What should be done to have a powerful HR department that leads the whole organization ?

. enhancing the KSA's of employees by proper training.

. allignment of personal and organizational goals.

. introducing the importance of change and motivate them to adapt for organizational effectiveness

. by retaining the employees by focussing them on their need and wants  

Very short answer:- HR needs to know the business

- HR must invest in a trustful work relations with CEO and management

- HR must stop with acting as a HR administrator with a old-classical-style book keeper mentality but act pro-actively, deliver smart HR solutions and recommendations, and make risks.

To be Clear And More Creativity And Determine What Company Needed 

train them, trust & support them and give them chance to take action and share with them any decision 

be fair and justices

Having the HR department lead the organisation would be a disaster.  For a start it's the CEO's job to lead the organisation.  If you want to have a "lead" department, then (depending on the business) it should probably be Product Development or Marketing. 

HR is a cost.  It doesn't make anything or bring in any money.  It isn't even strictly necessary - it's just  the most fashionable solution to a particular problem.  There are other solutions.

A good HR department should be like a good lieutenant - anticipating every situation and creating a flexible pool of resources ready to deal with both those situations and others which have not been anticipated.  This means that whatever the business needs - or the "lead" departments request - the HR department is ready to supply it. 

In other words HR should not lead, but it should be right behind whoever is leading. 

HR goals should be integrated well with overall objective of the organization. In order to build strong HR department -

1. They should create valuable assets & ways to retain them 

2. Individual goals should be aligned with organization goals - which will motivate their workforce to work better. 

3. Review changes internal & external to the organization with repect to human resource. 

4. Using latest technology to identify business needs, to analyse manpower requirement, planning etc. 

sharing values and vision

effective organizational structure

increasing learning curve

coaching and mentoring

trust

effectively delegate

Keep it simple and do your basics right. HR should gain enough business knowledge, understand the business drivers and focus on aligning the HR strategy to target these. 

Strong HR data coupled with predictive analysis will always be a USP for HR.

Creating a work freandly enviornment 

Build trust with each level of Associates and ensuring their satisfaction

Talent Managment

Training and development 

Intergrity and honesty 

Respect HR manager and the whole department. Think on the suggesations given by them and follow the norms laid down by government. Pay employees on time. This will give confidance to the HR and the results will be positive. 

 HR departmentt is always must which solves- every situation and creating a flexible pool of resources ready to deal with both those situations and others which have not been anticipated

HR people first understand the mission, vision and strategy of the organization, assess own strengths and weakness and deploy the efforts and resource in the direction organization require. employee must be treated as most valuable and earning assets. Should be truly aware of the organizational limitations and employees problems.