Why do only one third of CEOs view HR as a strategic partner?

Is it to do with the fact that HR has become narrow with little or no time spent outside the discipline? Does this functional specialisation lead to a lack of business awareness? Do HR professionals have the ability to link culture and people issues to what makes the business really perform?

Some HR professionals have a fine strategic relationship with your CEO, but most probably don’t. Here are three powerful ways, in my experience as CEO, that can forge the desired relationship and turn it into a powerful partnership:

1.      Understand the Business and the CEO

Do you really understand what drives your business? Do you fully understand the impact of appropriate people role alignment for these drivers? Do you understand the CEO agenda? Do you know the biggest problems the CEO is currently facing? Do you know how your competitors solve the big issues? Do you know clearly the CEO expectations of you?

Achievement of the desired strategic relationship with the CEO will be largely based on impacting what the CEO is measured on and cares about. Walk in her shoes and once you have identified what is important (which will almost certainly include making her look good in front of the board), develop a plan for yourself around CEO influence and inclusion.

2.      Take a business approach

One of the reasons that there are so many strong CEO – CFO relationships is that they both speak the same language – for example, return on investment. HR can talk ROI too, but needs to be outcome focused. For example, instead of ROI on talent management, talk ROI on productivity (as it is impacted by talent management).  HR often claims to be hampered by an inability to measure dispassionately. I don’t buy this argument. All the tools exist and should be introduced (with business cases) as required. Even with an effective HR manager at the Australian Tourist Commission, how I wish our change program had been supported by measuring the performance and behaviour of our people in the context of the new strategy and culture.

Don Argus, Chair of BHP, at a Leadership Dinner in Victoria in December 2009, said, “Success goes to those enterprises whose leaders mobilise their people and unleash their competency, creativity and commitment. One of the things that has surprised me in over 50 years is that these leaders operated by instinct. Why did they go with their gut? Because there was no solid data to make the case to invest in people!”  What an invitation to the HR community in corporate Australia. Work with your CEO’s on the basis that almost every decision requires a business case, and that like the CEO, you need to do it in a quantitative and analytical way. Then the CEO will not need to rely on instinct, and the organisation will have a greater chance of sustainable success.

 3.      Perform and market yourself

Apart from gaining respect by running an effective HR function, you can create a reputation for being a centre of excellence in an organisation. Being the talent launching pad, the ideas centre, or the information source will create credibility within the business, one which can be developed further at CEO level by offering, for example, “heads up” warnings on key issues.

HR professionals generally don’t do a good job of positioning and dare I say it, marketing themselves. If you can deliver on expectations and hopefully exceed them, ensure that your CEO and Executive Team understand the complexity of the function, and that managing and motivating the workforce requires great skill and agility. Also, take the opportunity to build your external brand through professional involvement and exposure. This will add to the reputation of you and the company, boosting your credibility with CEO and Board.

The size of the CEO acceptance challenge will clearly vary. Beliefs are difficult to change but reality is that people are fundamental to success, and reality is a powerful weapon. Your challenge of influencing, with all the tools you can muster, may be done directly or through influential others. Your job is not to shift attitude but to shift behaviour. Take this challenge as a top priority because until you have the trust and support of the CEO, you won’t be fully effective in your job.