HR’s shift from administrative tasks like payroll to a strategic role driving business growth isn’t new, but it’s more important than ever. For HR leaders, understanding this journey from being a reactive support function, to becoming a proactive business enabler, is key to making a bigger impact.
To help with this, Eva Törnqvist, a seasoned leader in HR, IT, and business development, has developed a practical four stage model. With a career centered on change leadership, Eva’s insights reflect her diverse experiences, from leading teams to consulting on business growth. She has guided countless organisations through transformation—and this model is her way of sharing that expertise.
HR evolution model
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The starting point: HR as an operational function
For many companies, HR starts out at a "basic" level. It’s reactive, handling things as they come up—like processing payroll, dealing with employee issues, and ensuring compliance with labor laws. At this stage, HR tends to operate in silos, with little consistency across teams or departments. The focus is on getting the basics done rather than planning strategically.
The biggest challenge here? There’s no unified way of managing people, and HR isn’t aligned with the company’s bigger goals. This often makes HR feel like an extra layer of complexity rather than a valuable partner. Even if digital tools are being used, they’re likely limited to simple admin tasks, not delivering much in the way of real efficiency or impact.
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Moving towards documentation: laying the foundation
The first step to leveling up HR is to document and standardise how things are done. This means creating clear, consistent processes for key areas like hiring, training, and performance management. While HR is still largely focused on operations at this point, having documented practices helps ensure everyone is on the same page across the organisation.
Why is this step so important? It sets the stage for bigger improvements down the road. Once you know how things work (and where they don’t), you can start making meaningful changes. Plus, this is where digital tools can start to add real value—helping to streamline those processes and collect data that will be useful for future planning.
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Strategic alignment: HR steps into the business
Next, HR begins to shift gears from just handling operations to becoming a true part of the business strategy. Instead of reacting to what’s already happened, HR starts looking ahead—using data and planning to align its efforts with the company’s goals. This is where HR moves from being supportive to being influential.
At this stage, HR gets strategic. Think workforce planning based on future business needs or spotting skill gaps and addressing them with targeted development programmes. It’s about making sure the people side of the business is fully connected to the bigger picture. HR doesn’t just follow the strategy anymore—it helps shape it.
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HR as a business enabler: adding real value
The top of the ladder is where HR truly becomes a game-changer for the business. At this stage, HR doesn’t just contribute—it drives success. It’s fully integrated with the company’s operations, using data not just to look back but to predict trends and guide decisions. HR is now a competitive edge.
Here, HR takes a broad view of talent—recruiting, developing, and planning for the future in a way that supports long-term growth. It’s no longer about individual programs; it’s about a cohesive people strategy. HR plays a key role in navigating change, boosting innovation, and keeping employees engaged. In short, it becomes a critical part of what makes the business thrive.
Digital tools are a key player (when you’re ready)
Digital tools can make a huge difference as HR evolves—but only if you’re ready. Trying to digitise chaos won’t help anyone. You need clear processes and goals in place first. Once you’ve got that foundation, tools like predictive analytics and learning platforms can make HR faster, smarter, and more effective.
For example, analytics can help predict employee turnover before it happens, giving you a chance to act. Or a digital learning tool can provide tailored development paths for employees, aligning their growth with the company’s needs. Used wisely, these tools can turn HR into a proactive, high-impact function.
Cross-functional collaboration is key
To make this transformation work, HR needs to team up with other parts of the business, especially IT. Aligning processes across functions keeps things simple and helps everyone pull in the same direction. Communication and change management are just as important—everyone needs to know where you’re headed and why it matters.
Without buy-in from across the organisation, even the best HR plans can fall flat. Clear direction, shared goals, and cross-functional teamwork are what keep the wheels turning.
It’s a journey, not a one-time fix
The evolution of HR isn’t something you check off a to-do list—it’s an ongoing process. Progress happens in steps, and the best approach is often to tackle a little at a time across different areas. By moving gradually but steadily, HR can grow in a way that supports the entire organisation.
With this model, HR teams have a clear framework for taking their function to the next level. It’s about going from reactive to strategic, from operational to enabling. When HR steps up, it not only helps the business—it becomes an essential part of its success story.
Conclusion
The shift from operational HR to a strategic business partner isn’t easy, but the model gives you a better understanding of where your organisation is and what your next steps should be. By documenting processes, aligning HR with business goals, using digital tools wisely, and fostering collaboration, HR can evolve into a driver of real business success. This transformation doesn’t just change HR—it helps shape the future of the entire organisation.
If you want to learn more and hear Eva discussing her model , click below to watch our Transforming HR- how HR managers can bring real business value webinar.
