The Chief Human Resource Officer (CHRO) has been propelled center stage to a place pivotal to the success of a company. Chairmen, Boards, CEOs and HR leaders now have a set of expectations that are critical to enabling growth, facilitating organizational transformation and developing leadership capital.
Meeting these expectations creates an overarching imperative: to build a world-class HR function, taking into account a diverse set of stakeholders. Demands are at an all-time high. The role has more breadth and depth than ever before.
Balancing
Considering the CHRO as a business strategist rather than as an isolated operations manager, he or she must assume leadership across the three key stakeholder groups.
The board and shareholders have expectations of building a sustainable organization with the right governance, strategy and risk management systems. HR has to step up to the plate and add the right value. The CEO expects the facilitation of growth and transformation through appropriate HR initiatives – while keeping the ship stable.
The employees are a distinct entity. As such, they need to be considered both within their direct operating context and at the highest organizational level, where they expect the HR function to reinforce "remember the employees" conversations with senior leaders and the board. Short and long-term perspectives must be equally reconciled.
"A strategic CHRO is critical to a highly successful company," said Rodes Cole, Parker Executive Search vice president and managing director. "He or she has to have a pulse on the current talent within the organization to ensure the culture will grow, retain and attract future leaders. Human capital is the most vital resource to a company. It sets everything into motion."
Designing
The HR function has evolved to an extent that it now deserves its own business model, defined by a distinct and empowered structure, capability, and team and delivery standards. As chief architect of the HR business model, the CHRO needs the expertise to deal with each process and element of numerous functions, recognizing their breadth, depth and interconnectedness.
Truly outstanding CHROs have a sharp focus on operational excellence. Administrative and management skills remain important for the CHRO to set the agenda and control outcomes.
Gone are the days when the HR role was internally confined. CHROs now enhance the reputation of the company through exercising thought leadership in external forums and being sufficiently connected with external aspects to understand business and talent benchmarks.
"Balancing internal and external roles is critical to attract and retain great talent," said Rita Izaguirre, human resources director at Jackson Spalding, a marketing communications firm. "Internally, it means being visible and accessible to the team. Externally, it requires meeting with critical stakeholders regularly and signaling interest beyond filling a vacancy."
Leading
Among the challenges posed by the evolution of the CHRO's role, we find new conditions to facilitate leadership excellence as a whole. The recruitment and development of the right people – able to add the right value to business growth, now and in the future form a critical part of the CHRO's responsibility. CEOs increasingly expect the CHRO to take full leadership for upgrading talent and its skill sets, as well as anticipating and solving related problems.
"Having a seat at the executive table for the CHRO is vital for the success of an organization," said Parker Executive Search Vice President and Managing Director Ryan Grant. "As a strategic business partner, they positively impact the business on all levels by driving efficiencies and strategies."
Talent within the HR function itself deserves to be treated as seriously as that of any other strategic function -- assessed, upgraded and coached. As a result, the career plans of HR talent deserve a high priority.
Excerpts with permission from Amrop
About Amrop
With 84 offices in 56 countries, Amrop provides services in Executive Search, Leadership Assessment and Board Consulting. It is the largest partnership of its kind.
