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In an interview with The HR Digest, Michael Fraccaro, Chief HumanResources Officer at Mastercard, explains the importance of business resource groups and the vital role it plays to deliver real business results. I was at a conference recently and one of the speakers remarked that “Culture hedges against the risk of uncertainty.”
But with the departures of a number of high-level HR leaders in late 2016, head of operations Ryan Graves largely took on the head HR role in addition to his other duties. That is like setting up a finance organization to do exotic risk hedging before putting in place basic reporting and compliance.
In reality, “handoffs” and transitions prove to be significant operational problems. 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.
Burt asked the managers to write down their best ideas about how to improve business operations, and then he asked two executives at the company to rate the quality of these ideas. Joel Podolny, former head of Apple’s humanresources, calls this tendency of our networks to evolve more slowly than our jobs “ network lag.”
First, fixating on ROE fails to maximize the benefit of business to society because it measures value in terms of returns to only one stakeholder; second, it allocates humanresources as if maximizing the efficiency of financial capital were critical to growth of social welfare.
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