2014 HR’S INFLUENCE GROWS GOLD SPONSORS LEADER HR MOST INFLUENTIAL 2014 E very year HR compiles the HR Most Influential rankings: the definitive lists of directors and thinkers who have the greatest influence in the field of people strategy. The lists are a culmination of four months’ work to discover the movers and shakers in the world of human resources. These are the people whose thinking and work is having an impact on HR practice, who are influential in general business and who are bringing the people agenda to the fore externally. These people have many talents. They are ‘networked’. They are helping to grow the influence of HR at board level and among other stakeholders. They are the names that appear on the ‘in-demand’ talent list at executive level – or who are very much on their way there. The HR influencers listed in this special supplement demonstrate the absolutely vital role people strategy plays in developing sustainable, future-proofed, growing businesses. Their willingness to share, challenge and push people strategy forward is influencing business and policymakers, both inside and outside the HR community. HR magazine couldn’t deliver this annual ranking without the help of our expert panel of headhunters, associations, former HR directors and leading commentators. I would also like to thank our Gold Partners Ceridian and Open University Business School, whose support enables us to announce the lists at an exclusive event at Claridge’s in London, as well as to bring all the detail to our readers via this special supplement, also available as a free download on HR magazine’s app. Full biographies, more information about the HR Most Influential methodology, exclusive thought pieces from our partners and the full archive can be found on hrmagazine.co.uk’s dedicated web channel. Do have a look and I welcome your feedback. Siân Harrington, publishing director HR is transforming business W hat makes the HR function influential? It’s a question HR magazine has been trying to answer for the past nine years, via our annual HR Most Influential rankings. From the HR directors using the power of people to transform complex organisations, to the academics changing the way we think about the world of work, the rankings and this supplement celebrate the best of HR thinking and doing. This year we believe the HR Most Influential rankings are bigger and better than ever. Not only have we ranked the top 30 Most Influential HR practitioners (you’ll find the full list on p6), but we’ve also recognised the top 92 HR practitioners in the country by industry (see p10 to see who made the cut this year). And for the first time, we’ve added a Readers’ Choice voting element to proceedings. Turn to p12 to see if our readers agreed with our expert panel when it comes to who hrmagazine.co.uk are the most influential HR practitioners in the industry today. In another first this year, our research partner Ashridge Business School has carried out qualitative research with a select group of CEOs across a variety of industries, asking them to share what they believe makes an influential HR director. With a focus on transformation and innovation, as well as a feeling that HR directors absolutely should have a seat at the top table and be as involved as any other business function, it makes for interesting reading. Enlightened CEOs, those concerned about talent and culture and who understand the importance of investing in people, know HR can make all the difference in their organisations. The challenge for the function is to get that message across to the rest of the executive community. I hope you enjoy reading this supplement and exploring the new dedicated stream on the HR magazine website. Next year is the 10th anniversary of HR Most Influential, so 2015’s supplement should be even better. Watch this space. CONTENTS 05 An overview of the 2014 HR Most Influential rankings 10 The Most Influential practitioners by sector, plus Readers’ Choice and Making Waves 14 My biggest influence: five HRDs reveal who has influenced them 16 Dean Royles on scoring a hat-trick 17 Cary Cooper on his HR career 18 Sylvia Ann Hewlett on talent 20 What makes HR influential in the eyes of CEOs? Supplement editor Katie Jacobs 020 7501 6776 Sub-editor Thirza Tooes Art director VeeSun Ho Senior advertisement manager Paul Barron 020 7501 6706 Advertising manager Fenella Welham 020 7501 5454 HR magazine editor Arvind Hickman Publishing director Siân Harrington Email first.surname@ markallengroup.com Katie Jacobs, supplement editor November 2014 HR 3 Cover & illustrations throughout: Simon Brader Letter from the publisher As a provider of award winning cloud As a provider of award winning cloud As a provider of award technology, Ceridian is winning proud tocloud sponsor technology, Ceridian is proud to sponsor technology, CeridianWe is proud sponsor HR Most Influential. would to like to HR Most Influential. We would like to HR Most Influential. We leaders would like toare congratulate all the HR who congratulate all the HR leaders who are congratulate theworkplaces HR leaderswhilst who are transforming all their transforming their workplaces whilst transforming their results workplaces whilst delivering trusted to their boards, delivering trusted results to their boards, delivering trusted to their boards, in particular thoseresults recognised in this year’s in particular those