Who would have thought it? HRDs and CTOs have found a new authority around the board table as they may hold the keys to success.
Life is full of marvellous contradictions between eras. There is little doubt that the last decade was dominated by CFOs supported by operators. Companies became dominated by models which proved to be successful in navigating the waters of that time. Few would like round the board table and suggest that either HR or their Digital Tech leads (CTOs) should be within the inner circle. In fact, both were often patronised.
How the world changes as one can make a strong argument today that both the HRD and the CTO are equally important to a CEO than their CFO or OD. Whoever would have thought that an alliance between HR and Technology could be one of the most important around the board table? That is the growing reality.
Talent today is inspired by digital empowerment which has allowed them to imagine a borderless community which is global, inclusive and has strong purpose. Many companies are struggling to share the same vision and as a result, many emerging talents are asking why leadership teams and bodies have not been in advanced in the way that they are thinking, especially given a relative period where there has been time to think. They are rightly asking questions of leaders. The main difference is that they are no protesting or making a noise; they are simply disengaging and looking for what does inspire them. It is becoming increasingly apparent that they possess strong value sets, and have a real desire for purpose in their lives. Despite many saying that they live for the moment, they do plan for the long-term and want to have stability with one employer. The piece which is too often missed is that it is the employer who loses the talent, not the talent simply leaving. It is important for all companies to rethink, to reimagine and to understand how they do recruit and retain their talent.
It is no secret that work patterns are naturally changing and companies are having to rethink, to reimagine, how they retain their best talent and recruit for the future. Every company has felt the pain of resignations and loss of good people. There has been almost a feeling of powerlessness as companies have lost the ability to dictate terms.
It is becoming increasingly apparent that to retain and to recruit the best talent, companies will need more data, more information and more understanding about what does drive emerging generations than most possess today; and it needs to be in the minds of leadership teams as much as it lies with HR.
There has long been a debate as to why HRD’s rarely ever become CEOs? In fact there has been many reports which have analysed the frictions between HR and CEOs. HRD’s are rarely groomed for business leadership as others are such as CFO’s and Operational Directors. Interestingly, both of these groups have faced major criticism as to whether they have been open minded and been able to adapt to a changing landscape? Many have felt that too many have stayed loyal to a fixed model crying out for change.
The same is probably argued in relation to CTO’s but their work is driving more change than most operators are able to achieve. They see a picture which few others are able to see.
However, there is now a need for a stronger alliance with HR and technology as these two are right in the centre of the action. Technology is central to the changes taking place; it has enabled the commuter to say no to commuting anyone: and people will become a premium asset once again. The whole picture may well change. A company’s purpose, culture and people have once again become major agenda items for boards. Whether a company’s digital abilities are strong enough will sit right alongside. Their effectiveness will play a central role in success or failure.