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As Pete Ramstad and I note in Beyond HR , leaders often have far better developed frameworks for the value proposition of the finance function than for HR. Uber apparently lacked oversight about sexual harassment behavior; it seems far less likely that such oversight would be lacking when it comes to finance.
They’re analogous to autonomous resources, as opposed to humanresources, departments. Their results should humble those who privilege human agency. Human leadership defers to demonstrable algorithmic power. That said, a culture of cocreation and collaboration becomes the only way to succeed.
Examples of this phenomenon have emerged already: The world’s largest hedge fund is developing a capability for an algorithm to make hiring and firing decisions. Successfully implementing such a capability could dramatically affect headcount in humanresources functions, but also in other functions, such as sales.
DuPont sent Donaldson Brown, a promising engineer-turned-finance staffer, to Detroit to sort things out, and sort them out he did. (GM represented an important channel for Dupont's lacquer, artificial leather, and other products, and Pierre du Pont was on GM's Board.) So it's time to address our measurement system seriously at the firm level.
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