The Great HR Paradox: A Thought Bullet for CEO’s everywhere
“Never before has ‘HR’ (Human Resources) been so redundant within the corporation; yet paradoxically, never before has it been more critical.” In this article, Keith Coats offers a viewpoint on how companies can make the transition to the connection economy and arrive in tomorrow’s world with the requisite skills to not only survive but succeed and lead in the business world today.
Never before has ‘HR’ (Human Resources) been so redundant within the corporation; yet paradoxically, never before has it been more critical.
This is the opinion of TomorrowToday.biz director of storytelling, Keith Coats. TomorrowToday.biz is a group of consultants that help organisations make the transition to the connection economy, which largely involves people development. Coats offers a viewpoint on how companies can arrive in tomorrow’s world with all the requisite skills to not only survive but succeed and lead in the new economy.
Corporate Silos
“Traditionally the HR function has been compartmentalised within the corporate structure creating a silo effect. This has been consistent with the mindset and business model that saw fit to compartmentalise the entire business, from marketing to sales, and finance. This due to the theory that the business was best seen as a machine made up of various components. It made analysis and measurement possible and in an economy where it was all about efficiency, it made sense to dichotomise in this manner. Or so it seemed.
If a basic definition of management is, ‘getting work done through others’ then in this context the emphasis underscored the ‘work’ rather than the ‘others’. In fact the ‘others’ were at times viewed by management as a frustration to be tolerated in ensuring that work gets done. The prevailing attitude was one that any failure to perform meant that, as with a malfunctioning cog in a machine, you would simply be replaced and business would continue as normal.
However, the world in which we live and work has changed. A mechanistic view of the universe and workplace is as outdated as is the belief that the world is flat. This worldview, along with its accompanying methodologies is simply no longer effective or relevant in a quantum, connected, networked world that is made ever smaller through technological advancement.
Corporate Alchemists
The true corporate alchemists of today are those familiar with frameworks and practices that centre on people and people development. The attraction, retention and leadership of talent (or today’s “Bright Young Things’) is the new challenge facing the corporate world. And so, taking our same definition of ‘management’ the emphasis has now shifted from the ‘work’ to the ‘others’. Of course the work is still important – the bottom line cannot be disregarded. But it is no longer merely about the bottom line. Not if a company is to achieve sustainable success over the long haul. But often the things that really matter, are sacrificed on the alter of short-term expediency and profitability.
The Agenda
It is at this critical juncture (where people connect) that HR should be found with bold insights, creative ploys and clear messages and most importantly, empowered to do what is required. Jeff Immelt of GE was quoted in the Harvard Business Review (Aug 2003) as saying that, “HR at GE is not an agenda item; it is the agenda”.
All too often in my experience I have encountered demoralised HR personal who have sold their souls to the corporate mechanistic way. Weary of dissent they fallen in line, colour by numbers and learnt to play the game according to the corporate rules. In so doing, HR has lost the privilege of being the company’s conscience, the voice that sounds the alarm and sees the dangers of the rocks that lie in wait. Their companies continue to give mere lip service to the cliché of the people being the most important asset and while making all the right noises, one only has to chat to any of the ‘people’ to detect how rotten things really are: to everyone but the speechmakers, it all seems so obvious.
By marginalising HR we can dismiss it. Repeated consistently over a protracted period has resulted in two discernable outcomes.
Firstly, leadership can abstain from involvement in the people side of the business and absolve itself when things go wrong. Talk to these types of corporate leaders about people issues and they grow increasing uncomfortable. This is the “soft stuff” they have ignored for much of their careers and the corridor to locate their ‘people people’ will be quickly pointed out as soon as one touches on such topics. “Talk to them about all this” is the common response.
