Looking through the lens of a business leader

The HR function is evolving from a reactive function removed from high-level decision-making into a more proactive role in the business outcomes of organizations. But for HR leaders to get to that platform, they need to learn the language of the CEO and the executive team and get them onboard with the idea that the people and culture of the organization are key to its success. 

That was the topic of conversation covered at the HR FutureFest panel, “How to speak CEO: Make HR the first call, not the last thought,” on June 3 at the Toronto Event Centre. 

“I think we all know that trust is the foundation of any strong, good relationship – I always think of trust as the oxygen for building relationships,” said Board Advisor and CEO Coach Jim Reid, who is also the former Chief Human Resources Officer of Rogers Communications. “It's critical when you're supporting the CEO that you build that relationship with them on a strong, trusting foundation.” 

For Reid, building that relationship with the CEO starts with understanding their priorities and interacting with them on that level. 

“It’s results that are driving the future for a CEO, and our job, as a chief HR officer, is to be there 24/7 with any executive that you're supporting - you need to show up, you need to be there, and you need to help that executive deliver great results for the company,” he said. “How do you make sure that we're part of the discussion? We're at the table with them, talking about the things that really matter in terms of driving performance.” 

Talent drives performance, results 

The big point HR can bring to the table is that results are driven by talent, according to Nicki Sabapathy, Chief Human Resources Officer at Georgian. 

“How do you hire the best, how do you retain them, and how do you increase the density of your talent?” Sabapathy said. “I think that's going to be so important, given everything that's coming our way, the evolution of the skill sets we need to have and hiring the right people, and then really thinking about organizational agility and resilience as change happens.” 

Succession planning as a key part of organization agility was also raised by the panel, including ensuring that organizations have critical people in critical roles. 

The panel agreed that when HR has the attention of the CEO and the executive team, it’s essential to convey the importance of culture to the organization’s success. 

“When I think about what makes companies outperform, it’s the companies with the best leaders and the strongest cultures that are going to win in the long run - culture is everything, it's really the execution engine of the company,” said Reid.  

‘Culture is the execution engine’ 

“One of my favourite quotes is from Peter Drucker – ‘Culture eats strategy for breakfast’ - and I think that’s a real truism for us to think about as HR professionals in terms of how we show up with executives,” he added. “You need to have a teachable point of view on culture that you can share and engage with the CEO and the executive team, and because culture is the execution engine, the team is the most critical performance.” 

The panel discussed how changing organizational culture should be done methodically, starting with teaching the leaders how to build great teams that align with the vision of the company and have the right people. 

“There's no question that of the leaders I've worked with over the years, the best of the best have a deep understanding of the importance of teams, and they know how to build high-performance teams against a model,” said Reid. “They're not just winging it, they're disciplined and methodical, and they make these teams into powerhouses that drive consistent results over and over again – culture is how work gets done and where all the performance leverage is in the organization.” 

The panel discussed how metrics can drive home the importance of culture to the executive team. 

“Boards look at the percentage of critical talent sitting in critical roles and the percentage of succession we have ready in the pipeline,” said Sabapathy. “Although we sometimes think we know the right things, there are folks who oftentimes don't know that they're pegged for these roles or don't have the desire to be in these roles, so making sure those metrics are the right ones we're looking at is going to be really important.”  

Engagement metrics 

For engagement, using metrics such as Employee Net Promoter Score (eNPS) that are tied to culture and productivity can make the link between fostering talent and business success for CEOs, along with cost, according to Sabapathy. 

“It's hard to stick to the metrics and the numbers, but that's what the CEOs want - and that's not always easy, because we're dealing with humans,” she said. “The boards want one thing and the leadership team sometimes wants something different, so learning to speak the CEO language is going to really matter.” 

Reid noted that level of engagement is a key metric that HR should bring to the attention of the executive team, pointing to reports showing the “high-water mark” on full engagement across global businesses at around 30-to-35 per cent. 

“That's a shocking number when you're trying to build companies that can outperform not just in the good times, but in the tough times,” said Reid. “I look at engagement as the fuel for high performance - when you have high engagement, your gas tank’s full and you can weather any storm, but when your fuel gage is low, then you're going to have a difficult time fighting through those moments.” 

Leadership perspective 

The panel suggested that, to build a close and trusting relationship with the CEO, it’s crucial for HR leaders to look at the organization through the lens of a business leader rather than focusing on the HR side of things, with Sabapathy noting that she always tells her team that “if you can solve the business problem, you solve the HR problem” and the rest will follow through.  

“Oftentimes, we think we are a back-office function - I've worked in teams that actually believe that and don't really have any interest in understanding the best business metrics,” said Sabapathy. “But using that lens of a business leader first is foundational to building trust.” 

“There are 100 things that you could do in human resources, but there's really only five that matter,” said Reid. “You have to focus on the things that drive value and drive better performance - engagement building is one of them, and building leaders.” 

The panel addressed the necessity of having difficult conversations with the executive team, with both members agreeing that HR can earn its place at the big table by not shying away from such conversations. 

“I often say our job is to hold the mirror up to the CEOs and call their baby ugly - nobody wants to hear that their baby's ugly, but that’s our job,” Sabapathy said. “Often a lot of entrepreneurs and leaders don't want to hear anything other than it’s perfect, so finding an authentic way to hold the mirror up in a meaningful way creates the credibility to be that person to pull a chair to the table.” 

Sabapathy added that being authentic lets the conversation happen naturally, and it may not always go well, but eventually it will build a foundation of trust towards a productive relationship. 

“To be effective in the CHRO role working with CEOs, you have to be able to speak the truth to power and you can't be afraid of the consequences,” said Reid. “The organization's counting on you to lean in and have the conversation in exactly that way - it's a big part of your job.” 

Organizational values 

Reid and Sabapathy wrapped up the session by emphasizing that HR leaders, in their discussions with the CEO, should stay anchored in the values of their organization while pushing the empathy side of leadership. 

“It's about feeling like this is what we have built together with our employees and we're going to anchor that in everything we do,” said Sabapathy. “That has been really good for us as guardrails to make decisions around - sometimes it’s okay to not do something, because [the decision] is anchored in our belief system and our values.”  

Reid said that since the pandemic, some of the best leaders have the ability to connect empathetically with people. 

“Many companies want their employees to care about being with the company, but that's never going to happen if their leaders don't care about them,” he said. “You have to push executives at times to show empathy, to care about people, and to get behind them.  

“When you're on a team and you feel like the leader you're working for cares about you, if that doesn't fill the engagement up and force you to do a little bit more for the company, nothing will - it's really powerful, and you just have to figure out what your place is and not be afraid to lean in when it's needed.”