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Rethinking Competitive Advantage: New Rules for the Digital Age by Ram Charan is one of those books. Charan has taken years of observation and distilled it into six practical rules to guide you into this digital age. Charan distinguishes digital capability and digital platform. Most traditional companies don’t think big enough.
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.
The directors of Procter & Gamble, for instance, have established an Innovation and Technology committee; the board of specialty-chemical maker Clariant has done the same; and Pfizer has created a Science and Technology committee. Some boards have taken the principle further by forming their own innovation committee.
Some health care businesses use duplicate dyad management structures—one to oversee the clinical enterprise and another to oversee the business and operations that support the clinical enterprise. The dyad model can help break down silos, improve the way clinical and operations leaders work together, and coordinate care.
USC’s John Boudreau, CEO adviser Ram Charan, and consultants at Bain & Company , McKinsey, and Korn Ferry have made similar arguments. These are jobs in R&D, technology, and other areas vital to a firm’s strategic direction, product development, and process efficiency. These overlooked roles are: Essential experts.
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