The Chief HR Officer: Redefining the Role of Global HR Leaders

advertisement
The Chief HR Officer: Redefining the
Role of Global HR Leaders
Libby Sartain, Author & Consultant
Laurie Siegel, SVP, Human Resources and Internal Communications, Tyco; Mark Stewart, Ph.D., Consultant, AVEAS
Publishing – Chief HR Officer Book
• Written by thought leaders – CHROs,
consultants, and academics
• Each writing from their passion/interest
• Organized around the seven roles
Evolution of the Role
•
•
•
•
1980’s – HR Goes Strategic
1990’s – HR at the Table
2000’s – Failings Forward
2010’s – In the Pressure Cooker
Figure 1: Pressures on the CHRO
Talent/Leadership
ELT Dynamics
CEO Pay
Executive Succession
Governance/Risk
Executive Pay
Chief Human
Resource
Officer Role
Increasing Demands
Decreasing Resources
Talent Gaps
Sarbanes-Oxley
Risk Management
Public Policy
War for Talent
Cost Competitiveness
Innovation
Globalization
Today’s Roles
•
•
•
•
•
•
•
Strategic Advisor
Talent Strategist/Architect
Counselor/Confidante/Coach
Liaison to the Board
Leader of the Function
Workforce Sensor
External Representative
Design& 2012) of CHROs at
Conducted four surveys (2009,Research
2010, 2011
Fortune’s largest U.S. companies
2009 survey focused on CHROs at Fortune 150 companies
• 148 invitations
• Total N = 56 resulting in a 39% response rate
2010 survey focused on CHROs at Fortune 200 companies
• 191 invitations
• Total N = 75 resulting in a 39% response rate
2011 survey focused on CHROs at Fortune 500 companies
• 409 invitations
• Total N = 172, resulting in a 42% response rate
2012 survey focused on CHROs at Fortune 500 companies
• 349 invitations
• Total N = 143, resulting in a 41% response rate
The 2012 Cornell/CAHRS
Chief HR Officer Survey
• 349 Surveys sent out
• 143 completed (41 percent response rate)
• 82 Men; 61 Women
2012 Thought Leaders Retreat
Activities focused on the formulation and implementation of the firm’s
strategy
Counselor/
Confidante/
Coach
Counseling, coaching, resolving interpersonal or political conflicts among
executive team members
Preparation for board meetings, phone calls with board members, attendance
at board meetings
Talent
Architect
Building & identifying the human capital critical to the firm
Leader of the HR
Function
Working with HR team members regarding the development, design &
delivery of HR services
Workforce
Sensor
Identifying workforce engagement/morale issues or concerns and
building employee engagement
Representative
of the Firm
Activities with external stakeholders, such as lobbying, speaking to
outside groups, etc.
Over the course of an average fiscal quarter, what percent of your time do you spend with the
following individuals/groups?
CEO Individually
14
14
Individual Executives
15
14
13
Executive Team
15
10
10
Board Members
10
5
5
6
HR Team
11
11
11
HR Individuals
Individual HPs
3
3
Larger Workforce
5
6
2
3
3
0
5
1.6
2
Outside Consultants
2009
4
3
Customers
2010
16
5
5
Group HPs
2011
18
18
3
2
4
6
8
10
12
2012 Thought Leaders Retreat
14
16
18
20
Talent Architect and Strategic
Advisor
• Strategic Advisor role consists of all those activities that focus on
attempting to influence the strategy of the firm. These activities could
be providing human capital information regarding potential business
performance issues (e.g., increasing turnover among high potentials),
playing devil’s advocate regarding strategies being discussed, or simply
providing credible business-based opinions regarding the feasibility or
effectiveness of proposed strategic decisions.
• Talent Architect focuses primarily on ensuring that the right people
are in the right positions at the highest levels of the firm. As opposed
to the strategic advisor where the focus is on the nature of the business
strategies themselves and the broad organization capability necessary
to implement them, the talent architect role aims at ensuring that the
right leadership is in place to execute the strategy or initiative. It
requires frequent communication and relationship building with the
top leaders and intuitive eye for assessing their talent.
