The text is 2678 words in total, and the estimated reading time is 7 minutes
After the retirement of Ali founder Jack Ma in September this year, some media asked an interesting question:
What is the successor financial and not HR?
This paragraph pokes at the pain points of many HR practitioners:
Talent and capital are equally important to companies. We have to manage talent like we manage money.
So why does the CFO who manages money get a higher salary and get better development opportunities than the CHO of the person?
Ive Baker, head of Korn Ferry's North American business, said:
"CHRO is generally undervalued, their salary level is usually only 50% to 60% of the CFO's, and CHRO is usually not considered when choosing a CEO successor."
Ram Charan's "Knowing People and Using People" (the first issue of our reading notes focused on dismantling the agile organization in "Knowing People and Employing People", the specific content can be clicked to read "Facebook, Haier, McKinsey are using the organizational form, how good is it?" He pointed out this abnormal phenomenon to the point, and through the investigation and research of many international benchmarking companies, he gave a lot of constructive views on how HR should play a greater value. Through this article, the observer will share the most wonderful dry goods of the master.
Ram Charan defines the number one of human resources as CHRO, observers believe that this definition is not suitable for Chinese enterprises, our title of HR number one is more HRD, HRVP, CPO, etc., in order to avoid confusion, observers are collectively referred to as HR number one.
In recent years, corporate human resources have been shouting for transformation and change, but there are only a few who can achieve results. Ram Charan believes that it is not enough to have ideas, but also to be able to implement methods and continuous action.
It is recommended to start from these aspects:
1. The head of human resources should be excellent enough, and proficiency in business is a must;
2. Split the human resources department and let the limited energy do strategic and high-value things;
3, HR should be close to the business, but also to attract excellent business talents to join the team;
4, the business unit has HRBP is not enough, but also has TVL.
<h1>First, HR is not enough, and the company's reform cannot be discussed</h1>
Whether the company's human resources reform can be successful or not is inseparable from the support of the company's CEO and other core layers, that is, the formation of the G3 team at the top level.
But there is a prerequisite:
The number one in this HR must be good enough!
So what kind of leader can take on the responsibility of transforming the organization and reshaping human resources?
A good example is Tyco's CHRO Larry Cottslow, who was praised by the CEO as "one of the most strategically minded executives."
The reason why Cortslow was able to achieve such a good result was due to several key factors in him:
1. Proficiency in business: This is the primary condition for becoming the leader of leading change.
Alibaba CPO Tong Wenhong once said:
"Human resources don't necessarily have to find an HR professional to take charge of this, but they must find someone who understands your company and business best."
The best way for HR leaders to understand the business is to do business, consciously go deep into the front line to contact and communicate with business personnel, and bravely express their views in business and strategic discussions.
2. Be good at finding internal talents and putting them in suitable positions, while paying attention to external talents, continuously improving the level of core talents, and maintaining competitive advantages;
3. Be good at organizational diagnosis, find problems and correct problems, dare to break the status quo, and promote organizational change;
4. Competent in G3 and know how to work with CFO: have the ability to combine human resources with business operations and corporate strategies, and make decisions on key issues; at the same time, understand financial work and work closely with CFOs;
5. Integrity and bravery, dare to tell the truth, have a big picture view, and do not consider personal interests.
<h1>Second, please dismantle the human resources department</h1>
Many practitioners understand that human resources can play a greater value in the enterprise.
But the embarrassment is that a lot of HR's time and energy is spent
On the trivial work of salary and welfare, policy system.
Ram Charan divides HR work into two categories:
The first is administrative and repetitive work. Such as salary and welfare, employee incentives, employee help, etc.;
The second is strategic and creative work. Such as talent strategy, organizational development, key talent recruitment and training, etc., and this is precisely the work that can create greater value for the enterprise.
The human resources department is divided into two parts, and the division of labor handles two different types of work.
This line of thinking has actually been tried in China.
For example, Huawei proposed in 2018:
"Take out the authority of the specific management of the original human resources department and establish a general cadre department."
