NHRD Journal

ISSN - 0974 - 1739
NHRD Network Journal

April 2011 Volume 4 Issue 2
National HRD Network

Dave Ulrich
The National HRD Network, established in 1985, is an Lynda Gratton
association of professionals committed to promoting
Ram Charan
the HRD movement in India and enhancing the
capability of human resource professionals, enabling Dr. Anil Khandelwal
them to make an impactful contribution in enhancing Dr. Armin Bruck
competitiveness and creating value for society. B S Nagesh
Towards this end, the National HRD Network is Chanda Kochhar
committed to the development of human resources D Shivakumar
through education, training, research and experience
G V Prasad &
sharing. The network is managed by HR professionals
CEO and HR
Saumen Chakraborty
in an honorary capacity, stemming from their interest
in contributing to the HR profession. CEO and Neeraj Swaroop
Shikha Sharma
The underlying philosophy of the NHRDN is that every
human being has the potential for remarkable
HR Dhruv Prakash &
Joylyn Largo Afonso
achievement. HRD is a process by which employees in
organizations are enabled to: Preety Kumar
Arjun Srivastava
• acquire capabilities to perform various tasks
associated with their present and future roles; Githanjali Pannikar
Hugh Mitchell
• develop their inner potential for self and
organisational growth; Larry Israelite
Marc Effron
• develop an organisational culture where networking
relationships, teamwork and collaboration among N S Rajan
different units is strong, contributing to Rajeev Dubey
organisational growth and individual well-being. Satish Pradhan
S Y Siddiqui
April 2011
A Quarterly Publication by The National HRD Network
www.nationalhrd.org www.nationalhrd.org
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ABOUT THE JOURNAL
CEO and HR
T he National HRD Network publishes a semi-academic quarterly journal where in each issue is
dedicated to a theme.
The journal publishes primarily three categories of articles :

Volume 4 Issue 2 April 2011
• Conceptual and research based
• Contributions from thought leaders including a limited number of reprints with due permission
NHRD Network Board Members
• Organizational experiences in HR interventions/mechanisms
National President: NS Rajan, Partner, Human Capital and Global Leader – HR Advisory,
Ernst & Young Publications so far include on the themes “IT in HR”, ”Performance Management”, “Attracting and
Retaining Talent”, “Career Management”, “Organizational Change”, “Global HRM”, “Women in Corporate
Past National Presidents: Aquil Busrai, Chief Executive Officer - Aquil Busrai Consulting
Leadership Roles”, “Organization Development”, “Learning and Development”, “Leadership”, “Work-
Dwarakanath P, Director-Group Human Capital - Max India Life Balance”, “Institution Building”, “Coaching For Performance and Development”, “Human Resources
Dr. Santrupt Misra, Director - Aditya Birla Group Management in Rapid Growth Organizations”, “HR Competence” and “HR and Employee Relations”.
Regional Presidents: The current issue is on the theme of “CEO and HR”.
East: Sourav Daspatnaik, HR Director, Apeejay-Surrendra Group
The following persons have agreed to anchor as guest editors for the future issues :
South: Gopalakrishna M, Director Incharge, A.P. Gas Power Corporation Ltd.
1. July 2011 issue by Mr. SY Siddiqui, Managing Executive Officer, Administration - HR, Finance, IT &
West: Satish Pradhan, Executive VP, Group HR, Tata Sons
COSL, Maruti Suzuki India Ltd. .on the theme, “People Power – Draw, Drive and Deliver”.
North: Sy. Siddiqui, MEO (Admn - HR, Fin & IT), Maruti Suzuki India
2. October 2011 issue by Dr .S. Chandrasekhar, Vice President -HR (India/South Asia) ,IBM India, on
National Secretary: Pankaj Bansal, Co-Founder & EVP, PeopleStrong HR Services
the theme " Getting HR Ready for Gen Y”
National Treasurer: Ashok Reddy B, VP-HR, Info Tech Enterprises
3. Jan 2012 issue by Mr.Vivek Paranjpe, Group HR, Reliance Industries Limited, “HR Challenges in
Executive Director: Mohit Gandhi the Knowledge Economy”
Editorial Board Dr. Santrupt Misra, Director - Aditya Birla Group Editorial Board Members :
(Guest Editor for this issue) Dr. P.V.R. Murthy, Managing Editor is a product of I.I.T., Kharagpur and IIM, Calcutta with close to thirty
years experience in H.R. field. He is founder and runs an executive search firm Exclusive Search
Dr. PVR Murthy, Managing Editor,
Recruitment Consultants. He is associated with a number of academic institutions. He is trained in
CEO, Exclusive Search Recruitment Consultants,
TQM in Japan and in human processes from ISABS and NTL, U.S.A. He is the Immediate Past National
pvrmurthy@exclusivesearch.com
Secretary of National HRD Network.
Dr. Pallab Bandyopadhyay, Director - Human Resources Citrix R&D Dr. Pallab Bandyopadhyay is Director - Human Resources Citrix R&D India PVT Ltd. A doctoral fellow
India Pvt. Ltd. from XLRI and AHRD, he is trained in OD and Human Processes from NTL, USA and he believes in
pallab.bandyopadhyay@citrix.com applying HR concepts to practice to make it more meaningful and effective. He is a mentor and coach
to many young HR professionals.
Aquil Busrai, Chief Executive Officer
Aquil Busrai Consulting, Human Resources, Gurgaon, India Aquil Busrai is Chief Executive Officer at Aquil Busrai Consulting. He has over 36 years HR experience,
aquil.busrai@aquilbusrai.com both in strategic and operational HR with blue chip organisations like Unilever in Kenya and India,
Motorola in Asia Pacific and Shell in Malaysia. He was Executive Director, Human Resources at IBM
Corporation, National President at National HRD Network, HR Director Shell Malaysia and MD Shell
People.
Publisher, Printer, Owner Mohit Gandhi on behalf of National HRD Network,
and Place of Publication National HRD Network Secretariat, C 81 C, DLF Super Mart, DLF City, NHRD firmly believes in and respects IPR and we appeal to the
Phase IV, Gurgaon122 002. Tel +91 124 404 1560 contributors and readers to strictly honour the same.
Printed at Nagaraj & Co. Pvt. Ltd., 156, Developed Plots Industrial Estate, For any further clarifications, please contact :
Perungudi, Chennai 600 096. Tel : 044 - 66149291
The Managing Editor
Copyright of the NHRD Journal, all rights reserved.
Dr. P V R Murthy, CEO, Exclusive Search Recruitment Consultants,
The views expressed by the authors are of their
own and not necessarily of the editors nor of the Contents may not be copied, emailed or reproduced #8, Janaki Avenue, Off 4th Street, Abhiramapuram, Chennai 600 018.
publisher nor of authors’ organizations without copyright holders’ express permission in writing. pvrmurthy@exclusivesearch.com
apr 06 wrapper.p65 2 4/27/2011, 2:08 PM

apr 01 Preliminary pages.p65 1 4/27/2011, 2:12 PM
Dear Readers,
The National HRD Network has been bringing out a semi-academic, theme based, quarterly
journal for the past four years. It aims at compiling and publishing the professional views
and experiences of reputed HR professionals, line professionals, CEOs, researchers,
academicians in each theme area. We carry out extensive research, identify and invite persons
who have eminent publications or have rich experience in the theme area to contribute articles
for each issue. Through the journal, we aim to build a body of HR knowledge in all facets
of HR which is not otherwise easily available for the current and future HR Professionals.
So far, close to 300 eminent authors have contributed articles for the 17 issues. Each issue is
guest edited by a person of eminence in the concerned theme area.
This journal is circulated free to the members of NHRD Network to stimulate their thinking
and towards their professional development.
Publications so far have been based on themes such as :
• “IT in HR”
• “Performance Management”
• “Attracting and Retaining Talent”
• “Career Management”
• “Organizational Change”
• “Global HRM”
• “Women in Corporate Leadership Roles”
• “Organization Development”
• “Learning and Development”
• “Leadership”
• “Work-Life Balance”
• “Institution Building”
• “Coaching For Performance and Development”
• “Human Resources Management in Rapid Growth Organizations”
• “HR Competence”
• “HR and Employee Relations”
The copies of these issues of the journal can be accessed from www.nationalhrd.org.
The current issue (April 2011) is on the theme of “CEO and HR”.
The following three persons have consented to guest edit the ensuing three issues:
1. July 2011 issue by Mr. SY Siddiqui, Managing Executive Officer, Administration-HR,
Finance, IT & COSL, Maruti Suzuki India Ltd. on the theme, “People Power – Draw,
Drive and Deliver”.
2. October 2011 issue by Dr. S. Chandrasekhar, Vice President-HR (India/South Asia),
IBM India, on the theme “Getting HR Ready for Gen Y”
3. Jan 2012 issue by Mr. Vivek Paranjpe, Group HR, Reliance Industries Limited,
“HR Challenges in the Knowledge Economy”.
This is your journal and will be as rich as you want it to be.
In order to further enrich it, we would like to receive your
1. qualitative feedback on issues brought out so far, and
2. suggestions for themes to be covered in our future issues.
3. Any other suggestions.
Kindly send in your thoughts to drpvrmurthyresearch@gmail.com
Dr. PVR Murthy
Managing Editor.

CONTENTS
S.No. Title of Article Author Page No.
MANAGEMENT GURUS’ SPEAK

1. What every CEO should expect from their Dave Ulrich 1
CHRO?
2. Preparing for the Future – the three key Lynda Gratton 5

executive capabilities
3. A lot more than just Competence & Character…. Ram Charan 10
CEOs’ SPEAK
4. Intangibles drive the tangibles… Dr. Anil Khandelwal 17
5. Managing HR in a Global Business Environment Dr. Armin Bruck 19
6. Areas of conflict between the CEO & HR B S Nagesh 26
7. A CEO’s expectations from the HR function Chanda Kochhar 31
8. The Future of Work, HR and CEOs D Shivakumar 34
9. What makes an HR leader valuable to the CEO? G V Prasad and 38

Saumen Chakraborty
10. Key Challenges for the HR Function Neeraj Swaroop 43
11. “Skills needed for success as HR professionals: Shikha Sharma 51

CEO’s view”
HRs’ SPEAK
12. Selecting HR Leaders: What CEOs look for Dhruv Prakash & 55
Joylyn Largo Afonso
13. CHRO - Custodian and Strategist Preety Kumar 61
14. What do CEOs look for in HR Leaders? Arjun Srivastava 65
15. Supporting Organization Strategy – Githanjali Pannikar 70

Mandates for HR

S.No. Title of Article Author Page No.
16. Delivering results with a global HR team Hugh Mitchell 77
17. Creating Financial Value through a Human Larry Israelite 82

Resources – Business Partnership
18. A letter to the CEO about the state of talent Marc Effron 88
building, and how it will improve
19. Managing in a Global Business Environment: N S Rajan 94

Expectations & Challenges of the HR Function
20. Tomorrow’s Leader Rajeev Dubey 101
21. Lessons from the stadium to the Boardroom Satish Pradhan 105
22. CEOs and HR : “Measuring HR Performance S. Y. Siddiqui 109

to understand Business Impact”
BOOK REVIEWS
23. CEO Expectations of HR, HR Challenges, 114
Metrics and Competencies
24. What Got You Here Won’t Get You There: Reviewed by 121
How Successful People Become Even More Vidhyaa M
Successful by Marshall Goldsmith, Mark Reiter
25. Jesus,CEO Reviewed by 124

by Laurie Beth Jones Sandeep Krishna

EDITORIAL COMMENTS
I feel humbled and honoured to be able to present this issue of the

NHRDN Journal exploring the unique theme of “CEO and HR”
to the members, fans, well wishers and associates of the National
HRD Network- an organisation of substance and style that I had the
privilege of leading , as its President. I hope the larger HR community
in India and beyond finds the articles in this issue resonating and
redefining their experiences and creating new possibilities.
Dr. Santrupt
Misra
(Guest Editor for Pablo Picasso is said to have commented, “Everyone is an artist”. I
this Issue) believe relationships are the ultimate art form. Everyone experiences
CEO, Carbon it, indulges in it, creates it, and seeks meaning from it. There are
Black Business & some relationships that have always remained deep, emotional,
Director, Group complex, timeless, rule bound yet open ended and very mutually
Human value creating. The Guru-Shishya ( Teacher – Student), the Client
Resources
– Attorney, the Patient- Doctor, the Husband – Wife and the Priest
Aditya Birla
and God are all examples of relationships that are at one level simple
Management
Corporation Pvt. to relate to but have nuances that are difficult to describe and even
Ltd. more difficult to understand and explain. I find that the corporate
world is throwing up some relationships of significance such as the
one between the Auditors and the Board of Directors. One other
emerging relationship of substance over the years has been the one
between the CEO, the HR Function and the CHRO.
To say that the CEOs are operating in an ever- growing environment

of complexity would be stating the obvious. However, it is not as
obvious to the analysts, observers and commentators as we think it
is. Only the CEOs themselves know how utterly helpless they can be
at certain moments that they have to confront. The CEOs are in a
way expected and programmed to maintain an external veneer of
calm and confidence for their own personal and professional reasons
as well as for the sake of the company that they lead. CEOs, therefore,
develop their own coping mechanism and institutions of consigliere
to navigate the multiple challenges they confront. The CHRO often
is either expected to play that role or lands up playing the role by
virtue of his/her many interactions with the CEO including on some
matters of great sensitivity such as CEO succession, remuneration,
company politics and the like.
The significance of intangibles such as values, talent and others in

company valuation, the need for strong corporate culture to manage

risks, the shortage of talent as a worldwide phenomenon, the growing
roles of Boards in matters of succession planning, the multi-
generational workforce in many old organisations with widely diverse
expectations from the company and many such issues have
extraordinarily raised the bar of expectation from the HR function
and the CHRO. As a result, a good CHRO has become as much a
sine qua non for a successful CEO as have been great CFOs in the
past. The significance of the function and the contribution of
individual CHROs has also been recongnised with a seat at the table.
Many new CEOs, when they join a new company, are increasingly
seen to get a new CHRO of their choice, like and confidence while
they continue to work with the existing CFO.
There are many facets to this relationship and many issues and
questions- some straight forward and obvious and others more subtle
and controversial. What do CEOs expect from the HR function and
the CHRO; what do they choose to rely on the CHRO for; what have
been the experiences; when and where do CHROs truly fail the CEOs;
what do CEOs look for in a CHRO from skills and competence point
of view; do CEOs truly heed to CHRO views; how do CHROs deal
with conflicts of CEO expectation and their own view of what is
good for the organisation; how can the CHRO be the facilitator of
CEO remuneration in the Remuneration Committee even while being
the direct report- these are only a sample of what one would want to
understand. We have attempted to give a flavour of some of these
perspectives and experiences.
I personally have had the unique privilege and exhilarating experience

of playing both the roles and that too simultaneously in the Aditya
Birla Group. I have experienced it, examined it and hopefully
understood the CEO-CHRO relationship from both the perspectives.
In my role as the Editor of this issue, I have kept my biases on the
subject out of the messages of the Journal but not its structure. I
have worked to bring to the readers several nuances: from a sourcing
perspective, how search firms and headhunters have seen the CHRO
search and relationship as they are often a silent witness to both
fragile and fallen relationships as well as the ones that have been
almost cliquish; from perspective of CEO mentors who often advise
CEOs on how to extract value and leverage the strength from many
direct reports to the CEO, particularly, the CHRO; the real life trials
and tribulations of both CEOs and CHROs as the real players; the
perspectives of academics and researchers who have been watching
this phenomenon unfold, and several others.

I have been fortunate that the Brand pull of National HRD Network
persuaded all the distinguished people I wrote to seek their
contribution for the Journal to accept and stick to a rather
unreasonable timeline we had given to them. All of them responded
so positively and I know how many Journals chase some of them and
chase hard with little success! We have been fortunate. Their greatness
is defined by their kindness. I am most obliged to all the authors for
their generosity in sharing their time and thoughts with us.
Two other people I need to thank for the successful completion of my

task as the Editor- the persuasive and gentle Dr. PVR Murthy and
the energetic and young Shishir Misra. They generously contributed
their time, co-ordination capability and project management skills
to see this journal through. Thanks also to the NHRDN Board and
all members of the HR community for continuing to give me the
professional revival stimulus.
Given below are glimpses of the articles to give you a flavour of the
same. We are inspired by the perfume industry that sells us so much
with just a spray of something. As you plunge in to the journal, you
will find…
…Section on Management Gurus’ Speak: Here…
Ram Charan elaborates on mastering the guts of the business and

relating business issues with people issues as a key requirement. Dave
Ulrich offers his perspective on ‘what every CEO should expect from
their CHRO’? Lynda Gratton’s research provides the required
impetus on key executive capabilities required to prepare for the
future.
…Section on CEOs’ Speak: Here…
Dr. Anil Khandelwal elaborates on speed of response and delivery

on commitment as key expectations from the role of HR. Dr. Armin
Bruck exemplifies on how to manage HR in a global environment as
a critical indicator of success. B S Nagesh provokes with a set of key
questions on CEOs, HR and their relationship. Chanda Kochhar
illustrates on the critical requirement of resource planning and
building talent and culture. D Shivakumar forecasts the big trends
and their impact on the role & relationship. GV Prasad & Saumen
Chakraborty explain why understanding organisational priorities
and transformation will be a vital necessity. Neeraj Swaroop
describes how engagement, leadership development and building

culture will be the key. Shikha Sharma says ‘to succeed, HR must
have the ability to be persuasive, influence key business decisions
and move the organisation forward’.
…Section on HR Speak: Here…
The most critical competencies for effective HR leaders are amplified

by Arjun Srivastava, Dhruv Prakash & Joylyn Largo Afonso
and Preety Kumar. Githanjali Pannikar elabrates on supporting
organisation strategy as a key mandate for HR. Hugh Mitchell offers
a perspective on managing HR in a global environment. Larry
Israelite elabrates on churning data into useful information to
support better business decision. N S Rajan extends managing HR
in a global environment by highlighting ‘expectations & challenges’
for the HR function. Marc Effron says ‘Influencing, adding value
and making it simple will enable HR manage delivery for today and
be relevant in future’. Rajeev Dubey summarises the aspect of trust
i.e. where people say what they think, and do what they say, as a key
pillar. Satish Pradhan elaborates on drive, determination and
discipline as critical elements of performance for making a positive
difference. S.Y.Siddiqui discusses mechanics of measuring HR
performance, supporting change and demonstrating business impact
in clear terms.
Hope all of you enjoy reading it as much as I have enjoyed putting it

together.
Dr. PVR Murthy Dr. Pallab Aquil Busrai

Honorary Managing Bandyopadhyay
Editor on behalf of
the Editorial Team

WHAT EVERY CEO SHOULD EXPECT FROM
THEIR CHRO?
DAVE ULRICH
About the Author
Dave Ulrich is a Professor at the Ross School of Business, University

of Michigan and a partner at the RBL Group
(http://www.rbl.net), a consulting firm focused on helping
organisations and leaders deliver value. He studies how
organisations build capabilities of leadership, speed, learning,
accountability, and talent through leveraging human resources. He
has helped generate award winning data bases that assess
alignment between strategies, organisation capabilities, HR
practices, HR competencies, and customer and investor results.
He has published over 175 articles and book chapters and 23 books.
He has consulted and done research with over half of the Fortune 200.
B eing a CEO today would not be high

on any rational person’s “fun job” list,
more like the challenge of a lifetime.
innovation and geographic expansion, of
managing for the short term and at the
same time investing in the future, of
Business conditions have eroded as global reducing employee benefits and at the
recession and recovery makes it more same time engaging key employees, and
difficult to respond to change, access of tightening budgets and at the same time
capital, create customer loyalty, and invest encouraging innovation.
in an unknown future. CEOs have to spend
more time on consolidations than To lead through these paradoxes, CEOs
expansions, lay-offs than hiring, and realise that their talent and organisation’s
scrutinising costs more than serving (culture) can become greater
customers. Personal transparency and differentiators. In tough times, top talent
accountability, erosion of retirement will still have the same or even more
portfolios, and pressures from regulators opportunities elsewhere, so strengthening
and investors have made the CEO’s job the “A” grade players and ensuring their
more challenging than ever. engagement becomes a primary CEO
agenda. Talent refers to building
What is remarkable is that in these difficult succession for the CEO and his/her team,
times, good CEOs become better. They find developing the top cadre of leaders (our
the personal resolve to not only enable rule of thumb is the square root of the total
them to cope, but to lead their organisations number of employees are in this leadership
to a brighter future. They discover that cadre), investing in the high potential next-
leading in difficult times is neither random generation leaders (often 10 to 20% of all
nor ad hoc. CEO’s who lead, master the employees), and helping all employees
inevitable paradoxes of cutting costs and increase their productivity. Leaders also
at the same time growing through need to build a culture which transfers
April | 2011 NHRD Network Journal 1
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external customer expectations into customer demands that unites employees
internal employee actions. Talent and inside with customers and investors
culture must both be managed for outside. They should be knowledgeable
organisations to be competitive over time. about how to make that story become real
through words, symbols, and HR practices.
While CEOs are ultimately responsible for They should be able to define the
managing talent and culture in changing leadership brand that connects customer
times, they should have a close ally in their expectations to employee actions. They
Chief Human Resource Officer. In the last should be constantly building and
15 years, the human resource field assessing next generation leadership. They
has shifted attention from only doing should be able to redesign organisation
the transaction work of administering roles and routines to streamline operations
employees’ needs and setting policies, to to ensure efficiency and accountability.
the more strategic work of helping They should be aware of the unintended
organisations build capabilities to respond consequences of their actions as they shape
to customers and increase confidence from a culture that endures over time. They
investors. When talent and culture should be aware of the impact of how
becomes a primary competitive decisions are made and resources allocated
differentiator, CEOs should be able to turn in getting the best ideas and in involving
to their CHROs as personal coaches, others. They should be sensitive to the
organisation architects, and allies in the enduring values of the company and how
creation of responsive organisations. In to make sure that those values continually
our research and consulting, we have guide tough business decisions. The role
found that too often while CEOs have of the true “business partner” which is
higher expectations and demands for today so often misused, encompasses all
CHROs, some of the HR leaders are of these factors at a time when business
retrenching, taking less risks, and returning needs it most.
to the administrative work as a safe haven
and comfort zone, quite often the pressure To make sure that CHROs can rise to these
of operational work dominates. opportunities, we have prepared a list of
questions that CEOs should be asking
CEOs should find business allies in the about their CHROs.
CHROs. CHROs should have deep
understanding about employees in the • Does your CHRO really understand
organisation and offer creative solutions on how your business makes money? It is
how to find, motivate, engage, and keep vogue for HR work to be linked to
them. It is also about creating flexibility strategy, but your CHRO should look
within the organisation to ensure more is “through” the strategy to understand
done with fewer people in the boat and customers and investors and know
advising the CEO and top management on what they need and why they give
how this could be done. They should be money to your firm.
able to recognise current compensation
• Does your CHRO have the ability to
demands like financial restraints on
prioritise and focus HR investments?
executive pay, but find creative ways to
Not everything worth doing is worth
engage and value top talent. They should
doing well. It is important to prioritise
be disciplined at removing work so that
and focus on things that matter most.
remaining workers are not expected to
accomplish previous work loads. They • Does your CHRO have the ability to
should be adept at helping craft a simple work as part of your executive team?
strategic story out of complex financial and Complex problems will not be solved
2 April | 2011 NHRD Network Journal

by individual contributors, but by team • Does your CHRO help you transfer
contributors. Can your CHRO work your firm or organisation brand inside
productively with marketing to provide the organisation as your culture? A
talent and organisation to serve sustainable culture comes when the
customers, with finance to manage costs expectations of customers and investors
and operate within budgets, with transfer inside the organisation to
manufacturing to ensure efficiency, and leadership behaviours, corporate
with other members of your initiatives, employee actions, and
management team? managerial processes. You want a
CHRO who bridges the outside with the
• Does your CHRO have the business inside.
gravitas to sort out and take tough
positions not only on HR but also • Does your CHRO have global instincts
on the business? When you are and recognise the tradeoffs of local
facing significant business decisions, autonomy and global leverage? You
does your CHRO have a voice? Take a want a CHRO who makes sure that
stand? Bring new insights into the your organisation is fully diverse,
discussion? respecting not only demographic
differences (race, gender, age,
• Does your CHRO have the ability to orientation), but also global differences
credibly lead the HR function? This as you make decisions.
means setting strategy, making things
happen, upgrading to a strong HR • Does your CHRO not only manage
team, and building personal credibility talent and individual ability, but also
inside and outside HR. teamwork and organisation capability?
You want a CHRO who can build an
• Does your CHRO have the ability to organisation that outlasts you and your
make things happen? Legacy HR has current leadership team.
often been guilty of rhetoric activity
more than results and outcomes. You • Does your CHRO have your trust and
want a CHRO who has the tenacity and confidence and challenge you when
determination to make things happen. appropriate? You want a CHRO whom
you trust to tell you the truth about your
• Does your CHRO have strategic vision, managerial efforts and your
or the ability to see what might be organisational initiatives.
coming in terms of business demands
(e.g., investor or customer What we have laid out is a high bar for the
expectations), talent requirements (e.g., role of HR. When a CEO interviewed two
retirements looming), government external candidates for the CHRO job, it
regulation (e.g., global green became clear what is expected of today’s
initiatives)? You want a CHRO who can CHRO. Both candidates were well trained,
anticipate the future and act today. broadly experienced, and highly
recommended. On being asked what he
• Does your CHRO balance your team’s would bring to the company, the first
discussions so that if you tend to talk candidate talked about his experience in
about short term responses, your hiring and promoting people based on
CHRO will remind you of long term rigorous competency models, on being able
implications, but if you over-weigh long to manage the complexities of base salary,
term direction, your CHRO will bring bonus, and stock options, and on having
you back to the present demands? created a leadership academy for future

leaders. The second candidate guaranteed CHRO can manage the process of
the CEO that through HR investments, the creating strategy and of communicating
organisation would have 10% greater it inside and outside the organisation.
innovation than other competitors as
measured by revenues from products and d. Operational executor: Your CHRO
services created in the previous three years, should be able to deliver the HR basics
reduce costs by 5%, increase employee on time, every time. This means that
productivity and morale, be first to market the administrative work of HR is
with new products and services, and gain accomplished with flawless execution.
customer share from targeted customers.
The first candidate focused on HR e. HR practice expertise: Your CHRO
activities, the second on business outcomes. should bring innovative and aligned
In demanding markets, CEOs want HR practices and procedures into the
CHROs who participate fully with them in firm. This means that your CHRO has
creating business success by focusing on varied experiences on how to manage
outcomes, not activities. people (staffing, training, and
downsizing), how to manage
In our research, we have discovered what performance (compensation and
top CHROs must know and do to pass the benefits), how to communicate and
questions we raised and deliver the results share information, and how to design
CEOs demand. We have identified six an organisation in both growth and
competencies that you should see in your challenging times.
CHRO.
f. Change and culture change: Your
a. Credible activist: Your CHRO should CHRO should be able to make things
be credible in that you trust him or her happen and change the pattern of work.
but also an activist who takes a position This means that your CHRO has the
on what the business requires to ability to turn ideas into actions and to
succeed. This means being an active conceptualise and manage culture and
participant in your business discussions be able to engage through others by
not only on HR, but also business issues. getting them to see the short and long
term horizon
b. Business ally: Your CHRO should
know the business. This means In difficult times, CEOs have a demanding
knowing the external world in which and arduous job. But, they need not work
you operate including the business alone. It is not only good but necessary for
environment, technological changes, CEOs to demand more from their CHROs.
industry trends, and government Without a fully competent and engaged
regulations. It means passing a business CHRO, the CEO’s ability to succeed is
literacy test on how you make money, severely limited. The role of the CHRO is
serve customers, and differentiate from more critical now than it has ever been. We
competitors. observe this as we engage with clients and
hear harder and much clearer expectations
c. Strategic architect: Your CHRO should on the value the HR function should bring.
be able to contribute to shaping and The trend continues as some companies
delivering strategy. This means that and chairpersons are specifically seeking
your CHRO can help you write your HR expertise in their non-executive boards,
strategic story and then work to make reflected in an expressed need to focus on
it real through HR practices and numbers and the importance of people
leadership behaviours. In addition, the impacting decisions.

PREPARING FOR THE FUTURE – THE THREE KEY
EXECUTIVE CAPABILITIES
LYNDA GRATTON
About the Author
Lynda Gratton is Professor of Management Practice at London

Business School and is the founder of the Hot Spots Movement.
She has written six books and numerous academic articles and is
considered one of the world’s authorities on people in
organisations. In 2007, she has been ranked by The Times as one of
the top 20 Business Thinkers in the world today and in 2008 The
Financial Times selected her as the business thinker most likely to
make a real difference over the next decade. She was also in the
top two of the Human Resources Magazine’s “HR Top 100: Most Influential” poll and
actively advises companies across the world.
T hese are exciting times. There are forces

which over the next decade will
fundamentally shift much of what we take
aligning with only one company, spending
time with family, taking weekends off,
working with people we have known well
for granted about employees, work and in offices we go to every day. And the same
organisations. This is a schism of such is happening for companies - the idea that
magnitude that work — what we do, where hierarchy is the best way to manage
we do it, how we work and with whom — information flows, that most people will
will change, possibly unrecognisably in our work with team members in the same
lifetime. In the late 18th century, the drivers office, that the majority of talent will be
of change were the development of coal and held within the boundaries of the company.
steam power. This time around it is not the All of this is shifting and what’s coming in
result of a single force, but rather the subtle its place is much less knowable and less
combination of five forces that will understandable — almost too fragile to
fundamentally transform much of what we grasp.
take for granted about work: the needs of a
low-carbon economy, rapid advances in Yet those executives who are able to
technology, increasing globalisation, understand and grasp this shift, and are
profound changes in longevity and able to work with their colleagues to act
demography and deep societal changes. upon it, will be in a great position to gain
from the momentum of change. Those that
Many of the ways of working that we have fail to grasp the magnitude of the shift will
taken for granted for 20 years are be left with an organisation poorly
disappearing — working from 9-to-5, prepared for the future.

The Future of Work Research business over the next two decades –
Consortiums Creating External Foresight; the second is
the capacity to realise the specific
Understanding the extent and velocity of
possibilities these patterns of trends create
this shift has been at the centre of my
for the business now – Building Internal
research and consulting agenda at the
Insight; the third is the capacity to act to
Future of Work consortium (FoW) at the
minimise risks and seize opportunities –
London Business School. In October 2009,
Crafting a Future Signature.
my colleagues and I launched FoW1 - a
research consortium of 21 companies and
1. Creating External Foresight:
over 200 executives from around the world.
monitoring the crucial external trends
The major business sectors were
that will impact on the business over
represented by a wide array of firms,
the next two decades
including Absa (the South African bank),
Nokia, Nomura, Tata Consulting Services Students of complexity theory will be
(TCS), Shell, Thomson Reuters, Novartis, familiar with the idea that in complex
Novo Nordisk, SAP, BT and Singapore’s systems the forces are often inter-connected
Ministry of Manpower, as well as two not- in complex ways that create both intended
for-profit organisations, Save the Children and unintended consequences. This is
and World Vision. In October 2010, FoW2 certainly true of the five forces that are
was launched this time with over 40 shaping work and organisations at the
companies and a wider global moment. We have identified and are
representation, with Wipro, TCS and studying 32 Trends that arise in very
Mahindra and Mahindra from India; joined disparate ways, yet are often inter-
by companies such as SingTel in Singapore; connected in very forceful ways.
Cisco, Manpower and American Express
from the USA and Henkel and Swisscom Take for example the dynamics that are
from continental Europe. This global focus impacting on many of the technology
is crucial since so much of companies in our group such as Infosys,
the forces of change are taking place on a TCS, Cisco, Thomson Reuters or Wipro.
global scale. The dynamics of their future context are
being shaped by a complex system made
In our study we used a combination of a up of six key Trends.
research community portal, monthly
webinars and workshops in Europe and Technological Capability will increase
Asia to create a community to discuss the exponentially: one of the key trends for the
key issues. We also wrote and researched technology sector will be the rapid and
the five forces, surveyed companies continuous fall in the cost of computing,
extensively and prepared a portfolio of we can expect this to continue and will
future proofed case examples. make ever more complex technology
available in relatively inexpensive
We have discovered that there are three handheld devices. Added to this, within
organisational and executive capabilities the next decade more than Five Billion
that underlie the capacity for an executive people will become connected, this will
team and a business to be Future Proofed. take place in both the Mega Cities of the
The first is the capacity to monitor the world, and indeed in the rural areas. This
external trends that will impact on the has profound implications for India as it

brings the possibilities of connectivity to growth – fuelled by a joint domestic market
rural areas, and with it the chance to join of over two billion consumers, and the
what we might call the ‘global talent pool’ capacity to be the ‘back office’ and ‘factory’
for those motivated and sufficiently able. of the world. Moreover, as the goods and
services created by workers in these
The extent of this connectivity will create countries move up the value chain – so do
the possibility of a ‘global consciousness’ the global aspirations of local companies
that has never before been seen. Some of increases. India and China will move
the implications of this where seen in early rapidly from a place of low labour cost to a
2011 as people across Egypt used social place of innovation – built often around the
media to connect and exchange criteria of frugality.
information – and we can anticipate ever
more of this. The extent of this ‘global We can also expect talent pools to change
consciousness’ will also be shaped by the with the Global educational powerhouses.
Cloud becoming ubiquitous, this will With a joint population of 2.6 billion in
create a global infrastructure upon which 2010, predicted to rise to 2.8 billion in 2020
are available services, applications and and 3 billion in 2050, India and China are
resources and will allow anyone with a rapidly becoming key to the talent pools
computer or hand held device, to ‘rent’ of the world. Added to that, a propensity
these on a minute-by-minute basis. This has to study the ‘hard’ scientific subjects, and
enormous potential to bring sophisticated investment by local companies in talent
technology to every corner of the world. development will ensure that increasingly
The implications of this are already being companies will look to India and China for
felt across India as fisherman find out their engineers and scientists.
market prices before landing the catch and These broad themes are the backdrop
farmers are connecting to weather satellites against which work and the competition
before planting their crops. Partly as a for resources will be played out. Without
result of this connectivity we can expect an understanding of this external foresight
Mega-Companies and Micro- it will be increasingly hard for executives
Entrepreneurs to emerge. These to plan for the future. However, whilst this
technological advances will lead to an ever external focus is important – it is not
increasingly complex working and sufficient, and we found that a second
business environment – with the competence is required – the capacity to
emergence of mega companies that span convert external focus into internal insight.
the globe.
2. Building Internal Insight: realising the
At the same time, millions of smaller
specific possibilities these unique
groups of micro-entrepreneurs and
patterns of trends create for the
partnerships that together create value in
business now
the many industrial ecosystems will
develop. For all of the companies in our Knowing how to respond to external
study, China and India’s Decades of threats and opportunities will be
Growth will play an enormous role. Since increasingly the key to success. There are
the Cultural Revolution in China, and the various ways in which a business can
liberalisation of markets in India, both internally prepare for this unique pattern
countries have experienced massive of emerging trends. In our research we

looked at five broad points of leverage nationality or location) to work
available which refer to capabilities, harmoniously and productively together;
competencies, resources and processes. and Working Virtually: the embedded
These are senior leadership capabilities competencies within teams and projects to
and development, the structure and work productively in a technologically
architecture of the business, the people enabled and virtual environment.
practices and processes, the values and
culture of the business, and the creation of What is particularly interesting about all
valued capabilities and skills. of these areas of high risk is the extent to
which they have as a foundation the need
We have identified within these five broad to be skillfully cooperative and
points of leverage, 20 unique future understanding of others. This was a theme
proofed organisational areas that can be I explored in my earlier work on Hot Spots
sources of leverage over the coming – and it’s fascinating to see that this
decades. An internal diagnostic of all 45 continues to emerge as a potential barrier
companies showed both the current to future proofing companies.
capabilities and also revealed the
alignment between what are believed to be 3. Crafting a Future Signature : acting to
the primary points of leverage for the minimise risks and seize
future. This diagnostic also describes the opportunities
extent of risk between future needs and
current capabilities. We found that there The final competency is about creation of
are also areas where individual businesses a model of the Future Signature that shows
had developed distinctive capabilities, the key points of leverage, the specific
competencies, resources and processes that future proofed organisational area, and the
are relevant to needs of the future and will consistency and alignment between them.
enable the company to rapidly shape and We found that executives often drew from
respond to the future environment. external practice to inspire their actions.
What was also important here was the
We discovered that whilst each company rapid identification and assimilation of the
had their own unique risk profile, there learning from relevant future proofed
were trends across companies. We found practice both within and outside the
that four top areas of risk emerged, where business sector. It was also important to
executives believed this area was both have a culture of adaptability, and the
crucial for the future, and currently under- capacity to question the status quo and
developed as a capability. These areas of tolerate new ways of working. This quick
risk are: Open Innovation: the capacity to adaption through conscious learning
craft innovation from sources both inside focused on opportunities and also
and outside the company; Generational harnessed the different characteristics and
Cohesion: the goodwill, understanding resources of the company to accommodate
and trust between the generational cohorts, and seize these possibilities. We saw how
be they Baby Boomers, Gen X or Gen Y; companies such as BT’s experiments on
Deep Collaboration: the capability to create flexible working, TCS’s pilots on virtual
organisational values and practices which team technology, and the pilots Infosys
enable people who are very different from executives have run with open innovation
each other (with regard to gender, and the strategic development process.

