CEO-Driven HR Function

I conducted a Linkedin survey last week to find out: "What Makes a Company Great at Human Resources?”, the option “Top Leader(s) interest in HR” had the highest number of respondents, (92%). (See the image below)

The importance of effective leadership for human resources success cannot be overemphasized. Despite the ubiquitous claim among CEOs that employees are their top priority and talent is their #1 asset, unfortunately, this is not true in many organizations. Many CEOs and top leaders are not directly involved in their HR functions. In fact, I witnessed a case of a CEO who told the head of HR in his company never to discuss people-related matters with him but rather with the CFO. I believe strongly that every CEO needs to be in some sense the chief HR person.

For example, Larry Bossidy was the CEO of Honeywell Inc. from 1999 to 2002, during which time he was instrumental in driving HR function success through a range of initiatives. Bossidy recognized that building a strong leadership team was critical to the success of the organization. He implemented a rigorous selection process to identify and develop high-potential leaders within the organization, and he created a culture of accountability by setting clear performance goals for each leader.

In one of his interviews with Harvard Business Review, Bossidy said he devoted a huge amount of his time doing HR work as a CEO- time?that some people considered an inordinate amount of emotional energy and time between 30% and 40% to hiring and developing leaders.

According to Him:

“Throughout my career [as a CEO], I've been directly involved in developing leaders, which begins with interviewing and assessing candidates. And not just for my direct reports. I evaluated the direct reports of direct reports, and I sometimes went even further down the organization...I'm not talking about overseeing our HR department and interviewing finalists; I'm talking about hands-on hiring.”

Another CEO whose leadership also had an indelible mark on HR was the late former General Electric (GE) CEO, Jack Welch. Under his leadership, Welch transformed the HR function at GE, making it a key driver of the company's success. Welch believed that “HR is the driving force behind what makes a winning team,” and he was instrumental in establishing HR's “seat at the table.”

One of the most well-known HR initiatives that Welch implemented was the "rank and yank" system. This system required managers to rank employees based on their performance and eliminate the bottom 10% of performers each year. While controversial, this system helped to create a culture of accountability and high performance throughout the organization.

Welch recognized the place of talent in GE's success and that's why he invested heavily in talent management initiatives. He established the Crotonville Leadership Development Center (GE’s Corporate University), which provided training and development opportunities for high-potential employees. He also implemented a rigorous succession planning process to ensure that GE always had a strong pipeline of future leaders. I read a story about how Jack Welch made an enormous commitment to be involved as a faculty at Crotonville. He went there every two weeks for a period of 15 years to interact with new employees, teach middle managers, and constantly coached the senior managers without missing a session. Talk about a massive amount of time for a CEO to devote to any HR work!

Source: Youtube: Jack Welch on the importance of HR

The CEO Many HR Hats

A committed CEO who rolls up his or her sleeves and gets actively involved in HR matters is invaluable to any organization. The fact remains that very few CEO do that. Under CEO-driven HR, CEO takes a more visible and active role in HR. Here are some of the various HR hats that I feel a CEO should wear in a CEO-driven HR organization:

CEO as Visionary: The CEO can drive HR by providing a clear vision and mission for the organization. The vision should be communicated to the HR department so that it can align its policies and procedures with the organization's goals. This will ensure that HR is working towards the same goals as the rest of the organization.

CEO as Talent Manager: The CEO can drive HR by playing an active role in talent management. This involves identifying key talents within the organization, creating development plans for them, and retaining them within the organization. The CEO should work closely with HR to identify key talent and ensure that they are being developed and retained.

CEO as Culture Champion: The CEO can drive HR by championing the organization's culture. The CEO should communicate the values and culture of the organization to the HR department, and ensure that HR policies and practices align with the organization's culture. This will help to create a strong and cohesive organizational culture.

CEO as Change Agent: The CEO can drive HR by acting as a change agent within the organization. The CEO should identify areas where HR policies and practices need to be changed, and work with the HR department to implement these changes. This will help to ensure that HR is able to adapt to changing business needs and remain effective.

CEO as Chief Marketing Officer for HR: The CEO can help promote the HR function to employees and external stakeholders. This includes showcasing the value of HR initiatives-culture, benefits, and employee development programs, positioning the organization as an employer of choice, and creating effective communication strategies.

CEO as Sponsor: The CEO can drive HR by acting as a sponsor for HR initiatives. This involves providing the necessary resources and support to HR initiatives and helping to ensure their success. The CEO should work with HR to identify key initiatives that require support and provide the necessary resources to ensure their success.

CEO as Learner: The CEO can drive HR by being a learner. This involves staying up to date with the latest HR trends and best practices and using this knowledge to drive HR initiatives within the organization. The CEO should work with HR to identify areas where the organization can improve, and seek out new ideas and best practices to help drive change.

CEO as Chief Performance Officer: The CEO can drive HR by acting as the chief performance officer. This involves setting performance targets for the HR department and working with HR to ensure that these targets are met. The CEO should work with HR to develop effective performance metrics, and regularly review HR performance to ensure that it is meeting the organization's needs.

Whether you're a small or big business "you bet on people, not strategies" and by effectively wearing these hats as a CEO you can help drive organizational success through effective HR management.

Keep stepping up your game as a CEO!

~Adedoyin

P.S. If you have managers struggling to manage the day-to-day work and are unable to execute the strategies of your organization, we can be of help. Our robust management development program can be tailored to your organization, business, and industry. Kindly send a mail: [email protected]