This past quarter The Koblentz Group conducted a number of CHRO searches that permitted us to discuss the value and expectations that CEOs expect from their top human resource executive.
There was a remarkable consistency in the way CEOs view where the CHRO can and must contribute in 2011.
Three areas were universal.
First, discovering new or more effective ways to engage leadership at the second level of management is a theme that was quite common. While there remains an emphasis on development for the top tier of functional and operational leaders, CEOs believe that more needs to be done for the next level of managers who are actively engaged with interfacing with their organization’s employees who are the front line with their customers. And, the CEOs clearly stated that it was/is a clear priority that their CHRO be directly involved and engaged in this effort, including ascertaining training and development requirements and the design of innovative solutions. Several CEOs stated that they would support a CHRO who was willing to experiment with new approaches with effective monitoring.
Secondly, CEOs expect the CHRO to be more acute and disciplined about evaluating culture fit for executive rank additions. The CEOs believe that the true value that the CHRO brings to the hiring process is in evaluating the cultural fit of any candidate for the top team. And yet, most CEOs shared that CHROs should provide real insights about any candidate and oftentimes fall short of doing so. The CEOs believe that this is because most CHROs don’t invest enough time in truly and deeply understanding the operating business units and the subtle underlying culture.
Lastly, CHROs are expected to ally with the CEO on matters that are of interest to their company’s boards of director beyond compensation matters. Today, boards are concerned with leadership as an enterprise risk and thus are placing an increased focus on leadership development and succession for their senior executives. CEOs are under pressure to institute and monitor effective programs and processes and look to their CHRO as their “partner” in making this happen.
The bottom line is that CHROs have the opportunity and a clear path for board, CEO and organizational relevancy.
Time to seize the day!