In a world that is changing so dramatically, describing how these will impact on the
it is crucial that executives focus both on company and the areas of risk are crucial
needs of the moment – and also on the to the future proofed company. However,
longer-term challenges. What is clear from we have seen that real competitive
our research is that whilst some senior advantage only really kicks in when these
executives are prepared for the future, insights and analysis are converted to
many are not. experiments and pilots that help executives
and employees begin to not only imagine
Understanding the five forces and the the future, but also to experience it.
trends that will shape our future,
Lynda Gratton’s book on the future — ‘The Shift’ is published by Harper Collins in the
UK in May. The third iteration of the Future of Work Consortium is being launched in
October 2011 with companies from all over the world. You can follow the progress on
Lynda Gratton’s blog: www.lyndagrattonfutureofwork.com.
You can also be part of the conversation about the future of work by joining the community
at www.hotspotsfutureofwork.com

A LOT MORE THAN JUST COMPETENCE
AND CHARACTER….
Dr. RAM CHARAN interviewed by H R SHASHIKANT
About the Author
Dr. Ram Charan is a highly acclaimed Management thinker,

Business advisor, Speaker, an Author and an Executive Coach who
has coached some of the world’s most successful CEOs. He earned
MBA and doctorate degrees from Harvard Business School and
served on the Harvard Business School faculty. Dr. Charan is well
known for providing advice that is down to earth and relevant
and that takes into account the real-world complexities of business.
Over the past decade, Dr. Charan has captured his business insights in numerous
books and articles. In the past five years, Dr. Charan’s books have sold more than 2
million copies. These include the bestseller Execution: The Discipline of Getting Things
Done and Confronting Reality, both co-authored with Larry Bossidy, What the CEO
Wants You to Know, Boards at Work, Every Business Is a Growth Business, Profitable
Growth, and Boards That Deliver.
H. R. Shashikant is Group Executive President - Group Human

Resources of Aditya Birla Group, a 30 billion USD conglomerate
with dominant presence in sectors ranging from Metals to BPO.
Shashikant has total of 25 years of rich and diverse work experience
as a Human Resource Professional. Prior to joining Aditya Birla
Group 12 years ago, he worked with the Levers Group, Serdia
Pharmaceuticals India Ltd, Rhone Poulenc India Ltd and Castrol
India Ltd.
Shashi is a Post Graduate in Personnel Management from TISS and a certified

professional in OD from NTL Institute, USA. His professional interests include
Leadership Development, Management Learning, Change Management and
Organisation Development.
HRS: Do you think the CHRO important i.e. the CFO and General
relationship with the CEO is any different Counsel. The CFO is crucial to CEO for
from the CEO relationship with the other Wall Street purposes, for board purposes
CXOs? If yes, in what way. and they have to work together. In most
RC: It’s a function of the competence of the cases, CEO will select the CFO where he
CHRO and the confidence that the CEO has can develop confidence. With the
in the CHRO. It is more to do with that governments getting more and more
relationship in comparison with the other involved in most of the companies, the
CXOs. There are two other key General Counsels are also becoming
relationships for the CEO that is crucial and crucial.

In the case of CHRO, the major difficulty HRS: What does it mean for a CHRO to
has been that they don’t really master the be a trusted advisor for the CEO? What
guts of the business. And that’s the does the CEO want advice on?
difficulty in the relationship. CHROs are
confidant of the CEO when it comes to RC : CEO wants to use the CHRO in many
compensation issues. When it comes to the ways, one of them is as a sounding board
higher value added issues of organisation - particularly about people. A CHRO who
structure, resolving conflicts, seeking does not understand business is likely to
judgment as a sounding board; that is a be a sounding board largely on the basis
function of the CHRO competence and the of personality. Whereas being a sounding
confidence in him/her by the CEO. There board has to be more than personality
are companies that have it but not many issues. If CHRO is not that good on the
have it. That’s where many CEOs may not business side of it, their judgment could
have the respect for CHROs. be questionable. Like “Mr. X has high
energy, works very hard, great values, very
HRS: You said that CHRO should master loyal….”, the CEO knows all that. But if
the guts of the business. What is that you the person is not performing and the
expect a CHRO to master? CHRO is not able to say why he/she is not
performing, the CHRO cannot be a
RC : The CHRO must have a clear sense sounding board. Let us say that the CEO
as to how the business functions, why it has clearly decided to fire a senior
makes money, how it makes money and executive and the CHRO persuades him/
how is it against competition. He doesn’t her not to do so and has a private
have to know the numbers at the third conversation with him/her explaining
decimal places, the CFO will. He’s got to why this person should be kept or given
be able to link the business performance more chance. And the CEO changes his/
with the individuals in a common sensical her mind. That’s where it’s hugely
framework. valuable. He or she has got to show why
the person was failing in the old job.
HRS: The very fact that the CHROs go
through a selection process during the The other broader areas are in the area of
hiring process, can we assume that this the future needs of Talent i.e. Talent needs
business understanding capability is of the company. Take the example of IBM
ascertained? 5-6 years ago. The IBM CEO commissioned
his CHRO with a mandate to have a huge
RC: That assumption may not be correct and fast expansion in India. The need is to
for a different reason. You have a hard- get all the people they need fast. The CHRO
nosed training in CFOs and hard nose does that and now IBM is the second largest
training in the Legal counsels which we do employer in the private companies. That’s
not have for CHROs’. That seems to be the an expansion of people in a different
problem. Most CHROs do not demonstrate country, where the CHRO was accountable
competence beyond compensation and to shepherd this huge activity.
administrative capability. That is the
frustration most CEOs have. But there are If a company is on an entrepreneurial path
few CHROs who are very good but that to go to new areas, the major concern of
percentage is very small. But if any CHRO the CEO is recruiting talent. Here CHRO
masters the guts of the business and then is very critical. But the CHROs should not
relate to the business issues with the CEO, abdicate that to the head hunters. CHRO
he or she should have no problems. should take the lead in identifying the

requirements clearly and work out For eg. in a very large company in US, the
alternates to select the best fit candidates CHRO has been told by the corporate CEO
from different parts of the world. They also that X is the candidate to succeed the CEO.
need to realise the sensitivities involved in Now this candidate X is pushing the CHRO
the process and navigate them sensibly. to get the truth. What should the CHRO
do? Now there is nothing wrong in saying
HRS: As you deal with CEOs and CHROs that X is one of the candidates but he/she
in different parts of the world, how are is being pushed to commit. Here is the
they different from the ones in India? dilemma. The CHRO knows that X is going
to be the CEO and he/she will be working
RC: I find that the Indian CHROs have with him. And the CHRO also knows that
more business acumen. They understand unless he/she gives X an idea he might lose
business unlike in the US. Part of the reason the person. So it is very clear. Integrity is
is, the Indian CHROs are MBAs and they no. 1 and X would respect the CHRO.
are given the chance to do the stuff. There
are MBAs in US too but most MBAs will HRS: For embedding values in the
not go to HR. HR is the last place they go organisation to build the desired culture
to. It’s touchy feely for them. In Europe the - what should the dependence of CEO be
HR people do not understand business, but on the CHRO?
they understand technology. That’s the
difference. RC: Here the CHRO needs to shine. The
board expects it, the CEO expects it. First,
HRS: Would CEOs from different parts convert the word ‘values’ into something
of the world expect different things from practical. Second, create a measure against
their CHROs? it. Measure how those values are being
observed and practiced every quarter. And
RC: It depends. If you are running a big where are the pockets of lack of practice.
plant in India, the plant manager is very For e.g. Many companies have a value on
thorough in operations and has huge team work, collaboration, etc. In those very
technical competence. So the CHRO of the many companies there are too many silos
plant has to be very people oriented for working but no collaboration. The trustee
productivity. But the fundamentals are not for this is the CHRO who’s got to nail that
different. down and take action because without
cross silo collaboration it is difficult to have
HRS: Would there be personality traits/ speed on decision making. So here the
dispositions or orientations that a CEO CHRO gets all the information and sees if
desires in his/her CHRO? there is an issue as to why the silos are not
collaborating and what’s need to be done
RC: I think they will not be different at high
to rectify. That’s the job of the CHRO.
level of thinking but different at specifics.
A CHRO can foul up the relationships HRS: How well have the CEOs
badly by not keeping his/her mouth shut. empowered the CHROs to take
It happens after 3 drinks, after the person consequence management steps when
gets pushed in the corner, he/she should there is a Value Violation by a Leadership
say thank you and that he/she cannot talk Team member (CXO equivalent)?
about it. The CHRO has to be prepared
every single minute, when it comes to RC: Amongst the direct reports everybody
integrity, I will sacrifice the job and not the knows where the problem is. The job of the
integrity. CHRO is to figure out a methodology to

get the problem into the open to get it that these pressures are too high in the
resolved. If he does, then he/she can figure pipes and they need to go down. That will
out how the CEO takes action. CHRO is save them use of gas and purchase cost,
an executive, he is a leader, and he/she has and get you the cash. I told the CEO that
got to lead. He’s got to take those initiatives he should take them out for lunch and give
v/s the CEO telling him/her. He takes them notice to figure out the right
initiatives and seeks permission. pressures. Don’t tell them to reduce the
pressures but let them come up with a plan.
HRS: What role CHRO has to play in They came up with a plan and then the
getting the other top team members to be Company saved enough cash to pay their
role models? dividend. This is how you get people to
collaborate.
RC: Counsel them, coach them, show them
the culture, but the most important part is
the trust. It’s one of the most difficult things HRS: What would a CEO expect from his
for any human being to have total trust and CHRO in terms of governance, setting the
not letting somebody’s confidential tone at the top, see a role in corporate
information go somewhere else. That’s the reputation and diversity, etc. ?
inner steel that you have and you will then
RC: While this is a much broader function,
be respected.
the CHRO needs to be the leader to take
Let me give you an example to illustrate this agenda forward. CHRO has to
this. 1964 summer, I was 25years of age in interface with the corporate governance,
a small company in Honolulu as a summer top committee regularly and also has to
intern. On the first day I told the CEO that push forward the agenda of diversity,
what I sense here is that you do not have community relationship, etc. But more
enough cash to pay dividend for the importantly, like many companies in India,
company at the end of the year. He called how you are building your reputation in
the CFO in and the CFO said that’s correct. the field of education, health, etc. becomes
The CEO looked at me and asked me what critical.
we should do? I told him, I am here on a
job and I shall do that. He then informs his HRS: What are the nuances and how does
direct reports and asked them to help me the CHRO deal with the CEO succession
in my investigation. and how does CHRO deal with the
current CEO, to have a succession plan
So I worked with the team. Later I told and implement it?
them that I want to go to the plant in the
evenings. I spent a lot of time in the plant RC: It is unfortunate that many companies
and met several employees. It took me two do not include the CHRO for deciding on
weeks to figure out that there is too much the CEO succession, while the board takes
pressure in the pipes after 10 p.m. and the decision on the CEO succession. If the
before 05:00 a.m. Being an engineer helped CHRO is not included in this decision, I
me in my analysis. I asked one of the feel there is something wrong. In many
Foremen, if I could ask him a delicate cases, I have persuaded the Committees
question. He said, go ahead. I asked him and the CEO to include the CHRO in the
how well do the Distribution Manager and meetings. It is also incumbent on the
Purchase Manager get along. He told me CHRO on how he/she adds value to the
that they were always at each other’s decision. Let me share one experience I
throats. I told the CEO the truth. I told him have just gone through.

For a CEO selection, I asked the CHRO and For his retirement function, the complete
the CEO to define the criteria and then met board was present. I have never seen in an
up all the candidates along with them. I HR person’s retirement the whole board
then asked them to write a report on each presenting itself!. It was a superb
candidate and present it to the board. The retirement and they presented him a
CHRO kept talking about the ‘Values’ and collage. The CEO also mentioned him in
‘Personality’ of the candidates, while the his address and also named a Chair at the
CEO and I were talking about ‘Judgment’, Cornell University. That was the respect.
‘Business acumen’ and other such
capabilities. It took a long time for the HRS: Every CHRO has two roles to play.
CHRO to realise that what we needed to One is to serve the business as a Business
do was find the right person and isolate Partner and the other is to be an Employee
areas of development of the highly likely Champion or a People advocate. Do these
candidate that had nothing to do with his/ roles conflict? If they do how does the
her personality… It was a low margin but CEO resolve this?
a very large Global business. Its pace of
RC: I don’t think the two roles conflict.
change is probably in the two fastest
Even if they sometime do, you got to frame
industries in the world. Can this person see
them in a way they do not conflict. So if
the coming change fast enough and it
there is an advocacy about certain
became clear what he should do.
situations and if the CHRO has understood
the business he/she has to create the
HRS: As you said that CHROs are
broader frame in which the two have to
increasingly working with boards on
work together. There is an example that
successions and other similar issues, what
happened here in India during the recent
role does the CHRO play if any, in
recession. The Chairman of a Company
managing relations between the board
decided to cut the pay across the board. If
and the CEO as they are accountable to
the CHRO proposes to increase the pay, he
the board in some issues and also to the
has a huge cash issue and the CHRO has
CEO in some?
to present alternatives besides the facts
RC: In the board, the strongest relationship and show that if we lost 50 critical people
of the CEO direct reports is CFO first, from the company what it would mean for
General Counsel second, CHRO if any is this company. The CEO clearly
at a distant third. CFO because of numbers understands cash. The CHRO should
& General Counsel because of legal issues. understand the CEO’s concern, the
Many of the CHROs don’t even go to the Employee concern and present alternate
board meetings. The other two go for every ideas where one cause need not be served
board meeting. Now they have begun to at the cost of the other.
get CHRO to attend the board meetings. If HRS: How can an experienced CHRO
the CHROs start participating properly, help in a new CEO to settle to the
they would soon earn the trust and the organisation?
respect of the board. CFOs and General
Counsels talk but CHRO’s sit quietly till RC: First thing the experienced CHRO
people issues come up. There are CHROs should forget is the fact that he/she is
who have contributed significantly and experienced. It’s the job of relationships.
have earned the trust and respect of the He/she has got to see the new CEO as if
Board. Bill Conaty is one such example. The he/she has known him/her before and
testimony for this came when Bill retired. build a relationship with the CEO. As a

very keen listener, CHRO needs to observe in many companies that when the
understand what the CEO agenda is and CEO is fired, the CHRO also will go
how to help them shape the agenda. Most elsewhere. This happened in one of the
CEOs are not going to do what the previous large company that I’m aware of. The CEO
CEOs did. The experienced CHRO needs announced that he was leaving and his
to avoid “I know it all” attitude which is CHRO also went.
not going to work. There are very few
CHROs who have worked for two HRS: While you have highlighted some
consecutive CEOs. What CEOs want to areas of confidence of the CEO and the
change depends on the situation. Some CHRO etc., when would the CEO
change the whole team. Very few change normally want to part company with the
nothing and that’s very exceptional. And CHRO?
you will see that many new CEOs often
will change the HR person first. RC: That is very simple, when the CEO has
concluded that things are not working out,
HRS: Do CEOs generally like ‘YES’ usually after a year, the person goes. What
persons in their team or would they like makes the CEO start thinking that way is
a CHRO who will stand-up to them? when he feels that he/she is loosing trust
in the CHRO first not the confidence. And
RC: It is very clear, that the yes persons it is gradual and it supplements.
will not last very long. For a debate there
are ground rules, first is privacy. Second is HRS: In which areas does the CEO let
to be able to debate and yet maintain himself/herself be influenced by the
confidentiality and third is the humility to CHRO?
follow what the boss says after the debate.
RC: CEO’s know and they are not perfect,
HRS: How much does the CHRO really they are amenable to be influenced. The
push when he or she is convinced about key is to figure out his/her issues, positives
his or her point of view? negatives and anxieties or the workable or
the blind side. So amenability is not the
RC: Facts, business knowledge, external issue. The onus is on the CHRO.
knowledge, discipline, values and loyalty
to the profession will help the CHRO to HRS: What could a CHRO do to deal with
hold on his/her own. The best thing the a very stubborn and strong opinionated
CHRO can do is in privacy to get the CEO and highly successful CEO?
to see his/her blind side. That’s where it’s
helpful. I do that. RC: Always think and talk in terms of
alternatives, engage in scenario building
HRS: Is it better for a CHRO to be very and be imaginative. Bring external factors
close to the CEO? Are there any pitfalls into open, if this happens would it make a
in this closeness? difference? Almost all very confident CEOs
deep down have lot of anxieties, but just
RC: There are pitfalls if the CHRO is seen don’t open up. They may open up to
by his/her peers as too close to the CEO someone outside. They cannot talk to
and loosing objectivity, more particularly anybody inside for good reasons.
if the confidential information of the peers
is leaked to the CEO. What is very common HRS: Would you recommend a best
by the way is, when the CEO goes, the practice for CEOs to prepare CHRO for
CHRO also goes. Therefore, you will that role.

RC: Yes, you find people who are aspiring HRS: If you were to name two or three
to be CHROs in their careers and make sure CEO / CHROs whose combination was
that they work for some operating function highly effective, who we can emulate and
for 3 to 4 years, make sure they work in take them as benchmark or role models?
finance function for 3 to 4 years or as an
analyst operating person. Almost all the
RC: One is right in your Group that of
people in the US who have succeeded in a
Mr. Kumar Mangalam Birla and
CHRO role have operating experience
Dr. Santrupt Misra. Others would be Bill
somewhere. That’s where they get the real
Conaty and Jack Welch, Jeff Emelt and Bill
flavour of the business.
Conaty and Don Redlinger and Larry
HRS: If you were to describe the key Bossidy.
essentials that ensure continuity in the
CEO and the CHRO relationship, what HRS: Is there an ideal length of maximum
would that be? time that a CHRO and the CEO should
work together or should it continue to
RC: What Bill Conaty was to Jack Welch?
work as long as it works effectively?
Clear, honest, respect, would come back
with facts and most importantly put the
facts in total context and not just in a RC: I think that’s a function of external
narrow HR context. change, speed and time.

INTANGIBLES DRIVE THE TANGIBLES...
Dr. ANIL KHANDELWAL
About the Author

Anil K Khandelwal, a HR professional, rose to the position of
CEO in Dena Bank and Bank of Baroda. For his transformational
work in Bank of Baroda, he was awarded the Life Time
Achievement Award by Asian Banker, Singapore – The only
Indian Banker to ever receive this coveted Award. His book
“Dare to Lead” has been released recently by SAGE Publications,
New Delhi.
1) What CEOs expect from HR function within the organisation, decision

in terms of deliverables and areas of making culture, and cultural
contribution? collaboration. These are sensitive areas
and HR should look at these issues with
As CEO I expected my HR function to
utmost care. In a changing environment
have efficiency of operation. By
HR has to ensure overall corporate
efficiency I mean speed of response,
capabilities, competencies and capacity
speed of making deliverables happen.
to take on the competitors. The other
In a large and geographically dispersed
area where HR can make solid
organisation like Bank of Baroda (2,800
contribution is to continuously gauge
plus Branches and 38,000 employees),
the satisfaction level and motivation
the speed of response to line managers
level of employees.
and employees was extremely
important. The other aspect of
3) What CEOs expect HR to know about
expectation is the effectiveness –
the business to enable the organisation
whether HR function is proactive in
deal with these priorities/issues?
meeting the changing requirements of
business in relation to people issues. My Gone are the days when HR was
expectation is that HR function is not supposed to deal with only welfare
an “order taker” function but “setting issues or, Industrial relation issues.
an agenda” function. Today, the utmost requirement of HR
function is to continuously scan and
2) What other areas CEOs think HR
understand the changing business
could/should make a solid/definitive
environment and customer’s
contribution to the organisation?
expectations along with other line
I expect HR function to look at the managers and continuously generate
issues relating to culture, which agenda in response to such needs. HR
encompasses a number of process has to extend the conversation from
issues, such as communication culture merely employee issues to broader
apr 03 CEO Speak.p65 17 4/27/2011, 2:14 PM

organisational concerns relating to 7) What do CEOs look for in good HR
business, competition, customers and professionals?
people.
As CEO I always looked for HR
professionals to be level headed,
4) What criteria CEOs use to measure
process driven, collaborators with
HR’s delivery and performance?
business leaders, sensitive to customer’s
I think the main criteria to measure HR needs and above all less sermonising.
performance is to look at the people side
in the context of productivity – 8) What do CEOs perceive as key
performance – profit equation. By this I challenges for the HR Function?
do not under-emphasise the equally
I think one of the biggest challenges for
important aspects relating to employee
HR function is to continuously
morale and reward mechanisms.
rejuvenate professionally, demonstrate
5) What CEOs view as HR’s role in their commitment to organisational
managing turnaround, unique problems and soil their hands in actual
situations, crisis and M&A? problem solving. Creating continuous
pipeline of leadership, developing
Today HR is not merely an employee
credible performance management
related function. HR has a critical role
system and helping business leaders
in the transformation and turnaround
take charge for HR responsibilities in
situations. This will require new
their functions, are the core challenges
responses from HR to deal with unique
for HR function.
situations within the overall framework
of HR philosophy.
9) What could HR do to be different from
6) How are CEOs and HR Heads today and be a source of advantage for
relationship? How has this the future?
relationship evolved over the last few
HR today has to expand from people to
(3-4 ) years and what specific changes
people + customers. HR has to also
have you observed in the relationship?
expand to take total charge of
HR Heads work very closely with intangibles. I strongly believe that it is
CEOs. As people issues are occupying the intangibles that drive the tangibles.
centre stage agenda in a competitive The traditional Chinese walls in
environment, the relationship is further separating various functions are
strengthened. The relationship in the disappearing. HR professionals have
new context makes more demand on huge talent, which should be deployed
HR Head. The HR Head also has a great to do things beyond HR. I experimented
opportunity to influence the CEO this in BOB when I combined the HR
and the Board to engage more with and marketing portfolio and I must
people issues and take foundational say that it worked very well, as HR
steps for long term sustenance of the could relate to both employees and
organisation. customers.
apr 03 CEO Speak.p65 18 4/27/2011, 2:14 PM

MANAGING HR IN A GLOBAL BUSINESS
ENVIRONMENT
Dr. ARMIN BRUCK
About the Author

Dr. Armin H W Bruck has been appointed as Director of Siemens
Ltd. with effect from October 2007. Born in Germany on February
6, 1963, Dr. Bruck joined Siemens in 1987 as an Account Manager,
Data Systems in Germany. Having done his PhD in Operations
Research from the University of Mannheim, Dr. Bruck has varied
experience with multi national companies. Over the years, he has
held various senior managerial positions across business groups
and regions at Siemens – and has acquired considerable industry
and operational experience. Known for his marketing and management skills, he
integrated the former Siemens PTD Energy Management Division and Power
Automation Division into Energy Automation (PTD EA) and restructured the Energy
Management Division (PTD EM), which went on to emerge as the number one supplier
in the energy management market.
Introduction performance. His talent got noticed and

Siemens decided to develop his potential
W hen he joined Siemens in 1999 as a
Regional Service Engineer in Delhi,
Indranil Lahiri was just a few years into
and groom him further. In his next
assignment which was the Sales function,
he learnt the tricks of the trade and lessons
the industry with an eyeful of dreams but
in customer sensitivity which quickly
no clear direction. Like all youngsters of
prepared him for the next level. The first
his age, all he was looking for was a
phase of the Product Management role
company where he could acquire the
exposed him to the ground conditions in
knowledge and skills which could help
India like the customer requirements and
him carry out his tasks well. A company
price sensitivities, whereas during the 8
which will help him define his career goals
months long second phase in Germany, he
and an employer who will support him in
got a hands on experience in R&D and
fulfilling something deeper — his purpose
managing the products.
in life.
Life took an interesting turn for Indranil
His stint as the Service Engineer provided when he was identified as the Top Talent
him with much needed technical expertise in 2007 within Siemens India. At Siemens,
and built a solid foundation for his career Top Talent Management is a key Human
path. While in this role, his keen interest to Resource area which helps the company
learn and perform, his proactive attitude identify and retain its crème de la crème
coupled with constant encouragement performers. The program not only aims
from his Manager made him challenge set at keeping the talent pool constantly
notions and explore areas to improve excited and motivated with challenging
apr 03 CEO Speak.p65 19 4/27/2011, 2:14 PM

assignments but also gives them adequate any part of the 190 countries that Siemens
exposure to a wide variety of functions to operates in.
sharpen their skills. The Top Talents are
also exposed to diverse cultural Indranil Lahiri is just one example amongst
experiences to develop their soft skills. In the number of Top Talents Siemens
his case, as a Business Development identifies and nurtures year on year and
Manager, Indranil got a complete overview gives them wings to fly and conquer the
of the business which helped him sharpen world.
his financial acumen and enhance market
Top Talent Management and similar such
knowledge.
initiatives are redefining the way HR is
After going through the grind, he was practiced and applied by Siemens in
thrown into the waters briefly when he had today’s highly competitive and complex
to handle a short assignment as the Head business environment. HR is perhaps the
of a business segment. After managing most important function in an organisation
each of the challenges successfully, Indranil today as more and more people believe that
was appointed as the Sustainability Officer a company is only as good as its people;
of Siemens South Asia which was the new especially so in a globalised business
position created within the company. Here environment.
he was required to outline and implement
a comprehensive Sustainability Program Globalisation and its effects on the
and drive this initiative across Siemens emerging economies
South Asia offices. Its successful rollout has
got him handpicked as the Global Top One of the interesting phenomenons of the
Talent in the Siemens World. From now on, 21st century is the emergence of
his future career path will be chalked out globalisation. As quoted by experts, one of
by the Siemens Corporate Development the vital aspect of globalisation is the way
Executive office in close cooperation with diverse challenges are being faced by
the Siemens India CEO and he will be nations in an increasingly inter dependent
developed for a key leadership role within world. No country can achieve significant
Siemens Worldwide through a plethora of development today without quickly and
assignments. efficiently responding to demands and
pressures generated by international
Throughout his journey, Indranil firmly organisations and their process.
believed in what one of his managers
always said – You can be as powerful in This is valid for the businesses as well.
Siemens as you want to be – and, Since the last two decades, there has been
concentrate on what can be done rather a major transition in the business
than what can not be done. Indranil is environment which has changed the
today heading an important vertical in the business dynamics completely. The
department of Strategy and Business epicenter of business is no longer situated
Excellence apart from his role of a in the West but it is spreading out rapidly
Sustainability Officer which will add a new to encompass the emerging economies
dimension to his career path. especially the BRIC countries. This has
strengthened the role of BRIC countries in
Indranil who hails from the east of India the global business. Experts estimate that
already has a diverse cultural exposure between now and 2030; the economies of
while working in Northern, Southern and the emerging markets will grow twice as
Western India and is now set to work in fast as those of the industrialised nations.
apr 03 CEO Speak.p65 20 4/27/2011, 2:14 PM

The BRIC countries alone (Brazil, Russia, needs to put them through a rigorous
India and China) – are actually expected training program before they are ready, but
to grow at three times the pace of despite that, the availability of workforce
their industrialised counterparts during itself is an encouraging sign.
this period.
As boundaries are shrinking due to a
As a natural consequence, BRIC countries revolution in information, communication
especially India has seen increased foreign and in terms of applications, there has been
investments over the last few years. tremendous pressure on businesses to
Interestingly, companies from these understand its repercussions and adopt
countries are also spreading their wings to unique solutions to respond to them
go global to establish multinational quickly and effectively. The business
conglomerates. An excellent example is environment is becoming increasingly
that of Tatas who have successfully competitive, fast paced and dynamic. This
expanded their business globally over the environment, coupled with innovations
last few years through both organic and and technology advancements taking place
inorganic routes. Another noteworthy by the day has left no choice for the
trend of a globalised business is corporations but to be agile, flexible,
outsourcing jobs to low cost emerging resilient and fast. To be successful and have
economies, which has also played a a competitive edge in the global
significant role in developing their marketplace, the organisations need to take
business environment. Although until now into account the global cultural dynamics
service sector was the main contributor to and must invest in human resources. The
outsourcing, in recent times there has been new economy is the knowledge economy
an increasing thrust on manufacturing and its success is driven by people.
products in the emerging markets and
exporting them to similar markets Operating in such a business environment
worldwide. presents companies with huge
opportunities but also poses a series of
The economic development in the challenges to deal with, some of them are
emerging economies is naturally reflected mentioned below :
in the social fabric. With increasing
opportunities, there has been added focus • Coping with changing business and
on higher education especially amongst the political environment
middle class which is giving rise to an • Attracting right talent and managing
enormous talent pool. A case in point is this talent
India which has approximately one million
engineering students graduating every • Recruitment & retention strategies
year. Also the country has more than 300 • The changing nature of work –
million English speaking people which managing global workforce
makes it the largest English speaking
population in the world. Further, with an • The changing nature of the employment
average age of 29, which might vary relationship
slightly after the current census is • Managing the work life balance
published, India is a country which has
received a population dividend of having To cope with some of these challenges and
more than 60% of its people below the age overcome them, Siemens has initiated a
of 35. Of course, this talent pool is not series of measures which has helped us
prepared for employment as industry attract some of the best talent available and
apr 03 CEO Speak.p65 21 4/27/2011, 2:14 PM

also helped curb our attrition rate to merely Fostering Diversity Culture
8% which is far lower than the industry
As new age businesses are largely run by
standards.
the multinational corporations, they
Managing HR - the Siemens Way : require their employees to work in a
Global standard for all employees diverse corporate culture. The flexibility to
adapt to different economic, political and
As multinationals operate in different parts social systems, to adjust to diverse cultures,
of the world, it becomes vital to have a customs, social practices, values and
common set of policies binding all management systems and working with
employees worldwide apart from the laws people from diverse backgrounds are the
of the land which are country specific. This key requirements of these multinational
serves as a base for good HR practices and corporations from their employees.
lays the ground for a corporate value
system. As a company with manufacturing Diversity is also more than just good deeds;
facilities and sales and administrative it’s about good business! Diverse companies
offices in almost all of the world’s find it easier to attract people, job
countries, Siemens is bound by local satisfaction is enhanced, and diverse teams
statutory labour and social regulations in are more productive and creative. Siemens
all of the countries in which we operate. does business in 190 countries throughout
Further, we align our policies with key the world and for Siemens to succeed in
international standards such as The such an international marketplace; its
Universal Declaration of Human Rights employee base must reflect the diversity of
(UN) of 1948, The OECD Guidelines for its customer base. The breadth of
Multinational Enterprises, etc perspectives and knowledge this variety
Apart from that, we also have our globally offers is enriching, multiplying not just the
binding Business Conduct Guidelines wealth of ideas within the company but also
which are applicable to all our employees our strengths as an innovator.
worldwide. The Siemens Business Conduct Siemens already has a huge head start
Guidelines obligate employees at every when it comes to diversity. To cite an
level within the organisation to abide by example, in the ten largest Siemens
laws and statutory regulations Regional Companies alone, people from
(Compliance) and to embrace the 140 different nationalities work together.
principles of mutual respect, honesty and Siemens is in contact with over two million
integrity. The Guidelines also establish customers daily. These customers, in every
nondiscrimination as a key global principle corner of the globe, expect Siemens to
– in collaboration between Siemens understand their unique needs and
employees and in dealings with external concerns and this is precisely what the
partners. Diversity Initiative aims to do -: help
Another important example of global Siemens build superior teams with broad
guidelines worth mentioning is the strengths and a wide range of skills. At
introduction of a world wide equal rating Siemens, the guiding principle for
in terms of job responsibility which in our Diversity remains “recruiting the best,
case is expressed by the GPL- Global hiring the best, retaining the best.” In order
Position Levels Systematic which allows to measure progress, Siemens has
cross comparisons of job responsibilities no developed a series of parameters to better
matter which job it is and where it is record diversity. They refer to five fields:
performed. Expertise, diversity at all levels, the
apr 03 CEO Speak.p65 22 4/27/2011, 2:14 PM

composition of our top talent pools, culture can enhance their learning curve, give them
and branding, as well the mix of a global exposure and push their limits.
experience. The three levers with which The highly qualified people in technical
Siemens is fostering diversity are and management specialties are
Composition, Connection, and consciously choosing to work for
Communication. companies that offer them much more than
just an interesting job. As an employer,
In many ways, Siemens is already a
Siemens believes in helping employees
benchmark for diversity. Although it is
realise their true potential by offering job
headquartered in Germany, two thirds of
rotations, international assignments and
its employees work outside Germany. A
specialist career paths after mapping their
recent benchmark study by the Diversity
capabilities and assessing their interests. To
Inc. Magazine that ranks Siemens in the top
prepare employees to take up new
quartile of the 317 companies in the
assignments, the company organises
Diversity Inc database is a testimony to the
extensive training programs, not only in
success of Diversity within Siemens.
the job function but to also prepare them
Learning & Development to deal with diverse cultures and
backgrounds. Its thrust on diversity has
People are at the helm of organisations and also encouraged Siemens to offer its
their knowhow and commitment are employees worldwide international
among the most important drivers for the exposure. It is not difficult to find teams
long-term competitive success of from different nationalities, cultures, age
organisations. Life-long learning is groups working together on a project in
indispensable in a globalised world and any of the Siemens offices in 190 countries.
training programs play a key role during Today, when BRIC countries are gaining
times of technological growth and ever importance on global business front, there
changing information and innovation. At are multiple new projects being created and
Siemens we believe that meeting and mandated to BRIC countries. Siemens India
exceeding customer expectations is has recently been mandated with
possible only when we have well-trained, additional global responsibilities of
highly motivated employees. Siemens developing and manufacturing base level
focuses on imparting strategic knowledge products which are the products for the
and sharpening skills to improve the mid and low end market segments not only
organisation’s long term competitive edge for India but also for similar emerging
while achieving short term results. We markets.
invest considerable resources in training
our employees and upgrading their Siemens Leadership Framework (SLF)
professional qualifications. Our It is an established fact that excellent
comprehensive training and development leadership is a strategic success factor in
programs ensure that expertise in key business. It is important for organisations
positions is uniformly provided to to provide a capability profile platform
employees worldwide throughout the which allows benchmarking and
course of their careers. development of leadership. The new
Siemens Leadership Framework helps us
Challenging opportunities apply uniform criteria across the globe as
Today employees are not content with we match our employees’ capabilities and
merely handling a routine job, but they potential with the requirements of jobs.
look for challenging assignments which This has brought in a paradigm shift in the
apr 03 CEO Speak.p65 23 4/27/2011, 2:14 PM

way performance is measured in an jointly with local CEO in the countries, also
organisation. The SLF has raised the here in India. Though there has been more
performance bar significantly to assess focus on identifying and developing Talent
leaders to have sustainable and global into General Management area, there is a
evaluation criteria. This is done through a business need to identify and groom talent
systematic mapping of their capabilities to for Strategic new business areas such as
meet the specific business requirements Solar, SMART Grid, e-car and core business
and a 360 degree feedback process wherein lines like Engineering, Manufacturing,
an all round feedback is taken from all R&D, etc. The main objective of TT4G is to
stakeholders. In fact the HR strategies are strengthen Siemens Expertise and
also being integrated into the business Leadership succession pool in emerging
strategy of the Business units to increase markets. We aim to achieve this through
effectiveness. targeted development while emphasising
on Siemens core areas and strategic future
Enhanced top talent management areas. The program has a selection process
As India is fast climbing the ladder to based on an assessment through Siemens
become tomorrow’s economic superpower, Leadership Framework and would have
there is an increasing need amongst individually designed development plans
the industry to identify and develop for the candidates. In addition, special
high potential employees who understand focus will be on targeted learning and
local conditions well and can take on the development interventions such as
mantle to drive growth. As I mentioned Coaching, Mentoring and learning
at the beginning of this article, Siemens programs. The current plan is to have
has introduced a Top Talent Management approximately 50 TT4G candidates from
program in order to proactively plan BRIC countries per year with an
the career development of its high potential assignment of 24 months.
employees. The key focus of this
Work-life balance
program is to identify the top talents
amongst the company, assess their As technology has changed the definition
capabilities, engage them in the right way of a traditional workplace and offered
and develop them to take leadership multiple opportunities for people across
positions. To develop this talent, we the globe to work from anywhere, any time
provide them with diverse experience with real time information updates, it has
across businesses, functions and cultures also become important for organisations to
to strengthen strategic orientation and make note of this change and update their
international experience. policies accordingly. More and more
employees today are opting for employers
Top talent for growth initiative offering job flexibility and a good work life
In order to ensure successful and balance apart from an interesting
sustainable talent identification and assignment and remuneration. At
accelerate its development specially in Siemens, we are well aware of this trend
growth markets such as India, the Siemens and support our employees with an array
global CEO Mr Peter Loescher has of measures to help them mesh the reality
launched an initiative called Top Talent 4 of their jobs with the needs of their family.
Growth (TT4G). To realise this, we have introduced policies
offering flexible work timings, Work from
Our global Corporate Development Home option in specific cases and family-
department has been driving this initiative oriented personnel policies. These policies
apr 03 CEO Speak.p65 24 4/27/2011, 2:14 PM

are offered after continual discussions with 1. Making our employees and even
employees and amendments are made to subcontractors aware of the topic
incorporate their suggestions. 2. Training
3. Supervision
Occupational Health and Safety
4. Control
Occupational health and safety are central
to the corporate culture of Siemens. They Especially when it comes to project sites,
demonstrate our responsibility for our there is a long way to go but we simply
employees and are fundamental to our want it to happen, as our name also stands
success as safe and healthy work for taking care of health and safety of our
conditions have a strong motivating effect. people.
Our global company guidelines set binding
To conclude
minimal standards for occupational health
and safety. Under these guidelines, HR as a function constantly evolves and
preserving the health and safety of every changes depending on the external
person who works for or with Siemens is a environment and organisation’s policies. It
fundamental tenet of the company’s thus becomes imperative for companies to
worldwide activities. The company aims have a keen eye on the external factors as
to achieve and maintain a leadership well as internal undercurrents to manage
position in this regard, by means of people better and motivate them to excel.
continuous learning and improvement, In line with these trends, Siemens is leading
comparison and experience sharing. the way HR is managed in a globalised
Siemens conducts regular audits environment. We firmly believe that people
worldwide to ensure that external and are the best and most valuable assets of an
internal regulations are implemented and organisation. In fact today, they are intrinsic
complied with. We spend a lot of time and to survival and success of the
money in organisations.
apr 03 CEO Speak.p65 25 4/27/2011, 2:14 PM

