The Chief HR Officer: Redefining the Role of Global HR Leaders

The Chief HR Officer: Redefining the Role of Global HR Leaders

Libby Sartain, Author & ConsultantLaurie Siegel, SVP, Human Resources and Internal Communications, Tyco; Mark Stewart, Ph.D., Consultant, AVEAS

Publishing – Chief HR Officer Book

• Written by thought leaders – CHROs, consultants, and academics

• Each writing from their passion/interest• Organized around the seven roles

Evolution of the Role

• 1980’s – HR Goes Strategic• 1990’s – HR at the Table• 2000’s – Failings Forward• 2010’s – In the Pressure Cooker

Chief Human Resource

Officer Role

CEO Pressure

Board Pressure

Regulatory Pressure

Competitive Pressure

Executive SuccessionGovernance/RiskExecutive Pay

Talent/LeadershipELT DynamicsCEO Pay

Sarbanes-OxleyRisk ManagementPublic Policy

War for TalentCost CompetitivenessInnovationGlobalization

HR

Func

tion

Pres

sure

Increasing DemandsDecreasing ResourcesTalent Gaps

Figure 1: Pressures on the CHRO

Today’s Roles

• Strategic Advisor• Talent Strategist/Architect• Counselor/Confidante/Coach• Liaison to the Board• Leader of the Function• Workforce Sensor• External Representative

Research DesignConducted four surveys (2009, 2010, 2011 & 2012) of CHROs at Fortune’s largest U.S. companies

2009 survey focused on CHROs at Fortune 150 companies• 148 invitations• Total N = 56 resulting in a 39% response rate

2010 survey focused on CHROs at Fortune 200 companies• 191 invitations• Total N = 75 resulting in a 39% response rate

2011 survey focused on CHROs at Fortune 500 companies• 409 invitations• Total N = 172, resulting in a 42% response rate

2012 survey focused on CHROs at Fortune 500 companies• 349 invitations • Total N = 143, resulting in a 41% response rate

The 2012 Cornell/CAHRS Chief HR Officer Survey

• 349 Surveys sent out• 143 completed (41 percent response

rate)• 82 Men; 61 Women

2012 Thought Leaders Retreat

Strategic Advisor

Activities focused on the formulation and implementation of the firm’s strategy

Counselor/ Confidante/

Coach

Counseling, coaching, resolving interpersonal or political conflicts among executive team members

Liaison to the Board

Preparation for board meetings, phone calls with board members, attendanceat board meetings

Talent Architect

Building & identifying the human capital critical to the firm

Leader of the HR Function

Working with HR team members regarding the development, design & delivery of HR services

Workforce Sensor

Identifying workforce engagement/morale issues or concerns and building employee engagement

Representative of the Firm

Activities with external stakeholders, such as lobbying, speaking to outside groups, etc.


Outside Consultants

Customers

Larger Workforce

Group HPs

Individual HPs

HR Individuals

HR Team

Board Members

Executive Team

Individual Executives

CEO Individually

0 2 4 6 8 10 12 14 16 18 20

3

2

5

3

4

16

11

6

10

15

15

3

2

6

3

5

18

11

5

10

13

14

3

1.6

5

3

5

18

11

5

10

14

14

Over the course of an average fiscal quarter, what percent of your time do you spend with the following individuals/groups?

201120102009

Talent Architect and Strategic Advisor

• Strategic Advisor role consists of all those activities that focus on attempting to influence the strategy of the firm. These activities could be providing human capital information regarding potential business performance issues (e.g., increasing turnover among high potentials), playing devil’s advocate regarding strategies being discussed, or simply providing credible business-based opinions regarding the feasibility or effectiveness of proposed strategic decisions.

• Talent Architect focuses primarily on ensuring that the right people are in the right positions at the highest levels of the firm. As opposed to the strategic advisor where the focus is on the nature of the business strategies themselves and the broad organization capability necessary to implement them, the talent architect role aims at ensuring that the right leadership is in place to execute the strategy or initiative. It requires frequent communication and relationship building with the top leaders and intuitive eye for assessing their talent.

