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The following functional areas exist within XYZ Widget: Finance, HR/Admin, Sales, Customer Service, Planning & Procurement, Materials Management, Manufacturing, and Quality Control. The Leadership Pipeline: How to Build the Leadership-Powered Company , Authors: Ram Charan, Stephen Drotter, James Noel; Publisher: Jossey-Bass, 2001.
I believe that Charan’s perspective reflects an increasing emphasis among business leaders on the organizational capabilities required to win. Charan’s latest column actually affirms the value of HR to sustained competitiveness. Charan noted a few of these folks in his column. More is now expected of HR professionals.
In the July/August issue of HBR , Ram Charan argues that the Chief Human Resources Officer (CHRO) role should be eliminated, with HR responsibilities funneled in two separate directions — administration , led by traditional HR-types, reporting to the CFO; and talent strategy , led by high-potential line managers, reporting to the corner office.
Human-capital issues are top-of-mind for CEOs around the world — but their regard for the HR function remains perilously low: In a PwC study , only 34% said that HR is well prepared to capitalize on transformational trends (compared with 56% for finance). Sadly, chief executives aren’t the only ones with this negative perception.
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