AREAS OF CONFLICT
BETWEEN THE CEO & HR
B S NAGESH
About the Author
B. S. Nagesh has been with Shopper’s Stop Ltd since its inception
in 1991. Recognised as the pioneer of the retail boom in India,
Nagesh was voted by Business India as one of the top 50 managers
in India who will influence the Indian business scenario in the 21st
century.
Nagesh is the first Asian to be inducted into the “World Retail Hall
of Fame” 2008 along with Mr. Millard Drexler of J Crew, Sir Philip
Green of BHS and Arcadia and Mr. Amancio Ortega of Inditex at the World Retail
Congress 2008 conducted in Barcelona.
Nagesh has been involved in setting up and opening the country’s largest hypermarket
HyperCity, which was launched in May 2006. Hypercity has been declared as one of
the top 100 retail destinations in the world by Retail Week, UK and the best
hypermarket at the United States International Design Awards in New York.
In August this year, Nagesh was elevated as the Vice Chairman of Shoppers’ Stop in
a non executive position.
As part of his personal philosophy of Learn, Earn & Return, Nagesh stepped down
from all operational role in the K.Raheja Corp group in August 2009 at the age of 50.
He is setting up a charitable trust called TRRAIN to help retailers and retail associates
in country .
Nagesh and his wife Shailaja live in Versova along with their two daughters.
Nagesh loves the consumer space and is intrigued with the consumer and the
consumption story of India. He loves travelling for work and pleasure. He was a
keen sportsman in college and therefore with more time in hand wants to get back to
sports in the near future.
W hen I look at the roles of CEOs and

also look at the HR role, I get a sense
that these roles conflict depending on the
— Growth of the company into multi
location, multi regional chain of stores.
stage of the company’s evolution. I would Starting up and setting the company
like to look at the various stages as follows: and the first store:
— Starting of the company. The best phase in a retail CEO’s life is
— The first store and the second store. setting up a retail company. The CEO has
— Chain of stores and setting up of the to be the store manager and should take
HO or corporate office. responsibility, and be involved in the
apr 03 CEO Speak.p65 26 4/27/2011, 2:14 PM

selection of the peon to the HR head. The practices need to be identified, and good
moment the HR head comes into the employees who are the cultural anchors
organisation, his / her question and need to be identified. The rule books of the
dilemma is why is the CEO involved in new company has to be written, the group
every HR decision, from policy making to dynamics which have created a unique
implementation decision? The big question work culture needs to be identified and all
is why should the CEO be involved with these need to be documented and some
recruitment. For me when you are setting repetitive processes should be debated and
up a retail organisation, the foundation of converted into SOPs. The most successful
culture of the organisation is being set up. companies are the ones in which the HR
You cannot afford to make a single known head has worked closely with the CEO and
mistake, because in a service organisation understood the ethos, value and work
you set the values, ethos and culture of the culture. He / she needs to ensure that they
organisation as you start the business and communicate these values down the line.
progress towards the same over a period He / she continuously monitors for the
of time. You can start with a written down black sheep in the organisation, and at the
vision, mission and values by the CEO and same time identify employees who can be
hand it over to the HR head to implement a great asset to building up of the 2nd store.
the same. I believe in a service organisation it is all
about culture and values, the more you are
In retail and the services sector, we need to able to imbibe the same in the employees,
walk the talk and CEOs cannot hide their the more the service delivery.
weaknesses, in the same light employees
cannot close their eyes to the genuine
Opening the second store:
service culture of a CEO who walks the
talk. I still remember a customer experience This is the toughest period for the start
at Delhi in 1998. I got into a watch counter up CEO. He/she can only spend half his
to help an associate sell a pair of watch (In / her time in the new store. On the other
retail it is not easy to get involved in a real hand, he / she has to start setting up a
sales transaction on the floor. You have a back office consisting of functional teams.
50:50 chance of a success and every The conflict for the CEO and the HR head
associate is watching you.) Together we starts here. HR head needs to recruit and
succeeded in selling a pair of watch. By the set up a team but without the CEO’s
end of the day, every associate was talking assistance. However, the CEO expects the
about this sale, and post that we noticed same kind of process as in the first store..
supervisors helping associates in sales. The CEO has to recognise that delegation
Role of HR therefore in the early stages at this stage is very critical. HR heads
is to ensure he/she understands the always have this grouse against hands on
company’s vision and the CEO’s vision. CEOs that they never help HR heads
He/she also needs to understand the frame procedures and processes because
working style of the CEO, understand what they always like to do it in their own way.
his/her strength is and then use it CEO who has risen from the ranks always
appropriately to the start up team’s feels that HR heads are armchair
advantage. functionaries, as most of them have not
worked in factories or operations. It is not
The HR head plays a very important role essential that HR heads have worked in
when the first store is in the set up process, factories or front end stores, but it is
because this is the time when the good essential for them to have an empathy
apr 03 CEO Speak.p65 27 4/27/2011, 2:14 PM

towards the workforce, whether factory office (these are mostly professional
workers or store employees or BPO white organisations) and owner driven businesses
collared employees. that have no HR heads because they believe
owners can take care of the employees.
This is also the time in an organisation
wherein you start developing a leadership
HO in retail consists of mostly young
team. Store managers in big box retailing
professionals who are either MBAs or
are like the CEOs, as all decisions regarding
product specialists with little or no
capital items and customers end with them
experience in retail. Retail professionals
once the store is open. A HR head that is
with relevant experience command a huge
aligned to the vision can actually see the
premium. On a PPP basis, they get paid
necessity for this development. In a fast
twice the amount their counterpart in
growing economy like ours in India, most
Europe will be paid. HR heads have a very
CEOs do not involve the HR heads in their
important role in the creation and
strategy meetings. They are generally
maintenance of the HO team. With the HO
given the extract of manpower
team in place, the bigger challenge for the
requirements coming out of the strategy
HR head is the allocation of developmental
meeting. HR heads get handicapped on
resources between HO and the front-end.
short-term thinking to long-term human
This is also the biggest conflict between the
resource development. I attribute a large
CEO and the HR head — where to spend
amount of failure in retail to this simple
the training dollar. Compensation planning
fact that CEOs do not invest in building
for HO staff in retail is complicated as
their store leadership teams and HR heads
benchmarks are still not set in the industry
are not able to plan the pipeline of leaders.
and many a times you end up spending
When we run businesses from long
disproportionate amount on salaries as
distances and our store managers are the
new companies pay a huge amount to get
only face of the organisation for the
talent from the limited pool and therefore
customers, we need to develop our
jack up the compensation structure.
leadership teams and ingrain them with
the organisational values. I believe Boards
HR heads prefer to pay a large sum to
should start looking at Leadership pipeline
retain and recruit; CEOs do not want to
as much as they look at funds flow and
spend top dollars as the businesses are
asset creation and ROCE.
stretched on bottom line. In both the cases,
one is only looking at the short-term gains.
Creating a back office in retail or HO
Since properties in retail are signed for a
team:
minimum 6-9 year period, CEO’s vision
Indian retail has suffered the most due to and plan for the people should be a
the cost of corporate structure. Many minimum of 6-9 years if not more. HR
organisations had to create their corporate heads are not able to take such long
office even before they start the first store. developmental calls on their people due to
Due to the nascent state of the industry, lack of involvement at a strategy level or
many CEOs have never worked in retail, lack of experience. The biggest people
and many owners who started as investment in retail is in the HO staff and
manufacturers got into retail due to market the supervisors and store managers in retail
dynamics or the lure of high valuation for stores. All HR policies should be driven
retail from the capital markets. I have keeping these roles in mind without
seen two kinds of organisations, one loosing sight of the front-end employees
with disproportionate size of corporate who serve the customers.
apr 03 CEO Speak.p65 28 4/27/2011, 2:14 PM

Growth of the company into multi question as to who is the cultural anchor
location, multi regional chain of stores: of a company.
When we talk of large retailers like The more and more I think, I believe the
Shoppers Stop or Future Group in India or CEO and the HR head have to play the role
of Wal-Mart in USA or Tesco and John of cultural anchors. The HR head should
Lewis in UK, one realises that retail brands also look at such cultural anchors across
are built on the strength of consistency in the organisation, across the hierarchy.
merchandise offering and consistency in These pillars of the organisation are not
service to the consumer. necessarily the best performers or the most
educated, but have deep-rooted value
When we get deeper into these
systems ingrained in them, their belief in
organisations and understand their success
the organisation is not based on salaries,
factors, one will find that HR is core to the
bonuses, business plans, but based on
strategy of these businesses. I have realised
ethics and values. Organisations should
many of the successful retailers have board
have measures in their annual performance
members with HR background. Consistent
reviews to check as to what the employees
HR practices, belief in grooming people
have done to maintain and enhance the
and developing them to become successful
values of the organisation. Objectives
retailers are all key to the company
should be set across the hierarchy to ensure
strategy. Most CEOs in retail have emerged
that an employee consciously works on
from the shop floor. It takes a few decades
culture building within the team.
to build large-scale organisations in retail
due to service intensity and large-scale The CEO should meet this group
capital deployment. periodically and review as to what is
happening to the culture of the
I also see a lack of understanding of
organisation. In the role of the cultural
wealth creation at both the CEO
anchor, the CEO has to formulate a strategy
and the HR head level. In fast growing
for growth of the organisation and the
economies the promoters and
growth can happen without destroying the
entrepreneurs’ create large wealth for
values. How can new employees in regions
themselves but are not able to share the
and geographies ingrain the same culture
wealth creation with their employees.
as that of existing employees? How can we
I wish there were many Narayan Murthys
integrate new learnings from other
and Infosys in India. If the retail industry
organisations into the existing one?
is able to develop the model of co-creation
of wealth, it will go a long way in building A month back I met a grain merchant in
the Indian retail. Mumbai who has 6 shops. They are
wholesalers and retailers of various staples
When I look at successful companies or
like rice, dal, wheat, etc and of course
groups which have grown very well in the
various other grains. Mumbaikars take
last quarter of a century, I find that the
pride in this chain of stores for the quality
culture and the ethos of the founder, CEO
and the home delivery system the chain has
or the promoter family makes a big
developed. Some said they always
difference. Continuity of the CEO also
delivered the right quality and quantity on
ensures that values get deep-rooted in the
time. Some customers said they also end
organisation. On the contrary, CEOs not
up delivering at 11 pm in the night.
having deep-rooted values have led their
companies to disaster, bankruptcy and The owner was telling me about the
disrespect. This leads me to ask the various people policies he has adopted:
apr 03 CEO Speak.p65 29 4/27/2011, 2:14 PM

“All my boys work the whole day the realities of their work force and
carrying heavy bags full of grains. By convey the same to their CEOs?
the end of the day they are tired and
they need to take a bath and freshen up. • How many CEOs can design a 100%
They also need to watch TV in the night, variable compensation around the key
at least the prime time soap from 9 pm deliverables and the core of the
onwards. The only peaceful meal they business?
get is at dinner time where all of them
can eat, talk, watch TV and have fun • How many HR heads will be concerned
together.” about the recreation, happiness of the
bottom of the pyramid employees post
“I have therefore started closing my their work hours?
store at 8 pm against the wishes of the
fellow retailers on the street. Most of This narration and the discussions lead me
them curse me for this practice, as they to a simple question. Do we as CEOs know
will loose business if the shops close who our employees are, do we understand
early.” But the owner told me that he our associates who deliver service at the
was determined and he was happy last mile, do we as manufacturing
because his boys are happy, and he also companies understand our factory
gets back home by 9 /9.30 pm, as workers’ needs? Do we as a company have
against 11 pm earlier. And this makes enough information to empathise with
his family happy. them? Does the HR head have an open
forum with the front-end employees of the
Since his core business is selling and home
company? How often does the factory
delivery, he has come out with an
manager meet the employees? All
innovative model of home delivery. Unlike
organisations have a welcome party for
other retailers, he charges for home
their fresh MBAs who join as MT; we have
delivery from his customers. He also passes
an introduction and induction by the MD/
on the full home delivery charges to his
CEO of the company. How many times do
sales/delivery boys. By this practice, he has
we as CEOs meet and talk to our
ensured that his boys get almost double the
employees? Most CEO visits end up with
salary of 7500/- (home delivery adds on
a presentation and discussion with
another 7500/-). Since the full home
Management committee of the store, area,
delivery charges are paid to the sales
region and a tea party or dinner in the
boys, he has the best delivery turnaround
evening.
time in his market. Compared to his
competitors, his boys come back Is this discussion leading to the question
immediately without wasting time so that — Do we as CEOs abdicate our HR
they can go for the next delivery. responsibility because we have an HR
head? Have HR heads become mere
When I recollect this story and compare the
implementers of organisational policies to
same with many modern business CEOs, I
ensure the bottom line is preserved or are
am forced to ask the following questions:
they partnering with CEOs in the building
• How many CEOs know the lifestyles of of organisations of the future?
their front-end associates or their
workmen? How many HR heads know I will leave the answers to the readers.
apr 03 CEO Speak.p65 30 4/27/2011, 2:14 PM

A CEO’S EXPECTATIONS FROM THE HR FUNCTION
CHANDA KOCHHAR
About the Author
Ms. Chanda Kochhar is the Managing Director and CEO of ICICI

Bank Limited. She began her career with ICICI as a Management
Trainee in 1984 and has risen through the ranks by handling
multidimensional assignments and heading all the major functions
in the Bank at various points in her career. She is widely recognised
for her role in shaping the retail banking sector in India and for
her leadership of the ICICI Group. She took on the challenge of
building the nascent retail business, with strong focus on
technology, innovation, process reengineering and expansion of distribution and scale.
She led the Bank’s corporate and international banking businesses during a period of
heightened activity and global expansion by Indian companies. She was the Joint
Managing Director & Chief Financial Officer during a critical period of rapid change
in the global financial landscape. She was appointed the CEO of ICICI Bank in
May 2009.
R apid changes in the business

environment and the
organisations work have challenged
way
Indian context? Some would say capital;
some would say products; some would say
distribution; some would say technology.
traditional notions of roles and All of these have been true at various points
responsibilities across organisational in the past. But today most of these have
functions. Boundaries between become hygiene factors. Financial capital
“businesses” and “support functions” have is relatively easily accessible given India’s
blurred, with the so-called support growing financial markets and increasing
functions growing into essential enablers integration with the global economy.
and facilitators of business. Today, the role Products and distribution can be
of the finance function, for instance, goes replicated. Even technology, long a key
far beyond financial reporting and controls; competitive differentiator, has become
the CFO today is a strategic partner to the commoditised and off-the-shelf products
CEO in driving value creation by the are available to any business that wants to
organisation. Similarly, the role of the use them. The lead time accruing to a
human resources management function business through any innovation has
has gone far beyond recruitment and shrunk considerably. What has emerged as
payroll management – it has morphed into a critical differentiator is not what you
a key strategic agent for the CEO. have, but how you use it. And how you
use it depends on how good your people
What does it take for a business to succeed are. It is thus the quality of human capital
in today’s environment, particularly in the that has emerged as a key competitive
apr 03 CEO Speak.p65 31 4/27/2011, 2:14 PM

differentiator. The success of a business assess business needs and planning ahead
today depends on consistent, high quality for mobilising resources at optimal costs.
execution and delivery, in addition to This includes innovating in skill building
innovation and first mover advantages. to create a pool of talent which the
organisation can access. For example, at
This is especially true given the special ICICI Bank, we have created partnerships
circumstances in India. We are a young to build pools of trained managers for entry
country, with an average age of 26, adding level positions, supervisory positions and
an estimated 12 million people to the work positions requiring specific domain
force every year. This is both an expertise. In addition, the HR function is
opportunity and a challenge. It is an expected to assess both functional and soft
opportunity because the demographic skill training needs and fulfill the same in
advantage gives Indian businesses a a planned manner. Finally, the HR function
growing pool of talent to support their is expected to assist the CEO in driving
growth. The challenge is two-fold. Firstly, productivity and effective utilisation of
there is a challenge of ensuring that this human capital, just as a CFO is expected to
work force has the skills and training assist the CEO in driving effective
necessary to meet business objectives. allocation and utilisation of financial
Currently, we are facing a paradox of capital to maximise returns and value
demographic dividend coupled with high creation.
wage inflation – driven by the fact that the
skilled talent pool is inadequate for the
Talent management & leadership
growth aspirations of various businesses.
development
Secondly, there is a challenge of maturity
of leadership. Such a young population The HR function has a critical role to play
means that there is a gap in the pool of in institutionalising a framework for early
experienced managers at middle and identification of leadership talent, and a
senior levels – managers are taking on structured leadership development
leadership roles very early in their careers, process. This is essential to ensure that the
when they may not have the maturity to enterprise plans ahead for the leadership
effectively lead and nurture teams and requirements for growth, and also creates
handle the range of situations that could a leadership bench to address attrition. This
arise when playing a leadership role. is especially relevant given the age profile
of India’s talent pool. The HR function has
Given the changing business dynamics and a critical role to play in assisting these
the opportunities and challenges of the young leaders along their career paths.
Indian context, a CEO’s expectations from
the HR function can broadly be described Culture building
in four categories:
The HR function has a key role to play in
defining and building the culture of the
Resource planning
organisation. It has to help the organisation
The traditional role of HR is seen as to define its existing and desired cultural
recruitment to fill positions in the anchors and ensure that every decision that
organisation, whether at entry levels or the organisation takes is guided by these
middle and senior levels. Today the cultural anchors. It needs to inculcate the
expectation from HR goes much beyond cultural anchors in important
that. HR is seen as responsible for resource organisational processes such as leadership
planning – working with businesses to assessment, performance management and
apr 03 CEO Speak.p65 32 4/27/2011, 2:14 PM

recruitment. In ICICI Bank these cultural organisation a network of goals, which
anchors, which we call our DNA, form the help employees stay connected with the
basis of our day-to-day interaction within organisation’s strategy and vision. At the
the organisation and our engagement with same time, the Bank is committed to not
our customers. differentiate between people other than on
pure merit; to stand by employees in their
Creating value for employees hour of need; to provide a platform where
People are an organisation’s most valuable employees can understand strategies and
resource, and nurturing human capital is organisational goals clearly; and to provide
one of the most important priorities of any opportunities for growth and learning. To
organisation. Like customers and the HR function falls the responsibility of
shareholders, employees too are a critical building systems and processes that
stakeholder in the organisation and the nurture a mutually beneficial and
organisation has to deliver value to them. respectful relationship between the
Every organisation has its own unique organisation and its people.
employee value proposition that is made
up of the commitment of organisation to In conclusion, I would say that over the last
its people and the organisation’s 20 years, the workplace has changed in
expectations from them. At ICICI Bank, more ways than one could have ever
meritocracy, care, enabling work culture, imagined. The coming years will bring
growth & learning and being part of a even greater change. There is a constant
winning organisation are the five anchors need to therefore develop capabilities and
that define our employee value leverage them to ensure the growth and
proposition. Let me elaborate on success of an organisation. As
meritocracy as an employee value organisations move to the next orbit, they
proposition. As an organisation, ICICI will increasingly expect the HR function to
Bank believes in meritocracy and, move beyond administrative roles and
therefore, has a defined process for reward- handle uncertainties and facilitate business
linked performance. Such a system growth. HR professionals will need to
provides individuals with opportunities to think differently and innovate to create
display full individual potential and get paradigms that strike a balance between
rewarded on that basis. Our performance organisational goals and employee
management weaves across the expectations and aspirations.
apr 03 CEO Speak.p65 33 4/27/2011, 2:14 PM

THE FUTURE OF WORK, HR AND CEOs
D SHIVAKUMAR
About the Author

Shiv is currently Managaing Director of Nokia Mobile phones and
Vice President of Nokia India. He studied at IIT, IIM and Wharton
Business School. He has worked for over two decades in Marketing
and General Management roles in companies such as Hindustan
Lever and Philips. He has handled more than 34 brands in his
career.
Shiv’s interest is in reading, teaching and writing. He teaches at
Business schools, and is actively involed in Management and
leadership bodies. He used to write a regular column for Business world.
Shiv is on the board of Godrej, Consumer Products Limited.
I ndia is going to see the best decade

economically till 2020. The GDP growth
will be a shade below 10 pc every year for
unprecedented change in the way business
will be run, managed and grown this
decade. If I see the workplace, I forecast
the next decade. There will be a significant five big trends.
shift in employment from agriculture to
services and manufacturing . India will get 1. We will see the doubling of women in
younger this decade, the average age in the workplace. That will be a tectonic
2020 will be 29 in India, 37 in China and shift for this society. This will be similar
the USA , 45 in Europe and 47 in Japan. to what happened in the USA in the
India will get younger and most of India 1960s. It will make women financially
will also get richer as real incomes are set and emotionally independent. We will
to double every six to seven years. Strong see financially independent women
economic progress will lift many out of the assert themselves both at work and in
poverty line; it will propel many new society. They will marry late, have
industries and will add significant scale to fewer kids and will demand equal
current industries. India will be a force to opportunity and status at work and also
reckon with on the global stage. in society. This will place a challenge
before leaders and also before a
The opportunity is huge and so are the traditional male dominated society.
challenges for the next decade. Every Traditional policies in firms have been
industry sheltered and nurtured under the gender neutral and if anything male
license raj will now be at the mercy of the focused. Firms will need more pro
consumer raj. Choice will spoil consumers, women policies this decade. I also
it will create confusion, it will create new believe that more women in a firm will
business models and it will challenge alter the product design and delivery
traditional profit models. We will see of the firm. More women in the
apr 03 CEO Speak.p65 34 4/27/2011, 2:14 PM

workforce will also challenge leaders to where the firm can add value. As firms’
run a different type of meeting outsource, they will need to build
compared to the rational one they could strengths in building and nurturing
be running now. productive eco-system partnerships. A
flatter organisation means limited
2. We will see more of a globally mobile
vertical movement and more horizontal
workforce in India next decade. The
movement for people. That might not
world will be their stage and they will
necessarily be to the employees liking.
be happy to move across national
A flatter organisation will force more
boundaries searching for what creates
responsiveness from the firm if run
most value in their careers. We will see
well. A flatter organisation means
a younger, more educated work force
spending more time at a level to master
whose aspirations will be exponentially
the ingredients of success at that level.
related to time spent in the job. This will
A flatter organisation will force more
mean that firms will have to spend more
communication in the firm. Leaders
time and energy developing strength in
who will be uncomfortable with these
the more permanent partners in their
changes will be challenged and their
chain, e.g. distributors and trade
leadership styles will be history.
partners. They will represent the
company and the brand over a longer
4. The relationship between employer and
time frame than company sales and
employee will be more of a contract.
customer managers who will leave for
Jobs will be given for fixed periods of
better prospects every eighteen months.
time, i.e., we could see a sales manager
They will not seek a 9 to 5 job; they will
being employed for say, a tenure of 3
seek a 9 to 5 experience. They will get
years, very much like what happens
bored easily and could mistake details
with professors in universities. This
for chore. The young people will be
kind of contracts will lead to a change
digitally connected like never before
in the employee package, especially on
and will demand a new level of
long term benefits. A contractual
transparency and connected leadership.
workforce will also mean more
Their sense of self-worth will need to
retention and other short term
be managed with kid gloves. This
mechanisms to hold onto valued talent.
workforce will be a unique combination
A contractual workforce will also force
of a strong individual streak coupled
employees to think more about
with highly collective negotiation
themselves and their talent.
mentality when it suits them. They will
Individualism can destroy a firm if left
share a lot with each other for them to
un-checked. In a competitive market
get more from their employer. This
like India, seeking out and nurturing
bunch will be the most articulate
team players will be a challenge. If the
workforce that India would have seen.
relationship between employee and
Communicating with them will be a
employer is more of a contract,
challenge for the most seasoned leaders.
employees will seek emotional support
The concept of a long service award will
from their leaders and colleagues to stay
change; five years in the future will
in the firm. Many colleagues will be
suffice for a long service award!!
emotional anchors in an individual
3. Firms will get flatter this decade. They world. Planning development inputs
will get there by outsourcing more; they will be a challenge in such a firm. The
will get there by focusing on things CEO and his team will have to provide
apr 03 CEO Speak.p65 35 4/27/2011, 2:14 PM

the emotional glue that will be required they play games with people and when
to keep such future organisations they use information as a primary vehicle
going. Employees will think more in to play games. This is a legacy behaviour
terms of upgrading their skills in a from the past when HR teams doled out
contract world. Biz Schools could offer favours. In today’s world, a HR team that
a smaller MBA; say a six month MBA plays games is digging its own grave pretty
for managers who have completed five fast. A lot of the HR teams’ behaviour
years, ten years on the job. As industries comes from the leader of the HR function.
change, as concepts change, the I have worked with some great HR leaders
manager who wants to enhance his or and also had the unhappy task of dealing
her market value will look to these short with some political HR leaders. For me a
courses as another step to move up the CEO cannot be effective with a HR Director
contract market. he doesn’t trust! So, I would urge both the
CEO and the HR Director to develop trust
5. The focus on productivity measures will in each other before they embark on the
be big. Almost everything that can be journey of managing talent and
measured in a firm viz - a - viz an engagement in the firm.
employee will be measured. This will
be done for the firm to be competitive. Most companies will tout the philosophy
This type of data gathering will spread that brands and people are their best assets.
from firms to industries to cross The people part of asset management has
industry bench marking. This will have to change. Managing the people asset was
both a positive impact on a few solely a HR prerogative till a few years ago.
parameters like salaries, benefits, etc. In the next decade, managing this asset will
and a negative impact on parameters need high focus from HR, the concerned
like cost, speed to deliver. It will also manager and the CEO. The CEO has to
bring into focus the issues of know at least the top 10 pc of managers in
confidentiality. A job hopping the firm for him or her to make a
workforce will carry a number of worthwhile contribution to talent planning,
materials and data points with them. development and structuring. The CEO
A contractual workforce will also give will be the first to recognise his /her un-
rise to many a non-disclosure competitiveness in the market because of
agreement. As a firm attempts to weak people. He or she will pick up the
measure a lot, it could lose sight of what firms’ weaknesses from demanding
matters but cannot be measured fully, customers and consumers. The CEO’s
heart and soul! job will be to challenge the line manager
and the HR team to get the best talent
A word about HR departments. HR to work for the firm. The CEO has to
departments in companies could be play the role of a magnet to attract talent
characterised as teams that are loved, that to the firm and to spend time with talent.
are hated and that are ignored by the larger So, managing the corporate brand with an
organisation. HR departments are loved eye on talent recruitment and retention will
when they engage effectively in the be a big part of the CEO agenda this
organisation and they apply the discipline decade.
of rules in a fair and just manner. Nothing
is more damaging for a HR team, than to The CEO has to engage more, especially
be seen as an appeaser of crying babies in face to face in the organisation. The future
the organisation. HR teams are hated when employee will want to hear the CEO and
apr 03 CEO Speak.p65 36 4/27/2011, 2:14 PM

will want to be heard by the CEO. There The CEO and the HR head are directly
will be nothing called over communication responsible for building an institution.
by the CEO in tomorrow’s world. Engaging Every company is not an institution. In
more in the organisation will mean better India, the only two institutions citizens
listening skills, better management of the trust whole heartedly are the Judiciary and
friction between layers, between the Armed Forces! An institution is one
departments, etc. It will also require the where processes apply, honesty prevails,
CEO to be more humble in the way he / politics is shunned, merit wins and
she comes across to the layers in the firm. insecure and incompetent leaders are
Engaging more with the organisation will weeded out. An institution is a place where
also need better follow up from the CEO honesty seeks the truth, merit chases
and for the CEO to hold laggards in the performance, and contribution matters
team accountable for their delivery to the more than salary packets. An institution is
firm. Engaging more also means one where the good of the company comes
exhaustion for the CEO, both emotionally first, ahead of the team good and the
and physically. The CEO will need to individual good. This institution building
rejuvenate regularly if he / she has to do will only happen if the CEO and the HR
the job. The CEO will need to steer the firm Director are willing to swallow a large part
in a positive way by harnessing the of their ego for the betterment of the firm.
collective potential of the people in the Finding two men or women to do this
firm. More than ever, this will distinguish fusion will be not a challenge but a
the great CEO from the average one. herculean task in the next decade!!!
apr 03 CEO Speak.p65 37 4/27/2011, 2:14 PM

WHAT MAKES A HR LEADER VALUABLE
TO THE CEO?
GV PRASAD and SAUMEN CHAKRABORTY
About the Authors

GV Prasad is the Vice Chairman and Chief Executive Officer of
Dr. Reddy’s Laboratories Ltd. Previously, he was Managing
Director of Cheminor Drugs Ltd, which merged with Dr. Reddy’s
in 2001. Prasad leads the core team that drives the growth and
performance of Dr. Reddy’s, and is widely credited as the architect
of the company’s successful global generics strategy. He is also a
champion of sustainability thinking and has spearheaded efforts
to reduce Dr. Reddy’s ecological footprint by embracing green
technologies and processes. Prasad got his degree in Chemical Engineering from the
Illinois Institute of Technology in Chicago and did Masters in Industrial
Administration from Purdue University. He is on the boards of ISB, Great Lakes,
Infotech Enterprises and Acumen Fund.
Saumen Chakraborty joined Dr. Reddy’s in 2001 as Global Chief

of HR. He went on to become the Chief Financial Officer in 2006
and President – Corporate & Global Generics Operations in 2009.
In his current role as President - Corporate, he is responsible for
Quality, Human Resources, IT-BPE, Corporate Communications
and Supply Chain Effectiveness. He focuses on integration of
People, Processes and Information across the organisation to
facilitate a culture of Total Quality, Execution Excellence and High
Performance. With over 23 years of experience in strategic and operational aspects of
management, Saumen has essayed a variety of roles in companies such as CMC,
C-DOT, Eicher, Tecumseh and Dr. Reddy’s. He graduated with top honours from
Visva-Bharati University in Physics and pursued management studies at IIM,
Ahmedabad.
T he increasingly strategic role that the

Human Resource or HR department
plays in an organisation became clear in
In the last five years, HR has evolved
further and is being seen as a strategic
advisor to the CEO, and partnering with
the mid 2000’s. During this time, HR the CEO to drive the company’s agenda.
demonstrated (through its commitment to As their compensation increases and job
efficiency initiatives) that sourcing talent responsibilities become broader, HR
for better leverage, outsourcing routine executives are in a position to be leaders in
work, and moving some talent costs from business. This is now possible because the
fixed to variable, could contribute directly crossover between human resources and
to the company’s profits. operational functions has expanded
apr 03 CEO Speak.p65 38 4/27/2011, 2:14 PM

significantly in the last few years, would be successful only when the CEO is
increasing the HR executive’s status. successful in achieving his/her goals.
Today, the high expectations that CEOs
In the process, while implementing
have of their HR leaders, implied by this
solutions to fulfil the corporate agenda, the
crossover, give them the opportunity to
HR leader has to spend enough time with
provide greater influence, gain recognition
employees to gain insights about the
and increase credibility, especially when
organisation. He or she has to be proactive
dealing with international issues.
and recommend solutions designed to
Broadly speaking, there are seven ways in address the gaps. HR leader is the architect
which HR can create value for the CEO and of the organisation design that addresses
the organisation as a result of that. They structure, processes and builds right values
are: and culture. This capability and agility of
the HR executive to design and implement
1. Understanding the CEO’s priorities and is indispensable from the organisation’s
drive organisation transformation perspective. It also leads to greater trust
2. Connecting the CEO to the pulse of the from the CEO and results in requests for
organisation inputs in the decision-making process.
3. Acting as an advisor and defining the But the task doesn’t end yet. Since the
metrics CEO’s priorities aren’t often channelised in
the right direction within the organisation,
4. Helping to create and engage with the and employees at times fail to see merit in
leaders of tomorrow what the organisation is attempting to do,
5. Innovating in the HR role to drive it is crucial for HR to be able to
business growth communicate these priorities to the
employees. Cascading such information
6. Creating a vibrant culture within the quickly and entirely is important to achieve
organisation complete alignment of the employees’
7. Aiding the CEO in creating goals to the organisation’s priorities.
organisation reputation globally.
2. Connecting the CEO with the pulse of
the organisation
1. Understanding the CEO’s priorities
and drive organisation transformation The pulse of the organisation cannot be
ascertained in the boardroom, and every
The CEO is the captain of the ship. It is as good HR leader is aware of that. It is not
simple as that. So, the HR leader has to start enough to connect with the employees and
by understanding what the CEO wants to try to understand the sentiments during a
accomplish in order of priorities and how downturn or a crisis period in the
he/she would like HR to drive organisation. Although CEOs are reluctant
organisation transformation. For this, the to put in time and effort to particularly
HR team has to spend time in not just pursue relationship building with
deciphering the organisation and its employees or encouraging one-on-one
values, but also read the CEO’s mind. A meetings, it is the job of a good HR leader
strong HR leader always attempts to align to make the CEO aware of its long-term
his/her priorities towards the specific impact.
actions and change agenda that makes
significant contribution in achieving the HR plays a vital role in sensing and sharing
CEO’s goals. Ultimately the HR leader information up and down within the
apr 03 CEO Speak.p65 39 4/27/2011, 2:14 PM

organisation. They must share with the organisation consisting of both
CEO what the employees and communities performance and health metrics and
within are saying. They must, in fact, strategic initiatives to enable it.
develop easy methods to gather inputs
from employees, which could be of value 4. Helping to create and engage with the
to the CEO’s actions as a leader. If the CEO leaders of tomorrow
begins to derive value from such findings, In all organisations, at any point of time,
HR should be able to go the extra mile in there is a dearth of capable leaders and
setting up opportunities for the CEO to outstanding leadership abilities. CEOs are
walk the floor, and build relationships. often heard saying that when it comes to
Interactive opportunities such as delegating mission critical assignments,
roundtables, lunches, individual meetings, they often find only a handful of leaders
celebratory events and skip level meetings geared to tackle the challenges that come
with employees can act as a positive with it. Here is a big opportunity for HR –
catalyst in helping the CEO understand the to be a critical player in the company’s
pulse. This, in turn, will empower the HR growth agenda by bolstering it with a
leader to help the CEO understand the strong team of dynamic and able leaders.
power of HR’s role.
In fact, HR can provide the bridge for the
In times when the CEO cannot reach out CEO by developing and building a more
to large numbers of employees, it is the HR robust and agile process that is capable of
leader’s prerogative to deliver his message. identifying, training, fast-tracking and
transforming a pipeline of high-potential
3. Acting as advisor and defining the individuals into the leaders of tomorrow.
metrics An effective way to do this would be
The most important role in current times through customised development
that the HR leader could play is that of an programs that focus on high performance,
advisor to the CEO. That is easier said than a global perspective that includes overseas
done, because unlike the CEO, the HR training, and fast track programs for
leader or the HR department, may not have exceptional performers.
a complete view of all the challenges or The CEO’s expectations from HR in this
opportunities related to business like the area would always be to create a
CEO would have. In such a scenario, it framework that leads to clarity of roles and
becomes imperative for the HR leader to responsibilities, because this is essential in
be in a “learning” mode. managing growth and alignment. Also,
The HR leader has to be open-minded, designing training programs on culture
practical and realistic, because that is what and organisation behaviour and the
the CEO needs in an advisor. A good development of an appropriate succession
advisor must always provide neutral planning process for high potentials,
feedback based on multiple viewpoints especially at the top levels of management,
and possess a clear opinion. HR should would be necessary.
have the ability to weigh the odds and
5. Innovating in the HR role to drive
advise against taking measures or
business growth
instituting programs or solutions that pose
a risk to the organisation. Additionally, the The CEO’s most important agenda in these
HR leader must play a key role, along with changing times is to stay relevant, to do
the CFO, to define the scorecard of the things better than yesterday, and to find
apr 03 CEO Speak.p65 40 4/27/2011, 2:14 PM

new ways and means to create greater The CEO would first have to clarify what
value with the existing processes and kind of a culture he or she would like to
strategies. Interestingly, in recent times the build in the organisation, or what kind of
HR departments of many organisations an image would be ideal for the
have helped create a culture of innovation organisation to have in the community, or
by encouraging idea generation and what would be the desired compensation
putting a process of selection and execution strategy. The HR leader cannot develop
of the idea and rewarding it. HR leaders or implement solutions that mirror the
could enable the concerned employees expectations of the CEO without knowing
with the necessary tools to think out-of-the- that, nor can he create a culture that
box. he/she thinks is desirable. Most of the
time, HR leaders of great organisations do
In other words, what successful HR not “create” a culture without first getting
professionals have adopted is “process clarity on the CEO’s personal views on
innovation”. Process innovation is directly culture.
related to increasing effectiveness and
agility in the current business context. HR, However, it is also important to remember
as an innovator itself, went a step ahead to that the CEO may need development,
improve its services to business leaders. direction, and a conscience, too. The HR
This it did by realigning itself to create leader, who wants to add value to the
better systems and processes to eliminate CEO’s role in the eyes of the people, has to
redundancy in manpower or scrutinise and make sure that the CEO participates and
recommend the quality of people. keeps the culture alive through actions and
not just words. In order to do this, the HR
HR, in an innovator’s role, through its leader as the “culture champion” has to
responsiveness and process orientation, help the CEO understand how his or her
can greatly benefit the organisation by actions will impact the culture. Also, in
impacting the bottom-line performance. difficult times, it is the HR leader and
his/her team that needs to hand-hold
6. Creating a vibrant culture within the employees and boost morale, keeping the
organisation atmosphere empathetic and alive. To create
Culture is the DNA of any organisation. a vibrant culture, HR has to be adaptable
What the employees speak, think or do, and flexible to appreciate different cultures
creates the culture or “way of life’ in the and people, and understand what
organisation. HR needs to articulate the motivates and drives them.
desired culture of the organisation, and
7. Aiding the CEO in creating
reinforce it through its own actions and
“organisation reputation” globally
decisions that impacts people. But the kind
of culture that eventually gets created, To be valuable to the CEO, HR has to go
irrespective of the CEO’s vision or beyond its local “informational” role. It has
directives, depends largely on the quality to take into account the larger landscape
and experience level of the HR leader. It is of today, where companies have offices all
essential for a HR professional to be over the world and employ people of
proactive in understanding and different cultures, races and nationalities.
communicating the culture to the CEOs expect HR to adapt to the global
employees through policies, procedures, landscape where the organisation’s people
communications, and decisions that will may be in the farflung corners, unseen and
affect the organisation’s human capital. unheard. What the CEO needs assistance
apr 03 CEO Speak.p65 41 4/27/2011, 2:14 PM

with is, not just finding the best talent and reorganisations, HR has an unique
recruiting them across the world, but he opportunity to be at the helm, by providing
or she also needs the HR leader to know qualitative inputs and appraise the chances
more about the global HR practices, of a successful alliance. HR can assess the
policies and HR management systems. “fit” of the organisations as it directly
impacts employee morale, business
So, for a HR leader to aid the CEO in efficiency and growth. Once the merger
creating an organisation of global repute, decision has been made, HR should
he or she has to begin by furthering then be in a position to facilitate the
perspectives about hiring and retaining transition and restructuring to ensure a
global talent, educating business leaders seamless cultural and professional work
about culture and value systems, learning experience.
about international HR practices that have
succeeded in multinational companies, and
even imparting foreign language trainings To conclude, for HR to be valuable to the
and advocating international assignments. CEO, and to continue as a strategic partner
In addition to all of this, the HR leader must in the new, growth-driven future, it must
be in a position to design and recommend answer the call – to support, systematise,
attractive incentive packages and executive innovate, nurture and create an
compensation, which are at par with environment where it is possible to achieve
international standards. growth goals. Just like every CEO is
unique, the HR team also has to imbibe
For multinational companies, being able to some of that uniqueness to be able to drive
be part of the international growth agenda the CEO’s exclusive vision, while bringing
is significant for a HR leader. During clarity to the CEO’s fundamental
times of mergers, acquisitions and expectations of how to achieve it.
apr 03 CEO Speak.p65 42 4/27/2011, 2:14 PM