Counselor/Confidante/Coach

• Counselor/Confidante/Coach role is a multifaceted one that entails dealing with all of the conflicts and challenges that happen when a group of highly ambitious people must work interdependently with one another as in an executive team. It sometimes entails having one-on-one coaching sessions, having individual conversations with executives to surface their issues and concerns, and sometimes being a go-between among feuding executives.

Leader of the HR Function

• The Leader of the HR Function role entails ensuring that all the major HR systems, policies, and programs are run efficiently, effectively, and in alignment with the strategic needs of the business. Most leaders execute the major aspects of this role by appointing and managing their direct reports who have responsibility over the major functional areas such as compensation, leadership development, and training.


Firm Representative

Workforce Sensor

HR Function Leader

Talent Architect

Board Liason

Counselor/Confidante/Coach

Strategic Advisor

0 2 4 6 8 10 12 14 16 18 20 22 24

5

8

22

17

10

17

22

4

7

24

19

10

16

18

6

8

23

17

12

15

17

Over the course of an average fiscal year, what percent of your time would you say you spend in each of the following roles?

2012201120102009

Measures

Time Spent in Roles

• How much time spent in each of the seven roles, over course of avg. fiscal qtr.

Sex

• Whether male or female

Tenure

• Time spent in the CHRO role

Size

• Size of organization based on its Fortune ranking

Focal Variables Control Variables

Demographics

Results% Time Spent in Roles

% of Time Male 2009

Female 2009

Male 2010

Female 2010

Strategic Advisor 24.1% 17.11% 19.2% 14.2%

Counselor/Coach/ Confidante

19.0% 14.8% 18.4% 15.1%

Board Liaison 9.4% 10.7% 10.87% 11.4%

Talent Strategist/Architect

15.9% 17.7% 16.67% 21.35%

HR Leader 20.4% 24.9% 24.09% 23.50%

Workforce Sensor 6.3% 10.1% 5.73% 7.77%

Firm Representative 4.6% 4.9% 4.51% 5.77%

Variable Strategic Advisor

Counselor / Confidante/Coach

Board Liaison

Talent Architect

Leader of HR Function

Workforce Sensor

Firm Repre-sentative

Sex -.33* -.26+ -.05 .14 .31* .37* .06

R2 .13* .08 .08 .02 .15* .13* .04

∆R2 .11* .07+ .00 .01 .10* .13* .00

Regression Results CHRO Roles Predicted by Sex in 2009 & 2010

Variable Strategic Advisor

Counselor / Confidante/Coach

Board Liaison

Talent Architect

Leader of HR Function

Workforce Sensor

Firm Repre-sentative

Sex -.28* -.17 .01 .30* -.02 .21+ .15

R2 .14* .04 .03 .11* .03 .11+ .05

∆R2 .07* .03 .00 .09* .00 .05+ .02

2009

2010

Summary: Consistent and Divergent Results

Strategic Advisor

Males2009 & 2010

Workforce Sensor

Females2009 & 2010

Agentic Style

Communal Style

CONSISTENTRESULTS

Talent Architect

DIVERGENTRESULTS

Counselor / Confidante /

Coach

Communal Style

Liaison to the Board of Directors

• Liaison to the Board role deals with all the activities in which the CHRO must interact directly or indirectly with the Board of Directors such as preparation for the meeting, phone calls with board members, discussions with the board regarding executive pay, etc.


Risk Management

Other

Ethics/Governance

Executive Performance

Executive Succession

CEO Performance

CEO Succession

Executive Pay

0 5 10 15 20 25 30 35 40 45 50 55

0

4

8

6

14

5

14

49

3

4

6

4

14

4

15

51

4

5

6

4

14

4

13

50

3

5

5

5

15

4

15

48

Of the time you spend working with the Board of Directors, how much time is spent on:

2012201120102009


Member Publicly-held company BOD

Member Advisory Board Publicly-held company

Member Professional Society BOD

Member Non-Profit/Professional BOD

Trustee of University

Member Non-Profit Advisory BOD

0 10 20 30 40 50 60 70 80 90 100

9

5

43

54

18

53

10

4

44

59

13

44

23

8

81

100

26

79

Which of the following roles do you play on any other Boards of Directors?

