Business leaders know that they depend upon the Human Resources to achieve their business and organizational objectives. Businesses can’t create value by themselves, but people do. However, if you look closely, leaders of majority of organizations are often dissatisfied with their HR leadership and the HR function in general. Our first-hand experience at Aavishkaar is not very different at all having worked with firms across business verticals and across geographies.

We believe, it’s time for HR to make the same leap that the other key /core organizational functions like Production, Purchase, Sales, Technology (Domain Knowledge) or Finance have made in recent decades and became a true partner to the Business.

We often notice that HR leadership are too bogged down by the day-to-day administrative tasks or that they don’t have a clue of what constitutes ‘Business’. However, it’s up to the top leadership to elevate HR in becoming their strategic partners. Elevating HR requires totally redefining the work content of the Chief Human Resource Officer; rather than being seen as a supporting player brought in to implement decisions that have already been made, the CHRO will have a central part in corporate decision making.

These changes will drive important shifts in career paths for HR executives—and for other leaders across the company. Moreover, the business will benefit from better management of its human resources. We say this with confidence, based on our experience having worked with top companies across industry verticals, where, we have played a progressive role in redefining the role of CHRO and ensuring the circle is completed with realigning HR function as well to play a major role in business partnering.

A CHRO’s role is of essence, if the following critical activities would become their measurable parameters –

1. FORECASTING OUTCOMES – The CHRO should be able to evaluate the odds of meeting the business goals using his /her knowledge of the Human Capital. Because an organization’s performance or achievement of business goals largely depends upon the alignment of HR function with the Business Goals and the critical link between this is how effectively the role of CHRO is defined and performed.

1. CORRELATING PROBLEMS – Given that CHRO in the new schema, is in a position to identify precisely why an organization might be /might not be performing well or meeting its goals; top leadership must trust and learn to seek such analysis from their CHROs, from time to time.

The CHRO should work with the CEO’s and CFO’s to examine the causes of hits /misses, because at the heart, most problems tend to be people related problems. The idea is to look beyond obvious external factors, such as current financial market trends, job market performance, currency valuations /fluctuations; but to link the analysis /findings with insights into the internal factors like – organization’s culture and current undercurrents with its social structure. A correct correlation will suggest the right remedy and avoid any knee-jerk reactions.

1. VALUE ADDITIONS – Agile companies should be nimble with their human capital strategies, and CHROs should be at the forefront to recommend actions that will create value.

These might include – doing away with the traditional recruitment methodology where, more emphasis is placed on qualifications and not on skills or competencies; recognizing someone’s hidden talent and adding that individual to the list of high potentials; innovative job rotations to ignite growth in a new market, or betting against the organization’s tradition in bringing a lateral hire to develop capability in a new technology.

Responding to the external environment today sometimes requires leaders with capabilities that weren’t previously cultivated, such as knowledge of technology, or ability to understand psychological profile of people and ability to visualize & drive change. The CHRO should have or develop special skills towards searching for /judging talent who could be future value creators and then thinking imaginatively to go about getting these talents to the right place at the right time within the overall organizational structure.

CHRO should always be on the lookout for innovative HR practices which might start as good practices but have a potential to become a ‘HR Best-Practice’; the areas CHRO should definitely concentrate on is in the realm of talent acquisition, compensation, benefits & rewards and Performance Management.

The Transition to the New HR

Any business leader who is sold to the idea that people are the ultimate source of sustainable and competitive differentiation, must take the reinvigoration and elevation of the HR function very seriously. This will not materialize overnight, but needs sustained involvement from the top management to achieve this paradigm shift.

Setting well-defined expectations for the CHRO and the human resources function is a good start. Prescribing ways to blend business and people acumen should follow. And redesigning hiring, career tracks (paths) and talent reviews will take the company, further still. But none of this will happen unless the top leadership directly embraces the challenge, makes a commitment, and starts executing.

AAVISHKAAR – THE TRANSITIONAL LEADERS

A transitional leader is normally defined as – board – or executive-level professional brought in,to tackle a corporate challenge with a defined purpose and direction. They are typically hired to lead a major transformation (change management), such as a company restructuring, sale or turnaround, integration of an acquisition or the start-up of a new division.

TRANSITIONAL LEADERSHIP CHANGE

1-TRANSITIONAL LEADERSHIP

The role is one that calls for highly specialized, relatively rare experienced executives, who are either recognized experts in their field, or who have multi-disciplinary expertise and multiple-industry experience.

At Aavishkaar, we have an excellent breed of (transitional leaders) CHRO’s with a rich vein of multi-industry experience of around (average) 20 years in HR.

We provide CHRO support to our clientele as under –

LEVEL-1 SUPPORT

• Typically, off-the-shore or remote support

• CHRO will be available remotely and provide advisory to the internal (client’s) HR team on the following areas –

  -Course correct the HR systems and strategies appropriate to the firm’s mission and goals;

  -Supervise and provide consultancy on strategic HR plans, Recruitment and Compensation & Benefits;

LEVEL-2 SUPPORT 

• Typically, a combination of off-the-shore /remote support and on-the-site support;

• CHRO will provide advisory to the internal (client’s) HR team on the following areas

  -Provide strategic direction to the company’s HR function;

  -Course correct the HR systems and strategies appropriate to the firm’s mission and goals;

  -Supervise and provide consultancy on strategic HR plans, Recruitment and Compensation & Benefits;

  -Advice on the HR-Operations via onsite contact sessions and remote management.

LEVEL-3 SUPPORT

• Typically, on-the-site support with a HR resource being outsourced to the client site

Grade /experience levels of the outsourced HR resource would be decided based on the requirement at-hand;

• CHRO would be servicing the client in a combination of off-the-site and on-the-site support sessions

• CHRO will provide advisory and Mentor the HR team (both client's and outsorced) on the following areas-

  -Provide strategic direction to the company’s HR function;

  -Course correct the HR systems and strategies appropriate to the firm’s mission and goals;

  -upervise and provide consultancy on strategic HR plans, Recruitment and Compensation & Benefits;

  -Manage the outsourced resource who in turn is involved in the day-to-day HR-operations 

By – Mahesh P.K

Director

Aavishkaar Consulting