KEY CHALLENGES FOR THE HR FUNCTION
NEERAJ SWAROOP
About the Author

Neeraj Swaroop is Regional Chief Executive, South Asia of
Standard Chartered Bank. In his current role, he is responsible for
Standard Chartered’s operations in India and South Asia (which
also includes Bangladesh, Sri Lanka, Nepal and Afghanistan). India
is now the largest contributor to Standard Chartered’s profits
globally. Mr. Swaroop’s career spans over 29 years with the last 20
years spent in the Indian banking industry. He is a seasoned banker
having worked previously with Bank of America and HDFC Bank.
He also represents the Bank at various industry forums including in the Managing
Committee of the IBA and CII’s National Committee on Banking. Mr. Swaroop holds
a MBA degree from IIM Ahmedabad and is an engineering graduate from IIT Delhi.
H R partnering with business — it is a

partnership and most definitely a
winning combination when we get it right.
and resurgent players have been on a
ramp-up spree, though the market
downturn did slow the pace momentarily.
When I was invited to share my views, I Private sector banks have been reworking
was more than happy, for I do strongly strategies, expanding locally and globally.
believe that in today’s changing world, HR Public sector banks on the other hand have
is very critical to the strength and success started to get aggressive and technology
of any organisation. Over the last couple savvy with increased focus on branding
of decades, I have seen the role of HR as well. Amongst all this, the regulatory
changing from one of being governance environment has become more robust.
partners to that of being strategic business
partners. One of the key enablers of continued
strength in the banking industry has been
We are all well aware that the dependency a bank’s ability to stick to its strategy and
on people across industries is different and manage potential barriers to its sustainable
the role of HR would accordingly differ. growth. In this journey, I do look to my
For example, in the manufacturing sector, HR and management team to support me
managing unions and political interference in many areas that I believe are critical in
would be the bigger challenge, whereas in building a strong and stable organisation.
the information technology sector,
concerns would centre on productivity Today, I will share with you my thoughts
and optimal utilisation of talent across and what we do at Standard Chartered on
multiple projects. Banking has its own 3 key areas. These are points I often
challenges due to the sector’s high deliberate and keep challenging our HR
dependence on people. New foreign banks and management team with:
apr 03 CEO Speak.p65 43 4/27/2011, 2:14 PM

1. Engagement & alignment of employees to only to a certain threshold level, beyond
organisation goals that it is important for an employee to have
2. Leadership development more touch points with the organisation.
3. Building and sustaining a strong culture If employees are unable to link their job
within the organisation objectives to the organisation’s vision and
strategy, how could I expect them to be
Engagement & alignment of employees aligned and committed? How do we
to organisation goals empower them to take decisions when
they don’t have a clear understanding of
Do employees feel engaged and motivated? Are the implications and impact of their
they aligned to organisational goals? The decisions on overall strategy?
answer to this question has often led me
to review the execution strategy and also At Standard Chartered Bank, we believe
helped me stay connected to reality. In my that every employee needs to feel valued
view, HR has many roles to play here – a and part of the organisation. We follow a
change agent, flawless execution of simple KFCI model that guides all our
transforming business strategy into talent initiatives. Mentioned below are the few
strategy and being an employee things that we do to build engagement and
champion! create greater alignment among
employees — Communicate and Create
The key challenge for any organisation is Transparency.
to build an engaged and motivated
workforce that is aligned to organisation Communication: I believe there is no such
goals. Working cohesively as one unit thing as over communication and
despite being multi–cultural and multi– encourage my team to leverage all
location is the need of the hour. platforms to communicate with employees
across various locations. The key is two-
When I interact with young talent across
way interaction and we provide adequate
industries, I sense some impatience in
avenues for all employees to reach out to
today‘s generation to wait for the plan to
seniors and seek clarification or support.
unfold. They seem to be in a perennial
hurry to get somewhere and in a race to Create transparency: Enable systems and
get there first. So the challenge is not just processes to seek feedback, and we
to design systems and processes that help continuously track the quality of
identify talent, but a system that is discussions. We cannot have high
responsive to changing expectations and engagement where there is low
can balance the organisation’s needs with transparency or credible process.
employee demands. Transparency helps build credibility in the
Having said that, the employee system on the processes, decisions and
proposition has also changed over the overall leadership capability. When the
years. Private companies seldom system is perceived to be fair and
guarantee life-time employment – there transparent, difficult decisions become
are new terms today such as right sizing easy to communicate and handle.
and productivity challenges that often I constantly endeavour to ensure all our
determine the stability of employment initiatives help us achieve this. The HR
across organisations. Hence, it is only fair function is the custodian of employee well
that the current generation would prefer being and hence we have strong ‘Speak
to capitalise on the market environment. Up’ and grievance handling process to
Compensation can help drive engagement promote the right behaviours.
apr 03 CEO Speak.p65 44 4/27/2011, 2:14 PM

Exhibit 1: Creating an engaged team at Standard Chartered Bank
Some of our initiatives that have helped South of India. We leverage this forum
build a strong open and honest culture to ensure all relevant information is
are : shared with the regional teams from
Coimbatore to Guwahati. Our
• CEO town halls & Big Calls: I reach out
endeavour is to stay connected with
to all the employees across locations
every employee and reach out with as
through these town halls and share
much update and information as
with them the key messages, our
possible. At the same time to allow
strategic intent and the rationale
and encourage dialogues, we ensure
behind several decisions that we take
the management is accessible through
during that period. All business
the Regional Manco set ups.
leaders including me have regular
tele-conferences with our teams across • Awards & Recognition: The right
India and South Asia. Every quarter behaviour and performance needs to
we communicate with the team, be recognised and when recognised
reflect on our performances, some on a large platform helps build a
wins and opportunities lost. I believe common understanding of what is
this helps the larger team to align their rewarded and hence expected of each
focus towards relevant outcomes. The employee. We have several
Q&A sessions allows them to interact recognition forums starting from team
with senior leaders directly. level to annual CEO awards. The
• Location Visits: Every year, we divide country also participates in global
the region among the top team and recognition programs. All these help
travel to all the key locations and us build a strong sense of pride in the
spend time communicating with the organisation
teams at our concerned locations. This
In the last couple of years, the banking
has helped us build greater connect
industry in particular has undergone
with the employees and also ensured
some major transformation. We also
all employees share a common
aligned ourselves to future need, and in
understanding of the deliverables,
the process, did go through business
task at hand and the overall strategy
transformation. HR plays a key role in
• Regional Manco: Regional any transition or transformation journey.
Management Committee (Regional Being connected to people to know their
Manco) comprises of a team of senior pulse and also assess the level of
most business and HR representatives understanding among the staff on the
at regional level. We have 3 such organisation changes helps us align our
committees across North, East and efforts to gain the desired outcome. We
apr 03 CEO Speak.p65 45 4/27/2011, 2:14 PM

used all forms of communication – print, important stakeholder. Employee
audio podcasts, intranet team sites, volunteering is at the heart of our
workshops, big calls, town halls – the commitment to play an active role in
impact, well every single employee in the tackling the challenges faced by the
organisation was targeted by atleast two disadvantaged populations. In 2010, our
or more of the mediums used. The staff donated 8074 days of paid
outcome is there for all to experience. volunteering leave to the community.
Standard Chartered has had the best 2 The Standard Chartered Mumbai
years and we continue to grow within the Marathon is a key activity that is clearly
Group and also across the region. led by our staff. Today, the eighth edition
of the Standard Chartered Mumbai
Another strong binding force is through
Marathon 2011 has created history in
the CSR initiatives where employees
more ways than one. It has generated
across the bank work as one team.
over 12 crores benefitting more than 131
Our approach to Sustainability through NGOs. Over 70 % of the staff contributed
the theme of ‘basics of banking’ to charity and raised INR 3000,000/-
emphasises the value of organisations to through Standard Chartered Mumbai
the economy and society through three Marathon
broad strands of
While we drive engagement and
• Leading the way in communities alignment, we always ensure there is
• Contributing to the real economy and adequate Fun@work to keep employees
• Promoting sustainable finance. happy and motivated.
Within these three strands, are our • Engagement Events: We ensure there
sustainability pillars that represent are enough events to bring the teams
providing products and services that and occasionally even families
facilitate business, trade and economic together through Family Fun Day,
growth. And at the same time we Talent and Sports Competitions, and
continue to focus relentlessly on our other fun events.
environment, social and governance
priorities, at the heart of our • Theme Events: We also run theme
sustainability strategy now for several events such as fitness week, financial
years. wellness week, lectures, medical
screening, financial planning,
One of our key initiatives is Seeing is consulting and other events to help
Believing to cure avoidable blindness. our employees.
• ‘Seeing is Believing’, our initiative on
• Engagement Survey: Every year, we
avoidable blindness has been active in
participate in a global engagement
the country since 2003. This is a
survey and we have a rigorous
staff-led programme which since 2003
process around driving engagement
has impacted around 1.82 mn people.
through team engagement plans.
Today in its fourth phase, the
Every team takes the ownership to
programme is aiming to target to
identify their problems and reach out
impact an additional 3 mn people by
to the larger system for solutions and
2015 through urban eye care
support. All people leaders are
programmes in Delhi, Hyderabad,
measured on their team scores.
Mumbai and Kolkata.
Driving the right behaviour and
For all our community investment culture is a key assessment criteria for
initiatives, our employees form an all leaders.
apr 03 CEO Speak.p65 46 4/27/2011, 2:14 PM

An engaged employee will most definitely Talent Management
put in more discretionary effort, be your
The Bank works on Strength + Potential
cultural guardian and also your whistle
philosophy to identify talent across levels.
blower in the event of any risk to the
We have a robust leadership model which
organisation.
is used to filter talent at the senior level.
When talented people feel recognised,
Leadership Development supported and valued, they are more
One of the priorities of Standard Chartered likely to stay with us and contribute their
Bank is to ‘Massively Multiply Our best. This helps to deliver a strong business
Leadership Capability’. performance and reinforces our reputation
for world-class people management. In
Understanding what people and driving the talent agenda forward, it’s
capabilities we need to grow is important that we give people focused
fundamental for building leadership attention that helps them to feel fully
capability - engaged. To achieve this, we need to:
• To grow commercially in our markets,
we need ‘more, high quality’ leaders at • Know what motivates them
all levels: senior, middle, and junior • Help them understand and play to their
• Building a future pipeline of junior strengths
leaders, who are capable of helping us
to achieve our future targets • Agree stretching goals with them
• Therefore developing junior talent, for • Accelerate their learning and

leadership positions in the future takes development
time – hence requires focused attention
and investment today. • Support them as they plan rewarding
and satisfying careers
Our Human Resource team champions
this priority, by ensuring right talent is That’s when we thought if there was merit
identified, developing the talent and in communicating to our top talent their
grooming them for leadership roles. importance to the organisation? By doing
apr 03 CEO Speak.p65 47 4/27/2011, 2:14 PM

so we could be better focussed in giving on the organisation now to be more
our talent development opportunities. proactive and structured in handling the
This was a debate for a long time in our career of these people. It provides a
organisation until last year when we positive validation to the employee that
decided to be transparent about talent performance is rewarded and most
classification. I think it puts the pressure importantly differentiated.
Exhibit 2: Building managerial capabilities through the ‘Great

Managers Programme’
I believe that leaders and great managers environments. In the last 3 years, more
define the culture of the organisation. If than 2034 managers have been covered
managers demonstrate the right through sessions conducted across metro
behaviour, reward the right people, there cities.
is a consensus that gets created in the
Selected Great Managers with high
team around expected behaviour.
engagement scores are recognised
through a ‘Great Manager Recognition
The ‘Great Managers Programme’ (GMP)
programme’ both at Country level and
is the Bank’s internal talent development
Group level.
program for all people managers and is
a key priority for the Bank. The Great We additionally have a gamut of
Manager Programme is about creating leadership programs that focuses on
high performing teams and work developing the capabilities and mindsets
apr 03 CEO Speak.p65 48 4/27/2011, 2:14 PM

that enable leaders to move effectively that could stand in the way of their
from ‘individual contributors’ to ‘leading performance and progress.
a team of individual contributors’ to
Being an MNC Bank, we have unique
‘leading a number of team leaders’ and
opportunities and challenges. We not
being highly effective in a complex
only build leadership pipeline for home
environment.
countries but are also exporters of talent
We leverage on ‘coaching’ and for other markets. This enables a healthy
mentoring’ as a tool to help talented mix of talent and leaders from various
individuals address specific challenges geographies and cultures.
Building and sustaining a strong culture greater challenge. It’s my strong belief that
in the organisation our values and culture are a source of
competitive advantage, a critical part of
Culture is a primary determinant that
why our customers and clients bank with
differentiates world–class organisations
us, and why talented employees join and
from the rest.
stay with us.
Culture is deep rooted but manifests
through practices and behaviours. HR plays a critical role as the custodians
Multinational companies such as ours of organisational health and serves as the
spread across various geographies have a CEO’s “window” into the organisation.
Exhibit 3: The Standard Chartered way of doing things

It becomes important for HR to be able the values with the employees. We have
to identify and articulate how values can integrated “Living the Values” as a
manifest into behaviours in ways that can separate category in our annual awards
be easily understood by employees and program to recognise employees who
measured. In Standard Chartered, we have set examples for their colleagues.
have tried to integrate values by Having Storyboards to capture inspiring
identifying 5 behaviours that we feel are behaviours is interesting as well. Create
core to the organisation’s culture – champions who will help drive the right
Creative, Courageous, Trustworthy, behaviours.
Responsive and International.
Here for good –
In an extensive behaviour guideline, “Here for good is about our
behaviour expectation against each value commitment to our customers, our
is emphasised. We have tried to integrate market and ourselves. It is us at our
assessment of behaviours through values best”
scale in the performance management - Peter Sands,
process. Managers must not only Group Chief Executive
positively differentiate team members
who demonstrate the right behaviours, Here for good is our new brand promise.
but must be role models themselves for Though in reality, it’s our oldest belief.
teams to emulate. We have tried to bring It’s what we’ve been doing for the past
in new concepts such as “culture 150 years, and our aim for the next. In a
guardians” and sharing stories of living world where complacency breeds
apr 03 CEO Speak.p65 49 4/27/2011, 2:14 PM

similarity, our brand promise is unique “Here for customers, Here for good.” The
and tells our story. key promises of the charter are to provide
1) Friendly, fast and accurate service;
It’s our promise to be here for people, 2) Solutions to financial needs; and
here for progress, here for the long 3) Recognition of customers’ total
run…Here for good! banking relationships. A comprehensive
communication and education campaign
As part of Standard Chartered’s took place in the first half of 2010 to
customer-focused culture, our Consumer ensure that all CB staff are aware of and
Banking business has launched the able to apply the Customer Charter in
Customer Charter under the theme of their daily business.
I believe the key to building and The team had responsibility of retention
embedding the culture is to have managers of key people and separation of redundant
and senior leaders playing the role of staff, development of a total rewards
culture guardians. strategy for the combined companies,
communications strategy development
Another area where HR plays a significant and implementation, integration of payroll
role is in M&A and integrations. In benefits. And all this with speed and
implementing a M&A, most companies accuracy!
focus on financials, business integration
and process migration. But success often While I have listed 3 broad areas that I
hinges on how you deal with people issues believe are the drivers for a successful
and cultural integration. Standard organisation, this however doesn’t limit
Chartered Bank has successfully managed the scope of influence for HR. The range
many such transitions, be it Grindlays or is broad - from hiring right and deploying
American Express. the talent in the right role to ensuring a
healthy rate of attrition. From creating a
Completion of the acquisition and culture where talent can thrive and
integration — operationally and culturally employees can easily ‘speak up’. From
— has required human resources to play a working with diverse cultures and
major role. Right from development of nationalities to creating an environment
preliminary organisational designs and where “Diversity & Inclusion’ is sustained.
identification of the top management to Creating a learning organisation that
assessment of critical players and continuously improves the way it works.
deployment of appropriate resources in
the new company, there was a cross The task is huge and so are my
functional team led by HR working on this. expectations!
apr 03 CEO Speak.p65 50 4/27/2011, 2:14 PM

“SKILLS NEEDED FOR SUCCESS AS HR
PROFESSIONALS: CEO’S VIEW”
SHIKHA SHARMA
About the Author

Shikha Sharma is the Managing Director and CEO of Axis Bank
since 2009.
She was the Managing Director & founder CEO of ICICI Prudential
Life Insurance Company, a joint venture between ICICI Bank,
India’s leading financial services company, and Prudential plc, one
of UK’s largest insurers.
She has done her B.A. (Hons.) in Economics, and completed her
Masters of Business Administration from the Indian Institute of Management,
Ahmedabad in 1980. She has a Post Graduate Diploma in Software Technology, from
the National Centre for Software Technology, Mumbai.
Axis Bank is amongst the three major private sector banks which commenced business
in 1994 as a consequence of the liberalisation and reform of the financial sector.
Introduction strategic partner in managing the company

and providing leadership for achieving the
T he role and impact of HR profession
continues to evolve in response to
external conditions. For the HR profession,
organisation’s core mission.
As HR professionals increasingly strive to
times have never been more challenging. become strategic partners with business,
Not that long ago, peaceful co-existence their relationship with CEOs and various
with unions, administration of employee business heads becomes more and more
benefits and managing basic processes like significant. The day to day involvement of
compensation, payroll, HR database HR in facilitating business decisions in my
management, compliance & recruitments organisation underlines the importance of
were the measures of success. As the this relationship.
competition is increasing, internal and
Guiding principles for HR to become a
external forces are moving HR towards a
strategic partner to business
more strategic role in the organisation. HR
is now being expected to go beyond the In my view, HR professionals must
routine operational issues to becoming constantly probe themselves on the
champions for nourishing people talent, following questions and focus their efforts,
improving the organisation’s productivity, in order to effectively deliver on the
ensuring top management succession and business strategies-
participating in key business decisions.
• Do we have the right leadership in place
Most importantly, the CEO and the Board that can deliver business strategy? If
of Directors are looking upto them to be a not, what needs to change? Is the
apr 03 CEO Speak.p65 51 4/27/2011, 2:14 PM

structure of the organisation and Desired capabilities and roles for
leadership aligned to meet the vision? HR professionals in progressive
organisations
• Do we have the right number of people
with the right skill sets in the right jobs “The new agenda for HR is a radical
to deliver on our organisation strategy? departure from the status quo. In most
• Are people feeling effectively informed, companies today HR is sanctioned to play
engaged and aligned with strategy? policy police and regulatory watch
dog….the activities of HR appear to be –
• Does the business strategy require and often are – disconnected from the real
special or new/rare skill sets that needs work of the organisation. The new agenda,
to be either developed or acquired? Do however, would mean that every one of
employees know and are ready to HR’s activities would in some concrete way
leverage on their strengths and skills help the company better serve its
to deliver on the strategy? customers or otherwise increase
• Is the turnover healthy, or will it hamper shareholder value.” [Ulrich (1998) Harvard
delivery of business strategy? Is the Business Review January-February 1998,
compensation and reward competitive 124-134]
to keep a check on the turnover? To succeed, HR must have the ability to be
• Is performance management system persuasive and move the organisation
aligned with business strategy? Do forward and to influence key business
people have line of sight between what decisions. In my opinion, to be more
they do every day and the business persuasive, HR professionals need to
strategy? Can HR do more to improve be better equipped with business
performance of the organisation? fundamentals.
• Does the internal employee culture line Human Resources professionals are the
up in support of the marketing messages conscience keepers of the company, as
to the external customer? The two well as the guardians of confidential
should be mirror image. If we promise information. HR’s key role is to be able to
customers quality and speedy service; push back decisions which are not aligned
how does that show up everyday within with the organisation’s values, though may
the organisation? Would employees state be beneficial in the short run. Further, HR
that our organisation has a clearly professionals should demonstrate fairness
defined culture? at all times. This means that employee
communication should be clear, that
• Within the HR function - Is there peoples’ voices are heard, that laws and
knowledge and understanding of the policies are followed, and that privacy and
industry and the organisation; ability to respect is maintained.
solve major business problems; ability
to develop creative solutions to difficult HR professionals need to consider the
problems; needs of both employees and management.
To elucidate, there may be times they are
• Is there ability to complete projects on
required to make decisions to protect the
time and as per the budget?
individual and advocate for their concerns.
• And also, does HR function have the Alternatively, there are times when they
capability and skill-set to accept the protect the organisation, its culture, values
roles and challenges that the global and enforce the policies of the organisation.
marketplace brings? The HR professional who can pull off this
apr 03 CEO Speak.p65 52 4/27/2011, 2:14 PM

delicate balancing act wins trust from all rapid downsizing and sudden ramp-up
concerned. plans. To be prepared for all
possibilities, to be able to give a clear
Forward-thinking HR professionals take a
picture of changes to fellow employees,
leadership role and influence
and to be able to look ahead and foresee
management’s strategic path by gauging
changes on the horizon that could
and filling the talent needs of the company,
involve changes in HR practices.
devising compensation schemes, and
bringing on board new skill sets leading to
business growth. Once, companies were 2. HR professionals must get more
organised into hierarchies of workers involved in the lever of the business, i.e.,
headed by supervisors. Today, the team is in becoming efficient business enablers
king. HR managers must consequently
In a competitive environment, few
understand team dynamics and find ways
organisations want to make any
to bring disparate personalities together
compromise on performance. In this
and make the team work.
context, HR professionals must become
HR professionals, as business partners, facilitators of high performance and
need to help managers coach and develop productivity. Better understanding
their teams. The goal is continued of operational concerns and translating
improvement and innovation as well as it into inputs for delivery of high
remediation. quality talent pipeline, strategic
compensation and reward designs,
For corporate, business and HR strategies
training programmes, behavioural
to be integrated well, it is apparent that the
development programmes and
top management, business heads and HR
leadership building, etc. should be a key
professionals need to work closely with
deliverable of the HR function. This is
each other.
particularly important in an era when
There are five ways in which HR domain knowledge and technical
professionals can enhance their ability to expertise are becoming more important.
contribute to this integration process. These
have come from the vision and strongly- 3. HR professionals (especially in the
held beliefs of the CEO that HR Banking context) must become
professionals play an important and guardians of ethical conduct
complementary role.
Financial sector works within tight
1. HR professionals must spend more time
regulatory mechanisms mandated by
and effort understanding the business
statutory organisations. Further, the
environment and the key strategic
banking business being custodian of
issues faced by the company
funds of the Public, various Corporates,
HR professionals need to be able to and Government Institutions, etc. there
anticipate issues that will be of concern are umpteen opportunities for
to the top management before they employees to commit errors leading to
actually come on the table. With the high risk and loss of funds. It is
increasing uncertainty in the business imperative for HR to create a
environment, and the volatility of framework of ethical conduct, and
different markets, organisations are consequence management and spread
increasingly forced to take drastic awareness about such policies across
decisions at short notice such as the the organisation.
apr 03 CEO Speak.p65 53 4/27/2011, 2:14 PM

4. HR professionals must see themselves of people issues will directly impact the
as knowledge workers and facilitators bottom line.
of knowledge flows within the
Successful contribution to the business
organisation
from the HR function requires an optimal
Organisations are increasingly blend of business and human capital
dependent on leveraging knowledge strategy, that is, what services HR should
from within the organisation to be provide to support the business; and
competitive in the marketplace. understanding of internal customer needs,
Documentation and sharing of such that is, what services internal customers
knowledge helps organisations do this want HR to provide.
effectively. Performance appraisal
processes and incentive systems need In addition though, HR must determine
to reflect the importance of this activity. how best to deliver these services. It must
Besides creating such systems within determine the optimal service delivery
the organisation, HR professionals need model - the framework by which the HR
to first internalise the knowledge function will deliver the human capital-
creation and dissemination mindset related programs, services and information
within themselves. required by the business.
Bottomline, for HR to address its most
5. HR professionals need to change from
compelling challenges, the one common
a support paradigm to a value creation
hurdle is that HR must first ensure that the
paradigm
transactional and legally mandated parts
As an important contributor to the of the HR job are well oiled and smooth
performance of the company, HR running and then the big leap opportunity
contributions need to be measured in is to develop the strategy, structure and
the right framework. HR professionals skills to address talent and strategic,
may tend to measure themselves in a change oriented issues. Beyond skills, it is
very limited way such as “we hired 120 imperative that HR professionals have a
people” instead of “we enabled the real passion for their jobs. The true success
addition of an additional Rs. 5 crores to comes from a passion for your job.
the EVA of the company”.
“HR should work towards serving
business strategy, “It’s important for HR
Conclusion
people to know what that strategy is and
In concluding, while organisations have what makes the business tick so that the
traditionally looked to non-human capital approach to HR can be tailored
variables when seeking to influence accordingly. HR must measure impact of
business growth and shareholder value, HR practices on business outcomes rather
the pendulum is swinging as more than HR activities, with greater focus on
businesses recognise that the management customer and market growth.
apr 03 CEO Speak.p65 54 4/27/2011, 2:14 PM

SELECTING HR LEADERS : WHAT CEOs LOOK FOR
DHRUV PRAKASH and JOYLYN LARGO AFONSO
About the Authors

Dhruv Prakash is Managing Director of Korn/Ferry Leadership
and Talent Consulting in India, based in the Firm’s New Delhi
office.
In addition to over 37 years of expansive and varied industry
experience, Prakash possesses an extensive background in
consulting, having worked with several of India’s leading
businesses to manage change, coach senior management, build high
performance cultures, align executive compensation, restructure
organisations and conduct post merger integration.
Prior to joining Korn/Ferry, Prakash was a Director at Helion Advisors, a venture
capital firm.
Before this, Prakash was a senior consultant at Hewitt Associates. Earlier, he was the
Chief Executive Officer and member of the Board of DCM Financial Services, and
earlier, the Chief Financial Officer of DCM Toyota. He has also held senior positions
at Escorts, HCL and Amar Dye Chem.
Prakash holds a Master’s degree in Business Administration from the Indian Institute
of Management, Ahmedabad, and a Master’s degree in Chemistry from Meerut
University.
Prakash has coached senior executives in a variety of organisations such as Reliance
Industries, the Max Group, Make My Trip, DFID etc.
Joylyn Largo-Afonso is a Client Partner in Korn/Ferry
International’s Mumbai office and a member of the Firm’s Global
Technology Market. She also heads the HR CoE at Korn/Ferry
International, India.
Before joining Korn/Ferry in 1997, Ms. Largo-Afonso worked
briefly for Coca-Cola. She earlier began her career with HSBC
Bombay in 1996 in the marketing department (Asset vantage).
She is a Post graduate in Psychology, and a Post graduate diploma in Personnel
Management and Industrial Relations from Tata Institute of Social Sciences.
‘When we look at the future, human resources trends. He needs to be very involved with
is really the fundamental competitive factor customers, the technologies, the issues, the
for our organisation. So, from an organisational competition, and so on. He must possess
point of view, we need to develop that the business acumen, strategic thinking, and
capability. I think it’s very important for the organisational savvy and functional
Head of HR to have an understanding of the depth and have a convincing opinion and
business activities, the language, and the voice.’
apr 04 HR Speak.p65 55 4/27/2011, 2:45 PM

T hus began the briefing that a CEO of a
major Indian business house gave us
before starting the search for the head of
semi-urban and rural markets, from being
national or regional players to global
players and so on. For the new strategies
HR for their global operations. This has to succeed, a wholesale reorientation of
now become a common and constant managers and leaders is required. As one
refrain, whether the organisation in CEO said ‘Talent is our rate-limit on
question is a rapidly expanding, globally growth. To grow full-spectrum businesses,
diversifying Indian business house or a we need leaders who have the skills,
global organisation setting up in India or experience, and capabilities that go beyond
preparing to launch the next phase of their the traditional business leaders we have.’
growth in the Indian market. It is no wonder then that the CEOs are
focusing first on getting their HR leaders
The CEO’s quest for strategic HR, or for right.
that matter HR’s quest for a seat at the top
table, is neither new nor unique to any type At Korn/Ferry, before starting a search we
or types of organisation or business. ask the CEOs to articulate the mission
However, as our conversations with CEOs critical competencies required for an
and global talent managers looking to hire incumbent to be effective in the role as well
C-level executives show, the recent tectonic as the leadership style that will make the
shifts in the global economic environment incumbent successful. Based on the
have created an urgency for organisations searches for CHROs conducted over the
around re-jigging and re-skilling the talent last couple of years, we find that the
pool to take advantage of new competencies most often identified as
opportunities. Korn/Ferry’s Asia 2.0 mission critical are as follows.
research shows that Asia’s emergence as
• Understanding the business
the center of global economic growth is
characterised by three major changes for • Motivating and influencing others
businesses: • Making tough decisions
1. A shift from servicing primarily the • Creating the new and different
western consumer to servicing the • Energy and Drive
Asian consumer. • Acting with honour and Character
2. Innovations in products and services
While many of these are not new additions,
are increasingly occurring in Asia to
there is a considerable difference in the
first meet the Asian consumer’s
frequency of selection as mission critical,
requirement and then proliferate to
as well as the aspects of each that are
other markets.
emphasised.
3. A shift from low-cost labour pool to a
Understanding the business is a
pool of creative talent delivering new
competency that appears invariably in all
ideas and growing businesses in
mission critical selection. It refers to a clear
hitherto unexploited market segments
understanding of the organisation’s
and geographies.
business and the ability to speak the
To meet these new challenges, a number language of business. Behaviourally, this
of organisations have changed their is observed as an understanding of the
business strategies from transaction environment in which the organisation
processing to solution providing, from does business, a grasp of the company’s
focusing on urban markets to moving into standing relative to its competitors, an
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awareness of the strategic and operational expected to stay ahead of the curve by
challenges facing the business, an making things happen and being ahead of
appreciation for the concerns of functional market trends instead of following what’s
leaders, managers and employees and the happening in the industry. Given the
ability to see what must be done now to primacy of talent in the success of the
position the business for future success and business in the future, their ability to make
how the human capital strategy will the right decisions will significantly be
support that. It is the ability to leverage impacted by the support, guidance and
their understanding of the business and HR wisdom received from the HR head.
practices to conceive solutions that have Making Tough Decisions refers not so
practical relevance in the current context much to the traditional iron fist in a velvet
and deal creatively with longer-term glove, but the ability to make the right
obstacles. talent calls in ambiguous situations,
managing with under-ready talent,
The other one that we see appearing on managing retention in a high performing
the list very often is Motivating and environment, when and where to reduce
Influencing others. HR executives need to headcount and when and where to re/hire,
be able to form broad networks, especially etc.
internally, be sufficiently connected within
the organisation to have a deep reach and As outlined in the beginning of this article,
understanding of the key players and their success in the new economic environment
role in making the business successful. would require businesses to innovate
These executives must be able to build products and services, address hitherto
bridges across functions, understand the un/under-explored consumer segments
motives and drivers of senior-level decision and/or expand into new geographies in a
making, and help translate that thinking manner and at a speed that is different from
to their key executives. They should be able the way the western companies globalised
to adapt their methods to deal with in the past. It will require HR leaders to
changing organisational needs and create new and different ways to identify,
differing levels of sophistication and acquire and deploy talent, create and
understanding in different parts of the maintain culture, engage and retain
organisation and provide support across employees and ensure efficient operation
the business. In terms of personal power, of HR system. Ability to deal with
HR leaders need to be perceived as ambiguity, learning quickly as they face
knowledgeable about talent, broadly, and new problems and viewing issues and
business strategy. They must be equipped challenges from a broad perspective is
to coach and align the executive team. In what the CEOs would like to see in their
many organisations which are expanding HR leaders.
in other countries, there is also the Energy and Drive is emphasised as much
expectation of cross-cultural agility-an for consistent achievement of results as also
ability to get things done and promote the for perseverance in ensuring that the
organisation’s desired culture without change succeeds.
getting bogged down by cultural nuances.
Our experience shows that very few
CEOs are now expected to have the ability candidates meet the standards of Business
to manage businesses in hard times. In understanding and influencing, conflict
other words, they will have to make tough management and creating new and
decisions decisively. They are also different skills required by the CEOs, while
apr 04 HR Speak.p65 57 4/27/2011, 2:45 PM

a fairly large percentage meet the standard makers, they must build their own
in energy and drive, functional knowledge networks (Access). Most importantly,
and organisational agility. strategic HR professionals must possess the
business acumen, strategic thinking,
Based on our experience, we believe that organisational savviness and functional
for a CHRO to fulfill the expectations of depth to have a convincing opinion or
the CEO, the person must possess three voice (Point of View).
primary intersecting capabilities: influence,
access and point of view (see figure across). Our model shows that all three capabilities
must be present for HR to realise its full
Strategic HR executives must be able to potential. For example, a CHRO who has
influence the thinking and actions of others access and a point of view but lacks
through proven capability and relevance influence is doomed. Likewise, an
to the business agenda as well as ethical executive who has solid opinions and
influence tactics (Influence). influence without access will find that his
or her ideas rarely reach decision makers.
While the organisation’s structure may And, a CHRO with access and a point of
provide a pathway through which HR view but who lacks the capability to
executives can communicate with decision influence will not be fully effective.
Leadership style to align and harness the talent pool is

predicated on the style of the leaders.
Besides the competencies, the CEOs place
strong emphasis on the leadership style of After interviewing scores of leadership
the HR candidates. The success and candidates and evaluating effectiveness of
effectiveness of an organisation’s strategy, performance post placement, we’ve
speed and success of change and the ability created a matrix of four leadership styles
apr 04 HR Speak.p65 58 4/27/2011, 2:45 PM

of global leaders built around two The four styles that emerge are: Executor,
dimensions: focus and the style of decision a highly directive, task-driven productive
making. As executives deal with issues or individual, the Controller, a logical,
solve problems, they use varying amounts serious, data-driven individual with
of information and use that information to strong attention to detail, the Energisers
come up with either a single solution or who use openness, informality, a light
course of action or a number of different touch and adaptability to lead, and
action options. These are the dimensions the Integrators who are inquisitive,
of responsive or deliberate decision collaborative, involving, and patient in
making and single or multi-focused. their leadership.
Every leader has a primary style, the style the Energiser or Integrator type of
that they employ under normal leadership style. Strategic HR executives,
circumstances and under moderate while also emphasising social and
pressure and a secondary style which they interpersonal skills, use more
employ as pressure increases. collaborative skills, are more flexible
in their operational styles, display
CEOs, depending on the current business
higher tolerance for ambiguity and
strategy and the life stage of the
uncertainty, and view themselves as
organisation, look for the Executor or
partners in the overall management of the
the Energiser/Integrator profiles. HR
organisation and of addressing long-term
executives with the Executor profile have
issues.
strong social and communication skills,
tend to emphasise execution and short-
term goals, and view themselves as
Based on our experience with hiring HR
implementers of organisational initiatives.
heads in the last two years, the preferred
Increasingly, however, organisations are and the prevalent leadership styles in India
looking for HR leaders who possess are as follows.
Primary Secondary Least Used

Preferred Style 1 Executor Energiser Controller
Preferred style 2 Energiser Integrator Executor
Indian HR Candidates Controller Executor Energiser
apr 04 HR Speak.p65 59 4/27/2011, 2:45 PM

The prevalence of the Controller-Executor motivated by variety and novelty
is not due to Indian culture. Rather, it stems and prefer to be self-directing and
from the opportunities this generation of enjoy learning, i.e., are motivated
Indian leaders have had and the market to broaden skills and knowledge,
conditions they’ve worked in. desire opportunities for creativity and
enjoy helping others learn and grow.
Other Considerations There is, on the other hand, a negative
preference for candidates who are
Besides competencies and leadership
motivated more by the opportunity to gain
styles, CEOs often describe the desirable
Emotional Competencies and Career expertise and desire recognition for
specialised knowledge.
Motives of the HR leaders they would like
to hire.
Conclusion
The three Emotional Competencies most
often desired are: As businesses are becoming more complex,
growing and diversifying faster, the
• Confidence: Willingness to tackle risks nature and criticality of the HR leader’s
and challenges, self-assurance in role seems to be changing. CEOs are
dealing with conflicts and tensions and looking more for agile, energetic and
eagerness to stretch capabilities. inclusive and influential leaders. People
• Empathy: Ability to size up self and who can not only understand business
others accurately, anticipate others’ strategy, but be able to contribute to the
reactions and appreciate people’s building of it and then help translate in
feelings and preferences. terms of effective talent development
and acquisition, organisation structure and
• Humility: Situational adaptability,
deployment, performance management
willingness to accommodate others’
and operational imperatives. While not
methods and ease in dealing with
every organisation has evolved to this
diverse styles.
level and the more operational HR
In terms of career motivations, CEOs prefer leaders would still be in demand, the trend
leaders who are entrepreneurial, i.e., are is fairly clear.
apr 04 HR Speak.p65 60 4/27/2011, 2:45 PM

CHRO — CUSTODIAN AND STRATEGIST
PREETY KUMAR
About the Author
Preety Kumar is the founding Partner of Amrop India office.

