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