recognised in this year’s in those recognised in this year’s HRparticular Most Influentual List. HR Most Influentual List. HR Most Influentual List. Ceridian is a global cloud technology and services company Ceridian a global cloud HR technology andto services company deliveringis and payroll hundreds of thousands Ceridian isaward-winning a global cloud HR technology andto services company delivering award-winning and payroll hundreds of thousands of customers and their tens of millions of employees. delivering award-winning HR and payroll to hundreds of customers and their tens of millions of employees. of thousands of customers and their tens of millions of employees. We work with companies from the small to the very large regularly We work withmillions companies from the the very large regularly saving them of pounds persmall year to through our We work withmillions companies from the small to the very large regularly saving them of pounds per year through our transformative technology. saving them millions of pounds per year through our transformative technology. transformative technology. Trusted Results. Trusted Results. Transformative Technology. Trusted Results. Transformative Technology. Transformative Technology. CLOUD CLOUD CLOUD TECHNOLOGY TECHNOLOGY TECHNOLOGY FOR HR & PAYROLL FOR FOR HR HR & & PAYROLL PAYROLL EASY EASY TO USE. EASY TO USE. TO USE. EASY EASY EASY & EASY ANALYTICS TO DO EASY & EASY ANALYTICS TO DO REPORTING. ANALYTICS & BUSINESS TO DO REPORTING. BUSINESS WITH. REPORTING. BUSINESS WITH. WITH. #technologytransforms @Ceridian_uk | 0800 028 2731 | www.ceridian.co.uk #technologytransforms @Ceridian_uk | 0800 028 2731 | www.ceridian.co.uk #technologytransforms @Ceridian_uk | 0800 028 2731 | www.ceridian.co.uk MOST INFLUENTIAL OVERVIEW HR MOST INFLUENTIAL 2014 HRMI winners The annual HR Most Influential lists throw a spotlight on the top practitioners and thinkers in people management. KATIE JACOBS reveals who has made the list in 2014 W ith talent and innovation consistently topping the wish list of forward-thinking CEOs, there has never been a better time for HR to move into the spotlight. And the HR practitioners and thinkers who make up our 2014 HR Most Influential (HRMI) rankings are definitely the right people for the job of delivering on HR’s golden opportunity. This is the ninth year of HR magazine’s annual HR Most Influential rankings, supported by our gold partners Ceridian and Open University Business School, and our research partner Ashridge Business School. We believe the names on the lists, encompassing HR directors in highly complex organisations, other functional heads, CEOs hrmagazine.co.uk who have made the move from HR and those academics really pushing the boundaries of HR thinking, are stronger than ever. According to Ainé Hurley, head of HR practice at executive search firm Odgers Berndtson and a member of the HRMI expert panel, HR is becoming more and more visible at the very top of organisations. “With the importance of organisational reputation, the role of the HRD has become much more important,” she says. “Chairmen and non-executive directors are more interested in HR than ever before.” When it comes to what makes an influential HR practitioner, our expert panel is looking for several things, including personal influence, practical relevance, commercial impact, visibility and working in a complex organisation. As the UK economy continues to grow, other qualities have also come to the fore this year. November 2014 HR 5 HR MOST INFLUENTIAL 2014 MOST INFLUENTIAL OVERVIEW For example, the importance of innovation and transformation. But while change may be a constant, there’s also a need to focus on the long term when it comes to talent planning and wider business strategy. “Businesses are now looking longer term at how to develop talent,” says Anna Penfold, HRMI panellist and client partner at Korn Ferry. “Post-recession, we are seeing more positivity towards the HR function from CEOs and more understanding of how talent impacts the bottom line.” As our gold partners Ceridian and Open University Business School explore in their columns on p9, sustainable businesses are also beginning to realise the importance of trust and authenticity. “It’s about having real conversations with leadership,” says Paul Devoy, head of Investors in People. “If what they are saying isn’t authentic, it won’t stick. Look at tools like Glassdoor; the days of transparency are here to stay. If you’re not practising what you preach today, you’re going to be found out very quickly.” Having an international outlook is also a necessity in a globalised marketplace. Frank Douglas, CEO of consultancy Caerus Executive and another of our expert panel, believes the influential HRD of the future will need to have lived and worked in another country. “You can’t have credibility without that experience, and you can’t do it from your desk,” he adds. “It’s about understanding cultural differences and drivers and using that to create truly global HR.” Other skills the panel was looking for included the importance of ‘substance over spin’ and being committed to raising the profile of HR both inside the business and more widely, inspiring the next generation of HR leaders. So, to be one of the top 30 HR Post-recession we are seeing more positivity towards HR HR Most Influential Practitioners 01 Dean Royles, director of HR & organisational development, Leeds Teaching Hospital 17 Gillian Quinton, strategic director (resources and business transformation) Buckinghamshire County Council 02 Neil Morrison, group HR director, UK and International companies, Penguin Random House 18 Natalie Bickford, HR director Europe, Sodexo 03 Valerie Hughes-D’Aeth, director of HR, BBC 19 Althea Loderick, chief operating officer, London Borough of Waltham Forest 04 Andy Street, managing director, John Lewis Partnership 20 Diane Herbert, director of human resources, Channel 4 05 Hugh Mitchell, chief HR and corporate officer, Royal Dutch Shell 21 = Guy Eccles, HR director, B&Q UK & Ireland 21 = Dan Flint, global HR director, Simmons & Simmons 06 Jabbar Sardar, director of HR and organisational development, Cafcass 22 Andrew McEachern, global director of people and development, Norton Rose Fulbright 07 Louise Smalley, group HR director, Whitbread 23 Daniel Cloke, HR, property and internal communications director, Vodafone UK 08 Geoff Lloyd, group HR director, Serco 09 Tracy Robbins, executive VP HR and group operations support, IHG 10 Deborah Baker, director for people, Sky 11 Helen Giles, executive director of HR, St Mungo’s Broadway 23 Jan Woods, director, Lion Capital 24 Tim Jones, group head of HR, London Stock Exchange 25 Amanda Underwood, HR director, PizzaExpress 26 Lynne Weedall, group HR director, DixonsCarphone Group 12 = Sandy Begbie, chief operations officer, Standard Life 27 Helen Maye, chief human resources officer, Smith & Nephew 12 = Jacky Simmonds, group HR director, TUI Travel 27 Andy Newall, group HR director, Imperial Tobacco 13 Mike Westcott, global HR director, National Grid 28 Des Pullen, group HR director, Associated British Foods 14 Ann Pickering, HR director, Telefónica UK 29 Geoff Tranfield, group HR director, IMI 15 Therese Procter, chief personnel officer, Tesco Bank 30 = Richard Smelt, HR director, McCain Foods 15 Claire Thomas, senior VP HR, GlaxoSmithKline 30 = Sheila Gupta, director of HR, University of Cambridge 16 Jennifer Duvalier, executive vice president, people, ARM 30 = Robert Potter, group HR director, Hays 6 HR November 2014 hrmagazine.co.uk MOST INFLUENTIAL OVERVIEW HR MOST INFLUENTIAL 2014 Most Influential Practitioners requires an awful lot, but those on the list deliver. Our top three practitioners – Dean Royles, Neil Morrison and Valerie Hughes-D’Aeth – have one important thing in common: not being afraid of a challenge. Royles spent almost four years at the helm of NHS Employers, during a time of turbulence and change. He has recently joined Leeds Teaching Hospital (the country’s biggest NHS Trust) as head of HR and OD. Royles was praised by our panel as a “top performer in a tough industry”. The experts also said he is “not afraid to tackle difficult issues” and spoke of the “massive impact” he has had on the HR profession over the past few years. Morrison, group HR director, UK and international companies, at Penguin Random House, played a leading role in the merger of Penguin and Random House, and last year was also voted HR director of the year at the HR Excellence Awards. The panel praised him as “visible, active and thought-provoking” and as someone who wants to “shake the industry up”. Completing the top three is Hughes-D’Aeth, who has just taken on one of the most high profile, and some might say risky, HR jobs in the country, as HR director at the BBC. But our panel thinks she’ll be more than capable of rising to the challenge. “She has the ability to get things done even in tough environments,” was one of the comments made about her. Moving onto the thinkers, and we were looking for strong views that offer something practical for business leaders. Evidence-based work is becoming increasingly important for HR professionals, and Rob Briner, professional of organisational psychology at the University of Bath and an evidence-based management champion, has jumped from number 11 to number three in the Most Influential UK Thinkers list. He was a described as a “brilliant critic” and a “straight-forward thinker who helps to put real issues into perspective”. HR Most Influential UK Thinkers 01 Cary Cooper, distinguished professor of organizational psychology and health, Lancaster University Management School 02 Peter Cheese, CEO, CIPD 03 Rob Briner, professor of organisational psychology, School of Management, University of Bath 04 David MacLeod, co-chair, Employee Engagement Task Force 05 Adrian Furnham, professor of psychology, University College London 06 Stephen Bevan, director of the Centre for Workforce Effectiveness, The Work Foundation 07 Veronica Hope Hailey, dean and head of school, School of Management, University of Bath 08 Mee-Yan Cheung-Judge, founder, Quality & Equality 09 Anthony Hesketh, senior lecturer, Lancaster University Management School 10 Paul Sparrow, director of Centre for Performance-Led HR, Lancaster University Management School 11 Michael West, professor of organisational psychology, Lancaster University Management School and senior fellow, The King’s Fund 12 Paul Kearns, chair, The Maturity Institute 13 Andrew Campbell, director of the Ashridge Strategic Management Centre 14 Wendy Hirsh, independent researcher, Kingston Business School 15 Stephen Bungay, director, Ashridge Strategic Management Centre 16 Simon Collinson, dean, Birmingham Business School 17 Nigel Nicholson, professor of organisational