Amrop is a leading global firm servicing clients in leadership
consulting services including Board Consulting, External
Succession and Management Assessment apart from a very strong
executive search practice.
After more than two decades in search consulting and with direct
experience of serving clients across multiple industries, Preety is
acknowledged for her wealth of experience and her outstanding client commitment.
Her fundamental expertise lies in Consumer, Retail & Telecom services, Human
Resources Leadership practices, though she also has strong track record of serving
the Life Sciences and Industrial clients. Her early life was as an HR Practioner with
the Eicher Group.
She is an Honours graduate in Psychology and holds a MBA with specialisation in
human resources from University Business School, Chandigarh.
She serves as an Independent Director on the Advisory Boards of Sanmar Group, The
Energy and Resources Institute (TERI) and Katha.
I n the last decade the business context has

witnessed complex and fast paced
changes. Simultaneously augmented
a great platform for the right HR leaders
to step up and rewrite the story of HR
function, not all are ready to match these
environmental changes, i.e. regulatory, emerging leadership aspects of the role.
sustainability, social and geopolitical, have
added new dimensions to management What is clear is that the expectations from
attention, placing exceptional demands on the CHRO are at an all-time high and the
leaders to address them. Consequently, role today has breadth and depth unlike
human and leadership capital today is a before.
source of clear competitive advantage.
The CHRO’s role rests at the company
This has put CHRO’s role at center stage leadership level and not just at the business
pivotal to the success of the company. level. Business is only one of the
Chairmen, boards, CEOs and HR leaders stakeholders for HR; the others being the
themselves list functions and expectations board and shareholders, the organisation
of enabling growth, facilitating as distinct from business and the external
transformation, developing leadership eco system as relevant to the company.
capital and building world class HR Hence, in dealing with the role holistically,
function from CHROs in the new the CHRO has to deal with them as
challenging environment. While this offers independent yet interdependent segments.
apr 04 HR Speak.p65 61 4/27/2011, 2:45 PM

A progressive CHRO needs to have an connecting with regulatory and risk
independent view on how HR will deal agenda and engaging in wider
with these segments. conversations around customers,
vendors, thereby recognising the
Many Hats & the Balancing Act company’s responsibility as an
enterprise leader.
We see CHRO as a business strategist vs.
leader of a function. Just like business, HR These wide and somewhat
will have to lead with: divergent expectations highlight the
emerging breadth of the CHRO role
1. HR Strategy across the various in the current scenario.
stakeholders:
2. HR Business Model: HR function itself
a. The board & shareholders would has evolved and is required to have its
have expectations of building a long own business model, i.e. an
term institution with right independent structure, capability, team,
governance and risk management as delivery standards, etc. Decisions
well as overseeing business through around outsourcing, investments and
reviews. HR has to step up to these prioritisation also sit within this part of
expectations. the role. These amplified role
dimensions have made the HR
b. The business / CEO on the other structure more complex with shared
hand expect facilitation of growth & services, business verticals and centers
transformation of business through of excellence – that need to be knit
appropriate HR initiatives while together to deliver the HR business
keeping the ship stable. goals.
c. The employees and organisation 3. HR Technology: The CHRO needs the
stand as a separate entity and will expertise to deal with each process &
need handling within the business element of the numerous functions,
segment and also away from recognising that the wide nature of each
it; expecting the HR function element represents a certain level of
to reinforce “remember the depth, e.g. Compensation management,
employees” conversations with dealt strategically, is not just about
senior leaders and board. numbers and linkages to structure and
An HR leader who is fully aligned to performance, but equally impacts
business may sometimes be seen as business competitiveness, organisation
less- employee centric. Balancing this behaviour and culture, leadership
is a tough act, but the challenge needs development, employer value
to be recognised and addressed. proposition and governance. HR needs
Inherent in this comment is the to have a cutting edge on these apart
acknowledgement that business can from deep organisation insights to lead.
sometimes take shorter terms Similarly, strategic recruitment has
decisions while organisation many dimensions including
building is a long-term phenomenon. understanding top talent, articulating
employer value proposition, enabling
d. The external eco system is evolving right assessment and knowing external
and increasingly CHROs are playing top talent benchmarks. CEOs/Boards
a role impacting sustainability, expect the CHRO to bring this value to
apr 04 HR Speak.p65 62 4/27/2011, 2:45 PM

the table. Often HR leaders are more leadership development tops the list of
managers of these processes vs. leaders challenges along with being an advisor to
of expertise and depth. This is HR CEOs & senior leaders. This is followed by
technology & core competence. the CHRO’s responsibilities towards the
Board & shareholders and finally leading
4. Operations and Delivery: Much as the HR function itself.
many HR leaders like the thought
leadership part of the role, they cannot Talent and leadership development
walk away from operations excellence
as it is the first and core expectation CEOs expect the CHRO to be totally
from them. Consistently, the truly responsible for upgrading overall talent
outstanding CHROs remain focused on and changing talent skill sets to deal with
this dimension and have demonstrated talent problems within the organisation.
continuous improvement in this area. For this, the CHRO needs to make a
This calls for administrative and realistic assessment of current internal
management skills for the CHRO to be talent situation and have a keen eye for
able to set the agenda and control the talent – the A, the B and the C players, as
outcomes. Increased cost pressures well as, grapple with the talent dynamics
have put demands of efficiency on HR which come into play in leading any
models to increase productivity and in change. CEOs expect the CHRO to take
delivering essential HR services. ownership of this part absolutely.
5. Repute and Credibility: This aspect of Getting the right talent with right value
the CHRO’s function cuts across the fitment to funnel the business growth
defined roles and includes being is also a key part of the CHRO’s
custodian of the employer brand, responsibility. Increasingly, their role is
enhancing repute of the company by extending to managing transformation that
being thought leader in external results from managing and integrating
forums, being connected with acquisitions and changes in the business
external aspects enough to understand model. The CEOs have come to expect the
both usual and unusual business and CHRO to be a true leader of the talent
talent benchmarks. Gone are the days dimension, enabling growth and
when HR was confined to an internal transformation within the organisation.
role. HR leaders entrapped by implementation
Not all HR leaders see these enhanced of talent development processes in
dimensions of their roles and not all are isolation end up as ‘Tool Box’ managers
asked to perform on these, as such a role is and are not be able to step up to the
highly contextual to the complexity of challenges of the role.
organisation and business. Hence not all
CEOs expect this breadth of dimension, e.g. Advisor to Senior Leaders
the CHRO’s role context for an Indian Top leadership team dynamics and
group could vary with that of the India HR challenges are a bed of potential conflict,
Head in a MNC, and hence different but their interdependencies have to be
expectations for a similar role. leveraged and the CHRO can play an
important role in identifying, surfacing and
Trials & Balance from here on resolving these conflicts. In order to deal
The transformation of the role of the CHRO with this aspect of their role, the CHROs
poses newer challenges. Talent and need to be mature leaders themselves with
apr 04 HR Speak.p65 63 4/27/2011, 2:45 PM

a high EQ, possess a transparent and an being asked to present to boards and
apolitical style that allows insights on the have visibility on matters that may be
business, its details, the inner workings, outside CEO’s purview. To fulfill such
history, pulls and pushes, many of which expectations, the Board/Shareholder
may be invisible. Armed with this expects the CHRO to have an independent
combination of skills, the CHRO can prove view.
to be a valuable channel that facilitates
leadership dynamics and is able to have The gearing up to deal with these multiple
productive conversations with senior aspects can be dramatic/ challenging and
business leaders. requires tightrope walking. How many
will be able to stand next to CEOs and work
CEO alignment vs. CEO advisor – Handling with the Board/Shareholder, not an easy
the CEO as a boss and giving him / her balancing act!
feedback as his / her mirror are two
opposite roles and create a unique
Leading the HR Function
dynamic. The CHRO needs to have
courage and sound judgment to deal with Gearing up their own house,
this complex role. An ability to provide understanding the main levers that have
negative feedback to the CEO as well to be used to build the function for future
as the tact of holding the mirror up to challenges, expectations and setting
CEOs and senior leaders to help them performance metrices for their own
see the impact of their decisions and function make for an effective HR leader.
actions are key requirements. To fulfill CHROs have to have their own vision for
these, the CHRO needs to have a strong this function and work proactively to build
sense of the organisation climate, concerns capability, infrastructure and monitoring
for the workforce and evolved mechanisms to function effectively. The
communication skills. CHROs have their hands full to deal with
the challenges described above. Some of
CHROs who cannot remain apolitical and the best minds end up being less effective
who are unable to win confidence of their as their overall function was not delivering.
colleagues are simply unable to deal with
this part and are not seen in this league. Talent within HR function must be
They simply need to spend more time with assessed and upgraded, along with
their peers & CEOs. nurturing its internal culture. The career
plans of the talent in the function need
Responsibility to Board & Shareholders equal priority to build a reputation of the
function as a harbour of best talent.
Helping govern and managing risk is
becoming an integral part of CHRO’s role. Technology deployment and ensuring
Enabling review of CEO performance, decision making backed on both data and
succession planning to de-risk the insights will create strong CHROs.
company from its leadership issues as well
as decisions about the right executive Finally, the CHRO has to continually set
compensation are some challenges that the bar on his/her role higher. The platform
need an in-depth understanding of work for a strong leadership role and impact has
issues and with a far sighted approach/ been created – the right leaders will step
long term view. Increasingly, CHROs are up to it.
apr 04 HR Speak.p65 64 4/27/2011, 2:45 PM

WHAT DO CEOs LOOK FOR IN HR LEADERS?
ARJUN SRIVASTAVA
About the Author
Arjun is a Consultant in the Egon Zehnder New Delhi office. He

began his career with the Firm over 5 years ago. He leads the
Consumer Practice and the HR Practice for the Firm in India.
Arjun has a MBA from India’s leading business school (IIM

Ahmedabad) and had a career of over 20 years in the corporate
world prior to joining the Firm. He worked for over 12 years in the
advertising and communications industry. He then transitioned
to PepsiCo India as Marketing Director for Colas and then moved to the PepsiCo
Global HQ in the US in a global marketing role before returning to India with Egon
Zehnder.
B efore exploring this topic we must ask

whether CEOs in India today believe
that their HR leaders are a key resource and
hold the HR leaders accountable for the fact
that they have not “earned” a place at the
seat and have been happy to see their role
a true business partner. Does the CEO look as being that of a support function. It is this
to the HR leader as a “value creator” for crucial mindset that has to be addressed
the business? Or is the CEO viewing HR and it’s only then that the function as a
merely as a support function that helps to whole will benefit and become aspirational
keep the organisational machinery running for the younger generation who are seeking
smoothly? And that’s where the crux of the to build their corporate careers.
issue lies in Indian business today. Many
CEOs don’t have greater expectations from Since most of our engagements are at the
their HR leaders and hence it is beholden CEO level, we are often privy to CEO
on a good HR leader to rise above the basic expectations and briefings on searches for
expectation and become a true business HR leaders. There are only a few occasions
partner. He/ she has to define his/ her role when we have observed the CEO see the
and position HR as a vital partner and a HR leader as being truly central to the
crucial member of the management team business and set the expectations really
of the company. While there is no doubt high. One can argue that different
that HR leaders in most organisations will industries demand differing levels of HR
have a seat in the management team, it is interventions and hence the importance of
not always the case that they play a central the function should also be accordingly
role in impacting the business results that calibrated. But I would propose a view that
the organisation achieves. While we can any business, in whatever sector, is
blame CEOs for not according HR leaders ultimately able to deliver sustained
a “seat at the table”, we should also equally business results because of the quality of
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human capital that it has and that it is able minimum requirement. What
to put to productive use. It is true that distinguishes average HR leaders from the
certain businesses that have a technological “greats” is whether they get the intricacies
competitive advantage will be able to stay of the business, including the financials.
ahead of the pack by the sheer force of their Does this mean that the HR leader must
product superiority, but surely that product have had exposure to non-HR roles at some
has been produced by a technical staff that point in their career to have got the
is the best in class and that has helped to business savviness? Not necessarily. While
create that value. Ultimately, it will be a there is no doubt that doing a non-HR role
human capital “x-factor” that makes the will give the individual a business
difference. The attempt, by organisations, perspective, it is not very often that
is to put systems and processes into place, organisations are able to provide that
such that the dependence on any one latitude to career paths. There have also
individual is minimised and the been cases where business leaders have at
organisation becomes a living organism a later point in their career got into HR and
and is self sustaining. But as long as the therefore brought a strong business
organisation is being run by humans and orientation to the function. But, if we were
not robots, the importance of the “Human to look at career HR professionals, then we
Resource” function cannot be anything but need to find a way for the HR leader to be
absolutely central to its destiny. business savvy without necessarily doing
a non- HR role for a certain period of time.
Once we “believe” in the importance of the In fact, studies have shown that out of all
HR function, we can start to explore “What the factors that were considered by peers
good CEOs look for in HR leaders?” As I in the management team as adding
mentioned before, all CEOs don’t set the credibility to the HR leader, his/ her
bar high enough, but lets talk about the coming from a non-HR background was
ones that have the right expectations and one of the lowest ranked. Stepping out of
try and define what are some of the most the confines of the HR function and making
important things they look for and which the effort to go out to the field, to the
they should look for. various businesses, to the factory floor, to
the customers, to the different functions, is
Business savviness the obvious way to develop business
Being an HR expert is a necessary savviness, and yet it is very often the most
requirement to enter the door to the neglected area by many HR leaders.
management committee room, but to get a
seat at the table, the HR leader has to be One of the services we offer our clients is
business savvy. A lot has been said about an area which we call Leadership Strategy
the importance of this and yet it is amazing Services. In this, we are often engaged by
how many HR leaders are not able to clients to assess the leadership team on
actually step out of their HR hat and wear various leadership competencies. The
a business hat. It is so easy for the HR leader process includes taking 360 degree
to get sucked into the day-to-day references from peers and others. The data
operations of the HR function. There will from this confirms this failing of many HR
also be a million things that the HR leaders. The CFOs tend to have a higher
function has to deliver to the business and rating on being business savvy, when
the HR leader needs to be accountable for compared with HR leaders. Consider
it and ensure delivery. As I said at the another aspect that we see very often in
beginning, that however is only the India in particular – HR professionals tend
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to change jobs more frequently than other organisations that are equally proactive
functions. An interesting statistic and an about knowing how their internal
indicator that the HR professional does not candidates stack up with what exists
sink deep enough roots into a particular externally. If this knowledge resides with
business before he jumps to his next role. the HR leader, he/ she can take swift
It’s not surprising then that he is not seen decisions on succession and minimise
as being business savvy by his peers and disruptions. One of the global best
the CEO and remains in his/ her HR silo. practices in HR that we have been part of
is precisely this area of leadership talent
Functional competence assessment and external benchmarking.
This is an obvious one and yet there are Taking this a step further, the more
some aspects of the HR functional area enlightened HR leaders initiate mapping
which we find many HR leaders are not exercises with the search firm on a
necessarily good at. It is important to proactive basis to identify the best guys
reiterate that this is the entry ticket to the externally for critical positions. So that, if
management team – the basic minimum the need arises, the search process is
requirement. The individual needs to be already half done and can be completed
seen as the expert on any and all HR with speed. Mitigating risk in the event of
matters and have exceptional knowledge critical talent exits should be high on the
of the craft. The CEO expects that the HR radar of the HR leader so that down time
leader will grasp the business imperatives is minimised and business disruptions
and align the HR strategy to deliver the don’t derail the business. The ability to
business goals. One of the important things anticipate, be proactive and have a plan in
that the HR leader needs to champion is place to keep abreast of where high
leadership development and succession potential talent exists inside and outside
planning. It’s amazing how often we have the organisation is an absolute must for the
seen HR leaders in organisations playing HR leader. Otherwise, very often the
a reactive role and fire fighting when organisation continues to be in fire fighting
important leaders leave the organisation. mode adding to the stress levels and
Doing an external search and getting a new jeopardising business results.
person into the role can easily take 6
months from start to finish and then the This brings us to another important point
individual will take a few months more which a progressive HR leader should be
before he/ she can start having an impact. asking the CEO – who are the internal CEO
This can be quite dysfunctional for any succession candidates? It is generally
organisation and there is a price to pay for believed that CEO succession is the domain
it. In India’s heated talent market, there is of the Board and the Chairperson.
a naturally high level of attrition and good However, global best practice also points
people are always going to be lured by the finger at the HR leader as the individual
more attractive opportunities. It becomes who should take this initiative. If the HR
therefore even more important for HR leader makes this as his/ her agenda, that
leaders to firstly know who are the high elevates the HR leader’s position with the
potentials and succession candidates CEO to a trusted advisor and thought
internally and have a process of continuous partner. Now, this may not be the
leadership development and talent expectation that the CEO would have from
management in place. Some organisations the HR leader, but as I said in the beginning
do this better than others. But, I will not of the article, this is also what good CEOs
hesitate to say that there are very few should expect from their HR leaders. The
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single biggest risk to a business is the and influence others to change, and at
sudden departure of the CEO and yet there higher levels, fully engage entire
are very few organisations that are organisation in fundamental change.
prepared for this proactively.
Customer impact: This covers both internal
Leadership competencies and external customers. It’s the ability to
identify customer’s needs, looking from
Our research and extensive work on the outside in. At higher levels, it’s the
leadership assessment has led us to ability to be proactive in identifying
develop a set of competencies that are most unarticulated needs and meeting them.
important for a HR leader. These
competencies are fairly universal and are An individual leader will be stronger in
applicable across all sectors. Of course, some of these competencies and less so in
when we are working on a specific some others. For example, it is a rare
assignment, we will tweak this to reflect individual who is strong on both results
the nuances of that particular industry and orientation and strategic insight. And that can
organisation. For general purposes, the six often be the difference between good and
key competencies with their brief great leaders! Across a sample of HR
definitions are given below: leadership assessment, we found that only
5% scored high on both competencies. Very
Results orientation: At moderate levels,
often we have also got briefs from CEOs
people demonstrating this competency
which translate into their seeking
have the ability to meet business goals
individuals who are strong on both results
consistently and go beyond them, and at
and the ability to collaborate and influence
the extreme, are able to transform a
and carry people and the organisation
business to achieve improved results.
along. There are also certain times when
Strategic orientation: The ability to think HR leaders are sought who are specifically
beyond own functional area, grasp the strong on driving change management.
broader business agenda and help shape Understanding the competencies that
it. It involves three key dimensions: matter most in a particular business at a
business awareness, critical analysis and specific time and assessing individuals
integration of information, and the ability rigorously against them reduces the
to develop an action-oriented plan. chances of the CEO making a wrong choice
of HR Leader.
Team leadership: Ability to focus, align, and
build effective groups. At moderate levels, Executive presence. For a seat at the highest
it is the ability to attract and get the best level of the organisation, it is essential that
out of the team, and at higher levels, it’s the HR leader have a very solid
about empowering and delegating professional and executive presence. To be
authority. able to have the level of impact and
influence with the CEO, he/ she should see
Collaboration and influencing: Ability to
the HR leader as a true thought partner and
work effectively without necessarily
someone who brings expertise to the table
resorting to line authority, and the ability
that he/ she does not possess and who has
to influence different types of individuals
a strong independent personality. The HR
at different levels of hierarchy, who are not
leader should be able to state his/ her case,
in line of command.
articulate opinions and recommendations
Change management: At moderate levels, in no uncertain terms. Clarity of thought
this is the ability to define a case for change with the ability to create an understanding
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of mission, vision, strategy and culture, In conclusion, what the CEO should look
while avoiding HR speak, contributes to for in the HR leader are many things that
the individual’s impact and stature within are impossible to find in any one
the organisation. Executive presence comes individual. And yet it’s important to know
from substance and not from just the gold standard to be able to aspire
superficial appearance and being a “good towards it. Finally, any effective leadership
talker”. Such a leader will always be team is more than the sum of its parts. The
thoroughly prepared, have data to support HR leader in any given organisation
his/her point of view and will not look to should complement the CEO and others on
the CEO to make the decisions, but instead the team and enable the team to rise above
will present options that should be the ordinary. Sustained organisational
considered and provide his/her performance does not come from
recommendation. The CEO will also be individual brilliance. Ultimately it’s the
evaluating the HR leader in the context of contribution of each member in the cricket
the other members of the leadership team team that enables the team as a whole to
– will this person be able to hold his own win the World Cup. The HR leader
in the peer group and further, will he/she should play an important part in
be able to also play the role of coach and partnering with the CEO to orchestrate the
mentor to some of the others on the team to deliver sustained breakthrough
management team? performance.
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SUPPORTING ORGANISATION STRATEGY —
MANDATES FOR HR
GITHANJALI PANNIKAR
About the Author
Githanjali Pannikar is a Director with the Corporate Executive

Board’s (CEB) India office. She has been with CEB for over six years
in a variety of leadership roles spanning research with a core focus
on Human Resource Management and client engagement. In her
current role, she manages client relationships across the Corporate
Leadership Council’s client base in India working closely with HR
teams from India’s leading organisations. Her particular fields of
expertise include HR strategy development, performance
management, employee engagement, leadership development, succession planning,
and workforce planning. Prior to joining CEB, Githanjali worked as a HR professional
with the International Labor Organisation in Geneva and managed multiple
areas of recruiting and employee development processes. Githanjali
has a MBA in International HR from the International University of Geneva,
Switzerland and a Bachelor’s degree in Computer Science from Bharathiar University,
Coimbatore.
T he author explains how to ensure

alignment of HR strategies with
organisational strategic priorities both at
need to consolidate and streamline effort
across businesses, regions, and functions.
individual business and organisation For the most part, India stood at a vantage
levels. point during the periods of peak recession.
What we experienced here could arguably
The Mandate be termed as a slowdown of the economy;
nonetheless, it provided us with an
As the global economy went through the opportunity to learn from the experiences
phases of economic volatility, the need of of the west, consolidate our own efforts
the hour became – and continues to be – towards sustained growth and re-
an extremely close alignment between emphasise the importance of strategic
strategy and execution. Organisations put alignment. As organisations build out their
in place strategies to support immediate long term strategic plans for growth, we
business needs and monitored execution see plans that are both visionary and
in laborious detail to ensure that they were bullish about the growth possibilities in the
getting the best leverage from scarce next 3, 5 or 10 years. With organisational
resources. While the economy has steadied mandates set around aggressive but
itself or is slowly regaining momentum in sustainable top-line growth such as 3x top-
most regions, the lessons learnt in the past line growth, 25% incremental market share,
years remain – lessons re-learnt around the or strategies that provide 10x growth;
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organisational strategies are more and thirds of strategists report losing at least
more about bullish, exponential growth. five percentage points of profit growth in
the past three years due to their companies’
In other words, the mandate for the CEO failure to adapt. Disagreement about
today has moved from cost containment or market assumptions, differing perceptions
reduction to exponential top-line growth. of internal and external organisational
This is the mandate given to businesses – challenges, and a lack of consensus/buy-
and to HR. in to overarching organisational vision and
strategy significantly hamper adaptability
HR and the CEO – Understanding to evolving business conditions.
Expectations
HR’s role in supporting the CEO achieve
As organisations define their growth the organisation’s growth mandate is
agendas and cascade priorities and plans twofold. HR’s first role is to provide inputs
through the organisation down to the to strategy execution plans such as defining
ranks, one of the biggest challenges they leadership needs, identifying new skills
face is the lack of alignment across and training needed, reviewing
businesses. Misalignment at the top level organisation design, etc., and playing a key
can result in missed opportunities, role in ensuring effective cascade of goals
contradictory/uncoordinated goals being and objectives through the organisation,
pursued by different lines of business, starting at the senior most leadership team
inappropriate decision making, and an levels. HR’s second role – the one we will
inability to respond to the changing discuss in detail – is about supporting the
environment or changing business needs. organisation’s growth agenda through
A lack of close alignment at the senior effective partnership with individual
leadership level renders the organisation businesses and their leaders, identifying
sluggish in its response to changing the right HR priorities for the business and
business conditions. implementing the most effective HR
strategic plans to support business
In addition, a lack of strategy alignment at objectives.
the business and top management level
leads to ineffective cascade of goals and Aligning HR and Strategy – what’s hard?
objectives through the organisation.
Subsequently, mid-level managers and Over the past decade, we have seen a
employees lack an understanding of how drastic shift in the way organisations and
their actions link to corporate goals, HR professionals view the role of HR
creating confusion about priorities and departments. On a mission to take on a far
harmful “business as usual” attitudes. This more strategic role, HR departments (in
perpetuates barriers to strategy execution, most cases, supported by the CEO), are
which can erode the potential value of a increasingly stepping up as key advisors
strategy by around 40%. For the typical on talent and organisational issues that are
organisation, this amounts to material critical to business performance, as
erosion in the cash flows produced. opposed to being the administrators of
payroll and company policies. However,
Interestingly, research by the Corporate the shift in mindset and performance has
Executive Board’s strategy program – the not been easy and continues to be a
Corporate Strategy Board – reveals that challenge as HR departments move from
adaptability is the biggest key to power being mute participants in strategy
sustainable growth.1 That said, nearly two discussions to key contributors to strategy
apr 04 HR Speak.p65 71 4/27/2011, 2:45 PM

decisions and execution. There are four 2. Understanding Business Needs –
reasons why supporting organisational Focus HR on Strategic Activities/
strategy is hard. Conversations
In another study, CLC surveyed more than
1. Alignment and Adaptability – Key to 24,000 line managers and 3,700 HR
Effective HR Strategic Plans professionals within 150 organisations over
the past three years to understand HR’s
Recent research by the Corporate Executive ability to support organisation strategy.2
Board’s HR program – the Corporate The study found that approximately two
Leadership Council (CLC) – that surveyed thirds of the impact of HR support
business leaders across 150 organisations effectiveness on an organisation comes
indicates that approximately 42% of from the interactions between the business
leaders believe that HR strategic plans are and HR. In other words, over 60% of HR’s
ineffective in actually supporting the effectiveness is a direct result of the quality
business. Further, 53% cite lack of of the relationships HR has with business
integration with business needs as the key unit leaders. (Figure 1)
reason for ineffective HR strategic plans.
Another study by the Corporate Executive CLC research shows that the importance
Board, identified that the shelf life of of the relationship between business unit
strategic plans in non-volatile conditions leaders and the HR Business Partner
is approximately ten months with strategy (HRBP) – the HR professionals who are
plans losing their decision making value aligned to each business unit (ideally these
within this time period. This is even shorter individuals should sit within their
during times of change and/or economic respective businesses) and connect HR
volatility requiring organisations to revisit programs and systems to the specific
strategy plans frequently and constantly business challenges of the business unit, is
realign efforts. In this scenario, it is what really matters to HR’s overall
imperative that HR develops a robust effectiveness. When organisations are able
relationship with the business to adapt and to get this relationship right, CLC research
realign its talent to stay on top of changing demonstrates the extent to which this
business objectives. positively impacts the organisations. For
Figure 1: Relative Impact of HR support components
apr 04 HR Speak.p65 72 4/27/2011, 2:45 PM

example, employee performance and responsible for providing strategic HR
retention can rise by up to 26% and revenue support to the business in a way that
and profitability improve by up to 9%. business objectives are supported.
There are two key factors to a successful The HRBP role has four components to it:
HRBP and line leader relationship: 1) the 1) the strategic partner role, 2) the
skills and activity focus of the HRBP, and operations manager role, 3) the employee
2) how committed and effective line leaders mediator role, and 4) the emergency
are at managing their talent. Getting the responder role. (Figure 2) Each of these is
right skill, focus and engagement levels in very much a part of the daily activities that
this relationship are what should really be a HRBP engages in. We found that while it
at the centre of any “strategic HR function”. is inevitable that HRBPs will need to spend
a majority of their time in the operations
3. Ownership of Effective Business manager role, high performing and
Support is the Responsibility of the effective HRBPs carve out atleast one fifth
of their time (upto 8 hrs in a 42 hr
HRBP
workweek) to engage in activities related
CLC research indicates that more than 50% to the strategic partner role. The strategic
of the effectiveness of HR programs comes partner role includes activities such as
from the strength of the partnership HRBPs diagnosing the kind of talent their business
forge with their line partners. Progressive unit requires to execute on strategic
organisations have gone on to incentivise priorities or ensuring that the business is
HRBPs on the ability of the business to thinking long-term in building its
meet its targets, thereby setting the stage leadership capabilities. By so doing,
for greater collaboration between business they achieve up to three times more
leaders and HR. Irrespective of the organisational impact from the relationship
structure of the HR function, HR leaders with their business leaders than HRBPs
working directly with profit and loss focused on more traditional transactional
owners of businesses must be held activities.
Figure 2: Components of the HR Business Partner role
apr 04 HR Speak.p65 73 4/27/2011, 2:45 PM

Having said that, Council research also HRBP to support the business. In fact, 94%
found that it is in managing these more of HRBPs who have high levels of business
strategic activities that HRBPs are most acumen have been found to be highly
likely to struggle, with fewer than one in effective in their role. Without business
five fulfilling this part of their role acumen the impact of the other core
effectively. This is largely due to a lack of competencies is severely limited.
skills such as business acumen, innovation,
and leadership that enable the HRBPs to After business acumen, finding innovative,
understand and craft HR support in line customised solutions to business problems
with business needs. In addition to the is the most important quality that HRBPs
skills just mentioned, HRBPs must be need to demonstrate, followed by
effective in their ability to identify/create leadership, their ability to use metrics and
and use the right metrics for decision finally their ability to apply strategic HR
making (both HR and business metrics) knowledge to workforce issues at the
and apply these based on a strong business unit level. Without business
understanding of the business’ actual acumen, though, HRBPs will struggle to
workforce to be truly effective. Figure 3 find creative solutions to problems,
below provides CLC’s HRBP competency negotiate with business leaders, build a
model based on the five skills that define business case for specific actions and
HRBP effectiveness. The model points out identify and address their business unit’s
the importance of exceptional business specific challenges. For example, in many
acumen as the central competency, which cases, the business leader’s expectations or
will ultimately define the ability of the understanding of the impact HR can have
Figure 3: CLC’s HRBP Competency Model
* These include workforce planning, engagement strategies, and succession management.
apr 04 HR Speak.p65 74 4/27/2011, 2:45 PM

in supporting the business is limited. The also means that in most organisations, 81%
HRBP is the advocate who takes it upon of business leaders lack either the
himself to put forth HR strategies that will commitment or the competency required
support business objectives both in the to manage and gain value from their
immediate- and in the long- term. In other strategic HR relationship. (Figure 4)
words, without business acumen, HRBPs
will struggle to be true partners to their Talent Champions differ from other leaders
business leaders; and without this true in that they dedicate time and effort to
partnership, HR fails to be a strategic strategic people management by
partner to the business, and to the prioritising activities such as workforce
organisation. planning, leadership development, and
succession planning to create a strong
talent pipeline. That said, Talent
4. Creating Talent Champions Among
champions focus less on day-to-day people
Business Leaders – It’s Not Just an HR
management activities; applying their
Issue
resource allocation skills to people
Despite the presence of HRBPs with strong decisions; and relying on their HR business
business acumen, HR can still find itself partners’ people management expertise for
unable to support and impact business guidance.
outcomes, due to the lack of business
leaders’ understanding of HR’s potential The good news, however, is that while few
to support the business’ objectives. In fact, business leaders are Talent Champions,
CLC’s study of over 8,800 business leaders most business leaders have the skills
in 50 organisations indicates that only 19% necessary to become Talent Champions.
of business leaders are Talent (People) HR’s role is not to develop a new set of
Champions—leaders who are committed skills in business leaders, but instead to
to the importance of, and effective at, help business leaders apply their existing
people management3 . Unfortunately, this business skills to people management.
Figure 4: Distribution of Business Leaders across Talent Management Mindsets
apr 04 HR Speak.p65 75 4/27/2011, 2:45 PM

When accomplished, HR can improve leader must prioritise and approach
business unit revenue by as much as 14%. strategic talent challenges the same way as
they would approach business challenges
In summary and focus on issues such as workforce
planning and succession management. The
As the CEO and HR work towards the
HRBP on the other hand, must have a
growth mandates set before the
complete understanding of the business, its
organisation, it is imperative that there is
workforce profile, and its strategic
close alignment between the two. HR, the
objectives to play the role of talent advisor
expert in ways to leverage an
as they partner with the business leader to
organisation’s greatest resource – its people
identify solutions and strategies for
– plays a critical role in mobilising this
success.
resource for strategy execution both at the
leadership team level and the business For more information, contact:
level. Over the past decade, while HR has gpannikar@executiveboard.com
invested heavily in becoming a strategic
partner to the business, research indicates Or visit the CLC website at: http://
that our ability to truly function as talent www.executiveboard.com/humancapital/
advisors on the ground has not yet reached index.html and see how CLC supports HR
its full potential. It all boils down to two Strategic Transformation and HR Business
basic reasons, the first is the effectiveness Partner Training
of HR business partners to fully 1
understand the business they support, Secrets of Adaptive Growth Strategy,
customise or innovate strategies to solve Corporate Strategy Board, Corporate
people issues identified within the business Executive Board (2010)
and maintain a close alignment with the 2
Building Next Generation HR-Line
strategic objectives of the business. Partnerships, Corporate Leadership
The second reason why HR support is still Council, Corporate Executive Board (2007),
not optimal is the lack of understanding and HR Business Partner Dataset (2007-
among business leaders of the impact HR 2010)
can have in terms of supporting business 3
Creating Talent Champions, Corporate
priorities and objectives. While most Leadership Council, Corporate Executive
business leaders lack the commitment or Board (2008)
the competency to effectively identify and
manage their people strategies, effective Research methodology: The Corporate
alignment calls for a greater partnership Leadership Council’s analysis is based on
between the business leader and the 8,851 completed 180-degree assessments of
business partner. Each of the players in this business leaders at more than 50 member
relationship has a specific role: the business organisations.
apr 04 HR Speak.p65 76 4/27/2011, 2:45 PM

DELIVERING RESULTS WITH A GLOBAL HR TEAM
HUGH MITCHELL
About the Author
Hugh Mitchell became Chief Human Resources and Corporate

