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HR as a Strategic Advisor for CEOs

It’s great to envision our leaders as strong on their own, but in reality, every great leader needs a worthy advisor. Fortunately for most CEOs, one of the best, untapped, strategic advisors within your organization could very well be your CHRO. According to upStartHR, 76% of CEOs currently do value their relationship with their HR. This is mainly to do with the fact that since the C-suite has continued to develop, the CHRO is the one that has become more strategic and is closest in characteristic to the CEO. However, does that mean that CEO’s are taking advantage of HR’s full potential? CEOs are powerful figures within their organizations, but the position has become so demanding that it is almost impossible for one person to handle it all on their own. As the CEO’s position does become more demanding, it has become a blessing to have HR by their side to assist in running the organization, its people, and the overall growth of the organization.

The Strategic Approach
There are many individuals within an organization that are equally as qualified to advise a CEO. From a strategic standpoint, CHROs have the information necessary to create a strategic plan to assist leaders in the growth and development of their organization. The HR department is most familiar with, and responsible for, the overall organizational structure. This knowledge allows for HR professionals to provide a more informed and insightful perspective to the CEO. While HR was once a transactional position, staffing challenges and workforce evolution have transformed this department into a critically strategic function for business development. Despite this transformation and the increased responsibility, the perception of the HR department is struggling to keep up with reality. In order for CHROs to act as a strategic advisor to the CEO, they will first need to break through the misconceptions and gain a seat at the C-Suite table.

Talent Management
As Talent Management continues to be one of the biggest issues that organizations face, it has been necessary to devote more time and resources towards developing and implementing talent strategies. In most organizations, the CHRO has been the champion of these initiatives. HR departments are constantly helping with the growth and performance of the organization, applying numerous tools to manage performance and professional development. HR has also become well-versed in technology, harnessing the power of new software solutions like Human Capital Management and Payroll software. These skills and access to information can assist the CEO in implementing and analyzing new, evidence-based, strategies and initiatives. HR has been referred to as being in the people business, and as they continue to help with the growth and management of the organization, their significance will also continue to grow.

Regardless of the position, department, or organization, there is always room for overall growth and development, but if it isn’t handled as well as HR has handled it, the room for development becomes minimal. HR is familiar with the organizational structure and with the on-going technological development that seems to be an ever-evolving requirement. This has made it essential for HR departments to be technologically savvy as well. It’s essential for everyone to be able to rely on someone else, and as the CHRO and HR department continues to develop and grow, they will evidently become one of the strongest assets the CEO may have.

This DATIS Blog was written by Carlos Lozano, DATIS, on September 7th, 2016 and may not be re-posted without permission.

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