On the one hand, for repetitive, low-value work.
Through the use of technologies such as mobile Internet and artificial intelligence, outsourcing, and the establishment of shared service centers (SSCs), these means all point to the same goal: to improve efficiency.
On the other hand, the resources saved will continue to be invested in strategic human resources work.
<h1>Third, why is HR always close to the business? </h1>
Human resources should be close to the business and create value for the business, unfortunately this slogan has been shouted for more than 20 years, and so far very few have really done it.
What is the reason?
First, the existing human resources department has not kept up with the needs of the times.
In the past, many people equated human resources with administrative affairs such as payroll and welfare, and practitioners were engaged in human resources after graduation.
According to a recent survey by Korn Ferry, 41% of CHRO said it was difficult to find HR talent who was proficient in business and data. Improving the operational capabilities of the HR workforce is imperative.
Second, there is another important reason is that those business backbones and strategic talents are unwilling to join human resources, feeling that HR has no future and low salary.
How to solve it?
First, CEOs and HR leaders need to redefine the role of human resources, the most obvious of which is to put hr number one and CFO on an equal footing.
The second is that the number one of human resources breaks through the traditional recruitment ideas and channels.
For example, Láslo Bock, the former chief talent officer of Google, used the "3 1/3" method to build the human resources department, that is, 1/3 of the people were from traditional human resources backgrounds, 1/3 were from strategic consulting firms, and 1/3 were experts in data analysis.
Third, two-way rotation
The one-way rotation system adopted by many companies can now help hr in the class understand the business.
However, the role of this system is actually very limited, and the problems of HR's limited understanding of the business and the reluctance of people with other functions to join human resources remain unresolved.
And two-way rotation is a relatively perfect system:
Allowing potential human resources and business personnel to rotate in both directions to help the business deepen its understanding of the work of organizational talents is also an important means to attract outstanding business talents.
It is not easy to promote the implementation of this system, and it is impossible to rely on the human resources department and its leader alone.
The leader must personally lead and develop the corresponding policies.
For example, to be an HRD, you must have the corresponding business experience, and in the same way, to serve as the leader of the business department, you must have human resources experience.
The US health insurance giant Harmon completed the HR system upgrade through rotation. The company's CHRO Tim Hovar, with the support of the CEO, pushes for a rotation system:
Hr and business backbones are encouraged to take the initiative to ask for rotation, retain the post during the rotation period and give corresponding rewards, and can choose to return to the original department or other departments at the end of the rotation period.
One of them was an HRM named Angela, who went to the Medicare Quality Department and came back to do HRBP after a year of rotation. This rotation experience has taught her a lot.
"After the rotation, I will consider human resources from the perspective of the business leader, and think deeply about which organizational talent initiatives can create the most value for the business;
For human resources-related work, I will not be limited to my own reporting department and performance goals, but will take the initiative to start from the entire human resources system and the overall situation of the company, and think about how to create greater value for business development and the future of the organization. ”
<h1>
Fourth, establish a G3 team of grass-roots business units
</h1>
There is a three-person core group (G3) at the top, and if you want to deepen the change, you can consider landing G3 into the business unit, that is, the unit G3 composed of business, finance, and human resources leaders.
The HR leader in this group can not only be an HRBP, but only provide advice to the business leader, but should be an important driver of key decisions.
The author gave the new character a name—the Talent Value Leader.
What is the main responsibility of this TVL?
1. Lead the relevant policies of organizational talents, and be responsible for organizational performance and talent performance, but many people's decision-making power lies in business leaders;
2, for business transformation, to create an agile organization to consult, today we continue to dismantle and recruit urgently needed talents, targeted organizational design;
3. Absorb outstanding talents from the business team to enrich the HR team.
How effective is the change of a company's human resources, whether the organization is convenient, look at whether there is TVL in your organizational unit.
Next time, we will share with you in depth how Black Rock Group has become the world's largest asset management company through internal talent training and mining. Stay tuned for issue #3, "This Company Creates a Myth in 30 Years, Ramcharan Decrypts it in One Sentence."