The Wall Street Journal Managing section on June 23rd lead with this: 

HR Departments Get New Star Power at Some Firms
"Business Executives Now Tapped to Lead as Job is Rethought"

Erin White’s op ed made the point that CEO’s have come to realize that human resources is an important function – the good news.  But the bad news is “(This) reflects a perception that some traditional HR professionals lack the deep understanding of business and financial issues that CEOs increasingly want.”
 
When are HR professionals going to get it?  HR is a business function, not a social service bureau or a back office admin center.  When asked what do HR people need to make the transition I suggest 4 skills: 
1. Basic knowledge of the inner workings of their company
2. Ability to understand and speak in simple financial terms
3. Ability to present their case persuasively (sales skills)
4. Motivation to truly be a business partner, not just talk about it
 
As Lee Iacocca has said many times, “Lead, follow or get out of the way.”  If you don’t lead you spend your time looking at the backside of someone.  It's a better view from the front!
 
Dr. Jac