Officer on July 1, 2009. He joined Human Resources in Shell
Exploration & Production in Aberdeen in 1979 and has undertaken
a range of HR roles both in the UK and overseas. Hugh moved to
Shell headquarters in The Hague, the Netherlands, in 2003 as
Director International. His responsibilities included co-ordinating
the company’s worldwide government relations activities. In 2005,
Hugh was appointed Human Resources Director of Royal Dutch
Shell. He became a member of the Executive Committee in October 2007. Hugh is a
member of the Board for the Centre for Advanced Human Resources at Cornell
University in the USA, and a Foundation Board member of IMD business school in
Lausanne, Switzerland. He was appointed a Fellow of the National Academy of
Human Resources in the USA in 2009.
H uman resources leaders know that

their firms’ long-term competitive-
ness is closely tied to their ability to nurture
In Shell, we’ve spent the past decade
making the transition from a decentralised,
sometimes unwieldy HR function to one
human capital. But as businesses become that is linked up globally. We’ve done that
more global, managing the workforce by creating a consistent, long-term people
becomes increasingly complex. strategy and by building the skills and
capabilities of our HR professionals. And
Managers must cope with skill pools
we’ve put into place a global system of
stretching across ever more cultures,
standards and tools that helps us manage
countries and languages. HR practices and
our 3,000-person function in a uniform way
tools can become fragmented as different
across more than 100 countries.
parts of a growing organisation go their
different ways, or as the company makes
acquisitions. And HR managers face Energy Challenges
intense competition for talent, especially in
Today the competitive strength of
emerging markets where companies hope
companies relies more than ever on their
to ride the wave of future growth.
ability to attract and retain talented,
Yet many multinational companies motivated knowledge workers – people
continue to manage their human capital in with advanced degrees or special
a fragmented fashion. The HR function know-how and a good deal of choice in
remains closely tied to individual countries where and how they work. That
or business units. That limits the ability of means companies must get the people part
HR to play a strategic role on a global scale. right in order to deliver good business
That’s a missed opportunity. results.
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That’s particularly true in the oil and gas In the late 1990s, Shell had dozens of HR
industry. We face huge technical challenges competence models operating across the
meeting the world’s growing energy needs globe. There were no standard job profiles
while at the same time reducing the of typical roles. There were multiple IT
environmental impact of energy platforms that were unable to
production and use. In fact, today one of communicate with each other and no
the most constrained resources for a information was available via a web-based
company like Shell is human capital. portal. This mirrored the situation in the
broader enterprise at the time. Through
Moreover, being a big global business most of its history, Shell had been a
brings special challenges. Shell operates in decentralised business with strong country
more than 90 countries and has around organisations. In the 90s it was shifting to
93,000 employees worldwide. As a a regional organisational model. The lack
company we must leverage the advantage of interconnection among HR professionals
of global scale, while at the same time all over Shell hindered the ability to raise
operating as an effective and credible local skill levels across the function. And for
player in countries in all regions of some colleagues outside of Shell’s
the world. traditional bases in the UK and the
That requires developing local staff with Netherlands, it was a road block to
world-class capabilities and experience. In building global careers through experience
in a variety of countries and regions.
fact, often international oil companies gain
access to countries rich in natural resources Today there’s a single HR competence
based on their ability to boost the skills of framework across Shell and its
local staff. subsidiaries. Any employee can tap into the
In this complex operating environment, a system, look at the competence framework,
globally linked-up HR function can yield identify their skills gaps and find training
to fill them.
significant efficiency benefits. In particular,
it can help eliminate duplicate roles and This approach facilitates a broad, uniform
activities across countries. And it offers the network of HR professionals who are able
chance to automate routine activities across to share best practices. It’s linked to skill-
the function – but only if computer building courses that allow HR
systems, standards and procedures are professionals to up their game.
globally uniform.
It also allows a high-quality global
response by the function’s leaders to
Building functional capability
common shortcomings. For instance, one
To enhance overall performance in a global of the biggest knowledge gaps we
company, the HR function must help identified among senior HR professionals
drive implementation of the firm’s was a lack of clear understanding of
overall strategy. That means effectively business objectives and priorities. That
managing the talent pool at a global scale made it difficult for them to effectively
to produce the desired business results. provide strategic counsel to business
At Shell, we found that one of the key leaders. To address this gap, we created
elements of success is spelling out a clear, two one-week training programs in
detailed set of skills and competences partnership with business schools INSEAD
that HR professionals need to do their and IMD in Europe and Cornell University
jobs effectively. in the USA.
apr 04 HR Speak.p65 78 4/27/2011, 2:45 PM

The program helps HR professionals model that produced strong consensus, but
understand their role when they sit at the often lacked speed.
table with other business leaders to trouble-
shoot critical problems or make important The 2005 merger of Shell Transport and
strategic decisions. It teaches them how Trading and Royal Dutch also provided the
business strategy is created; how to opportunity to create a single global HR
understand customer or stakeholder function. Today all 3,000 HR professionals
analysis and marketing plans; and how to report to the Chief Human Resources and
link the people agenda to them. With these Corporate Officer. Top decisions are taken
tools, HR professionals can ensure that by the CHRO and the HR Executive, a 10-
business strategies take into account the person group of the function’s top leaders.
skills employees will need to make the This produced clear accountability and
strategies work and flag shortcomings to improved functional management, based
be filled through training or hiring. on a global HR plan and priorities. It
facilitated adoption of uniform approaches
The competence framework is also linked to many common HR challenges, from
to career trajectory via what we call the change management to employee
experience navigator. It makes clear the performance reviews. It also allowed
types of experience that are necessary to centralised management of important skill
advance in the HR function at Shell. That pools, rather than function- or business-
can include jobs of increasing based management.
responsibility, those with regional or global
aspects, or even a foreign posting. At any For instance, the top 200 leaders in Shell,
time, up to 5% of all senior HR leaders in regardless of the specific business they
the company could be in an expatriate work in, are managed by the eight-member
position. executive committee, the company’s top
operational decision-making body.
Nothing happens to those top 200 leaders
Managing a global function
or their jobs without the executive
For the HR management team to effectively committee’s review and approval. They
run a global function, they need a clear line decide on assignments, career progression,
of sight from the top to the bottom of the performance appraisal and all elements of
organisation. It’s surprising how few pay and incentives for each member of this
companies are actually structured that way. global senior cadre. In individual
Often the HR function mirrors the structure businesses and corporate functions,
of the company, with HR professionals leadership teams exercise similar tight
dedicated to individual business units and ownership of their senior ranks.
little or no connection among various
subsidiaries. Core technical skill pools in Shell are also
managed on a global basis, since special
Until a few years ago, that was also the case knowledge and experience are so critical
at Shell. Shell’s HR structure was built to unlocking the world’s hard-to-reach
around more than 15 business units, with energy resources and to addressing
the CEO of each business accountable for environmental concerns. Dedicated HR
HR in his or her organisation. Decisions talent managers work with global business
about policy and direction affecting the leaders to assess requirements and ensure
entire Shell group of companies were that the appropriate technical professionals
discussed and decided by a HR Council of can be deployed where the businesses need
15 members. It was a decision-making them. They also monitor the career
apr 04 HR Speak.p65 79 4/27/2011, 2:45 PM

progression and development of younger automating those processes and giving
professionals, as well as the recruiting of employees the tools to manage them
new talent in the locations where the individually. In 2006 about 5% of HR
business is likely to need them in future. interactions with employees were handled
Again, corporate functions such as Legal via our online self-service system. Our aim
and Communications use a similar skill is to reach about 40%, which we believe
pool management approach. represents best practice for a company like
ours, outside of the IT industry.
Having a global HR function has also made
it possible to develop more efficient ways That automation is reducing the number
of operating. They include automating of operations handled by HR case workers,
many routine HR functions and promoting allowing them to concentrate on complex
self-service for employees. For issues that situations where special expertise is
still require a human hand, a network of needed. In 2006 about 75% of all HR
HR service centers in Poland, the interactions with employees were handled
Philippines and Malaysia handle employee by case workers. Our goal is to get to
queries worldwide. about 25%.
In 2002 we began implementing Shell The global people information system also
People, a uniform, SAP-based global provides the HR leadership team with an
information system. It is designed to gather important management tool. It provides a
in one location key data on Shell employees detailed overview of the company’s entire
and to provide the platform for automating skill pool and allows managers to monitor
HR transactions. We underestimated some and manage progress toward key HR
of the hurdles we had to overcome. For objectives. For example, they could track
instance, we hadn’t realised just how much movement toward Shell’s goal of having
training would be needed to get our people more women in senior management roles.
up to speed on the new system. And we
misjudged how much effort it would take The system allows us to monitor other
to transfer data from existing systems to aspects of the workforce, too, such as
the new one, often manually. whether the progression in Shell of those
who join us mid-career matches the
By 2004, employees were able to perform development of long-time employees, or
simple functions online, such as requesting whether young people identified as having
vacation time or filling out performance high potential actually progress as quickly
appraisal forms. An upgrade in late 2008 in their careers as we anticipated.
added more functions, such as providing
web forms for HR transactions. The system Another important efficiency gain came
now enables us to manage important HR through a more centralised approach to
functions globally, notably our global providing individual support to employees
reward system covering performance pay when they need it. We gradually shifted
and stock awards. some of our HR support staff from our
country and business organisations to
global shared service centers. In contrast
Encouraging self-service
to many other companies that have
The simplest operations, such as accessing outsourced such operations, we decided to
information about pay, constitute the keep it in-house as a means of maximising
majority of HR interactions with the value we get from our service centers
employees. We’ve made steady progress in and of ensuring service quality. Each center
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covers multiple countries and businesses, country organisations. They participate in
reducing duplication in the organisation. local leadership teams. And they focus on
So far we have reduced the number of HR local HR policy, as well as on local
case workers by 25% and significantly implementation of global HR processes.
lowered the cost of providing HR services
to employees. We think further gains are These two parts of the organisation, which
possible as we fine-tune the system. we call HR in the Business and HR
in Countries, will be interdependent,
The next step relying on each other to function effectively.
However, the new structure also
We have just made the next important step makes clear who has prime responsibility
for the HR function in Shell as part of the for what.
company’s overall restructuring at the end
of 2009. In the new structure there is a We think this new organisational approach
clearer distinction between roles focused will take us to the next level of HR
on strategic business issues and those performance in terms of helping the
focused on delivering HR services on the broader enterprise achieve important
ground. This makes clearer who has prime strategic goals.
accountability for what, both within the HR
function and for our colleagues in the rest Creating an efficient, linked-up global HR
of the company. function in a multinational company is a
major undertaking. The ingredients for
People in strategic roles are now closely success are: a simple set of global HR
tied to businesses, such as chemicals or oil priorities linked to the company’s business
and gas exploration. They participate in strategy and plans; a global infrastructure
business leadership teams, helping to of HR standards, tools, systems, definitions
set strategic direction. And they focus on and competences; a single HR
areas that are important for business organisational model with similar roles in
success, such as identifying potential businesses and functions; and a cadre of
future leaders, employee learning and well-trained, motivated HR professionals.
performance management. Service At Shell we have been working toward that
delivery roles, and employee and goal for a decade. And we are starting to
industrial relations, meanwhile, are tied to get there.
apr 04 HR Speak.p65 81 4/27/2011, 2:45 PM

CREATING FINANCIAL VALUE THROUGH A HUMAN
RESOURCES — BUSINESS PARTNERSHIP
LARRY ISRAELITE
About the Author

Larry Israelite is the Vice President and Manager of Human
Resource Development for the Liberty Mutual Group. His areas of
responsibility include the implementation of company-wide HR
processes, such as performance management and talent review,
management and professional development and learning
technology research and development. Larry joined Liberty Mutual
in 2006. Larry is the editor of Talent Management: Strategies for Success
from Six Leading Companies and Lies About Learning, both publications
of ASTD Press. He is a graduate of Washington College and received an MA in
Instructional Media and a Ph.D. in Educational Technology from the Arizona State
University.
Introduction Combating voluntary employee turnover

is a good example of a significant business
I f one thing is true about Human
Resource organisations, it’s that we have
access to data – lots and lots of data. We know
challenge that, in theory, could be
influenced by a careful analysis of
employee data. Regardless of which study
where our employees live and how old they
you read or believe, the cost of employee
are. We know the jobs they have held, how
turnover is significant, and finding ways
long they have held them, how much they
to retain the right employees can lead to
are paid and how well they performed in
cost reductions and increases in revenue,
those jobs. We have the results of employee both extremely desirable outcomes in
opinion surveys. And for employees who almost any business climate. But, as you
have chosen to leave the organisation, we will see below, it requires more than just
sometimes even know why they did so. If an data to address the problem of employee
organisation has applicant tracking and turnover. Instead, it requires a collaborative
talent management systems, even more data partnership between HR and the business
is available. So the availability of data doesn’t to develop and implement a research based
appear to be a problem. Rather, the challenge methodology for identifying and
facing many HR organisations is finding evaluating candidates who will be both
ways to take the vast amount of information successful in the job for which they were
available to them and turning it into useful hired and more likely to remain with the
information that supports better business organisation. It’s hard to do better than
decisions. Even more important is finding that. And while data and information alone
ways to demonstrate to the business that were not sufficient for achieving the
partnering with HR to convert employee data significant results you will read about later,
into information can lead to better business they were critical to the ultimate success
outcomes. of the initiative.
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The Context representatives was almost 19 percent. Not
only was this unacceptably high, it was
Boston-based Liberty Mutual Group is a
nearly three times the rate of voluntary
leading, global, multi-line group of
terminations in the rest of the Liberty
insurance companies. With revenue of
Mutual Group. Clearly, this was a problem
$33.2 billion, Liberty Mutual ranks 71st on
that had to be addressed. The question was
the Fortune 500 list of the largest U.S.
how.
corporations based on 2009 revenue, and
it is the fifth-largest property and casualty As part of a diligent review of the sales
insurer in the United States based on 2009 representative sourcing and selection
direct written premiums. Liberty Mutual process, Workforce Analytics, part of the
Group today employs more than 46,000 corporate HR function, partnered with
people in more than 900 offices in 27 Personal Markets HR to address the issue
countries throughout the world. The of first year turnover. Typically, projects on
company sells personal and commercial turnover tend to focus on prevention,
insurance through four distinct business attempting to answer this question: “How
units, each of which offers a wide range of can we prevent people we have already
products and services to its customers hired from leaving? To answer that
through a variety of distribution channels. question, research must focus on the
identification of conditions and
One of Liberty Mutual’s business units,
characteristics of the work environment
Personal Markets, provides full lines of
that cause employees to leave. However
coverage to individual customers for
difficult it might be to answer the question,
private passenger automobile,
it is even more difficult to act on the answer,
homeowners, valuable possessions and
because affecting cultural change is hard,
personal liability through its own sales
at best and slow under the best of
force in more than 350 offices throughout
circumstances. Jan Dempsey, Vice
the U.S., two direct response centers,
President of Human Resource for Personal
appointed third-party producers and the
Markets, posed a different challenge. She
internet. It also offers a wide range of
said: “Let’s not focus on changing the work
traditional and variable life insurance and
environment to suit new sales
annuity products. Over the past 5 years,
representatives. Instead, let’s try to hire
Personal Markets has grown much faster
individuals who will thrive in our work
than the industry and been profitable
environment.”
unlike many competitors who are either
shrinking or losing money. This is due, in The project that emerged, one of many
part, to our leadership in Affinity ongoing initiatives designed to improve
Marketing, integrated and value-added the quality and effectiveness of the
distribution channels and innovative and selection process, had a simple goal –
customer-centric products. enhance the selection process so that
Personal Markets could be confident that
The Challenge
new hires could do the job, meaning that
As successful as it is, the Personal Markets they would be successful in the sales role,
business unit faces the same workforce and that they would choose to stay with
challenges as other organisations. One of the organisation. This led to the creation
these is hiring and retaining its sales force. of a set of research based processes and
In 2009, in the midst of the worst economic tools that could predict both sales success
environment in a generation, the voluntary and the likelihood that a new salesperson
termination rate for new sales would leave the organisation within the
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first year of employment. As you will see, scores could predict success in the sales
the goal was achieved by more effectively role. The results of the research indicated
using existing HR data. that high-scorers on the assessments sold
significantly more auto and homeowners
Sales Success policies than low-scorers. Modeling the
In 2006, Liberty Mutual began using pre- results in financial terms, in a sample of 600
employment assessments as part of the new hires, the inclusion of a pre-
hiring process for key jobs. employment assessment in the selection
Organisationally, the goal was simple: process resulted in $9 million dollars in
make better hiring decisions by using additional revenue. Clearly, higher scores
assessment results to predict success in the on the selection assessments were reliable
jobs for which candidates were being indicators of sales success. The next
selected. The Personal Markets sales role problem to be solved was figuring out a
was one of the jobs for which these way to predict the likelihood that a new
assessments were being used. Selection sales representative would stay with the
assessments are divided into two sections. organisation.
The first, completed during the application
process, provides an index of the Predicting Retention
candidate’s fit in a professional work The goal of this project was to use
environment and potential to be successful information already in the company’s
in a sales role. Candidates are rank ordered possession to predict the likelihood that a
based on their scores, with higher scores new sales representative would voluntarily
indicating more likely success in the role. leave during their first year of
Recruiters are instructed to use a ‘top employment. We began by identifying all
down’ approach to resume screening, of the information that is gathered during
focusing their energy on the highest the hiring process. The number of data
scoring candidates. sources was somewhat surprising. They
Assessments such as these are developed included:
by conducting research on current • Cover letter
employees. And while the research
• Resume
methodology used to create the
assessments is highly reliable, there is • Applicant tracking system entries
always some skepticism until there is ‘real’
• Selection assessment scores
evidence, meaning that employees who
were hired using the assessment can be • Phone screen
shown to be more successful than
• Interview notes and scores
employees who weren’t. So while
recruiters looked at the assessment results, • Background check results
they may not have used them to their best After carefully evaluating each data source
advantage. It took a validation study with it was determined that the resume would
almost 300 sales representatives who had be the most useful source of information.
completed the assessments to prove their The resume was selected because it shows
effectiveness. rich and meaningful differences between
Using results from the assessments, first applicants on a wide variety of comparable
year sales figures and performance attributes. In addition, a resume is easy to
assessments completed by managers, HR use and is available very early in the hiring
evaluated the degree to which assessment process.
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The next step in the process was to collect rated according to established criteria. The
information from experts about why sales remaining factors required coding,
reps leave or stay. Sales managers and the meaning that they involved facts that were
HR representatives who support them either present or not present on a resume
were selected as the experts. The goal was and they just had to be identified and
to gather the first-hand experiences, documented. No judgment was required.
observations and beliefs from members of
these two important stakeholder groups. Workforce Analytics and Personal
Representatives from each were asked the Markets staff with sales recruiting
following questions: experience and knowledge analysed three
hundred randomly selected resumes of
1. As you have seen sales reps leaving the sales representatives with less than one
company, what do you think have been year of experience. Half of the employees
the most common reasons for leaving? in the sample had voluntarily left the
What characteristics do those sales reps company during their first year; the other
leaving for the same reason have in half was still employed. Three individuals
common? independently assessed each resume for
items requiring judgment. Coded
2. What differences have you noticed information was also collected. Finally, the
between sales reps who stay with the results of the resume evaluations were
company and those who leave within a checked for consistency across the raters
year? (inter-rater reliability) and were then
3. Can you think of any cases when a placed in groupings that represented the
sales representative was planning to major underlying causes of turnover
before being used for statistical modeling.
leave but decided to stay? If so, what
were the reasons for changing the The results of the resume analysis indicated
decision? that the following factors could be used to
4. What characteristics have you noticed predict first year turnover:
that differentiate those who stay from
those who leave? Rated Items
Information collected from the interviews, 1. The level of effort demonstrated on
along with the results of a review of the previous jobs/activities
relevant literature and further analysis of
2. How the candidate packaged him/
the resumes by Workforce Analytics led to
herself for the sales representative job
the identification of 39 pieces of
information (factors) that might influence 3. Whether candidates emphasised job
first year turnover, which could be duties or both job duties and results on
identified by carefully reading a resume. prior jobs/activities
The next step in the process was to identify
4. The degree to which instructions were
which of the 39 factors, could, in fact,
provided for completing prior jobs or
accurately and reliably predict first year
job activities
turnover.
5. The degree of pro-activity
The 39 factors were divided into two
demonstrated on prior jobs/activities
different categories. Thirteen of the factors
required judgment: information on a 6. The degree to which prior jobs required
resume had to be identified, analysed and goals or plans for daily tasks
apr 04 HR Speak.p65 85 4/27/2011, 2:45 PM

Coded Items applicants who demonstrated turnover
1. Typographical, grammatical or spelling risks.
errors Acceptance of new tools is a challenge
2. Leaving school before obtaining a under any circumstances. In this case, we
college degree were attempting to insert a significant
amount of objectivity into what had
3. Prior experience in automobile and/or traditionally been a more subjective
real estate sales endeavour. Recruiters are highly skilled at
making accurate judgments about
Interestingly, managers had strong, but candidates by reviewing their resumes and
sometimes inaccurate feelings about conducting phone screens. They were now
characteristics of new hires that would lead required to consider more factual
to higher retention. For example, managers information (selection assessment results
believed that candidates with prior real and results from the new screening tool)
estate sales experience would be less likely when making decisions about which
to turnover. The results of the research candidates to move through the selection
proved the opposite. Another example was process. And Sales Managers, of course,
the belief that candidates who had believed they knew what made a good
leadership experiences in college would sales representative. As result, a modest
remain with the company longer than those change management effort was required.
without. Once again, this was not the case.
On the other hand, the nine factors that had To increase recruiter and sales manager buy
been identified did appear to predict first in, the results of the research were shared
year turnover. The next step in the process and thoroughly discussed before the new
was to develop a method for ensuring that process was implemented. Their feedback
those factors played a prominent role in the and concerns were incorporated in the
selection process. tools. These two important stakeholder
groups believed that their opinions were
included in the final tool set which was
A Refined Process for Recruiters critical to the initiative’s success. Training
A key decision point in the selection sessions were held to help recruiters
process is choosing the candidates who will understand the process and tools. This was
be invited in for interviews. A satisfactory followed by practice period so that each
score on the pre-hire assessment became recruiter had 30 opportunities to use the
the first hurdle candidates had to climb. resume screening tool and compare their
Simply, a satisfactory score was required results against others who had screened the
to move to the next step in the process. Next same resumes.
was the resume screen. Recruiters used a
screening tool that reflected the nine factors Results
that were shown to influence first year New processes only matter if they deliver
retention. Workforce Analytics created a results. In fact, the failure of most process
Microsoft Excel based tool that records improvement initiatives is that an
recruiters’ resume evaluation results and enormous amount of work and much angst
automatically translates them into on the part of those who are affected far
actionable recommendation based on the too often results in the same outcomes.
results of the earlier research. Recruiters Nothing could be further from the truth
were coached to exercise greater caution with regard to the change in the recruiting
when evaluating the qualifications of and selection process described here. In
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2010, the first year in which the new process Conclusion
and tools were used, first year attrition of
This article began by making the assertion
Personal Markets sales reps dropped from
that HR organisations have access to an
18.9% to 11.5%, representing a 39% decline
enormous amount of data and that a
from the prior year. This was the first time
in over 5 years that there had been a common problem or, at least challenge, is
decrease in first-year attrition for Personal to take that information and turn it into
Markets sales reps. In contrast, first-year useful information which supports better
attrition in the rest of Liberty Mutual rose business decisions. This project represents
slightly during the same time period. From an example of the ongoing partnership
a financial perspective, the results were between Corporate HR and the Personal
significant as well. Reducing first-year Markets business unit which, in this case,
turnover resulted in an annual net gain of significantly reduced first-year sales
over 4.5 million dollars, including reduced representative turnover using existing data
hiring costs and increased sales. This was on the content of resumes and selection
a remarkable result, by almost any assessment results. Together, the changes
standard. According to John Fedak, Senior accounted for over 14 million dollars in
Vice President of Personal Markets Field reduced expenses and increased revenue.
Operations — “This is an example of By any yardstick, these are significant
continued collaboration between the outcomes that illustrate the business value
business and Human Resources in support of collaborative HR/business partnerships
of our goals of increasing revenue and that capitalise on information assets that
reducing costs”. already exist.
apr 04 HR Speak.p65 87 4/27/2011, 2:45 PM

A LETTER TO THE CEO ABOUT THE STATE OF
TALENT BUILDING AND HOW IT WILL IMPROVE
MARC EFFRON
About the Author
Marc helps some of the world’s largest and most successful

companies improve the quality and depth of their talent. Using
the One Page Talent Management approach (detailed in his Harvard
Business Press book of the same name), Marc creates talent-building
practices that are simple and easy to use, have strong accountability
and high transparency. Marc’s clients have included American
Express, BNP Paribas, AMD, MasterCard, Reliance Industries and
more. His experience includes talent executive roles at Bank of
America and Avon Products, and starting and leading the Global Leadership
Consulting Practice at Hewitt Associates.
Dear Mr. CEO: they said your “talent brand” wasn’t strong
(whatever that meant).
I know you’re serious about building

talent. You’ve read the books, listened
to the gurus and talked to the consultants.
Yet your company supposedly has the
latest and greatest talent practices. You
You know it’s about getting the “right have annual succession planning meetings
person on the bus,” and “making talent a and a leadership competency model with
competitive advantage.” So you send your the 16 behaviours deemed most important
team to executive education courses, hire to your company. You bring in world-
team-building consultants and participate renowned leadership speakers and send
in an occasional 360-degree assessment. your executives to expensive, two-day
assessment centres. You’ve worked hard
Somehow, though, it’s just not working. to build great talent practices and even
Your company’s talent is in no better shape benchmarked every HR process against
now than it was five years ago. It’s not bad, GE!
per se, but you know that better talent is
out there. In fact, you worked with better But still, you’re worried. You know the
talent in your last company and saw the competitive environment is getting
difference in the company’s performance. tougher – China, raw material prices,
For some reason you never seem to have increasing regulation. With the right talent,
enough talent to go around either. Your last you know your company can be an
general manager’s job was vacant for 8 aggressive competitor. What we have
months because no internal candidates today isn’t going to get us there, you think.
were qualified. And, it took the There must be a better way to understand
headhunter forever to fill that job because what talent we have, quickly develop them
apr 04 HR Speak.p65 88 4/27/2011, 2:45 PM

and create a work environment they’ll find But as your own experience and a wave
engaging. And there must be a way to do of recent studies show, we’re not getting
it faster and easier than we do it today. the job done as well as we should. In the
Deloitte and Economist Intelligence Unit
The Current State of Talent Building report Aligned at the top, 531 HR and
non-HR executives were surveyed to better
Organisations are generally unhappy with understand how companies were
their ability to grow talent and are addressing critical people issues. While
increasingly frustrated as their talent needs talent management issues were rated
become more severe. Outside their walls as critical to the organisations’ success,
they see a competitive environment where thirty percent of executives said there was
winning requires top quality talent, while a radical or significant improvement
inside those walls they see millions spent needed in how their organisation managed
on talent development with very few people issues.
results. Line executives blame Human
Resources (HR) groups for not delivering
Boston Consulting Group’s Future of HR in
better leaders, while HR says those same
Europe report concluded that managing
executives talk a great game but don’t
talent was a high current priority for
deliver the necessary resources or
European firms, their most important
commitment.
future priority and the area where
Caught in the middle are employees who companies had the lowest current
just want to increase their skills and learn capability. Their report stated that
new behaviours so they can have HR executives “face a credibility gap
productive careers. They want to know when it comes to executing basic HR
that the executives’ promises of duties.”1
advancement are genuine and that HR’s
programs and practices will help them A McKinsey Quarterly article in 2008
succeed. They’re an informed, mobile and concluded that, “the astonishing reality is
independent minded group and if your that most (companies) are as unprepared
organisation can’t get it together and for the challenge of finding, motivating and
develop them, they’ll quickly go retaining capable workers as they were a
somewhere that can. decade ago.”
While this situation is challenging, it’s also
The world of HR clearly has some work to
somewhat strange due to one key fact —
do. We understand that Mr. CEO and we’re
we already know almost everything
committed to doing better. Permit me to
necessary to grow great talent. We
briefly describe what’s created this
understand what combination of job
problem and exactly how we’ll solve it.
experiences, learning from others and
formal training is optimal for
Why It’s Not Working
development. We have 60 years of high
quality behavioural and industrial/ If there was only one barrier preventing
organisational psychology research that HR from increasing our ability to grow
helps us to understand how companies and talent, we would have long ago knocked
employees can work best together. In short, it down and seized our seat at the table.
we already have nearly every answer Unfortunately there are a number of
needed to develop great talent in our barriers that have contributed to our
organisations. challenge in building talent.
apr 04 HR Speak.p65 89 4/27/2011, 2:45 PM

• Creating needless complexity: If you from 360 feedbacks to conducting
consider the simple intent of most talent performance reviews.
processes, you’d have trouble
understanding why a line manager When we let this core science guide our
experiences so much complexity. practices, we remain appropriately
Where we went wrong was in not conservative about what we do. If we
balancing complexity with value as we don’t understand or choose to ignore the
built these processes. It’s not that the science, we will build talent practices
additional components we layered on, using our biases and assumptions, or
from highly detailed competency latch onto the HR fad of the month.
models to the extra 100 questions we
• Cutting and pasting: In too many
ask on the engagement survey, were
situations we blindly took what one
technically wrong. Each had sound
organisation was successfully doing to
behavioral science to support its
build talent and tried to cut and paste
inclusion. What we didn’t do as we
it into our organisation. We allowed
added each additional element was to
benchmarking to take the place of
consider the trade-off between the
creating our own talent strategy. We
complexities we were adding to the
didn’t understand that the unique
overall process and how it would affect
cultural context of the other
a manager’s experience.
organisation might have been very
different from our own.
• Adding no new value: We haven’t
made our talent tools into management • Influencing poorly: We have not
tools that help managers make smarter understood business as well as we could
decisions or make their lives easier. have, which has hurt our ability to
While it’s great to produce an influence senior executives. Our
engagement survey report, did we professional backgrounds and education
design it to help our managers quickly often weren’t in finance, sales, marketing
understand the business choices they or other traditional business disciplines,
should make because of it? The talent so we lacked both the business context
review process may differentiate the and the analytical frameworks to “sell”
best talent from the rest, but do our ideas effectively to senior leaders.
managers know how to use that Because of this, we have been seen in
information productively? many organisations as “at the table” but
far from influential.
• Ignoring the science: One of the great
things about the HR field is that there We clearly have some room to grow,
is a rich body of academic research that Mr. CEO, and here’s how we’re going to
supports what we do. Basic behavioural do that.
science (i.e. Classic Conditioning by Ivan
Successfully Building Better Talent
Pavlov and the Behavioural Research of
B.F. Skinner) provided the foundation We’re going to start making our talent
for the industrial and organisational processes easier to use, with more
psychology research (i.e. Expectancy accountability for results and more
Theory by Victor Vroom, or Job Design transparency. We will focus purely on
by Richard Hackman and Gary ensuring that talent management practices
Oldham) of the past 50 years that are successfully executed. We know that
informs every modern talent practice, these practices – from succession planning
apr 04 HR Speak.p65 90 4/27/2011, 2:45 PM

to performance management – are very relevant research, then we’re making
powerful drivers of company performance. decisions by relying on personal biases and
We also know we’ve made them so trusting that other’s benchmarked
complex that they’re often not executed in processes are based on the right science.
the way that we’d prefer. Knowing the core science also helps to keep
us from falling for the latest HR fad.
Going forward, we’ll solve that problem by
asking ourselves these questions before 2. What is the simplest possible way to
designing any talent process. accomplish that objective? We will
always seek the optimal balance between
1. What is the core business objective we
complexity and value — the point where
are trying to achieve?
we’re giving a manager the maximum
2. What is the simplest possible way to possible value from a process with the least
accomplish that objective? amount of complexity. While you might
expect that HR professionals would
3. How can we ensure that the processes naturally seek that balance, too often
actually work? what’s commonly accepted as the “right”
1. What is the core business objective we way is often tilted towards complexity. As
are trying to achieve? A core objective is we mentioned earlier, this complexity may
an activity that changes the behaviours, be academically proven to add value, but
capabilities or actions of your employees the challenge is to prove that it adds
in order to improve business results. The enough value to justify the complexity it
core objective might come from a specific adds to a practice.
business initiative (i.e. increase sales in We know that line managers will use our
China by better aligning goals) or a more processes if they believe they deliver more
“generic” goal that’s derived from the core value than complexity. In our design
behavioural science (i.e. we know that processes, we will use a simple curve that
engagement has been shown to correlate shows the trade-off between value and
with higher customer satisfaction, so our complexity to ensure we always
goal is to increase engagement). The only maintained that balance. (See Figure 1.) As
wrong answer to this question is the name we design our talent practices, we will start
of an HR or talent practice — “performance
management or “succession planning” —
since those are HR processes, not business
objectives. This is often where we in HR
go wrong. We assume we should build a
performance management system rather
than focus on the business objective of
increasing performance by having clear
goals set and performance fairly evaluated.
This step is also where we rely on the core

science that underlies HR and talent. To
be successful, we need to understand the
academic research in areas like motivation,
leadership, rewards, etc. before starting the
design of any program. If we start our
design process without knowing the
apr 04 HR Speak.p65 91 4/27/2011, 2:45 PM

with a blank sheet of paper and take “baby believe that if corporate executives had
steps” towards our goal, weighing the been more focused on building talent then
value/complexity trade-off at each step. organisations wouldn’t have made
We will consider every process step, significantly more progress.
element or form “guilty until proven
It’s unusual that corporate executives and
innocent” and only include it if its value is
boards haven’t taken a more active role in
immediately clear. We will only include in
developing talent given their consistent
our processes things that the science tells
pronouncements of its importance and
us drives process effectiveness.
concerns about the status of talent in their
organisations. A 2008 Boston Consulting
3. How can we ensure that the process
Group study of more than 1,000 European
actually works?
executives found that talent management
We know that making processes incredibly was the area of highest future importance
easy for managers to use is a critical first in HR but the area of lowest current
step. But if that’s all we do, we can’t capability. 2 A Conference Board study
guarantee that busy managers will take the involving 769 CEOs had CEOs listing both
time to complete even an easy to use succession and finding qualified
process. For that reason we will add managerial talent among their top 10.3
accountability for results to each process Only 27% of board members were
and make them very transparent. confident that the right leaders were in
place to lead their companies successfully.4
Accountability for results will mean that
we will hold managers accountable to We need you to help us make talent
complete their corporate talent practices – building more effective by doing three
succession planning, coaching, things:
performance management, etc. We will do
this in creative ways that leverage the • Be a Personal Role Model: Complete
culture of the organisation, empower core HR processes like performance
employees and don’t appear heavy- management with your team so that
handed. But rest assured, Mr. CEO, we’ll they know you’re serious about this
make sure the process gets done. process. If you’re doing these activities,
others will hear the clear message about
We will also increase the transparency your expectations for them.
about both the talent processes we use and
• Be Visible in Talent Building
the outcomes of those processes. We believe
Activities: When you are seen engaging
that every associate should understand
in talent building activities like giving
how succession planning works, why a
feedback, addressing leadership course,
managed distribution is used in
etc., you instantly make them legitimate
performance management, and how they
and other leaders will support these
were rated on the 9-box grid.
processes too.
We think these steps will make a major • Make the Tough Talent Decisions: We
difference in our effectiveness, but we also all know that better talent delivers
need your help. better results. We rely on you to make
the difficult decisions about senior
The Role of the CEO
leaders in the organisation to ensure
Despite HR’s obvious challenges in that it’s functioning at maximum
implementing talent practices, it’s hard to effectiveness. Don’t let leaders “hang
apr 04 HR Speak.p65 92 4/27/2011, 2:45 PM

on” when it’s clear that new talent is ever have sustained profitability — is if our
needed. talent is better than our competitor’s. Our
traditional sources of competitive
Our Last Hope for Competitive
advantage are gone. The power of our
Advantage
patents has evaporated through piracy.
Whether our current situation is more due Our inflexible fixed assets are better
to HR’s actions or lack of CEO involvement described as liabilities. Our great product
is irrelevant in the face of one extremely designs are quickly imitated. Call it cliché,
consequential and scary truth. That truth but talent isn’t just our best asset, it’s
is that the only competitive advantage our essentially the only valuable asset we have
company can have in the future — more left. Let’s manage it in a way that reflects
bluntly, the only way our company will that truth.
1
Strack, Ranier, Caye, Jean-Michel, Leicht, Michael, Villis, Ulrich, Böhm, Hans, and McDonnell, Michael, The Future of HR in
Europe: Key Challenges through 2015, Boston Consulting Group, June 2007, p. 16
2
Ibid.
3
CEO Challenge 2007: Top 10 Challenges, Conference Board, October 2007.
4
Ashby, Meredith, Atwood, Nancy, Neisendorf, Barbara, The Evolving Role of the Board in CEO and “Back Bench” Senior Executive
Succession, Conference Board, No. 104, July 2004
apr 04 HR Speak.p65 93 4/27/2011, 2:45 PM

MANAGING IN A GLOBAL BUSINESS ENVIRONMENT:
EXPECTATIONS & CHALLENGES OF THE HR
FUNCTION
NS RAJAN
About the Author
NS Rajan is Partner and Global Practice Leader - People and

Organisation, of Ernst & Young. He joined them a decade back to
start the HR consulting practice in India. He is an alumnus of XLRI,
Jamshedpur with 28 years of experience, in industry and
consulting. Rajan is the National President of NHRD Network,
and recipient of the “HR Professional of The Year” for Excellence
in 2008.
“For I dipt into the future, far as human interprets globalisation as “the closer
eye could see, Saw the vision of the world, integration of the countries and peoples of
and all the wonder that would be.” : Alfred the world… and the breaking down of
Tennyson 1833 artificial barriers to the flows of goods,
services, capital, knowledge, and people
lobalisation has changed us into a
“G company that searches the world,
not just to sell or to source, but to find
across borders.” Granell, on the other hand,
cautioned that “Globalisation does not
mean eliminating differences, imitating
intellectual capital – the world’s best talents others, or allowing more developed
and greatest ideas,” observed Jack Welch, nations to impose their models.”
former CEO of GE, a trans-national
corporation that has verily transcended The many contours of globalisation
borders creating an enviable global embrace diverse facets: cultural, economic,
footprint. While globalisation as a modern strategic, connectedness and
era concept has captured the imagination, interdependence. In the borderless world
historians have long held that there is we live in today, where the central
enough evidence to suggest that the challenge is for leading organisations to be
phenomenon of international trade existed successful, endeavouring to be the best in
in times of yore. The famed Silk Route, the domestic arena goes hand in hand with
which connected China to Europe for silk the need to be reckoned as a globally
trade, for instance, has been an artery successful company competing with the
through which goods and people moved world class enterprises. Theodore Levitt
across borders seamlessly. Thomas had presciently observed in 1983 that the
Friedman, who famously proclaimed that world’s needs and desires have been
the world is flat, describes globalisation irrevocably homogenised, and only those
succinctly as “farther, faster, cheaper and that adopt a global approach would stay
deeper.” The economist Joseph Stiglitz successful in the long term. Levitt made an
apr 04 HR Speak.p65 94 4/27/2011, 2:45 PM

elegant case that global corporations will then India Inc. is certainly treading the path
be those that operate as though the entire of becoming a truly globalised nation. The
world is a single market. The role of a CEO, Aditya Birla Group and the Tatas were
in such a world, is complex with daunting amongst the early trailblazers in embracing
challenges to surmount and unfolding new globalisation defining the road ahead.
vistas to conquer. On this journey of Indian enterprises have continued to make
transformation, the CEO’s expectations of inroads into the global arena through
the custodians of human capital – the acquisitions to access global markets. In the
Human Resources function- undergoes a first quarter of 2010 alone, the value of
paradigm shift. India’s outbound acquisitions had touched
$15 billion. Today, India’s outbound
India: Leading the road to globalisation acquisitions far surpass its inbound deals
–to cite a few:
India has been a witness to these evolving
paradigms since the days of liberalisation. • Bharti Airtel acquired South Africa’s
What India is experiencing today is a two- Zain Telecom for $10.7 billion;
pronged force of globalisation. The advent • Hinduja Group acquired Luxembourg-
of multinational companies entering India based KBL European Private Bankers
since the nineties when liberalisation and SA for $1.69 billion;
reforms process unlocked the fast growing
market is the first wave. Secondly, Indian • Vedanta Resources acquired London’s
enterprise is expanding its footprints in Anglo American Zinc for $1.34 billion;
overseas markets to enhance its own and
international presence. If recent events of • Reliance Industries acquired 45% stake
India’s leading conglomerates scorching in US-based Pioneer Natural Resources
the road of acquisitions are any indication, Co. for $1.32 billion.
apr 04 HR Speak.p65 95 4/27/2011, 2:45 PM

