What We're Digging Into: Operating in a silo, a vacuum…. or really any other isolated structure is no way to run your talent function. Sure, there’s tons of work to do, but is it the right work?
Why It Matters: Many HR teams, along with unwitting executive teams still view HR as “nice to have”. This is largely because the programs and projects HR execs choose don’t really apply to where the CEO and CFO are focused—Business outcomes!
The reality of business is clear: No two organizations are the same.
So, why would the HR/Talent strategy be the same? Putting in the same compensation strategy as another business makes no sense, right? Not when your business has unique differentiators, unique challenges, and opportunities.
The reality for every HR exec should be this:
Your focus and strategy must pivot towards the main business objectives. Nice to have HR programs around performance management or employee experience are all well and good, but if that’s not where you CEO is focused, you can forget about having a seat at the executive table.
Today, we spotlight the key differences between different organizational strategies and the corresponding impact on talent teams. We’ll focus on 5 distinct angles:
Short Term Investment Cycle
For a variety of organizations, like portfolio companies of PE groups, few things dictate your strategy more than the investment cycle.
Short investment windows suggest that big, multi-year changes like software implementations or succession planning will be judged on how quickly the value can be felt and included in the organization’s valuation within a tight window.
Adding a hefty new PEPM expense for your new HR system that goes live 6 months before a transaction?
No bueno…
Quick and obvious ROI are the game here, meaning the talent systems should strive for creating crisp operations, fully compliant programs and predictability in keeping your top performers engaged.
Here are some other relevant approaches:
Put yourself in the next investor’s shoes—What would you be willing to pay for? What adds value to the way the organization operates in a sustainable way?
Long Term Investment Cycle/Non-Profit Ownership
For the marathon cycle, with investments of at least 5-7 years, or more permanent ownership, the focus shifts to enduring success. HR takes the reins in sculpting a workforce for the long haul, aligning every skill with the company's growth trajectory.
The strategic pillars here, should look something like this:
Acquisition Based Growth Model
The differences from organic growth to acquisition based strategies are stark, and the implications on who you want leading the organization, and how you run the organization are just as stark.
For those steering towards acquisitive growth, the emphasis is on getting fast-paced leaders who thrive on a project mindset with aggressive deadlines, dealmaking and innovation. Steady-as-she-goes employees won’t find this anywhere near their comfort zone.
A few considerations:
Organic Growth Models
On the flip side, when your gaze turns to maintaining organic growth and nurturing innovation, our HR strategy takes a forward-looking, yet more internally focused stance.
Working to proactively identify high-potential individuals, implementing programs to nurture and build leadership qualities. A continuous learning culture is cultivated, encouraging employees to evolve and grow perpetually, all within the confines of an operationally sound talent organization.
Succession planning also becomes paramount, as we develop clear pathways for internal talent to ascend into leadership and innovation positions. In this dynamic spectrum of growth strategies, HR becomes the orchestrator, tailoring approaches to ensure the seamless integration of talent and the cultivation of future leaders.
Other considerations:
Operational Efficiency /Cost Cutting
Familiar to many, and especially in healthcare, where litigating the budget is a monthly endeavor. Unless you want to see HR be a part of the cuts, when you must run this playbook, you’d better be ready.
Thematically, your focus now is to rationalize every single program as a current business necessity, or an unneeded luxury. Now may not be the time to implement expensive new training programs or elaborate succession planning.
Instead, HR leaders need to be ready with some of the following:
The bottom line is that one size doesn't fit all. Whether you're acquiring new assets or fueling organic growth, tailored HR strategies ensure that your talent acquisition aligns seamlessly with your business objectives.
Get this right, and your seat at the table, next to the CEO will be both earned and respected.
To your success,
Alden
Founder, Talenta HR Group
P.S. Whenever you’re ready, there are 3 ways I can help you:
Founder @ Talenta HR Group. CHRO by trade, provocateur by nature. I help healthcare leaders get "unstuck" so they can achieve their potential, and our healthcare institutions can fulfill their promise.
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