Here is what we learned;
First, while all three CEOs sought the contribution of their CHROs, none, when we inquired, could really delineate tangible strategic benefit and accordingly, none really understood the full breadth and value of the function. All admitted that the impact of human resources was the least understood and appreciated. This is interesting as every successful CEO know that talent and how it is acquired, managed and motivated is the backbone of any successful enterprise. What flummoxed the CEOs was how to make their company’s talent more effective.
Secondly, the CEOs spoke about investing in leadership and their development and strategically aligning their talent with flexibility to take advantage of opportunities and/or meet critical challenges. They viewed this as the direct responsibility of their CHRO as the leader of this effort and the manager of human/executive capital. All three felt that their CHRO’s were too structural and bureaucratic with little knowledge the basic tenets of change management and none, in their view, truly appreciated the operating levers of their business units. One commented that their CHRO was the culture keeper of,”what was/is and not what will be.”
Even with a small sample, it is clear that CEOs are seeking CHROs that will act as a strategic human resource advisor. This creates a great opportunity for HR executives to play a pivotal role linking strategy and operating models with the necessary executive talent to execute “the plan.” Talent management centered on a,” just in time” focus.
Plans are plans and rarely do they unfold overtime as anticipated. CEOs are all under pressure to deliver results regardless of market and competitive conditions. In the CHRO, progressive CEOs are seeking a “partner” who is willing to accept the risk of recruiting/ developing leaders to meet the requirements of the unknown. The CEOs all pointed out that while today’s environment is uncertain, the honing of leadership depth is an “investment” that all three CEOs were ready to make and their boards were willing to support.
Koblenz's advice is to show commitment, courage, and great care at tuning up your approach to developing and retaining leadership. This is a perfect storm opportunity to work closely and build a new level of trust with your CEO, executive team colleagues, and perhaps with your board of directors on a critical front of mind strategic challenge .. leadership depth and succession.
By Joel Koblentz on October 5, 2010