Counselor/Confidante/Coach
• Counselor/Confidante/Coach role is a
multifaceted one that entails dealing with all
of the conflicts and challenges that happen
when a group of highly ambitious people must
work interdependently with one another as in
an executive team. It sometimes entails having
one-on-one coaching sessions, having
individual conversations with executives to
surface their issues and concerns, and
sometimes being a go-between among feuding
executives.
Leader of the HR Function
• The Leader of the HR Function role entails
ensuring that all the major HR systems,
policies, and programs are run efficiently,
effectively, and in alignment with the strategic
needs of the business. Most leaders execute
the major aspects of this role by appointing and
managing their direct reports who have
responsibility over the major functional areas
such as compensation, leadership
development, and training.
Over the course of an average fiscal year, what percent of your time would you say you spend in each of
the following roles?
17
Strategic Advisor
18
22
15
Counselor/Confidante/Coach
16
17
10
Board Liason
12
10
17
Talent Architect
2012
19
2011
17
2010
23
HR Function Leader
2009
24
22
7
Workforce Sensor
8
8
4
Firm Representative
6
5
0
2
4
6
8
10
12
14
2012 Thought Leaders Retreat
16
18
20
22
24
Measures
Demographics
Time Spent in
Roles
• How much
time spent in
each of the
seven roles,
over course
of avg. fiscal
qtr.
Sex
• Whether
male or
female
Focal Variables
Tenure
• Time spent in
the CHRO
role
Size
• Size of
organization
based on its
Fortune
ranking
Control Variables
Results
% Time Spent in Roles
% of Time
Male
2009
Female
2009
Male
2010
Female
2010
Strategic Advisor
24.1%
17.11%
19.2%
14.2%
Counselor/Coach/
Confidante
19.0%
14.8%
18.4%
15.1%
Board Liaison
9.4%
10.7%
10.87%
11.4%
Talent Strategist/
Architect
15.9%
17.7%
16.67%
21.35%
HR Leader
20.4%
24.9%
24.09%
23.50%
Workforce Sensor
6.3%
10.1%
5.73%
7.77%
Firm Representative
4.6%
4.9%
4.51%
5.77%
Regression Results CHRO Roles
Predicted by Sex in 2009 & 2010
2009
Variable
Strategic
Advisor
Counselor /
Confidante/
Coach
Board
Liaison
Talent
Architect
Leader of
HR
Function
Workforce
Sensor
Firm
Representative
Sex
-.33*
-.26+
-.05
.14
.31*
.37*
.06
R2
.13*
.08
.08
.02
.15*
.13*
.04
∆R2
.11*
.07+
.00
.01
.10*
.13*
.00
Variable
Strategic
Advisor
Counselor /
Confidante/
Coach
Board
Liaison
Talent
Architect
Leader of
HR
Function
Workforce
Sensor
Firm
Representative
Sex
-.28*
-.17
.01
.30*
-.02
.21+
.15
R2
.14*
.04
.03
.11*
.03
.11+
.05
∆R2
.07*
.03
.00
.09*
.00
.05+
.02
2010
Summary: Consistent and Divergent Results
Males
2009 & 2010
Females
2009 & 2010
Strategic
Advisor
Workforce Sensor
Agentic Style
Talent Architect
Communal Style
Counselor /
Confidante /
Coach
Communal Style
Liaison to the Board of
Directors
• Liaison to the Board role deals with all the
activities in which the CHRO must interact
directly or indirectly with the Board of
Directors such as preparation for the
meeting, phone calls with board members,
discussions with the board regarding
executive pay, etc.
Of the time you spend working with the Board of Directors, how much time is spent on:
48
50
Executive Pay
49
13
CEO Succession
14
5
Executive Succession
14
Ethics/Governance
5
4
Risk Management
0
0
2012
14
2011
2010
4
6
6
4
15
5
4
Other
15
4
14
Executive Performance
15
4
4
CEO Performance
51
2009
5
6
8
5
4
3
3
5
10
Leaders
Retreat
152012 Thought
20
25
30
35
40
45
50
55
Which of the following roles do you play on any other Boards of Directors?