201220112010

Title



TotalMale Female

Member Publicly-held company BOD

Count 9 6 15% of Total 6.9% 4.6% 11.5%

Member Advisory Board Publicly-held

Count 5 0 5% of Total 3.8% 0.0% 3.8%

Member Professional Society (SHRM)

Count 48 23 71% of Total 36.9% 17.7% 54.6%

Member Non-profit non-professional BOD (United Way; Art

Museum w legal fiduciary)

Count53 37 90

% of Total 40.8% 28.5% 69.2%

Trustee of University(with fiduciary responsibility)

Count 7 14 21% of Total 5.4% 10.8% 16.2%

Member Non-Profit Advisory BOD(No legal fiduciary responsibility)

Count 41 26 67% of Total 31.5% 20.0% 51.5%

Total

Count 80 50 130% of Total 61.5% 38.5%

100.0%


I'm unhappy with the ELT's level of commitment to the larger organization's success

ELT members' differing opinions often result in unhealthy conflict

There is often emotional conflict among ELT members

ELT members disagree about important goals

Our ELT often socializes together

There are a number of personality conflicts evident among ELT members

The ELT would like to spend time together outside of work hours

ELT members often disagree about opinions regarding strategy

The ELT engages in a lot of morale building

The ELT is very committed to one another

The ELT members put the team's interests above their own individual interests

The ELT engages in very open communication

The ELT members are very cooperative with one another

The ELT members are very helpful to one another

Our ELT is united in trying to reach its goals for performance

1 2 3 4 5

1.9

2

2.2

2.2

2.4

2.4

2.6

2.7

2.8

3.5

3.5

3.7

3.8

3.8

4.1

To what extent would you agree with each of the following as descriptions of your ELT?

I'm unhappy with the ELT's level of commitment to the larger organization's success

ELT members' differing opinions often result in unhealthy conflict

There is often emotional conflict among ELT members

ELT members disagree about important goals

Our ELT often socializes together

There are a number of personality conflicts evident among ELT members

The ELT would like to spend time together outside of work hours

ELT members often disagree about opinions regarding strategy

The ELT engages in a lot of morale building

The ELT is very committed to one another

The ELT members put the team's interests above their own individual interests

The ELT engages in very open communication

The ELT members are very cooperative with one another

The ELT members are very helpful to one another

Our ELT is united in trying to reach its goals for performance

1 2 3 4 5

To what extent would you agree with each of the following as descriptions of your ELT?

Performance

Collaboration/Teamwork

Relationships

Cooperation/Collaboration/Teamwork

Aligned w/Strategy/Common Goals

Enterprise First Perspective

Candor/Dialogue/Discussion

Performance/Goal Attainment Focus

Passive/Aggressive/Immaturity

Lateral Communication Siloes

ELT Strengths and Weaknesses: In the CHRO’s Words

Stre

ngth

s

Wea

knes

ses

*

*

CHROs on the Executive Team

• Some passive aggressive behavior. Would prefer to see more healthy conflict and the ELT to voice their true opinions/objections so we could deal with them head on.

• The ELT does not work as a team, more as individuals • This team is new and has too many private agendas. I am

concerned that there is an unwillingness to try to work as a team.• Immaturity expressed via poor peer relationships, avoidance and

passive aggressive behavior when disagreements arise.• Passive in their interactions. Do not openly challenge each other

to drive to better decisions. Operate autonomously - we're a collection of high performing individuals but that doesn't translate into a high performing team.

