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Efficient HR is only born from strategic CEOs

Leadership
HR

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For the CEO

As part of the strategic decisions that dictate a CEO's journey, structuring efficient areas is essential to guarantee the path to organizational success. Among these is the area of Human Resources (the famous HR). And as someone who has been on both sides, I see how executive leadership can transform the department into a pillar of growth and innovation. I've learned this by making many mistakes along the way and seeing many CEOs make them too.

A few years ago, as Human Resources manager at Wavy, Movile 's main business in 2016, I was worried about putting the "traditional" HR processes into practice. I ended up putting the performance appraisal, which I consider extremely important, on the same week as the company's strategic planning. I received feedback such as "have you gone mad? How are the leaders who will be preparing the strategic planning going to do performance appraisals? What results do you expect?". That's when I realized how disconnected I was from the business.

I tell this story with peace of mind because I know that many HR professionals are distanced from the business (just as I was), stuck in a model that perhaps no longer makes sense, and it's only natural that they don't know how to deliver value strategically.

But good HR has great value and the potential to change the direction and evolutionary path of an organization. This synergy between the department and the CEO is fundamental, so that the department is seen not just as a support field, but as a central engine that drives the company towards its goals, through people.

The solution born of strategy

As a solution to the case I mentioned above, I started to get involved in the company's business affairs. I started going to various meetings and it was a turning point for me to understand what challenges the company was facing, the behavioral skills gaps of the leaders who were there, and I began to structure processes in a way that would meet them.

Of course, being present at every meeting is not a scalable solution, nor is it possible for everyone. But I believe that when we understand that strategic HR is the one who sits at the decision-making table, it becomes easier to make people in the organization understand the role they should play.

For all this to happen, it is necessary for the leadership (especially the CEO) to strategically choose the professionals who will manage the Human Resources area, since it is they who will manage the area's processes that will directly impact the company's people, and they are the great enablers of your business. If the profiles are similar and aligned with the desired culture, alignment will be much easier, and this attraction happens naturally as you have a strong organizational culture.

With the area in place, the next fundamental step is to automate operational processes so that the team is available to enter into business discussions. Weekly results planning meetings, dialog with investors, discussions about products, technology and other forums are valuable opportunities to involve the people strategy within the company's priorities so that the HR team can anticipate needs.

For example: the company's next step is to implement Artificial Intelligence in its operations and products. When I know this in advance, I can structure the plan: do I have the team needed for the project? Which professionals will I need to set up a development plan for? Do I hire professionals on demand at first? When do I start doing this?

When HR is part of the business's strategic agenda, everyone wins. After all, this vital area has the function of building high-performance teams, scaling the culture and equipping leadership for the company's next steps. In recent research, Gallup showed that companies with engaged employees outperform those with low engagement by up to 21% in productivity. McKinsey has shown that companies with healthy cultures have up to 3x greater financial performance, along with Harvard research which showed that this culture can increase a company's success by 30%.

In summary, I believe that the above example has made it clear that the efficiency of HR in an organization is closely linked to the strategy outlined by the CEO, and that the opposite can lead to operational problems in the company. The careful selection of professionals aligned with the company's vision and values is fundamental to strengthening this synergy.

When HR takes on a proactive and strategic role, actively participating in company decisions, it is possible to anticipate needs, identify opportunities and catalyze the organization's human potential. It is therefore imperative that CEOs recognize the importance of cultivating a collaborative and strategic relationship with HR, because only then will they be able to build efficient teams and drive organizational success in a sustainable way.

Link to the story: https://startups.com.br/artigo/um-rh-eficiente-so-nasce-de-ceos-estrategicos/

Author

Luciana Carvalho

Co-founder of Chiefs.Group

Co-founder of Chiefs.Group. More than 15 years' experience in Human Resources. She has a degree in Psychology from PUC-MG, a postgraduate degree in People Management from FGV and completed her Executive Program at Stanford. Experience in companies such as Ambev, Sinch and Movile, where she played a leading role in the creation of two unicorns in Brazil. Extensive experience in building and maintaining strong organizational cultures with a focus on high performance. Expertise in M&A, Management Models, Change and Organizational Design. Advisor to national and multinational publicly traded companies.

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