TrendWatcher 498

For HR professionals who suspect that the never-ending quest for the proverbial "seat at the table" is an unattainable objective, there are a growing number of examples of HR executives who have not only gained entry to the inner circle but have leveraged positions of significant influence within their organizations with great success.

Such wins give those still wrestling with the challenge hope, but they also make us wonder how much of the ability to achieve this goal is about factors such as the culture of the organization or the talent and charisma of the individual HR executive. Is it about a specific process or formula or does luck play a role? Could it sometimes simply come down to having the right credentials and being in the right place at the right time?

It's all of that and more, says Mike McDaniel, senior vice president of HR at i4cp-member company Alliance One International, Inc., a Fortune 1,000 company. He states that, first and foremost, learning the business is a critical imperative. Being an HR expert might get you in the door of the board room but, to get a seat at the table, you must have an intimate understanding of what's driving the business.

McDaniel's edict about knowing the business is supported by the results of i4cp's recent HR Executive Insight Survey, which looked at the degree to which HR execs are key decision makers. The respondents to this study tended to be a select group comprised of senior HR executives: 87% of the respondents were VPs, SVPs, or senior executive leaders working in the HR function.

Fully 83% of respondents from companies where HR execs play key roles said they highly or very highly agree that they gain credibility with other senior leaders through deep knowledge of their organizations' financial and other non-HR business issues. By contrast, a mere 33% of respondents from organizations where the role of HR execs is not key say they gain credibility via their business expertise to that same extent.

But business knowledge alone isn't enough to win a seat at the table. HR execs had better be very good at what they do. Fully 100% of respondents from high-market performing organizations report that, to a high or very high extent, they gain respect by performing well in their areas of expertise. Such excellent performance leads to trust and strategic business relationships.

The need to be a trusted expert in human capital issues is highlighted by David Kaput, senior vice president of HR at office supply manufacturer ACCO Brand. He says that in order to become strategically effective, HR executives need to aim for the role of trusted advisor rather than a front-and-center spotlight position. "The power base is more subtle," says Kaput, who recommends investing a year or two in building relationships and gaining credibility behind the scenes.

And HR executives must be equipped with facts and data to back them, Kaput says. This way, incremental value can be established beginning with how HR can help the manager succeed and extend the proof of effectiveness up the chain. If you can consistently prove that the investment is worthwhile, the perception of the importance of the work HR does won't need to be argued.

Kurt Thomas, VP of Human Resources at Mortgage Guaranty Insurance Corporation, says that HR executives must have the ability to manage the sometimes precarious juggling act of effectively advising the C-suite and getting a firm grasp on compliance issues, while also being able to hire the right people and maintain a healthy culture. "The most acute pressures on business today involve HR - HR is in the center of all of it, so HR executives have to have a firm understanding of their role, know the business, and have credibility with the CEO as well as the rest of the organization including senior management and the board. You have to have those pieces to get to this level - and sometimes it's a matter of timing - it has to be the right fit all the way around."

The executives we interviewed agreed that it's not necessary that the head of HR come from outside the HR profession to be perceived as credible among other senior leaders in the organization, and our study showed the same thing. Out of all the factors used to gain credibility with senior managers, having a head of HR who comes from outside the HR profession was ranked last.

Thomas says that while expertise and knowledge are important, the comfort level between the CEO and the head of HR is as important. "First, you have to have exceptional knowledge of this craft that is human resources. Second, you have to have very solid professional or executive presence - by this, I mean you must be able to state your case and articulate your opinion and recommendations in no uncertain terms. You have to have the wherewithal to speak your mind. If you can do those two things - and they go together - you'll be successful."

i4cp's 4-Part Recommendation:

1. Build credibility by doing your homework. Make use of existing data to prove the value of HR in almost every activity and to help you present whatever case you're arguing. For example, McDaniel successfully argued that a new change management process needed to be developed before he would accept a new position as head of HR while Alliance One was going through a merger. He leveraged research that showed that mergers fail because of the "people problems" that result from poorly implemented change management processes.
2. Over prepare. If you plan to cover an issue with the CEO, senior management, and/or the board, amass a battery of information to have on hand to help make your case and support your recommendation. Try to anticipate every question that might come up. Don't look to the CEO to make a decision for you; present her/him with recommendations based on logic and backed by facts.
3. Tell your story and develop relationships - beyond using metrics to track performance, become expert in demonstrating how HR's efforts add value to the organization, who has benefitted and how. And ask questions when you need to. Questions can help clarify where there may be confusion in other parts of the organization.
4. Look at developing more systematic ways of providing cross-functional education to ensure that the HR staff gains fluency in the business; for example, send HR employees out on sales calls and be creative in facilitating opportunities for collaborative interaction with other departments.

Comments