• Sometimes we are trying to be so supportive of each other, we shy away from raising more sensitive issues that we really need to raise or confront. That can then take a bit longer for them to be surfaced and, in turn, resolved. Luckily there aren't many of these ...

CHRO Work on the Team• We're taking baby steps. I've worked with the CEO to articulate a clear

set of organizational goals and priorities, to engage the team in their development, to manage time with the team in a way that engages them in group discussion on progress vs. the goals. I've orchestrated a "come to Jesus" meeting of the team -- in which they provided their input on the effectiveness of the team, and together formed a plan for what their top shared priorities were and how they were going to work towards them. We are making progress, but it is very, very slow.

• Shuttle diplomacy, though inefficient, is quite effective. Pointing out conflict, and working to surface/reduce/remove it. And ultimately, agitating for/changing out ELT members who are not up to the standards of the firm.

• Set the ELT agenda for regular meetings and offsite team sessions. Drive action register focus. Encourage sharing and getting the right people involved in initiatives. Provide ongoing, real time feedback to each ELT member as needed.

• Worked very closely with the CEO on defining and communicating operating expectations for the ELT; engaged Gallup to identify strengths and development needs of ELT and facilitated discussions with team; actively coach and offer feedback to ELT on behavior and performance; structure regular (quarterly dialogue) with ELT on effectiveness.

• Coach individuals. Conduct interventions and run team sessions.

CHRO Gender

Male Female Total**ELT Scale Score Average 3.6 3.4 3.5

**ELT Collaborate Teamwork 3.8 3.5 3.7

**ELT1communication 3.9 3.5 3.7**ELT3cooperate 4.0 3.6 3.8

**ELT4helpful 3.9 3.6 3.8ELT5committed 3.7 3.4 3.5

**ELT6teamInterest 3.7 3.2 3.5*ELT8 Happy w/Commitment

to Enterprise 4.2 3.9 4.1

**ELT11 No Personality Conflicts 3.8 3.3 3.5

*ELT12 Rarely Emotional Conflict 3.9 3.6 3.8

**ELT15 Differing Opinions = Unhealthy Conflict 4.2 3.8 4.0

ELT2 Engage Morale Building 2.8 2.7 2.8ELT10 Team socializes

together 2.4 2.5 2.5

ELT13 Frequent disagreement about Strategy 3.3 3.2 3.3

Ignores others' input if it conflicts with his/her instincts

Encourages ELT members to be involved in community service/volunteer activities outside work

Seems to care more about others' success than his/her own

Emphasizes the importance of giving back to the community

Puts others' best interests ahead of his/her own

Is sensitive to ELT members' responsibilities outside the work place

His/her decisions are influenced by ELT members' input

Has the best interests of employees in mind

Defines success not just by results but also the way that they are obtained

Listens to what ELT members have to say

Disciplines ELT members who violate ethical standards

Does what she or he promises to do

Holds ELT members to high ethical standards

1 2 3 4 5

2.82.8

3.23.33.43.53.53.63.63.73.73.8

4.14.14.24.24.24.24.34.34.34.44.4

4.64.6

Indicate your agreement with regard to how well each of the following describes your CEO's leadership style

Ignores others' input if it conflicts with his/her instinctsMakes quick/impulsive decisions

Encourages ELT members to be involved in community service/volunteer activities outside work Makes the personal development of ELT members a prioritySeems to care more about others' success than his/her own

Works hard at finding ways to help others be the best they can beEmphasizes the importance of giving back to the community

Creates a sense of community among ELT membersPuts others' best interests ahead of his/her own

Spends the time to form quality relationships with ELT membersIs sensitive to ELT members' responsibilities outside the work place

Tries to reach consensus among ELT members on important decisionsHis/her decisions are influenced by ELT members' input

Makes me feel like I work with him/her, not for him/herHas the best interests of employees in mind

Makes fair and balanced decisions Defines success not just by results but also the way that they are obtained

Is always honest with those around him/herListens to what ELT members have to say

Discusses business ethics or values with ELT membersDisciplines ELT members who violate ethical standards