Indian corporations are globalising their 1. Supporting global strategy: As
organisations embracing new business national corporations transform into
models that seek to discover newer globally integrated enterprises, the
consuming markets, potential economies business strategy of the enterprise
of scale, and to unlock the value of undergoes a paradigm shift. The CEO
arbitrage. The CEO is constantly balancing expects the HR function to enable the
the need to standardise across countries on requisite transformation of HR
one hand and the need to exploit the processes to remain strongly aligned
inherent values of localising as the with global business strategy and direct
organisation undergoes radical their focus on core activities of
transformation of its outlook and the way managing human capital and servicing
it works. The journey towards making a strategic business needs. The HR
corporation truly global is fraught with Scorecards must change significantly to
ambiguities and unpredictable reflect the globalisation strategy of the
environments, and immense possibilities. enterprise. It has been observed that
despite developing a global footprint,
What is expected of the HR function? organisations tend to remain
What is the CEO’s mandate for HR in a overwhelmingly local both in terms of
global corporation? The evolving role of leadership positions and the practices.
the HR function is to be a truly effective The HR function is expected to
business partner – a force and an ally – proactively architect new processes and
supporting the wealth creation process on practices capable of responding to the
the road to globalisation; an aggregator and unfolding dynamics of the firm’s new
integrator, harnessing human capital in a strategic intent and create
borderless world. People issues now organisational capability to fulfill the
feature high on the list of executive business needs. It is expected that the
priorities on virtually all the surveys of HR leaders demonstrate understanding
global business leaders. CEOs talk of of new cultural literacies and
spending as much as 30-35% of their time disciplines required for managing the
on people issues. People indeed make all rapidly expanding organisation. This
the difference. When the enterprise is includes the deep understanding of the
expanding beyond boundaries seeing political, social and economic
the world as a single market place, the environment in which business
paradigm applies to the function of HR. operates as well as knowledge of
The set of current competencies in HR that competitors, products, technology, and
would have served well when the the consequent sources of competitive
corporation was confined to the country’s advantage; to function as the strategic
borders seem woefully inadequate now. partner.
Wayne Brockbank aptly observed that
this decade will be that of the human side 2. Build a globally recognised ‘employer
of business and that the level of brand’: Access to markets opens an
expectations for HR professionals in global exciting access to people and the CEO
business has changed. As the very nature expects the HR function to attract the
of the business entity undergoes a change, best talent in new geographies and
the HR professional as a vital enabler is create a strong source of competitive
faced with expectations and challenges, advantage. Creating a strong Employer
never envisaged earlier and exciting Brand in each of the new local markets
possibilities too. that resonates with employees is vital
apr 04 HR Speak.p65 96 4/27/2011, 2:45 PM

to attract local talent. This requires an developing an openness, respect for and
intimate understanding of local awareness to cultures and markets, the
mindsets and cultures. The well ability to value and celebrate diversity,
recognised player in the domestic arena the capability of managing and working
could well be a stranger in a new with dispersed value creating
geography. The mandate of correcting networks, and the ability to integrate
pre-conceived notions and prejudices differences to yield value for the
about the organisation also rests with organisation. The HR function as the
the HR function. Organisations from custodian of the human capital has the
emerging markets tend to be viewed by mandate to instill and inculcate the
talent with a degree of skepticism. It global mindset across talent in the
would be vital to build strong and organisation, and particularly amongst
vibrant equity amongst prospective leadership. Cognitive bridges that
employees through a well conceived connect local needs and capabilities and
and articulated employee value global focus and strengths need to be
proposition. built. The HR function would be
required to enable an open and
3. Integrating Talent Management transparent behaviour that
Globally: When corporations globalise, accommodates multiple interests of a
the business expectation of HR is to diverse workforce vital to instill trust
operate in a manner where business in a global environment. While this is
strategy is mirrored in a tightly well essential in any organisation for
aligned reciprocal talent management sustained growth, it is even more critical
strategy. A new acquisition, the setting in a company that transcends
up of a plant in a different geography, geographies. The more dispersed the
or channel expansions for instance enterprise, the greater the distance from
would require the HR function to the centre, and greater the need to
respond with a talent management enable a trusting environment.
strategy that may not be served well by
traditional workforce planning 5. Ensuring Seamless Global Mobility:
methods. In a fast and dynamic, ever Businesses need emerging demands to
changing market place, the expectation be met proactively without borders
is that talent is available ‘on tap’ and being barriers to seize opportunities in
that the human capital availability is the market place. Managing the
managed on a supply chain model mobility of a global workforce and
basis; end-to-end from sourcing ensuring a seamless demand fulfillment
to delivery. In a complex and where needs that emerge are
geographically dispersed operation, the proactively met is a major expectation
HR function is expected to deliver on of the HR function. It is vital to
attracting, retaining and motivating understand cultural differences,
talent; across cultures, countries and legislative and regulatory issues,
subsidiaries. evolving trends in the demographics,
an intimate knowledge of labour laws
4. Creating a Transnational Mindset: No across multiple jurisdictions.
organisation can compete in International assignment management,
international markets without both short and long term, well planned
acquiring global mindset and onboarding to help assignees deliver on
sensitivities. A global mindset includes the go, well constructed compensation
apr 04 HR Speak.p65 97 4/27/2011, 2:45 PM

fitment, and carefully managed policies that serve the interest of the
repatriation are critical to leverage community at large. This includes
talent across countries. selecting the right candidate for the
described role irrespective of
6. Cross-border networking: When a nationalities, creating policies and
company multiples, with new systems that resonate with a substantial
geographies being added, the HR number of employees instead of getting
function is expected to respond by buy-in from a handful of people, etc.
ensuring that people feel they belong The change of mindset must start with
to one organisation connected closely the professionals in the HR function
together despite the distances that itself. What worked till yesterday may
divide them. It is critical that there are no longer suffice.
global platforms that both bind and
bond individuals. Social capital gets 2. Cascading vision, values and code of
enhanced when people find that they conduct: Many organisations have
can collaborate and work together with managed to get their vision and values
free flow of information on well on their walls. Only a few manage to
leveraged networks that enhance the embed these in the souls of their
overall sense of belonging. The HR employees. Cascading vision and
function’s mandate is to enable values has always been a challenge, and
processes of interaction and dynamic in a global corporation a far tougher
networking relationships across the task. Given the vast ethnic and cultural
talent pool. differences, to be able to ensure that the
organisational ethos and what it stands
Challenges of operating in a global for is both understood and imbibed is
environment an enormous task. Promoting a
Unlike any other function, the Human seamless organisational culture,
Resources function deals in intangibles as ensuring all employees resonate with
it serves to deliver across the value chain the values espoused, matching
of people management. A HR professional individual needs and aspiration with
can be the modern day alchemist organisational goals are daunting
harnessing the intellectual capital and indeed.
helping them discover and deliver on their
potential to create organisational wealth. 3. Localisation versus Standardisation: It
When a domestic enterprise starts to is an extremely challenging task to go
globalise, this poses an all new set of global while staying local. Each country
challenges with new horizons of develops its HR processes and practices
complexity to an already challenging relevant to meet the domestic needs.
function. The HR function has to gain an intimate
knowledge of cultures, countries, and
1. Building a Geocentric Efficiency: HR local practices. Finding best practices
professionals are often oblivious to the across geographies and a way to
fact that they become ethnocentric integrate and synthesise them is a
while devising HR policies and systems daunting task. A global corporation
for a global workforce. While catering needs an organisation structure that
to a global audience, HR professionals bridges strategy and execution, across
must consciously adopt a geocentric multiple value creation zones and
approach, that is, create systems and geographies, an individually powerful
apr 04 HR Speak.p65 98 4/27/2011, 2:45 PM

performance management system that across borders. This also poses the
connects with the whole, training & difficulty of creating appropriate
development relevant locally while training and development, re-
being centered on universal deploying talent and attracting skilled
competencies, leadership development professionals to meet the challenges of
interventions that allow seamless future employee crunch some of the
movement to fulfill emergent needs, all international markets may face. Also,
of them balancing the core values of with countries like Japan and
focus versus leverage. Europe facing issues with ageing
workforce, HR policies and processes
4. Celebrating diversity: A corporate will have to be designed so as to match
culture takes a long time to be the expectations of the ageing
embedded and find resonance in its workforce.
employees. National and cultural
6. Corporate agility in a dispersed world:
differences in the world of globalisation
Corporate agility is a prerequisite for
create new dimensions to master. It is
organisations operating in multi-
therefore important for the HR manager
geographical locations. This makes it
to have knowledge of not only his/her
essential for organisations to move from
own culture but also to have familiarity
an episodic and/or periodic
with multiple cultures and should be
connectivity of processes and systems
able to interpret this knowledge to
to a real-time predictive modeling by
influence employees. It is best in such
streamlining certain processes of
situations where instead of ‘managing
geographically scattered organisations
diversity’, organisations leverage the
on a real-time basis. For instance,
mutuality of varied knowledge and
proactive management of HRD
experience to add value to business.
activities by planning talent on a supply
Inculcating a transnational mindset is
chain model is important to predict
easier said than done. It requires
talent demand situations. Not having
constant nurturing and deep sensitivity
been faced with such a dynamic
to people and the environment.
environment where complexities
multiply exponentially, would require
5. Balancing the Demographic Dividend:
the HR function to assimilate new
Global corporations often discover that
competencies not mastered before.
while one country is talent deficit,
another may be talent surplus. There is The new emerging role of the HR
also the demographic age that varies professional is an amalgam that
across geographies with ageing includes being the chief integrative
populations in some and younger officer, deliverer of business success,
workforce in the other. According to diversity manager, employee
UN, between 2010 and 2030, India will champion, productivity czar, and chief
add 241 million people in working age effectiveness officer, as aptly observed
population as compared to China, by Losey, Meisinger and Ulrich. Each
which will add a meager 10 million of these roles would require a new hue
during the same period. This is a to get the global canvas right. While
considerable challenge for the HR corporations are aiming to go global,
function that now needs to master the their ability to harness human capital
nuances and create a fine balance is what will decide its success.
between demand and supply of talent Intertwining HR management with
apr 04 HR Speak.p65 99 4/27/2011, 2:45 PM

business strategy at a global level function will indeed distinguish the
presents a daunting challenge for HR leaders from the laggards as
managers. The HR professional needs organisations embrace globalisation.
to gauge and meld employee The HR function indeed is ready for the
aspirations with organisational task at hand. As Sir Walter Scott wrote,
objectives to create a sustainable the need of the hour is “The will to do
competitive advantage. Lending and the soul to dare.”
primacy to the human resources
ACKNOWLEDGEMENTS
Our profound thanks to all the contributors of articles, interviewers, interviewees
and book reviewers who have taken time off from their busy schedules out of
their dedicated interest to the field of Human Resources.
We acknowledge with gratefulness the excellent contribution of the Guest Editor

Dr. Santrupt Misra. We would like to place on record his dedicated missionary
support of personally motivating a number of authors who shared such thought
provoking articles.
Similarly, this issue would not have been possible but for support from Shishir
Misra, DGM – Group Human Resources, Aditya Birla Management Corporation
Pvt. Ltd.
Our special thanks to Mr. Prabhakar L., VP-Human Resources, ITC, Agri-Business
Division, for meticulously screening every article word by word out of his passion
for the profession.
We acknowledge the support from Sunathy of Exclusive Search.
Our thanks to the professional editor Ms. Bina Raju for her painstaking editorial
support even while on tour to the USA.
We thank Prof. (Col) A. Balasubramanian of Balaji Society for his continuous

support.
– Dr. PVR Murthy, Managing Editor

(On behalf of the Editorial Team)
apr 04 HR Speak.p65 100 4/27/2011, 2:45 PM

TOMORROW’S LEADER
RAJEEV DUBEY
About the Author
Rajeev Dubey is the President (Group HR & After-Market) and

Member of the Group Executive Board, Mahindra & Mahindra
Ltd. His key focus areas are HR/IR initiatives for the Group, the
After Market Sector whose three CEO’s report to him, Corporate
Communications, Government Relations and Infrastructure. In
addition, he is on the Boards of several Group companies including
Mahindra China Tractor, Mahindra Intertrade, Mahindra First
Choice Wheels, Mahindra Insurance Brokers and Mahindra Retail,
and is the Chairman of Mahindra First Choice Services. He also serves as Chairman
of the Sustainability and CSR Councils of the Group, and is a Member of the Governing
Council of the Mahindra Institute of Quality and the Corporate Governance Cell.
He joined Mahindra & Mahindra Ltd. in January 2004 after a career spanning
29 years in the Tata Group, which he joined in 1975 as a member of the TAS, the
central managerial cadre of the Tata Group. He spent 21 years with Tata Steel, and the
next 7 years as Managing Director and CEO first of Tata Metaliks and then of Rallis
India.
Rajeev studied Economics at St. Stephens College, Delhi University, where he was
ranked first in the University, and at the Delhi School of Economics, where he received
a National Scholarship. He went on to do his MBA from the Yale School of
Management, USA as a J N Tata scholar, and was selected as a Distinguished Alumnus
of the School.
He serves on the CII National Committee of Indian MNCs, the CII Apex Council on
Affirmative Action and the CII Western Regional Council. Rajeev is a Member of the
National Board of NHRDN, the Chairperson of the Employer’s Federation of India
(EFI) Western Region, and a member of the Executive Committee of TERI – Business
Council for Sustainable Development. He serves on the Boards of the Lal Bahadur
Shastri Institute of Management and Technology (LBSIMT), Magic Bus – an NGO
that works with youth as well as children and the School of Inspired Leadership
(SOIL).
T he emerging New World Order is

likely to be characterised by
exponential change, complexity,
which will become critical in meeting the
challenges and grasping the opportunities
that will be thrown up.
uncertainty, multi-polar power centres and
mistrust of large institutions – both private 1. The whole new mind :
and public. In this scenario, there are some There is a major, though silent paradigm
key leadership behaviours and attitudes shift taking place as we move from the
apr 04 HR Speak.p65 101 4/27/2011, 2:45 PM

Information Age to what may be called the mind. They have genuine respect for others
Conceptual Age. The left brain approach and the ability to be non-judgemental as
of logic, analysis, command and control, they focus on issues rather than
has served mankind well till now but it personalities and build on strengths rather
may no longer work. Sustained than weaknesses.
competitive advantage for companies and
These are the multipliers, and now that
nations will require that the left brain
leaders are expected to do more with less,
qualities of logic and intellect be strongly
we need more and more of this kind.
complemented by the right brain qualities
of innovation and big-picture capability. But it is equally true that in most
Tomorrow’s leaders will require creativity organisations, boundaries are much more
and empathy, pattern-recognition and tightly defined than they ought to be if the
meaning making, design and story telling. required energy and momentum of
the change process is to be achieved.
Computer programmers who write code, Clearly the command and control approach
lawyers who craft contracts and MBAs needs to be revisited, for the pace and
who crunch numbers will still be required, complexity of change can no longer be
but the keys to the kingdom will move to managed by supermen / superwomen
those with the Whole New Mind, which CEOs who know more about everything
synergises both right and left brain. than anyone else.
2. Multiplier : Fortunately, many organisations have
realised this and more and more change
There are two dramatically different types
initiatives being driven by large numbers
of leaders. The first type are the very
of empowered leaders and teams of both
intelligent all-knowing types, who have to
blue and white-collar employees -and they
prove they were the smartest in the room
inevitably surpass expectations. Giving up
and have a compulsive need to find fault
power ends up creating much more power!
and tell others what to do.
This is going to be the Golden Age of the
“I am Sir Oracle, and when I open my lips Leader as Mentor, of the gardener who
let no dog bark”. That’s Shakespeare enables a thousand flowers to bloom.
for you, but unfortunately such leaders
3. Fostering Innovation : Leveraging
drain the energy and capability of others,
Failure :
kill ideas and diminish ownership,
commitment and engagement. Innovation, by its very nature, requires
departure from the tried and tested way of
On the other end of the spectrum, are doing things, taking risks and often failing.
leaders (no less intelligent and A key question is whether people will be
knowledgeable) who empower and willing to take risks, if there is Fear in the
enhance the capabilities of people around organisation : fear of criticism and fear of
them. They think “We” rather than “I”, failure.
listen empathetically, encourage debate
and create a sense of ownership. Ideas flow It is a no-brainer that failure at some time
and people stretch themselves to reach for and in some form is inevitable for every
the stars. Such leaders believe that individual and every organisation, and
individuals and teams have vast untapped success belongs to those who show
potential and work to create conditions that resilience in bouncing back from failure.
enable people to build on their strengths Leveraging failure and removing fear will
and break through the boundaries of their be critical if innovation is to be a core
apr 04 HR Speak.p65 102 4/27/2011, 2:45 PM

competitive advantage for the 5. A genuine commitment to the triple
organisation. bottom line :
In this context, let me quote from the Sustainable growth requires a commitment
Harvard Commencement address of J. K. to the Triple Bottom Line of Profit, People
Rowling, the author who had known only and Planet. Till now the commitment to
failure in her personal and professional life community and planet has been more
till the astounding success of Harry Potter. intention than action, but the time has come
when Corporates will be under increasing
“It is impossible to live without failing at pressure to demonstrate that they mean
something, unless you live so cautiously and act on what they say. This pressure will
that you might as well not have lived at all come not only from activists but also from
– in which case, you fail by default. government and even investors and the
The knowledge that you will emerge wiser response will have to be sustained over a
and stronger from setbacks, that you will considerable period of time for it to show
never truly know yourself or the strength measurable results. The real skill will be
of your relationships, until both have been for the leader to convince his people that
tested by adversity: such knowledge is a this approach has to be enhanced and will
true gift, and even though painfully make sound business sense. Hence the
acquired it has been worth more to me than need for action covering product, process,
any qualification I ever earned.” people and community.
In fact sustainability holds the promise not
4. Trust : only of cost and operational improvement,
Of course, no major transformation or but of becoming a mother font for
quantum growth is possible unless we innovation on products, processes and
create Trust in the organisation: where we business models.
trust the leader and the leader trusts us. It is easier to accept this idea at the global
In fact, if you think of it, business and level; the real problem is in embracing and
commerce–in fact human civilisation–is implementing it at the local here and now
based on trust: our belief that people will level in the hurly-burly of daily life. This
do what they say (and hopefully say what cannot happen unless there is a
they mean). If this belief gets diluted or fundamental mind-shift in the deepest
compromised, no initiative can deliver its space/source from which individuals and
potential. Hence it is critical that leaders organisations think and operate.
are trusted and in turn trust those that I firmly believe that this must be a mass
“follow” them. movement with crusaders and apostles
How do we create trust? Clearly there has who can spread the word and instill them
to be competence and that competence in the minds of the young. Not only in
must be harnessed to achieving those who are being prepared for
organisational goals. But that is not leadership positions, but equally in those
enough. Respect for each other, and most who will serve in the value-chain right
important, walking the talk - where we say down to the grass – roots level.
what we think and do what we say. And
6. From the tyranny of either / or, to the
do so consistently over time. This is
authenticity, where we remove the mask, power of and :
be ourselves and show ourselves as we Creating synergy out of seemingly
truly are. conflicting forces and objectives, and the
apr 04 HR Speak.p65 103 4/27/2011, 2:45 PM

ability to create WIN – WIN situations, learnt along the way, created great
have been the hall-mark of the most successes.
successful leaders I have seen. This is a
paradigm shift which will become These were also organisations which kept
increasingly important as we move from it simple and stupid, and unleashed
competition to co-opetition, to a world enormous potential from doing so.
where sustainability becomes a major
challenge, and where we face threats to 8. Purpose :
things we have taken for granted and
Finally, men and women in the
ravaged over the course of civilisation: air,
organisation are looking for purpose and
earth, water and climate.
meaning in their lives which go beyond
7. The triumph of Good over the Perfect : parameters like profit, market share, sales
growth etc.(which are necessary but not
Many initiatives have floundered because sufficient) - some higher-order purpose
the search for the perfect way forward has which touches and satisfies a deep inner
led to sacrificing many things that were chord, a return to basics in terms of
clearly good and desirable. This led to emotional and spiritual needs even as
slow-down and eventual death. On the physical standards of living rise.
other hand, more often than not, those who
dared to take the risk and challenge and They will look for Tomorrow’s Leader to
moved ahead with initiatives / solutions infuse this purpose into the organisation
that were good though not perfect, and vision and life.
apr 04 HR Speak.p65 104 4/27/2011, 2:45 PM

LESSONS FROM THE STADIUM TO THE
BOARDROOM
SATISH PRADHAN
About the Author
Satish Pradhan serves as Executive Vice-President/Chief of Group

Human Resources of Tata Sons Limited. Pradhan also Heads the
Tata Group HR function. Prior to joining the Tata group, he was
with ICI Plc in London. He has worked in Public & Private Sector
companies such as Steel Authority of India, CMC, ICI India,
Unilever India. Pradhan has been a Director of Tata Services
Limited since 2005 and Tata AutoComp Systems Limited since 2002.
He is also a member of the Governing Body of Tata Institute of
Social Sciences (TISS) and National HRD Network; the Executive Committee of the
Bombay Natural History Society, CII and National Committee on HRD and Women’s
Empowerment.
E nough has been said and written about

the inspirational leadership that won
us the Cricket World Cup. Several pages
or just the opposite, sportspersons with
neither plenty of raw talent but no brains,
nor sense of restraint so they end up “self-
have been devoted to the risks taken by our destructing” through distractions of
captain, his ability to manage a bunch of commercialisation, lack of self control or
superstars, his relationship with the coach sheer laziness.
and, most prominently, his ability to stay
You will also find stories of coaches who
calm under pressure. The World Cup is
set the right example for their teams by
behind us now, but are there lessons to be
setting standards for the team and
learnt that we can use at the workplace
inspiring them to meet and indeed exceed
everyday?
those standards. And on the professional
Indeed, some of the most practical side you will see stories of owners who
management and leadership lessons come build organisations designed to put
to us every day. We may not regard them coaches and players first so that the team
as such but they are presenting wins. And of course you will find stories
fundamentals in both personal and of owners who care only about polishing
organisational development. Where can their egos at the expense of everyone else.
you find these lessons? Taken together, these stories provide
valuable insights into character, motive,
In the sports pages of your daily energy, commitment and leadership.
newspaper or on the screens of your
favourite sports events? Everyday you will Elements of Performance
find stories about sportspersons who push Ultimately, sport is about performance.
themselves to the limits to achieve stardom There are three elements to performance
apr 04 HR Speak.p65 105 4/27/2011, 2:45 PM

at the highest level: drive, determination – engineering, science, or the arts – because
and discipline. You will find these elements you have an interest in it. Where it leads
in every successful sports team – and you, is up to you. Determination is what
indeed every successful organisation in the you make of your talents and how you
corporate space. apply them. Your determination will
dictate to some extent, how far you go in
While drive, determination and discipline your chosen field. Your determination will
are essential internal motivators, they can steer your pursuit of your goals. The more
be taught to the entire team and ultimately you want to achieve, the more events and
the entire organisation. In doing so, these circumstances will stand in your way. For
elements help create a culture where example, you will always find someone
people can and do make a positive more talented than yourself; how you
difference. prepare yourself for that competition will
depend upon your determination.
Drive: How do you define this? Drive is
what gets you up in the morning and keeps
you going- your motor. Drive derives from Discipline: Engaging your drive and
the inner meaning of success. It is your fueling your determination comes down to
inner energy that keeps you going and discipline. In other words, how badly do
focused on what you need to do. For you want to achieve your goals? For a
sportspersons, this means training, be it sportsperson who wants to compete in
lifting, running or stretching as well as Olympics, discipline is continuous. It
practicing a skill. For employees, drive is pushes you to endure grueling training and
our desire to come to work and achieve eating only the right food along with
individually and collectively. Our exercises preparing the mind to compete. Discipline
may be mental, such as reading and is all-consuming. In the workplace,
studying. The key to drive, however, is discipline is not simply showing up. It is
universal. It is your desire to succeed. You the rigour that you apply to doing a job
develop a goal and you strive for it. and doing it well. It also means not cutting
Sportspersons want to win; employees corners for expediency but giving full
want to win by doing their jobs well so that measure. Discipline is not easy; that’s why
their team succeeds. Goals are what make it takes discipline. While it is necessary to
drive click. It’s like turning on the ignition demonstrate drive, determination and
to your car but leaving it in parking lot. discipline, personal success depends upon
You have no place to go and you are an ability to create new opportunities as
wasting fuel! well as to adapt to changing conditions.
Risk is an element of success as is courage.
Determination: If drive is your motor, then All sportspersons demonstrate risk when
determination is the fuel – your will to they put themselves on the line to compete.
succeed. Success in sports requires the will The risk may come in the form of ego, as
to persevere. If you are a hockey player, in, “Do I have what it takes to compete
you don’t step onto the field without against the best?” Bowlers feel this every
learning to dribble or spending hours upon time they put their foot on the bowling
hours on stick handling drills. Your crease to bowl. Courage may enter in
determination is honed by years of practice. competition that exacts physical pain, be it
Call it “stick-with-it-ness.” While others are football or tour cycling. Throwing your self
relaxing or partying, you are working at fully into the game for the sake of the team
your craft. Determination needs to be takes its toll and injuries are part of the
nurtured in school. You choose your path competitive process.
apr 04 HR Speak.p65 106 4/27/2011, 2:45 PM

Despite such challenges, drive, learn from the experience, resist dwelling
determination and discipline focus an on the outcome and focus ahead to the next
individual on both the immediate tasks as game. Anyone in sales will attest to the
well as the long-term goals. That is a lesson power of resilience!
that all sportspersons eventually learn: as
you train your body, your mind conforms, Learning How to Be Coached: There is an
too. You form “habits” of the body and the interesting story that I have read about a
mind. Your mind works two ways. It sets fishing guide who, as a hobby for many
the body in motion, but it also provides you years, taught hundreds of beginners how
with excuses to slack off. By adhering to to fish. He attested firsthand that
the rigour of competition, be it sport or sportspersons consistently master the
business, you eventually develop a system technical skills of casting a fly rod much
that allows you to compete at a high level faster than those with no sporting
but also achieve things you never thought background. Why? Because they know
possible, be it a world cup, gold medal or how to be coached. They have mastered
an all time sales record, or brand-new the skill of translating verbal instructions
process that no one had ever envisioned. into physical actions. There is the same
And the latter is as exciting as anything you correlation in management training, where
might read in the sports pages! the goal is to get beyond the transfer of
information to a change in behaviour. The
Here are some other things that we can ability to be coached obviously translates
learn from the world of sports: to every sector of the business world, from
your first role at the process plant in the
The Value of Hard Work and Sacrifice: In hinterlands of the country all the way
this day and age, there are more and more through to the corner office in the corporate
job applicants entering the work place with world!
a well developed sense of “entitlement”.
In competitive sports, you quickly learn The Power of Teamwork: In any team
that the only benefit to “just showing up” sport, you quickly learn the value of being
is a juice box at the end of the game! If you a good teammate. From learning to cheer
want to play, you have to work hard to earn your teammates on to celebrating the
your opportunity. If you slack off, there is outcomes of a well played event, it all has
always someone nipping at your heels to application in the business world. One of
get your spot. In order to devote the time the important lessons you learn is that no
to work hard, you have to be willing to matter what position you play, doing your
sacrifice. The value of that work ethic is job to the best of your ability is critical to
more critical now than it has ever been in the entire TEAM winning. Whether you are
the professional world. the fielder out at deep midwicket or within
the 15 yard circle, both jobs being done
Insights from Winning and Losing: In effectively are critical to winning. It is a
competitive sports you experience the pretty common saying that there is no “I”
euphoria of winning, and the pain of in team. People who have played
losing. More importantly, you appreciate competitive sports have learned how to be
the preparation and effort behind the win, good teammates on the job long before they
and the need to identify and correct the reach the work place
mistakes that caused your loss. You learn
to enjoy the win but respect your opponent Finally, there is the all important element
and not become a poor sport. You will of leadership – and rather than find all the
probably face them again. Win or lose, you answers, let us ask ourselves some
apr 04 HR Speak.p65 107 4/27/2011, 2:45 PM

fundamental questions as we celebrate our responsibility? Did he shy away from
World Cup victory – one that the whole admitting when he made a mistake?
nation waited with bated breath for 28
years! 6. How much “we” and how much “I” did
we see and hear from him?
1. Did we see how each player felt in the
presence of his captain? Was it anything 7. How different was his “talk” from his
less than TEN FEET TALL? “walk”?
2. What did the captain do when even a
8. Did he back his boys even they were
small good act was performed on the
not performing?
field?
3. Did the captain’s pursuit of perfection 9. Finally, if the team had lost would he
make him constantly “critical” of his have conducted himself differently?
team members?
It is interesting that leadership shows
4. Did he feel insecure because there were through much more in failure, but we
several superstars in his team? Did he notice it less in failure!
compete with his own team members?
5. Did he take responsibility or did SO MUCH to LEARN — so little learnt so
he duck and weave to avoid far — Thank you, Mr. Dhoni!
apr 04 HR Speak.p65 108 4/27/2011, 2:45 PM

CEOS AND HR : “MEASURING HR PERFORMANCE
TO UNDERSTAND BUSINESS IMPACT”
S Y SIDDIQUI
About the Author
S Y Siddiqui is currently Managing Executive Officer, Admn. Head

HR, Finance, IT, Company Law & Legal, Maruti Suzuki India
Limited. He is also responsible for Corporate HR for Suzuki
Powertrain (Engine Company) and Suzuki Motorcycles, a Part Time
Director on The Board of Suzuki Motorcycles and Special Invitee
on the Board of Suzuki Powertrain India Ltd.
A Post Graduate in HRM, Siddiqui has a career track of around
30 years in the HR Function of good Indian Corporates as well as MNCs such as
Escorts Limited, DCM Group - DCM Toyota Limited, DCM Daewoo Motors Limited,
DCM Benetton India Limited, New Holland Tractors India
Widely traveled abroad, he has handled global and multi culture HR issues in highly
competitive business environment in India & Europe. He is thus well-versed on Global
HR Policies, Systems & Processes. He has the unique experience of working Multi
Cultures & Multi Nationalities i.e. Indians, Japanese, Koreans, Italians, British,
Americans & others.
Presently, he is the Regional President North of NHRDN (National HRD Network)
and a board member of NHRDN.
A s an emerging economy, we have

witnessed unprecedented levels of
economic growth in recent times and its
dynamic thus posing challenges but also
new opportunities. Turning these
challenges into opportunities as we move
likely to continue on a consistent strong forward into the future will be the key to
growth trend in future. In such a robust success for any business in times to come.
economic growth phase, we also are In this context when we look at the key
experiencing changing business variables towards sustained business
paradigms. The very definition of success and growth for company in holistic
competitive edge of business is changing perspective, Human Resource is being seen
from tangibles to intangibles e.g speed, as a critical function – the X factor. HR now
agility, business strategy execution & could be a strategic partner in the business
innovation, customer responsiveness, but with a clear accountability linked to
people development, people capability & business results and impact. However, for
commitment and last but not the least this HR too will have to restructure and
people engagement. We are facing an redefine its identity, role and value add
altogether a new business environment with the changing business demands and
which is complex, competitive and challenges in the business environment.
apr 04 HR Speak.p65 109 4/27/2011, 2:45 PM

