real spread in where people place themselves on AI capability against their peers.

We have mixed feelings about our capability with AI…

And while plenty of people felt they were at or ahead of others, the comments offered a deeper level of insight.

People pro’s explained how they felt they didn’t have the chance to practically apply a lot of the knowledge they had, or where to get started on seeing AI deliver tangible results.

So imagine my surprise when my pal, Jessica Zwaan, posted about a new program she’s running, where the literal goal is to get you building and running agentic AI in. your. business.

It’s called the Agentic HR Accelerator program, and they’re accepting applications until 31 December. I hope it can help you.

Enjoy this week’s edition ✌️

LATEST EDITIONS

In case you’re new here (or just missed it) here’s the past three editions of the FNDN Series:

IN PARTNERSHIP WITH

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Know a startup Head of People looking for answers 🙋 why not forward this to them for some instant karma? ✨

FROM TODAY'S INTERVIEW

Are HRBP’s even relevant anymore?

This edition is based on the latest episode of the FNDN Series podcast, with Danny Seals.

Danny Seals is the founder of Knot, a People experience and transformation advisory, and the author of The Insightful Innovator. He built his craft at innovation consultancy, What If! (later acquired by Accenture), then inside Legal & General and Dubai's RAKBANK, designing employee experience the way product teams design services. He writes Knot Another Newsletter, where his recurring argument is that HR designs for process when it should design for experience.

Danny Seals has a theory about the HR business partner: today, it's the appendix of the People function.

"You've got this thing, but it doesn't really serve much of a purpose," he told me. "It's just hanging about from evolution."

He has worked with all kinds of HRBPs:

  • Some who were brilliant: "super sharp, super commercial".

  • Others who "fold like a deck chair".

His problem is with the title and the architecture around it.

In most scale-ups I work with, the first HRBP conversation starts somewhere between 150 and 300 people, usually when a department head wants "their own" HR person.

Before you open that req, answer Danny's question:

What does the role uniquely own that nobody else can own?

Why the role exists in the first place

The HRBP model took off in the late 1990s, off the back of Dave Ulrich's work.

The problem it solved was distance.

In Danny's words, HR "had become too detached from the reality of the business", so you needed someone close enough to understand what leaders wanted and translate it back to the specialists.

Nearly 30 years later, a People function should already understand the business.

And the role isn't delivering the strategic work it was designed for anyway. HRBPs spend about a fifth of their week on strategy.

Danny's conclusion:

"We have to 100% protect the capability, but I'm not 100% sure we have to protect the JD."

Apply the test to your own HRBP plans

The most common answer to Danny's question is "the relationship with the business".

Danny thinks that's weak, and I agree.

The Talent team should understand the business. So should Reward and L&D. They "shouldn't need a translator to be creating value for the business."

When they do rely on one, the HRBP becomes the bottleneck.

The business talks to the HRBP, the HRBP talks to the Talent team, and the answer comes back or gets stuck. As Danny puts it, "rather than a bridge, it becomes a bit of a blocker."

At 50 to 500 people, there's often nobody behind the HRBP to translate to, so your first HRBP is really a generalist hire.

That's why the test matters even more.

I've seen this from both sides (once as the HRBP, once in the specialist team behind them):

  • In one, the HRBPs were the gatekeepers of what the business needed, keeping the broader team at arm's length.

  • In the other, they launched whatever head office had decided, and I wondered why I was a business partner if I wasn't partnering.

Diagram titled Two ways an HRBP stops partnering. Left, the gatekeeper: the business routes requests through the HRBP to Talent, Reward and L&D, and answers wait with the HRBP. Right, the order taker: Talent, Reward and L&D at head office pass decisions through the HRBP to the business, which are launched anyway, while the business's feedback that it isn't fit for purpose goes nowhere.

My common experience with the HRBP role. What's yours?

And let's be real. AI is also taking routine work off the table.

IBM's AI agent answers 94% of typical HR questions, which leaves whoever remains to spend their time on judgement calls.