When making decisions, asks "what is the right thing to do?"Does what she or he promises to do

Sets an example of how to do things the right way in terms of ethicsHolds ELT members to high ethical standards

1 2 3 4 5

Indicate your agreement with regard to how well each of the following describes your CEO's leadership style

Decisions

Altruism

Ethics

Encourages Discussion and Listens

Drives Results/Accountability

Leads Strategy and Vision

Builds Team

Lives Values/Honesty/Integrity

Confronts/Manages Conflict

CEO’s Leadership Strengths and Weaknesses: In The CHRO’s WordsSt

reng

ths

Wea

knes

ses

**

*

Values Employees/Cares

Develops/Coaches/Gives Feedback

***

*

CHROs on the CEO’s Leadership• Need to move quicker on key decisions • Holding everyone accountable and willing to take action - slow

to address issues • At times avoids confronting bad behavior in a key, hi po

executive. • Conflict averse and lacks decisiveness; assumes he is always

right; poor listener • His strength (relating well to people at all levels of the

organization,) occasionally results in his direct report feeling that he goes around them.

• Soft in terms of tough decisions needed around people • Would rather avoid confrontation or delivering a difficult

message to a direct report. Does not "suffer fools lightly" and it can be obvious.

• Putting others first. Prioritizes shareholders and investors, which is positive, but his team and the broader employee base need to be considered more

• He is an extreme conflict avoider • Needs to be quicker on senior team transition; not all leaders

are equipped to handle current business; needs to address individual performance issues

• At times can be argumentative if you don't see his perspective

CHRO Work with the CEO• I provide candid, regular and on-going coaching and

feedback. I tell the truth (about organizational issues, people, etc.) as I see it, since I am one of the few people he will always be able to count on to do so.

• Act as his confidante. Meet each morning to review issues and act as a sounding board. Have the "Dutch uncle" talks when necessary. Keep him abreast of any issues that may be developing within the staff. Stand between him and teams members when necessary to calm things down. Push personnel changes or corrective actions when he is reluctant to make the moves he knows are correct

• He is absolutely revered and respected by the rank and file. As a result people often shield him from bad news. My role has been to keep him grounded, ensure that he is hearing the good the bad the ugly and encouraging him to opening ask the right questions as he visits the facilities.

• I tell him things that others are not willing to - because I have no skin in the game in terms of CEO succession.

CHRO Work with CEO (cont’d)

• - It's painful, but I am often the only one that can hold the mirror up to him and give him some sense of the impact his personal leadership style has. - I try to constantly remind him of how global we are becoming and help coach him to make sure his "talk track" in the organization match that. - And I listen. Given all the economic pressures, I often just let him vent to me - on how hard his job is, how difficult the board can be, what a complicated team we are to manage, why no one can see what he sees, etc., etc. Lately, I think he just needs a space to vent.

• Candid conversations. • Help him understand and clarify what he wants, and why he

wants it. Help him understand the needs and behavior of team members. Help him prioritize desired outcomes. Help him communicate in a way that maximizes desired outcomes/ minimize unnecessary conflict or confusion. Provide confidential sounding board. Share ideas of how others have handled similar challenges.

Filling the C-Suite - US

Position Outside Hire Internal Promotion

CEO 29 64

CFO 34 54

CHRO 54 36

Internal promotion w/function

Internal promotion outside

External Hire

External Intend Hire

0 10 20 30 40 50 60 70 80

25

14

50

11

72

0

28

0

39

8

53

0

Path to C Suite International Sample

CFOCEOCHRO

The Four “Knows” of the CHRO

• Know the Business• Know How to Lead• Know People• Know Yourself

What’s New and Interesting?

• The world is becoming more complex, requiring more complexity in response.

• As Talent becomes more critical, the CHRO becomes more important.

• The CHRO role increases in importance

• CHRO and Board Role


Documents

The Chief HR Officer: Redefining the Role of Global HR Leaders