79
Member Non-Profit Advisory BOD
44
53
26
Trustee of University
13
18
100
Member Non-Profit/Professional BOD
59
54
2012
2011
81
Member Professional Society BOD
2010
44
43
8
Member Advisory Board Publicly-held company
4
5
23
Member Publicly-held company BOD
10
9
0
2012
10 Thought
20 Leaders
30 Retreat
40
50
60
70
80
90
100
Title
2012 Thought Leaders Retreat
Member Publicly-held company BOD
Member Advisory Board Publiclyheld
Member Professional Society (SHRM)
Male
Female
Total
Count
9
6
15
% of
Total
6.9%
4.6%
11.5%
Count
5
0
5
% of
Total
3.8%
0.0%
3.8%
Count
48
23
71
% of
Total
36.9%
17.7%
54.6%
53
37
90
% of
Total
40.8%
28.5%
69.2%
Count
7
14
21
% of
Total
5.4%
10.8%
16.2%
Count
41
26
67
% of
Total
31.5%
20.0%
51.5%
Count
80
50
130
38.5%
100.0%
Count
Member Non-profit non-professional BOD
(United Way; Art Museum w legal fiduciary)
Trustee of University
(with fiduciary responsibility)
Member Non-Profit Advisory BOD
(No legal fiduciary responsibility)
Total
% of
61.5%
2012 ThoughtTotal
Leaders Retreat
To what extent would you agree with each of the following as descriptions of your ELT?
4.1
Our ELT is united in trying to reach its goals for performance
The ELT members are very helpful to one another
3.8
The ELT members are very cooperative with one another
3.8
3.7
The ELT engages in very open communication
3.5
The ELT members put the team's interests above their own…
3.5
The ELT is very committed to one another
2.8
The ELT engages in a lot of morale building
2.7
ELT members often disagree about opinions regarding strategy
2.6
The ELT would like to spend time together outside of work hours
2.4
There are a number of personality conflicts evident among ELT…
2.4
Our ELT often socializes together
ELT members disagree about important goals
2.2
There is often emotional conflict among ELT members
2.2
2
ELT members' differing opinions often result in unhealthy conflict
I'm unhappy with the ELT's level of commitment to the larger…
1
2012 Thought Leaders Retreat
1.9
2
3
4
5
To what extent would you agree with each of the following as descriptions of your ELT?
Our ELT is united in trying to reach its goals for performance
Performance
The ELT members are very helpful to one another
The ELT members are very cooperative with one another
The ELT engages in very open communication
Collaboration/Teamwork
The ELT members put the team's interests above their own individual interests
The ELT is very committed to one another
The ELT engages in a lot of morale building
ELT members often disagree about opinions regarding strategy
The ELT would like to spend time together outside of work hours
Relationships
There are a number of personality conflicts evident among ELT members
Our ELT often socializes together
ELT members disagree about important goals
There is often emotional conflict among ELT members
ELT members' differing opinions often result in unhealthy conflict
I'm unhappy with the ELT's level of commitment to the larger organization's
success
1
2
3
4
5
ELT Strengths and Weaknesses: In the
CHRO’s Words
Cooperation/Collaboration/Teamwork
Strengths
Candor/Dialogue/Discussion
Enterprise First Perspective
Aligned w/Strategy/Common Goals
Performance/Goal Attainment Focus
Lateral Communication Siloes
Passive/Aggressive/Immaturity
*
Weaknesses
*
CHROs on the Executive Team
• Some passive aggressive behavior. Would prefer to see more healthy
conflict and the ELT to voice their true opinions/objections so we could deal
with them head on.
• The ELT does not work as a team, more as individuals
• This team is new and has too many private agendas. I am concerned that
there is an unwillingness to try to work as a team.
• Immaturity expressed via poor peer relationships, avoidance and passive
aggressive behavior when disagreements arise.
• Passive in their interactions. Do not openly challenge each other to drive to
better decisions. Operate autonomously - we're a collection of high
performing individuals but that doesn't translate into a high performing
team.
• Sometimes we are trying to be so supportive of each other, we shy away
from raising more sensitive issues that we really need to raise or confront.
That can then take a bit longer for them to be surfaced and, in turn,
resolved. Luckily there aren't many of these ...