The HR Managers generally believe that it opportunity to share a common territory
is the ‘People’ factor that is the most critical with the CEO – defining the Vision,
driver of business growth and HR is thus mission, core values and culture building
playing an important role in the business while playing a direct role in people
model. However, in my view, we still see capability building including the
some clear gaps in HR professionals in leadership talent pipeline, involvement
respect of holistic understanding of initiatives, internal communications, open
business strategy and alignment of HR and transparent assessment processes,
interventions in sync with business rewards and recognition initiatives and
strategy. Measurement & impact analysis career development process with equal
of HR initiatives is still somewhat vague opportunity for the total population in the
and still justified as un-measurable in company. HR can thus take a lead role in
specific terms thus not aligned to business building leadership credibility of the top
results. Also we find that HR is still management and CEO while leading
entrenched in the conventional and rather employee engagement & people
limited HR identity and support role rather satisfaction.
than redefining itself as a fully measurable
and accountable business function and Let me take a few specific examples:
integral part of the overall business model. Conventional HR role focusing on
This evolution of HR professional identity recruitment as a sub-system of HR or
needs to be facilitated at a faster pace by redefining HR strategy on recruitment
those in the HR Leadership role. leading to not only speed & quality but
linked to retention, manpower planning,
In this context it will be pertinent thus to ratio of fresh versus lateral hirings, labour/
visualise the expectations of the CEO from manpower cost management, skill
HR while it will also be interesting to inventory linked to succession planning
explore the overlapping role or common and last but not the least on recruitment
territory of CEO and HR where if HR plays cost effectiveness.
its role with sensitivity and a mature
balance of people and business connect, it PMS for deciding increments or variable
can partner with the CEO to facilitate the pay only or bringing in employee
journey of the organisation towards development, coaching and mentoring
achieving its business objectives and goals towards building organisational
on a sustained basis. competence & capability as the key focus.
If PMS is only aimed at distributing
In my view the CEO in true sense is the
goodies, then it can neither be an objective
best People Leader in the organisation to
process nor will it drive company’s
cascade the organisational vision, mission,
performance on a sustained long term
values and culture in the people while
basis.
defining the business strategy and goals
creating total involvement and buy in of Training for the sake of training days or
its people with high ownership and redefine Training Strategy with focus on
commitment. The CEO is not only expected capability building linked to the new
to lead from the front in achieving business business order and required skills &
results by providing clear direction, competencies;
decision making and being a role model
for his people but also required to ensure Managing positive Employee relations
effective people processes aimed at people through employee education,
development, internal communication empowerment and involvement initiatives,
effectiveness, motivation and, engagement. internal communication and family
Its here that HR can have an excellent connect programs rather than conventional
apr 04 HR Speak.p65 110 4/27/2011, 2:45 PM

focus on disciplinary actions & negative Relations function i.e. dealing & managing
perspective, on Union’s role and collective the union and the blue collar workmen to
bargaining. ensure industrial peace. Let me share the
reflections of 2002 and now which would
From the CEO’s perspective performance indicate the tremendous change initiative
of HR function should be measured in led by HR over the last 7~8 years:
terms of building a positive work culture,
setting a direction and people centric Maruti Suzuki : Reflections ~ 2002
approach, innovation initiatives, objective
assessment processes, employee Centralised and Isolated Identity
engagement and retention, management of
people costs while keeping a competitive Strong Functional Identities
compensation offering and effective talent High Operations and low People Focus
management initiatives. It is pertinent that
the HR processes should be sound and Conventional Systems and Rules
integrated with the ultimate business
Low Risk taking approach in people
strategy and business plan. HR initiatives
and programs must have element of Predominant Industrial Relations
flexibility to manage the dynamic perspective
environment and should also be assessed
to know the efficiency & effectiveness, Business success & an element of pride
learning for people, new thinking and also
supports culture of innovation. Thus there was a need for a Big Change!
The key processes in the organisation Maruti Suzuki : Reflections ~ 2010

deployed by various functions have direct • Proactive & decentralised HR aligned
linkage with the business results. To to business plan
evaluate business profitability we need to
• Transparency & people orientation in
measure trends on customer retention,
HR systems, processes
market share and inclusion of new
customers; operational performance can be • Culture of appreciation & celebration &
measured from productivity, cycle time, focus on Team work
waste reduction, defect level and new • Leadership development & strong
products development; similarly HR teaming at top level
processes can also be aligned with financial
results on employee productivity/sales, • Competitive Salary & benefits but
Labor cost/ Sales turnover ratio, employee control on labour cost
satisfaction / engagement, retention, self • Positive and congenial Industrial
discipline and safety measures and cost Relation scenario
savings linked with deployment of Kaizen
/ Suggestions Schemes, quality output, • Maruti – HR : High credibility in
team work on key projects, skill/capability external environment
development etc.
We at Maruti Suzuki believe that in today’s
Let me take a few examples from Maruti business environment, we cannot grow in
Suzuki….. In 2002, the perception about the isolation. In our journey towards business
identity and role of HR function was excellence, development of our channel
neither very progressive or people oriented partners is equally critical. Here the
nor the HR policies, systems & processes business impact link of HR is clearly
were aligned to business strategy. In fact it established. Thus, in our endeavour to
was predominantly seen as an Industrial develop our channel partners we launched
apr 04 HR Speak.p65 111 4/27/2011, 2:45 PM

specific initiatives for our 220 Dealer Company along with Maruti HR and
companies and top 80 Vendors companies Supply Chain team to identify and work
to build their HR functional capability. This on gaps on the HR Functional Maturity.
was an unique initiative again linked to our This phase will be followed by the action
own preparation towards a robust business plan implementation and finally, after a
strategy for 2015 and HR was in it as an defined period, the Audit phase to measure
integral part with defined delivery and the movement and impact of the entire
impact. initiative linked to business results.
Similarly in early 2005, the CEO & MD was Besides the above, we have 17 Joint Venture
of the view that the Dealership Companies Supplier companies and in order to
of Maruti are extremely weak on HR develop their HR functional maturity, we
functional maturity and hence would need hold Monthly HR review meetings with
to be supported in this regard to prepare the HR Heads of these companies to
them for future challenges. If they do not prepare them for the people Challenges
build the HR functional maturity, it may ahead of us. The same review is carried out
become a stumbling block for Maruti’s with the CEOs of these JVs once a quarter
future success in the field. The CEO urged to ensure seamless execution of action
Maruti HR to lead this unique initiative of plans discussed with the HR Heads. It is
building the HR functional maturity in very critical for us to handle and train our
about 220 Dealership Companies. It was a Channel partners.
two year project with great success and
clear measurement & impact analysis of At Maruti Suzuki we have maintained our
before and after status. Today, all Maruti labour cost at a competitive edge i.e below
Dealership Companies have professional 2% of the net sales over the years:
HR Managers playing the HR role and
evolving well with people challenges By keeping a balanced and a right mix of
getting tougher by the day in the dynamic manpower ratio of fresh (campus) Vs.
and competitive business environment of laterals (Experienced) and regular Vs.
present. outsourced.
Vendor HR Initiative was launched in the Competitive salary review every year
year 2009 to focus and uplift HR Functional across levels pegging a range of 60th to 75th
Maturity of our top 80 Vendor Companies. percentile of the comparable basket of
This was initiated in view of the concerns companies
in the Auto Industry on talent acquisition,
capability development, retention and We are a 27 years plus company and in next
employee relations including professional few years we will be seeing our people
management of contract workmen. The key reaching the superannuation phase.
part of the initiative was the sensitisation Therefore from 2006 onwards we are
of Vendor CEOs & their top management consciously inducting a good lot of young
teams on the criticality of top leadership & fresh technicians at the shop floor. The
role, building a positive work culture and whole idea for the induction of the fresh
people oriented HR policies & processes. talent is to create a talent pipeline in the
Subsequently working closely with each years to come. We are developing people
company to map the gaps in respect of the from within to take up higher roles and
three critical success parameters namely responsibilities, continuous investment in
top leadership role, work culture and specific capability programs for upgrading
people practices. Each Vendor Company of skills and competencies of our
is now working with a Consulting employees through internal and external
apr 04 HR Speak.p65 112 4/27/2011, 2:45 PM

trainings including overseas training at our development plans, production capacity &
parent company, Suzuki, Japan. expansion plans, costs efficiencies & cost
reduction plans, vendor/dealer network etc.
At Maruti Suzuki we have tried to offer So, to align itself with the overall business
positive & conducive work environment, plans & direction coming from the Board and
encouraging and inspiring people to CEO and ensure that the business
contribute. Many HR interventions have requirements are met, HR plays a key role by
also been initiated in Maruti to bridge the aligning itself with that of the business
gap between people’s expectation and requirement by formulating a 3 years HR
reality. Some of the examples are effective Business plan which takes care of all the
communication across the company for all people policies, systems and processes
levels, inter and intra divisional required to achieve its overall 3 years business
communication meetings, Top down plan. The HR Business plan is executed
approach of MD and HR Head addressing through a HR Calender which clearly defines
employees on a periodic basis, Bottoms up the process and timing and announcement of
of where regular feedback sessions with key HR decisions of the company e.g.
employees, Tea Group Meeting with HR Organisation Change, Promotions, Job
Head, new joinees feedback session, Rotations, Variable Pay Policy and
Forums like – Human Resource Initiative Compensation Review process, etc.
Development committee (HRIDC–1,
consisting of senior management; HRIDC–
Therefore the most important role of any
2, consisting of Middle Management) are
business head is not just to ensure
used as platforms to take people’s views
achievement of business results, top line
in HR policy formulation. People Connect
& bottom line, but also to build a capable
initiatives like – Family Day Celebration for
& committed team of professionals and to
all Marutians and their families (grand
nurture, empower, manage and inspire the
event conducted once a year – where
people to enable top performance. Hence
employees celebrate company’s success);
people leadership and people connect
Family Connect and Parivar Milan
should be one of the top priorities of
initiatives where families are invited to visit
Business Heads & CEOs as they
the factory and build a connect with the
understand that this connect is the basic
company. Its all referring to what I shared
link for sustainable business performance
earlier in this article about CEO & HR
& growth. And it’s in this territory that HR
sharing a common territory.
can play a significant role and contribute
to the business impact in clear measurable
The new PMS & Potential Assessment
terms. But I think more than clear
Policy and system introduced in 2004
business connect and a measurable impact
replaced the old conventional PMS. The
on business, HR professionals need to
key objective was to create a transparent
accept the need to redefine their
and two way process aimed at the
professional identity first and rest could be
development perspective and towards
managed much easily than perceived by
bringing in a high performance culture and
many.
building organisation competence &
capability for future.
In the past, it’s been rare for a HR
Another such example is that at Maruti we professional to reach the Board level role
work with a 3 years strategic business plan, or to the CEO position, but now we see so
where we map and take into account future many good HR leaders reaching Board
projections in terms of industry growth trend, level roles and some outstanding ones
new market potentials, new product reaching the CEO positions too.
apr 04 HR Speak.p65 113 4/27/2011, 2:45 PM

RESEARCH & BOOK REVIEWS
1. CEO EXPECTATIONS OF HR, HR CHALLENGES, METRICS AND COMPETENCIES
CLC Human Resources — To drive corporate performance, senior executives at the world’s
leading organisations use Corporate Executive Board to help them and their teams with actionable
insights, analytic tools, and advisory support to quickly and confidently focus efforts on what they
need to know, and do, next. We provide essential information by analyzing and disseminating the
most successful practices from our connected global network of clients.
CLC Human Resources, part of the Corporate Executive Board, is a membership of senior
executives with a shared commitment to steward enterprise-wide human resources management.
This membership offers a set of unique services and tools designed to assist human resources
leaders with their most pressing managerial, communications, and decision-making challenges.
CEOs in Asia-Pacific cite talent management as their top challenge, with employee attraction,
retention, and development being the top priorities for which they need HR support. However, HR
functions in Asia-Pacific face maximum challenges in addressing these high priority talent
management concerns of the CEO.
Measuring the business impact of HR is a key concern for the function, which may be addressed
by tracking organisational effectiveness metrics around employee productivity and innovation.
This brief discusses the CEO expectations of HR as well as challenges the HR function faces in
executing along those expectations. The brief also highlights HR metrics to track business
effectiveness as well as HR leadership and generalist competencies.
CEO EXPECTATIONS OF HR (ASIA-PACIFIC)

Across 2010-2011, talent management and driving high organisational growth are the top challenges
for CEOs operating in Asia-Pacific. Talent and growth are related, as the lack of ready talent
impedes Asia–Pacific organisations from achieving their growth potential. Specific to talent
development, attracting and retaining talent, identifying and developing high-potential employees
and successors, and increasing manager effectiveness at people management are top CEO priorities
for 2011. In accordance with these priorities, CEOs in Asia-Pacific expect their HR functions to
show tangible improvements across each of these and support the CEO in achieving high-growth
through a business-aligned HR strategy.
Figure 1: Relative Urgency of Management Figure 2: Talent Priorities for Asia–Pacific

Challenges for Asia–Pacific Organisations Organisations in 2011
Distribution by Percentage of Distribution by Percentage of
CEO Responses in Each Category CEO Responses in Each Category
Source: APAC CEO Board, February, 2011 Source: APAC CEO Board, February, 2011
apr 05 Books Review.p65 114 4/27/2011, 2:46 PM

CEO Expectations of HR (Global)
CEOs typically define expectations for the HR function in light of the talent management and
business priorities of the organisation. These expectations may differ year-on-year and from one
geography to another depending on organisational needs. That said, overall HR is now expected
to support the business as a strategic partner and work with the line to provide HR support for
specific business objectives. In the drive to be an effective strategic partner, HR is expected to
manage transactional HR tasks through shared or self services and allocate core HR time on
strategic activities. The model most companies now use for HR includes a three-fold structure with
HR business partners, HR centers of expertise, and HR self and shared services. The figure below
profiles how HR can be best structured to be more strategic and the role expectations from each of
the three components of strategic HR.
Figure 3: Strategic HR Structure and Role Expectations
• Maintain responsibility for • Partner with business

policy engineering, units as HR consultant on
expertise in setting policy, HR related needs and
strategy alignment, accountable for meeting
compensation and benefits business unit
Within the
design and planning expectations
strategic
COEs may • Maintain responsibility for • Facilitate HR projects in structure, HR
impact HR-line improving the design of the business units and business
effective-ness processes within the implements and roll out partners have
by upto 32%. company projects at the business maximum
unit level using business impact on HR-
• Maintain responsibility for specific knowledge Line effective-
competency and knowledge ness, impacting
development, sharing best • Represent HR and it by upto 54%
practices within the provide people
organisation, and providing management and other
HR information to provide HR services to the rest of
support across the the organisation
organisation
• Provide delivery of key HR information and

transaction services, such as payroll Shared services
administration may impact HR-line
• Aid in optimising existing HR processes and effective-ness by
technologies, as well as maintaining the upto 14%
infrastructure that supports HR processes in
the organisation
HR Challenges (Asia-Pacific)
Research indicates that the top talent priorities for the CEOs in Asia-Pacific,
also present the biggest challenges for HR executives in this region. The top
priorities, including talent attraction and retention as well as leadership development present the
following challenges in APAC:

Figure 4: Most Challenging HR Priorities and Possible Causes
Recruiting Leadership Engaging/Retaining

Employees Development Employees
88% of HR executives rate 87% of HR executives rate 2% of HR executives rate

employee recruitment in APAC leadership development in APAC engaging and retaining
difficult. difficult. employees in APAC difficult.
Organisations Fail to Source Asian Leaders Are Less Key Asian Talent Is Dissatisfied
Suitable Talent from the External Experienced Than Global Peers. with EVP Offerings in the Region.
Labor Market.
Average Tenure of Leaders in Key Talent’s EVP Satisfaction
Percentage of Employers Citing 2010 (in years) Change (2008–2010)
Lack of Suitable Talent in APAC
Specific to India, CLC HR research shows that offering adequate future career opportunities can
impact an Indian employee's commitment by up to 42%. Also, 42% of Indian employees indicate
insufficient opportunities for career advancement as the key driver of turnover. Further, Indian
organisations can develop effective leaders through a focus on building global leadership capabilities
in Indian leaders.
Visit CLC HR’s India Topic Center for more guidance and resources on addressing these HR challenges in
India.
Challenges in Building a Strategic HR Function

HR’s role in organisations now requires HR to act as a strategic partner to the business and
support business outcomes through HR strategies and processes. That said, only 10% of line/
business managers believe that their HR function is effective at the strategic role and is able to
Figure 5: Challenges in Building a Strategic HR Function

support them in business initiatives. HR faces several skill- and process-related challenges that
prevent it from realising its full strategic potential. According to CLC Human Resources survey of
172 members, HR’s primary challenges in creating a more strategic function include building the
right HR personnel skills (24%) and measuring the HR function’s effectiveness (24%).
Building HR’s strategic capabilities sometimes requires an overhaul of HR structure and processes.
HR function should take specific steps to identify its current level of effectiveness and focus areas.
HR should then look to improve effectiveness through targeted efforts on improving HR structure,
building HR staff skills, aligning HR strategies to business needs, effectively executing HR strategies,
and periodically measuring the effectiveness of the HR function.
HR Transformation Topic Center to learn how to build HR competencies and capabilities in understanding
business needs. Further, use CLC HR’s Business Alignment Tool for a benchmarked analysis of HR functional
effectiveness across different HR activities.
Metrics to Track HR’s Business Impact

Primary HR metrics indicating business effectiveness are those that measure the outcomes of
employees working on behalf of an organisation in a competitive marketplace—this may be referred
to as measures of organisational effectiveness. The most common measures of organisational
effectiveness include productivity metrics. Additionally, organisational effectiveness measures useful
for companies with an emphasis on research and development include innovation metrics. The
table below provides more details on specific metrics that companies should track.
Table 1: Organisational Effectiveness Measures — Productivity
Metric Name Description Interpretation
Operating Average operating expense Operating Expense per FTE is a broad measure of the
per FTE per Expense full-time productivity of the workforce. It measures the financial
equivalent employee productivity of the organisation, from an expense
perspective, as brought about collectively by every
individual employee.
Operating Average operating profit Operating Profit per FTE is a broad measure of the
Profit per FTE (before tax, interest, and productivity of the workforce. It measures the
depreciation) per full-time bottom-line financial productivity of the organisation
as equivalent employee brought about collectively by
individual employees. Every employee contributes to
the revenues and expenses of the organisation through
their own daily activities and through the way that
their jobs support and impact others. Higher profit per
FTE provides more funds which the organisation can
reinvest in itself or pay to owners.
Operating Average operating revenue Operating Revenue per FTE is a broad measure of the
Revenue per per full-time equivalent productivity of the workforce. It measures the top-line
FTE employee financial productivity of the organisation as brought
about collectively by every individual employee. Even
employees who do not sell business directly to
customers, through their daily work activities,
contribute to the ability of those revenue-producing
employees to produce revenue. Greater revenue per
FTE means more money with which the organisation
can pay expenses and, possibly, reap profits.

Table 1: Organisational Effectiveness Measures — Productivity (Contd.)
Return on Operating profit returned This measure compares operating profit dollars to the
Human for every dollar invested total compensation dollars required to produce those
Investment in employee compensation profits. A result of .5 means that the organisation earns
Ratio plus benefits one dollar of operating profit for every two dollars
invested in employees’ total compensation (including
cash compensation, benefits, and equit compensation).
This measure answers the question, “How many profit
dollars are we earning for every dollar we’ve invested
in the people doing the work?”
Work Units Number of relevant work This is a basic measure of the productivity of the
per FTE units produced per full-time workforce in terms of actual work units produced.
equivalent employee during The implementation of this measure will differ from
the period industry to industry, and even potentially from
organisation to organisation, based on the types of
products or services the employer produces. For a
manufacturer, this measure could include the number
of cars, pipe fittings, reams of paper, or cans of paint
produced. For a financial services or other services
firm, this measure could reflect the number of loans
originated, policies issued, hours billed, or contracts
written.
Organisational Effectiveness Measures — Innovation
New Products Average new products and This measure indicates the dollar amount of
and Services services operating revenue revenue generated specifically by new products and
Revenue per per full-time equivalent services, relative to the size of the workforce. New
FTE employee Products and Services Revenue is a subset of
Operating Revenue, relating only to specific products
and services.
R&D Expense Research and development This measure indicates the organisation’s investment in
Rate (R&D) expense as a research and development (R&D), as represented on
percentage of total an income statement, as compared to total operating
operating expense expenses. A result of 20% means that R&D expenses
represented 20% of the organisation’s total operating
expenses.

HR LEADERSHIP COMPETENCY MODEL
HR leaders are required to display a high level of functional HR expertise in addition to leadership
and management skills as highlighted below.
Table 2: HR Leadership Competencies

Competency Descriptors
Business Orientation • Ability to focus on long-term goals of the organisation

• Broad business experience and exposure to other functions outside of
HR
• Business and financial aptitude
• Results-orientation and ability to demonstrate bottom-line impact of
programs and goals
• Understanding of both corporate- and line-level issues
• Understanding of business strategy and its link to people management
Leadership • Ability to lead and obtain buy-in from executives and HR team
• Commitment to developing self and others
• Courage and conviction
• Ability to set clear goals for individuals and teams
• Demonstrated drive and ability to “get things done”
• Desire to act proactively in the organisation, rather than re-actively
• Demonstrated risk taking ability and innovative thinking
Integrity and Trust/ • Adherence to ethical principles

Interpersonal Skills • Application of personal values to appropriately address difficult
situations
• Displayed trust from employees
• Ability to build constructive and effective relationships inside and
outside the organisation
• Ability to encourage collaboration
Change Management • Ability to act as a role model for the change

Skills • Ability to communicate the value, urgency, and need for change in terms
that employees can understand
• Ability to provide needed resources to ensure that the change will be
successful
Priority Setting and • Ability to think strategically and clearly under pressure
Decision Making • Ability to design and prioritise HR strategies and plans to accomplish
HR objectives and support the business
• Ability to quickly size up multiple situations and complex problems and
make excellent, timely decisions
• Ability to use logic, analysis, experience, wisdom, and other resources
to make sound, timely decisions and to solve problems
Workforce management • Demonstrated diversity champions

• Ability to coach and develop people
• Ability to manage conflict
• Ability to effectively allocate HR resources to projects

HR BUSINESS PARTNER (GENERALIST) COMPETENCY MODEL
HR generalists are required to execute four different roles in the organisation—strategic partner,
operations manager, employee mediator, and emergency responder. Business acumen and
innovation are critical competencies that are at the center of each of these four roles. Further, each
role requires a unique competency as well as supporting skills and competencies. The figure
below profiles the four HR generalist roles as well as competencies required to effectively execute
against each role. HR specialist roles also require individuals to display these competencies in
addition to high level of expertise in their HR sub function.
Figure 6: HR Generalist Roles and Competencies
Operations Manager Role Strategic Partner Role
Unique Competency: Unique Competency:
Presentation — Refers to the Leadership — Refers to the ability

ability to make presentations on HR to persuade line managers of the
programs and processes need for new or existing HR
programs by taking a leadership
position
Shared Competencies Shared Competencies
Record Keeping — Refers to Business Acumen Metrics Use and Creation —

the ability to keep accurate Refers to the ability to develop
Refers to the ability to use insight
and use metrics to make the
organizsational and individual of the organizsation’s internal and business case for HR programs,
employee records the external business environment to align HR strategy with corporate
to improve the human capital goals, and to assess and justify
Transactional Knowledge —
the performance of HR programs
Refers to the ability to use
knowledge about legal and Innovation Workforce Management
HR processes to solve HR Refers to the ability to Knowledge — Refers to the
problems ability to use HR knowledge on
customizse or implement HR
engagement, performance
solutions to human capital management, and attraction at the
problems in creative ways or to business unit level to provide
craft new HR solutions strategic solutions to human
capital problems
Emergency Responder Role Employee Mediator Role

Unique Competency: Unique Competency:
Interpersonal Skills —Refers to Conflict Resolution —Refers
the ability to reconcile different to the ability to resolve conflicts
interests to solve an HR problem between employees
References:
APAC CEO Board, Challenges at the Top, Corporate Executive Board (2011).
CLC Human Resources, The Role of the CHRO, Corporate Executive Board (2010).
Asia HR Executive Board, 2011 Asia HR Budget and Strategy Outlook, Corporate Executive Board (2010).
CLC Human Resources, Challenges in Creating a More Strategic HR Function, Corporate Executive Board (2010).
CLC Human Resources, HR Metrics Indicating Business Effectiveness, Corporate Executive Board (2008).
CLC Human Resources, Senior HR Leadership Competency Model—Compilation 2, Corporate Executive Board (2009).
CLC Learning and Development, Leadership Competency Model—Company N, Corporate Executive Board (2003).
CLC Human Resources, HRBP Competency Model, Corporate Executive Board (2007).

2. WHAT GOT YOU HERE WON’T GET YOU THERE: HOW SUCCESSFUL PEOPLE
BECOME EVEN MORE SUCCESSFUL
Author : Marshall Goldsmith, Mark Reiter
Published by: Hyperion; 1 edition (January 9, 2007) Hardcover: 256 pages
ISBN-10: 9781401301309 ISBN-13: 978-1401301309
W hat’s holding you back? Your hard work is paying off. You are doing
well in your field. But there is something standing between you
and the next level of achievement. Perhaps one small flaw – a behaviour
you barely even recognise – is the only thing that’s keeping you from
where you want to be.
Mentoring and coaching people who have been through setbacks, or
are struggling to achieve some measure of success in their lives is one
thing. But, teaching successful people, particularly holding up a mirror to
them to show them what aspect of themselves they need to change is
quite a challenge.
Marshall Goldsmith has been successfully doing this for several years
now, and is an internationally acclaimed executive coach. The Harvard
Business Review asked Goldsmith, “What is the most common problem
faced by the executives that you coach?” Inside, he answers this question by discussing not only
the key beliefs of successful leaders, but also the behaviours that hold them back. He addresses
the fundamental problems that often come with success – and offers ways to solve these problems.
Goldsmith outlines twenty habits commonly found in the corporate environment and provides a
systematic approach to helping you achieve a positive change in behaviour.
Through several interesting anecdotes, Goldsmith highlights some beliefs and habits that inhibit
and impede successful people from going further. He cites four fundamental beliefs – the very
same beliefs that make for success, which also thwart further growth. These are:
• Belief in one’s skills and talent
• Confidence that one can succeed
• The optimism and motivation to succeed
• Belief that they choose to succeed (the free choice to succeed).
He refers to these beliefs as superstitions – the analogy being that just like superstitions, these
beliefs have held good (and may still do) in some context(s), but may be fallacious in another.
These beliefs could block the reality perspective.
Distilled from his experience with several successful executives, and using several interesting
anecdotes, Goldsmith lists twenty habits that stop them from growing further.
These are:
1. Winning too much (at all costs) – this can manifest by way of:
• Intense arguments
• Putting other people down
• Ignoring people
• Withholding information
• Playing favourites
Goldsmith says this streak can show up not just in the corporate world, but in various other
relationships as well.

2. Adding too much value (in every discussion)
• The temptation to push one’s opinion through in the name of adding value is something a
lot of senior executives suffer from. In fact, as one goes higher up the ladder, the need is to
make other people winners and not focus on winning all the time.
3. Passing judgment
• “Overcoming this habit,” says Goldsmith, actually makes people see you as being more
agreeable.
4. Making destructive comments

• In the name of candour, executives, especially at senior levels, make comments that can
hurt people. In order to avoid doing so, Goldsmith recommends asking four questions before
making such comments – Will this comment help our customers? Will this comment help
our company? Will this comment help the person I am talking to? Will this comment help
the person I am talking about?
5. Starting with ‘No’, ‘But’ or ‘However’

• According to the author, people use these words to gain or consolidate power over others.
6. Telling the world how smart we are

• This is simply another variation of the need to win.
7. Speaking when angry

• He calls it ‘emotional volatility’. The danger with this is that once a person gets a reputation
for emotional volatility, he/she is branded for life.
8. Negativity
• Generally, such people try to establish their expertise or authority as superior to someone
else’s.
9. Withholding information
• More often than not, people in important positions hold information, or simply forget to
share it because they don’t realise the importance of doing so, or do not have the time for
it. But, the net result in the eyes of the people involved is still the same.
10. Failing to give proper recognition

• In depriving people of recognition, they are deprived of the emotional payoff that comes
from success. While the reasons for not doing so may be many, the result is that closure
does not happen in the interpersonal transaction.
11. Claiming credit that one does not deserve

• This habit, in effect, is worse than not giving adequate recognition. It is closely related to the
need to win.
12. Making excuses

• Excuses stop us from growing further.
13. Clinging to the past

• Rather than focusing too much on the past, which is what most psychotherapy does, the
trick is to accept the past and move on.

14. Playing favourites
• This habit refers to the behaviour of leaders to encourage sycophancy, often unconsciously
by displaying a tendency to favour those who favour them.
15. Refusing to express regret
• While apologising helps to let go off the past, people in power often find it difficult to do so,
as they find it humiliating and feel it makes them cede power.
16. Not listening
• Cites it as a serious concern, especially in managing the current generation, since they
have the option (which they would often exercise) of leaving the company if they felt that
they were not being heard out.
17. Failing to express gratitude
• The simple act of saying ‘thank you’ can delight the other person, and bring out the best in
him/her. Gratitude is a skill that we can never display too often.
18. Punishing the messenger
• It is, according to Goldsmith, one of the worst habits – it is like putting together the worst
elements of some of the other habits like not giving recognition and hogging credit; and
then adding anger to the mix.
19. Passing the buck
• Particularly in the face of failure, leaders tend to blame others.
20. An excessive need to be ‘me’.
• The need to cling to some quality that one defines as “me” inhibits change very severely.
In recent times, there is very clear recognition that intelligence and capability alone are not adequate
for success, and that emotional intelligence is what takes one forward. Goldsmith endorses this
view and gives clear steps to change behaviour at the highest level in organisations.
So, how does one change or break these habits? The author also states that ‘Nobody is Perfect’,
and that not everybody has all these habits. The key is to pick those one or two dysfunctional
habits and work on those.
To do this, Goldsmith advocates the following steps:
1. Apologising
2. Advertising (letting people know that one is trying to change)
3. Listening
4. Thanking
5. Following up.
Another interesting and significant aspect that Goldsmith brings out – one that he calls the twenty
first habit – is ‘Goal Obsession’. This again is contrary to popular notion that it is important and
imperative to have a goal. While a goal is certainly important in that it drives success, getting so
wrapped up in the goal that we lose sight of the larger mission is what makes goal obsession
undesirable. And, according to Goldsmith, several successful executives suffer from this malady.
The theme of this issue being CEO and HR, it would be appropriate to say how HR can play a role
in bringing about change in successful executives at senior levels. A simple answer would be:
Bring in a person to facilitate this process, or if you enjoy enough credibility, act as the enabler of
change. The first challenge of course would be to convince a successful person of the need to
change. This is where Marshall Goldsmith’s book can serve as an eye opener.
Reviewed by :
Vidhyaa M., Head - HR Formulations Division, Orchid Chemicals & Pharmaceuticals Ltd.
vidhyaam@orchidpharma.com

3. JESUS, CEO
Author : Laurie Beth Jones
Published by : Hyperion, New York, India Price Rs. 419/-
I picked up the book Jesus, CEO by Laurie Beth Jones for the interesting
title and a thought that the book will have equally interesting ideas. The
central theme of the book is looking at being successful as a CEO, drawing
inspiration from Jesus Christ and his way of doing things. First thing I
should say is that this book is not religion oriented but firmed up nicely
by the author to link up actions of Jesus to functions of a CEO : creating
a vision, building leadership team, succession management, execution,
rewards and recognition, and motivation. The essence is conveying CEO
like qualities, building a meaningful vision, and creating an organisation
for a larger purpose. The book has many sub themes on Jesus as a
CEO as it essentially covers acts of Jesus, how it impacted his mission,
similar acts by other leaders, and how you can relate to it in an
organisation. An example of a sub theme in the book is “He Broke Ranks”.
The sub theme speaks about how it is important sometimes for the leader
to break dysfunctional orders at different levels and fight for a cause. There are around 85 sub
themes that are covered in two or three pages. The best part is that each of it are quick reads and
the worst part is that there are many of them that make it difficult for one to grasp the essence.
The book starts with introducing the concept of “Omega” working style that blends both masculine
and feminine styles of management. The author spends less time in the book on this concept as
we go ahead reading it. As a take away, I would have liked bringing the thoughts from the book into
this concept of Omega working style as a great take away. From a HR partner supporting a CEO,
I see wonderful aspects related to leadership development, team management, succession planning,
change, and concepts like equality for women, dealt in a very compelling manner in the book. I am
sure a CEO would like to read it and will be inspired with the thoughts on strength of self-mastery,
strength of action and strength of relationship. It would be equally interesting for a HR or any
business manager to read this book as they can relate to it at a story level and also connect with
management concepts. For coaches and mentors, this would be a `Bible’ that they can refer to. I
would recommend this book for bringing Jesus closer to what we can relate and the author has
done it the second time also very efficiently. The first book was titled Jesus in blue jeans.
Reviewed by :
Dr. Sandeep K. Krishnan, Vice President, HR and Corporate Development,
Acropetal Technologies Ltd, sandeephrm@gmail.com

ABOUT THE JOURNAL
CEO and HR
T he National HRD Network publishes a semi-academic quarterly journal where in each issue is
dedicated to a theme.
The journal publishes primarily three categories of articles :

Volume 4 Issue 2 April 2011
• Conceptual and research based
• Contributions from thought leaders including a limited number of reprints with due permission
NHRD Network Board Members
• Organizational experiences in HR interventions/mechanisms
National President: NS Rajan, Partner, Human Capital and Global Leader – HR Advisory,
Ernst & Young Publications so far include on the themes “IT in HR”, ”Performance Management”, “Attracting and
Retaining Talent”, “Career Management”, “Organizational Change”, “Global HRM”, “Women in Corporate
Past National Presidents: Aquil Busrai, Chief Executive Officer - Aquil Busrai Consulting
Leadership Roles”, “Organization Development”, “Learning and Development”, “Leadership”, “Work-
Dwarakanath P, Director-Group Human Capital - Max India Life Balance”, “Institution Building”, “Coaching For Performance and Development”, “Human Resources
Dr. Santrupt Misra, Director - Aditya Birla Group Management in Rapid Growth Organizations”, “HR Competence” and “HR and Employee Relations”.
Regional Presidents: The current issue is on the theme of “CEO and HR”.
East: Sourav Daspatnaik, HR Director, Apeejay-Surrendra Group
The following persons have agreed to anchor as guest editors for the future issues :
South: Gopalakrishna M, Director Incharge, A.P. Gas Power Corporation Ltd.
1. July 2011 issue by Mr. SY Siddiqui, Managing Executive Officer, Administration - HR, Finance, IT &
West: Satish Pradhan, Executive VP, Group HR, Tata Sons
COSL, Maruti Suzuki India Ltd. .on the theme, “People Power – Draw, Drive and Deliver”.
North: Sy. Siddiqui, MEO (Admn - HR, Fin & IT), Maruti Suzuki India
2. October 2011 issue by Dr .S. Chandrasekhar, Vice President -HR (India/South Asia) ,IBM India, on
National Secretary: Pankaj Bansal, Co-Founder & EVP, PeopleStrong HR Services
the theme " Getting HR Ready for Gen Y”
National Treasurer: Ashok Reddy B, VP-HR, Info Tech Enterprises
3. Jan 2012 issue by Mr.Vivek Paranjpe, Group HR, Reliance Industries Limited, “HR Challenges in
Executive Director: Mohit Gandhi the Knowledge Economy”
Editorial Board Dr. Santrupt Misra, Director - Aditya Birla Group Editorial Board Members :
(Guest Editor for this issue) Dr. P.V.R. Murthy, Managing Editor is a product of I.I.T., Kharagpur and IIM, Calcutta with close to thirty
years experience in H.R. field. He is founder and runs an executive search firm Exclusive Search
Dr. PVR Murthy, Managing Editor,
Recruitment Consultants. He is associated with a number of academic institutions. He is trained in
CEO, Exclusive Search Recruitment Consultants,
TQM in Japan and in human processes from ISABS and NTL, U.S.A. He is the Immediate Past National
pvrmurthy@exclusivesearch.com
Secretary of National HRD Network.
Dr. Pallab Bandyopadhyay, Director - Human Resources Citrix R&D Dr. Pallab Bandyopadhyay is Director - Human Resources Citrix R&D India PVT Ltd. A doctoral fellow
India Pvt. Ltd. from XLRI and AHRD, he is trained in OD and Human Processes from NTL, USA and he believes in
pallab.bandyopadhyay@citrix.com applying HR concepts to practice to make it more meaningful and effective. He is a mentor and coach
to many young HR professionals.
Aquil Busrai, Chief Executive Officer
Aquil Busrai Consulting, Human Resources, Gurgaon, India Aquil Busrai is Chief Executive Officer at Aquil Busrai Consulting. He has over 36 years HR experience,
aquil.busrai@aquilbusrai.com both in strategic and operational HR with blue chip organisations like Unilever in Kenya and India,
Motorola in Asia Pacific and Shell in Malaysia. He was Executive Director, Human Resources at IBM
Corporation, National President at National HRD Network, HR Director Shell Malaysia and MD Shell
People.
Publisher, Printer, Owner Mohit Gandhi on behalf of National HRD Network,
and Place of Publication National HRD Network Secretariat, C 81 C, DLF Super Mart, DLF City, NHRD firmly believes in and respects IPR and we appeal to the
Phase IV, Gurgaon122 002. Tel +91 124 404 1560 contributors and readers to strictly honour the same.
Printed at Nagaraj & Co. Pvt. Ltd., 156, Developed Plots Industrial Estate, For any further clarifications, please contact :
Perungudi, Chennai 600 096. Tel : 044 - 66149291
The Managing Editor
Copyright of the NHRD Journal, all rights reserved.
Dr. P V R Murthy, CEO, Exclusive Search Recruitment Consultants,
The views expressed by the authors are of their
own and not necessarily of the editors nor of the Contents may not be copied, emailed or reproduced #8, Janaki Avenue, Off 4th Street, Abhiramapuram, Chennai 600 018.
publisher nor of authors’ organizations without copyright holders’ express permission in writing. pvrmurthy@exclusivesearch.com
apr 06 wrapper.p65 2 4/27/2011, 2:08 PM

ISSN - 0974 - 1739

April 2011 Volume 4 Issue 2
National HRD Network

Dave Ulrich
The National HRD Network, established in 1985, is an Lynda Gratton
association of professionals committed to promoting
Ram Charan
the HRD movement in India and enhancing the
capability of human resource professionals, enabling Dr. Anil Khandelwal
them to make an impactful contribution in enhancing Dr. Armin Bruck
competitiveness and creating value for society. B S Nagesh
Towards this end, the National HRD Network is Chanda Kochhar
committed to the development of human resources D Shivakumar
through education, training, research and experience
G V Prasad &
sharing. The network is managed by HR professionals
CEO and HR
Saumen Chakraborty
in an honorary capacity, stemming from their interest
in contributing to the HR profession. CEO and Neeraj Swaroop
Shikha Sharma
The underlying philosophy of the NHRDN is that every
human being has the potential for remarkable
HR Dhruv Prakash &
Joylyn Largo Afonso
achievement. HRD is a process by which employees in
organizations are enabled to: Preety Kumar
Arjun Srivastava
• acquire capabilities to perform various tasks
associated with their present and future roles; Githanjali Pannikar
Hugh Mitchell
• develop their inner potential for self and
organisational growth; Larry Israelite
Marc Effron
• develop an organisational culture where networking
relationships, teamwork and collaboration among N S Rajan
different units is strong, contributing to Rajeev Dubey
organisational growth and individual well-being. Satish Pradhan
S Y Siddiqui
April 2011
A Quarterly Publication by The National HRD Network
www.nationalhrd.org www.nationalhrd.org
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NHRD Journal

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ISSN - 0974 - 1739

NHRD Network Journal

National HRD Network

A Quarterly Publication by The National HRD Network

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The journal publishes primarily three categories of articles :

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MANAGEMENT GURUS’ SPEAK

2. Preparing for the Future – the three key Lynda Gratton 5

3. A lot more than just Competence & Character…. Ram Charan 10

5. Managing HR in a Global Business Environment Dr. Armin Bruck 19

6. Areas of conflict between the CEO & HR B S Nagesh 26

7. A CEO’s expectations from the HR function Chanda Kochhar 31

8. The Future of Work, HR and CEOs D Shivakumar 34

9. What makes an HR leader valuable to the CEO? G V Prasad and 38

10. Key Challenges for the HR Function Neeraj Swaroop 43

11. “Skills needed for success as HR professionals: Shikha Sharma 51

13. CHRO - Custodian and Strategist Preety Kumar 61

14. What do CEOs look for in HR Leaders? Arjun Srivastava 65

15. Supporting Organization Strategy – Githanjali Pannikar 70

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16. Delivering results with a global HR team Hugh Mitchell 77

17. Creating Financial Value through a Human Larry Israelite 82

19. Managing in a Global Business Environment: N S Rajan 94

20. Tomorrow’s Leader Rajeev Dubey 101

22. CEOs and HR : “Measuring HR Performance S. Y. Siddiqui 109

25. Jesus,CEO Reviewed by 124

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I feel humbled and honoured to be able to present this issue of the

To say that the CEOs are operating in an ever- growing environment

The significance of intangibles such as values, talent and others in

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I personally have had the unique privilege and exhilarating experience

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Two other people I need to thank for the successful completion of my

…Section on Management Gurus’ Speak: Here…

Ram Charan elaborates on mastering the guts of the business and

…Section on CEOs’ Speak: Here…

Dr. Anil Khandelwal elaborates on speed of response and delivery

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…Section on HR Speak: Here…

The most critical competencies for effective HR leaders are amplified

Hope all of you enjoy reading it as much as I have enjoyed putting it

Dr. PVR Murthy Dr. Pallab Aquil Busrai

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About the Author

Dave Ulrich is a Professor at the Ross School of Business, University

B eing a CEO today would not be high

April | 2011 NHRD Network Journal 1

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2 April | 2011 NHRD Network Journal

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April | 2011 NHRD Network Journal 3

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4 April | 2011 NHRD Network Journal

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About the Author

Lynda Gratton is Professor of Management Practice at London

T hese are exciting times. There are forces

April | 2011 NHRD Network Journal 5

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6 April | 2011 NHRD Network Journal

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