STRATEGIC MANAGEMENT

You know that your organization's CEO expects a lot from HR-but do you know exactly what results he or she is looking for? You may be surprised by the perspectives shared by Richard Pinola, chair and CEO of Right Management Consultants, Inc. (Philadelphia), during a session at SHRM's annual conference in Philadelphia. Now a consultant, Pinola has years of experience as a CEO and regularly deals with CEOs in his consulting work, so he has both a personal perspective on CEO expectations of HR as well as input from many other CEOs on this subject.

PEOPLE COME FIRST

Those who believe that CEOs care only about the bottom line are wrong, Pinola asserts. Most believe strongly in the power of the people who are their organizations.

"What keeps me up most at night is always people," he said. A key issue in employees' dissatisfaction is disillusionment. "The corporation they joined is not the one they thought it was. People feel ignored. Too little time and effort are spent on new hires. There's lots of work for them, but they don't know the business, so they feel isolated and drop out."

Pinola described several ways HR can help to engage workers and enhance their productivity. He cautioned HR professionals to stay strong through the current environment with its lean budgets and know that they can still accomplish much good.

"When budgets are tight, focus on limited wins," he urged. "This is more important than being scattershot. HR effort must raise the bar in developing competencies and selection criteria and bonding with people in their first year with the organization."

The importance of communication in achieving your goals can't be overemphasized, he noted. "People want to know what's going on. When they do, they will be better able to determine where they fit in and how to contribute."

How you accomplish your goals also counts with the CEO, Pinola said. "Sound logic is most important-- more so than ROI formulas. Show what yod will do and how it will help. Don't try to dazzle me with numbers."

WHAT CEOS REALLY WANT

Pinola outlined what CEOs want from their HIt professionals:

* Make workforce strategies integral to company strategies and goals.

* Leverage HR's role in major change initiatives such as:

- Strategic planning.

- Mergers and acquisitions.

- Systems implementation. - Reorganizing/downsizing.

* Earn the right to a seat at the corporate table.

* Develop an awareness and/or an understanding of the business.

* Understand finance and profits.

* Help line managers achieve their goals.

In addition to these major points, Pinola says that CEOs will value HR professionals who employ best practices. You must know where to find them and how to obtain and adapt them to serve your organization's needs.

ADDING VALUE

"Be sure your organization's business strategy is the focus and foundation of every contribution you make," Pinola said. To add value, the contributions of HR must relate to the organization's overall strategy. HR can best accomplish this by ensuring that the organization's people make the best possible contributions. The following areas should be a part of that:

* Talent management. Attract, select, develop careers, manage performance, retain talent, and manage succession.

* Leadership development. Assess, coach, and develop leaders and teams.

* Organizational performance. Assess, execute strategy, and manage change.

Addressing change is a major part of HR's function today, Pinola said, since HR can educate employees about change-and help them to cope with it.

(For other ideas on how to add value, see the sidebar, "Three Ways to Achieve Value Through HR").

ESTABLISHING A BRAND

Pinola favors the approach of employment branding, which defines the culture and then communicates it to the entire organization.

Developing an employment brand means asking, "What does the organization stand for with employees? How should you position your company to attract the people you want?" Reputation, recruitment, retention, cultural fit, commitment, innovation, productivity, profitability, and competencies are all elements that will support your strategy.

A better understanding of the elements of employer brands that are of value to employees comes from research conducted by Pinola's company. Input from 5,314 people at 41 companies-individuals identified by their organizations as the people the companies can't afford to lose-revealed:

* The top three leadership issues (what top talent wants vs. what it gets):

- Open/honest communication.

- Effective management.

- Visionary leadership.

* Other important issues:

- Honesty/integrity.

- A caring management.

- Emphasis on excellence.

- Creativity and innovation.

- Enthusiasm and morale.

- Teamwork.

* Among high value employees, 22% often think of quitting and 20% would leave for a similar job.

* Employees' intent to stay drops steeply after the first year, then it rises again. "There's a one-time opportunity to build a bond. Pay attention to this-you need to do something."

Pinola recommends these steps to establish an employer brand at your organization:

* Define. Create a distinctive employment identity or employee value proposition (EVP).

* Declare. Make an effort to market this identity or EVP. Brand yourself to existing and potential workersand deliver on what you promise.

* Demonstrate. Deliver on the EVP.

HR'S PLACE

These are the actions that can help get HR that all-important seat at the corporate table. "HR should not be just a staff job," Pinola said. "If you're doing something wonderful for a line manager, then get your bonus tied to that performance. Share risk and reward: Get yourself tied into that, and it will get you a seat at the table faster. You'll get more respect."