Reinventing HR #2
In August 2015, Harvard Business Review published an article which encourage organizations to elevate the CHRO/HR leader strategic partnership in a consortium called “the G3” (CEO, CFO, and CHRO). With each of their own joint accountability and responsibility; G3 makes decisions based on analysing data on financial and people analytics.
The true partnership of HR
Research by McKinsey and the Conference Board finds that CEOs worldwide see human capital as a top challenge, but HR inputs somehow is rank at the ninth place.
It’s time for HR to bridge the gap as a trusted advisor to the executive board. With the advancement of HR analytics and transformation. HR should be a key advisor in talent intelligence, market intelligence and assist the CEO to unleash the organization’s potential.
The current traditional HR function is often bogged down in administrative tasks like payroll and benefits disbursement, which could be handed by the finance department.
If you look into your organization’s HR department today, how much areas your current HR is covering the Ulrich 4 pillars model?
To make the HR a true partner, the CEO should lift the HR into the inner sanctum where people market intelligence together with financial intelligence input to shape the destiny of the business results. This to ensure that gaps are address and homing in on any problems in execution.
Here are some of the market examples:
When Marsh CEO Peter Zaffino with his CFO, Courtney Leimkuhler, and his CHRO, Mary Anne Elliott get together for a G3 meeting.
They began by selecting a business in the portfolio and drawing a vertical line down the middle of a blank page on a flip chart. The right side was for the business performance (CFO); the left side for organizational design issues (CHRO). By producing different data points into one flip chart, it gives the G3, a clear view of piecing the pieces to predict the business performance.
This was derived by answering two simple questions:
What is going well? What is not going well?
This G3 process provided them with good insights into the business without adding bureaucracy.
Tata communication’s G3
Another key example was the transformation of business and building new capabilities by CEO of Tata Communications, Vinod Kumar.
In 2012, Vinod Kumar enlisted then-CFO Sanjay Baweja and CHRO Aadesh Goyal to form the G3 in charting the company’s future path. Tata Communications problem back then was the redundancy of manpower due to restructuring.
Tata’s G3 went to work on the changes and in 2013, launched a company wide program aiming at continuous improvement on productivity. This would not have been made possible if the G3 not get together in looking at the dynamics in talent movement and financial pressures, understanding the new business needs and re-allocating their workforce.
This short project was a success for Tata Communications, it produced results of a cost base reduction of more than $100 million which was originally targeted. Smarter use of talent resource allocation and a new emerging productive culture for the company.
This could only happen because the CEO, Vinod Kumar gave full faith and trust to the CHRO Goyal; the additional responsibility of managing one of the company’s high-growth subsidiaries and made him part of the Innovation Council, which identifies business opportunities to invest in and new businesses incubation projects to lead.
A company’s success is in the People. Businesses don’t create value; people do.
#G3 #reinventingHR #HRBusinessPartner