Published on
January 27, 2023
As a former CFO, I know firsthand the importance of having a strong right-hand person by your side. In my experience, the CFO often has a 360-degree view of the company, with a deep understanding of strategy, financial position, and board dynamics. However, I believe that the role of Human Resources (HR) is just as crucial in supporting the success of a company's CEO.
When I first began my career in the tech industry, HR was not considered a strategic function. In fact, in my first three CFO roles, HR reported to me. Thankfully, the industry has come to recognize that HR is truly strategic and can and should be the right-hand of the CEO.
At its core, every issue and opportunity in a company ultimately comes back to people. Despite the advancements in technology, AI, and automation, it is still all about people. Whether it's hiring, retention, engagement, culture, or identifying high-potential team members, we are always thinking about people.
I have worked with many HR leaders over the years, but unfortunately, I can only name two that I consider to be truly strategic and acting as trusted right-hand advisors to their CEOs. This is a discouraging statistic, and it highlights the importance of having a strong HR function in your company.
A truly strategic HR leader can deliver significant benefits to your company. They can build a "candidate-producing machine," filling your funnel with great candidates and a warm bench for replacements. They can also be a trusted advisor to your entire leadership team, helping them develop the right programs to retain and engage your people. Additionally, they can develop programs to systematically grow and develop your people, especially your high-potential team members.
In a high-growth company, the challenge for people (at all levels) is to grow as fast (or faster) than the company. Rather than relying on hope that your staff will rise to the challenge or replacing those that don't, what if HR developed programs to go beyond hope and systematically grow your people? Few companies do this well.
In conclusion, getting people right is a prerequisite to getting product and distribution right. Make your HR function as strategic, important, and impactful as product and distribution in your company and watch the magic happen. Consider the following questions to evaluate the effectiveness of your HR function: What is your assessment of the HR function in your business? Are you satisfied with your recruitment engine? Are your programs to retain and engage team members effective? Do you have great programs to systematically grow and develop your people? And, importantly, is your HR leader part of your inner circle?
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