CHRO Work on the Team
•
•
•
•
•
We're taking baby steps. I've worked with the CEO to articulate a clear set of
organizational goals and priorities, to engage the team in their development, to
manage time with the team in a way that engages them in group discussion on
progress vs. the goals. I've orchestrated a "come to Jesus" meeting of the team -- in
which they provided their input on the effectiveness of the team, and together formed
a plan for what their top shared priorities were and how they were going to work
towards them. We are making progress, but it is very, very slow.
Shuttle diplomacy, though inefficient, is quite effective. Pointing out conflict, and
working to surface/reduce/remove it. And ultimately, agitating for/changing out ELT
members who are not up to the standards of the firm.
Set the ELT agenda for regular meetings and offsite team sessions. Drive action
register focus. Encourage sharing and getting the right people involved in initiatives.
Provide ongoing, real time feedback to each ELT member as needed.
Worked very closely with the CEO on defining and communicating operating
expectations for the ELT; engaged Gallup to identify strengths and development needs
of ELT and facilitated discussions with team; actively coach and offer feedback to ELT
on behavior and performance; structure regular (quarterly dialogue) with ELT on
effectiveness.
Coach individuals. Conduct interventions and run team sessions.
CHRO Gender
**ELT Scale Score Average
Male
3.6
Female
3.4
Total
3.5
**ELT Collaborate Teamwork
3.8
3.5
3.7
**ELT1communication
3.9
4.0
3.9
3.7
3.7
3.5
3.6
3.6
3.4
3.2
3.7
3.8
3.8
3.5
3.5
4.2
3.9
4.1
**ELT11 No Personality Conflicts
3.8
3.3
3.5
*ELT12 Rarely Emotional Conflict
3.9
3.6
3.8
**ELT15 Differing Opinions =
Unhealthy Conflict
4.2
3.8
4.0
ELT2 Engage Morale Building
2.8
2.7
2.8
ELT10 Team socializes together
ELT13 Frequent disagreement
about Strategy
2.4
2.5
2.5
3.3
3.2
3.3
**ELT3cooperate
**ELT4helpful
ELT5committed
**ELT6teamInterest
*ELT8 Happy w/Commitment to
Enterprise
Indicate your agreement with regard to how well each of the following describes your CEO's
leadership style
4.6
4.6
Holds ELT members to high ethical standards
Sets an example of how to do things the right way in…
Does what she or he promises to do
When making decisions, asks "what is the right thing…
Disciplines ELT members who violate ethical standards
Discusses business ethics or values with ELT members
Listens to what ELT members have to say
Is always honest with those around him/her
Defines success not just by results but also the way…
Makes fair and balanced decisions
Has the best interests of employees in mind
Makes me feel like I work with him/her, not for him/her
His/her decisions are influenced by ELT members' input
Tries to reach consensus among ELT members on…
Is sensitive to ELT members' responsibilities outside…
Spends the time to form quality relationships with ELT…
Puts others' best interests ahead of his/her own
Creates a sense of community among ELT members
Emphasizes the importance of giving back to the…
Works hard at finding ways to help others be the best…
Seems to care more about others' success than…
Makes the personal development of ELT members a…
Encourages ELT members to be involved in…
Makes quick/impulsive decisions
Ignores others' input if it conflicts with his/her instincts
1
4.4
4.4
4.3
4.3
4.3
4.2
4.2
4.2
4.2
4.1
4.1
3.8
3.7
3.7
3.6
3.6
3.5
3.5
3.4
3.3
3.2
2.8
2.8
2
3
4
5
Indicate your agreement with regard to how well each of the following describes your CEO's leadership
style
Holds ELT members to high ethical standards
Sets an example of how to do things the right way in terms…
Does what she or he promises to do
When making decisions, asks "what is the right thing to do?"