Fred Hassen, Chairman and CEO of Schering-Plough was quoted in the same issue of the Harvard Business Review as saying that, “The CEO has to see himself as the chief developer of talent, no matter how large the company.” Jack Welsh, former CEO of GE, believed that it was necessary for him to spend at least 40% of his time with GE people. Recently I have been involved in facilitating a strategic thinking exercise with an already successful Cape Town based hotel group. Stated clearly in their unfolding plans is significant time for the senior management team to be involved in their training academy. Simply put: a people focus has to start at the top or it doesn’t really exist. Warren Buffet has said that when the tide goes out, you find out who has been swimming naked. It is when the tide turns that a company needs staff who are committed, loyal and who have an ownership mentality. Waiting till low tide before attempting to cultivate such characteristics within the corporate culture is to be caught naked.
Culture is a Consequence
Culture within a company is a consequence, the result of the way the business is run. It comes from the top and when you have a CEO who doesn’t see HR as their responsibility, it shows. No amount of effort from HR can change that reality – not with any permanence anyway. In a world where talent is the most critical resource leaders have to get involved in the processes designed to attract, select, retain and nurture talent. Savvy leaders are those who are good with people and are constantly seeking ways to make their people successful and not get in the way of that process. “When I hear corporate leaders refer to values and culture as ‘soft’ issues,” says Randall Tobias, former CEO of the pharmaceutical giant Eli Lilly, “I wonder what they regard as being ‘hard.’” (Karaoke Capitalism p263).
Secondly, a marginalised HR concerns him or herself with systems and procedures that generate a flurry of activity, keep people busy, look good on paper and yet achieve nothing. Well nothing that an authentic conversation over a decent cup of coffee wouldn’t achieve. And here is the sad part of it all: all these systems and measurement tools have produced a generation of managers who have lost the art of meaningful conversation as a means to develop their people.
The development tools that are employed have only served to sever the relational artery that gives life and procures growth. “Doesn’t anyone else see the irony of this?” I find myself repeatedly asking when confronted by a dazzling array of performance appraisals and developmental systems that haven’t achieved anything close to the intended purpose.
In such an environment HR has lost its way. Who is to blame? Does it really matter? Perhaps that’s the wrong question to be asking. What is to be done? Now this is a far better question to be asking. This inquiry, pursued in an environment that is striving to see itself as a whole system, will without doubt lead to a different understanding on the nature, role and activity of HR. It is the leader’s question to be asking. Anything less and I am prepared to bet that nothing will come of it.
So when last did you consider this question? How much of your day is spent with your most important asset…your people? When last did you deliberately get involved in training, mentoring and passing on your experience to those you are responsible for developing?
These are good questions but if you follow the corridor you will see a sign that says HR…
For further information visit www.tomorrowtoday.biz or contact Keith Coats on 083 262 5015.
Keith Coats is a director of TomorrowToday.biz, a dynamic organisation that helps companies identify the mega trends that will impact the people connected to their business – employees, customers and partners. Keith is a recognised expert on leadership development and a gifted facilitator, executive coach and futurist.
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Too many companies suffer from Hierarchical Syndrome. Top don’t speak to bottom, top more important than bottom. Untill we realise that even the cleaning person making tea in the morning is as important to understanding and practising the vision & mission of the company as the CEO, we will keep on having to look for new staff when they do not conform to what is expected of the company. We however have to ask the question was the necessary time spent with the individual and do they feel part of the vision & mission of the company.
I’ve recently taken up a Learning and Development role at a Business Advisory practice, and am discovering that the HR/L&D focus is currently driven by the realization “bugger staff turnover is high because they’re unhappy, lets get training together to keep them on board!”. While this has provided significant energy and drive in fast tracking the development of a training prog and allocating the necessary resources, it reflects a lack of strategic thinking around initiatives that will anticipate potential challenges and actioning the required initiatives to avert turmoil e.g. high staff turnover and dissatisifaction. It’s becoming increasingly evident that HR should be utilised proactively and with a broader understanding of it’s value rather than a reactive, “quick lets plug the hole” tool.