This post was inspired by an ongoing discussion in the Linked: HR (#1 Human Resources Group) on LinkedIn. The original question raised was “Why an HR Manager never becomes a CEO? “
When reading a question like this the mind races to all the CEO’s you know who have an HR background. For many, this is a short list. Next you may consider all the HR managers you have ever encountered; asking yourself if they are the stuff that CEO’s are made of. Unfortunately the answer is probably no.
When looking at the discussion, what was interesting was that very few of the contributors questioned the validity of the statement, almost everyone attempted to explain why they believed that the statement was true. What was fascinating was that most of the contributors were HR professionals themselves! In spite of this there was a general consensus that HR Managers could not easily become Chief Executives. The discussion itself was not very dynamic, with a couple of themes emerging from the comments and pointing towards two broad explanations for the failure of HR Managers to make it to the top job:
The Perception of HR by the business
Many of the answers suggested that the perception of HR throughout the business was unfavourable; HR was cited as being a support function and a cost centre that had no strategic function. Others alluded to the preoccupation of HR with administrative tasks that were considered to add little value to the business.
The HR Skill set:
Other explanations were centred upon the lack of the appropriate skills for running a business. HR was said to attract certain personalities that were not suited to leadership or had little business acumen. This combined with a lack of exposure to the business made them unsuitable as Chief Executives.
Of course, these points are meant only to characterise the comments given, and in that capacity it can be seen that these explanations are related. The perception of HR varies in each organisation; the performance of that department will influence the reputation of HR in the business. However both explanations are short sighted and too generic to address the real issue.
The Real Issue
Regarding the perception of HR, indeed they are a support function and a cost centre but the same can be said of Finance. As discussed in a previous post, HR and Finance have similar superficial attributes: both have unrivalled access to the business and are required to build relationships outside of their own departments as a central part of their own activities.
HR plays a crucial role in setting the boundaries for individual activity within the business yet Finance Managers appear to have a better track record at becoming CEO’s than HR Managers. If this is true, it is important to ask why.
The ability of Finance to maintain its position as a strategic partner is central to its enduring success in most businesses. The emphasis organisations place on profitability makes it easy for Finance Managers to demonstrate the value they add to the business and this secures their position as strategic partners. This is something that HR has historically failed to do.
However, they are faced with an incredible opportunity to make a huge impact on their organisations. In a knowledge based market place, people become the main source of competitive value within an organisation. Under such circumstances, there is an argument that HR has a greater role to play in the business and has a greater opportunity to do so.
HR is well placed to influence the organisation if they can demonstrate the value that they can add in this respect. An organisation where HR is a true strategic partner is more likely to have an HR Manager who could make it to the top. Only there would HR have operational exposure and a thorough understanding of what drives the business. Unless HR is able to achieve this, HR Managers will never become CEO’s.