Ethics
Disciplines ELT members who violate ethical standards
Discusses business ethics or values with ELT members
Listens to what ELT members have to say
Is always honest with those around him/her
Defines success not just by results but also the way that…
Makes fair and balanced decisions
Has the best interests of employees in mind
Decisions
Makes me feel like I work with him/her, not for him/her
His/her decisions are influenced by ELT members' input
Tries to reach consensus among ELT members on…
Is sensitive to ELT members' responsibilities outside the…
Spends the time to form quality relationships with ELT…
Puts others' best interests ahead of his/her own
Creates a sense of community among ELT members
Altruism
Emphasizes the importance of giving back to the community
Works hard at finding ways to help others be the best they…
Seems to care more about others' success than his/her own
Makes the personal development of ELT members a priority
Encourages ELT members to be involved in community…
Makes quick/impulsive decisions
Ignores others' input if it conflicts with his/her instincts
1
2
3
4
5
CEO’s Leadership Strengths and Weaknesses: In The CHRO’s Words
**
Encourages Discussion and Listens
Builds Team
*
Weaknesses
Strengths
Drives Results/Accountability
Leads Strategy and Vision
Develops/Coaches/Gives Feedback
Values Employees/Cares
*
Lives Values/Honesty/Integrity
Confronts/Manages Conflict
***
CHROs on the CEO’s Leadership
• Need to move quicker on key decisions
• Holding everyone accountable and willing to take action - slow to address
issues
• At times avoids confronting bad behavior in a key, hi po executive.
• Conflict averse and lacks decisiveness; assumes he is always right; poor
listener
• His strength (relating well to people at all levels of the organization,)
occasionally results in his direct report feeling that he goes around them.
• Soft in terms of tough decisions needed around people
• Would rather avoid confrontation or delivering a difficult message to a direct
report. Does not "suffer fools lightly" and it can be obvious.
• Putting others first. Prioritizes shareholders and investors, which is positive,
but his team and the broader employee base need to be considered more
• He is an extreme conflict avoider
• Needs to be quicker on senior team transition; not all leaders are equipped
to handle current business; needs to address individual performance issues
• At times can be argumentative if you don't see his perspective
CHRO Work with the CEO
• I provide candid, regular and on-going coaching and feedback. I tell
the truth (about organizational issues, people, etc.) as I see it, since I
am one of the few people he will always be able to count on to do so.
• Act as his confidante. Meet each morning to review issues and act as
a sounding board. Have the "Dutch uncle" talks when necessary.
Keep him abreast of any issues that may be developing within the
staff. Stand between him and teams members when necessary to
calm things down. Push personnel changes or corrective actions
when he is reluctant to make the moves he knows are correct
• He is absolutely revered and respected by the rank and file. As a
result people often shield him from bad news. My role has been to
keep him grounded, ensure that he is hearing the good the bad the
ugly and encouraging him to opening ask the right questions as he
visits the facilities.
• I tell him things that others are not willing to - because I have no skin
in the game in terms of CEO succession.
CHRO Work with CEO (cont’d)
• - It's painful, but I am often the only one that can hold the mirror up to
him and give him some sense of the impact his personal leadership
style has. - I try to constantly remind him of how global we are
becoming and help coach him to make sure his "talk track" in the
organization match that. - And I listen. Given all the economic
pressures, I often just let him vent to me - on how hard his job is, how
difficult the board can be, what a complicated team we are to
manage, why no one can see what he sees, etc., etc. Lately, I think he
just needs a space to vent.
• Candid conversations.
• Help him understand and clarify what he wants, and why he wants it. Help
him understand the needs and behavior of team members. Help him
prioritize desired outcomes. Help him communicate in a way that maximizes
desired outcomes/ minimize unnecessary conflict or confusion. Provide
confidential sounding board. Share ideas of how others have handled similar
challenges.
Filling the C-Suite - US
Position
Outside Hire
Internal Promotion
CEO
29
64
CFO
34
54
CHRO
54
36
Path to C Suite International Sample
0
0
External Intend Hire
11
53
External Hire
28
50
CFO
CEO
8
Internal promotion outside
CHRO
0
14
39
Internal promotion w/function
72
25
0
10
20
30
40
50
60
70
80
The Four “Knows” of the
CHRO
•
•
•
•
Know the Business
Know How to Lead
Know People
Know Yourself
What’s New and Interesting?
• The world is becoming more complex,
requiring more complexity in response.
• As Talent becomes more critical, the CHRO
becomes more important.
• The CHRO role increases in importance
• CHRO and Board Role
2012 Thought Leaders Retreat
Download