“I see HR lacking, literally, core competency in the businesses they manage every day,” says Amelia Ransom, senior director of engagement and diversity at Seattle-based Avalera, a tax software business. Beyond knowing the company’s stock price and how to read a profit and loss statement, HR leaders need to understand the strategic direction of the business and the economic and social environment in which the company operates. They need to anticipate and prepare for changes in work and the workforce. Only then can HR leaders effectively manage human capital and align HR initiatives with the organization’s goals.