Some answers do pass the test.

If the actual answer is employee relations and the hard conversations at exit, that's a real job. Hire for it, and call it what it is.

If it doesn't pass, Danny sees two options:

  • Remove the role.

  • Evolve it into a value stream owner, someone who answers for one business result (my example: how fast new engineers get productive) instead of looking after a client group.

Others land in a similar place.

Deloitte's Gary Johnsen argues for renaming and re-scoping the role, which is Danny's second option in all but name.

At startup scale, it looks like this.

A 180-person company. The VP of Engineering says their managers are struggling.

The standard response is to hire a generalist HRBP for Engineering.

The better response is to run the test first. What would that hire own that the Head of People and the managers can't?

Usually the honest answer is "work out what the problem actually is".

That's a capability. Someone still has to own it (you, or a manager with the time and the tools), but it doesn't need a new seat to start.

What partnering looks like without the title

Danny works out what the problem actually is with a diagnostic he calls a Team MRI, and he's run it across more than a hundred teams.

In one example, a client told him people were leaving and proposed that onboarding was the fix.

But his discovery said otherwise.

The 'leak' sat between day 12 and day 37, when new starters finished the company onboarding and moved into their team onboarding.

The problem was the team, which wasn't working.

The four steps Danny runs in a Team MRI

  1. Interview the manager first, then the team without the manager in the room. "If not, people won't tell you the answers."

  2. Score both against the same health markers, drawn from teams where judgement has to be good (the military and aviation, for example).

  3. Compare the two views. Where they agree, there's no fire. Where they're far apart, you've found where to look, with people's own words to back it up. Work on the three biggest gaps only, because "some of them don't need fixing."

  4. Turn each gap into a four-week behavioural experiment, then re-run the MRI every three to six months.

Table comparing team and manager scores on ten questions using red, amber and green faces. On several questions the two disagree, for example on question 2 the team scores green and the manager scores red.

Danny's team vs manager scores, side by side. Image: Danny Seals, Knot Another Newsletter

Of the issues that raise their head, decision-making is a classic gap that often looks something like:

  1. The manager says the team won't make decisions.

  2. The team says the manager won't let them.

The common fix is a workshop on empowerment. Danny's fix is an experiment.

For four weeks the team makes the calls, and every week they check whether to persevere or pivot.

In Danny's experience, the team often decides better than the manager would have, and the manager realises: "maybe I am the problem."

But "change isn't a talking sport, it's a doing sport." And it's the part most often missed in this work.

Case in point:

How often have you been to a company offsite where everyone leaves high-fiving one another, and then walks back in on Monday, reverting immediately to the same habits?

The underlying idea holds up beyond Danny's method. Google's research on 180 teams found how a team works together matters more than who's on it.

That is true business partnering.

Someone going into the team to find the real problem, with no translation layer required.

Put a number on the problem

When I asked Danny for the one idea he'd want a People leader to steal, he went straight to problem valuation.

Pitch a shiny new program and "your CFO literally doesn't care". Walk in with "here is the cost of the problem" and the conversation changes.

Take the onboarding leak from earlier. If ten new starters a year leave in their first few months, and each costs $25,000 to replace, that's a $250,000 problem (illustrative numbers, but you get the idea). That's a conversation your CFO will stay in.

So before you write the HRBP job description, run the test.

Name what the role would uniquely own. Then find the problem the business is actually feeling, and put a cost on it.

If the answer is still "a relationship", protect the capability and skip the hire.

I'm curious how this lands for you.

If you have HRBPs today, what do yours uniquely own? Hit reply and tell me.

Where to find Danny

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Headshot of author, Matt McFarlane

That’s all from me this week.

Sure, this is technically the end of the newsletter, but we don’t have to end here! I’d love this to be a two-way chat, so let me know what you found helpful, any successes you’re seeing, or any questions you have about startup compensation.

Until next week,

Decorative: Content Divider

When you’re ready, here’s three ways I can help you:

1. Tools & resources
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