behaviour, London Business School 18 Chris Roebuck, visiting professor of transformational leadership, Cass Business School 19 Geoff Bird, research fellow, Institute of Cognitive Neuroscience, University College London 20 Anthony Hilton, financial editor, London Evening Standard hrmagazine.co.uk November 2014 HR 7 HR MOST INFLUENTIAL 2014 MOST INFLUENTIAL OVERVIEW In first and second place respectively in the UK Thinkers list: Cary Cooper, distinguished professor of organizational psychology and health at Lancaster University Management School, and Peter Cheese, CEO of the CIPD. Cooper is an HRMI stalwart, although this is the first year he has topped the list. According to our panel, he is “bold and ready to think differently” and is “pushing the boundaries of research on people matters”. Cheese, last year’s number one UK Thinker, was praised as a “class act” who has “breathed life” back into the CIPD. “He has not been afraid to take a stance and clear position on HR matters, be that critical or supportive,” said one commentator. On the International Thinkers list, Americans dominate the top three: New York-based Sylvia Ann Hewlett, and The role of the HRD has become much more important Harvard Business School’s John Kotter and Rosabeth Moss Kanter. Kotter, who is Konosuke Matsushita professor of leadership, emeritus at Harvard, has made the list for the first time due to his work on change management; particularly relevant for HR directors in a VUCA (volatile, uncertain, complex and ambiguous) world. His colleague Moss Kanter, professor of business at Harvard Business School, is evidently still having an impact, with one panellist saying she is “still a name to conjure with”. Hewlett, CEO of the Center for Talent Innovation, jumped straight into the top spot. Known particularly for her work on women’s leadership and innovation, she was praised for being “one of those rare people who can give practical ways forward based on evidence-based thinking”. Read more about her on p18. Space is limited, but there’s so much to say about the HR Most Influential rankings. If you want to learn more about the methodology, explore the rankings in detail, or read profiles for everyone on the lists (including HR practitioners from across 92 industries), you’ll find it all on our brand new HR Most Influential website: www. hrmagazine.co.uk/hrmostinfluential Next year is the 10th anniversary of HR Most Influential, and we promise it will be extra special. See you in 2015 to unveil what, and more importantly who, is having the biggest impact in HR. HR HR Most Influential International 01 Sylvia Ann Hewlett, founder and CEO, Center for Talent Innovation 02 John Kotter, Konosuke Matsushita professor of leadership, emeritus, Harvard Business School 03 Rosabeth Moss Kanter, Ernest L Arbuckle professor of business administration, Harvard Business School 04 Edward Lawler, director, Center for Effective Organisations and distinguished professor of business, University of Southern California 05 David Rock, director of the NeuroLeadership Institute 06 George Yip, professor of strategy and co-director, Centre on China Innovation, China Europe International Business School 07 Adam Grant, professor of management, Wharton School of Business, University of Pennsylvania 08 Patrick Wright, Thomas C. Vandiver Bicentenial Chair, Darla Moore School of Business, University of South Carolina. Director, Center for Executive Succession 09 Richard Boyatzis, distinguished university professor, Case Western Reserve University 10 Stewart Friedman, practice professor of management, The Wharton School of Business, University of Pennsylvania 8 HR November 2014 Thinkers 11 Vineet Nayar, former CEO, HCL Technologies 12 Shawn Achor, lecturer at Harvard University and CEO, Good Think 13 Josh Bersin, principal and founder, Bersin by Deloitte 13 Amy Edmondson, Novartis professor of leadership and management, Harvard Business School 14 Paul Evans, emeritus professor of organisational behavior and The Shell chair of human resources, INSEAD 15 David Collings, professor of HR management, Dublin City University 16 Thomas Wedell-Wedellsborg, partner, The Innovation Architects 17 Rita McGrath, associate professor of management, Columbia Business School 18 Claudio Fernández-Aráoz, senior adviser, Egon Zehnder 19 Herminia Ibarra, Cora Chaired professor of leadership and learning and professor of organisational behavior, INSEAD 20 M Amr Sadik, director of operations, IPE Management School hrmagazine.co.uk MOST INFLUENTIAL OVERVIEW HR MOST INFLUENTIAL 2014 Be yourself, be authentic, and communicate When authentic leadership is prevalent within an organisation, the entire business will ‘walk the walk’ and ‘talk the talk’, because it genuinely believes in what it does. Employees feel part of an organisation’s journey, and they can relate what they do to what a customer receives. Authentic leaders ensure colleagues across the company are honest and open with themselves and others, and have a strong sense of self. The key to this sense of self and authenticity is consistency, regular communication and openness to conversation and debate. Conversations enable learning across the organisation at all levels. Those that have open and honest conversations can see the values of their organisation lived and breathed on a daily basis. Employee engagement can be heightened when authentic leadership is truly taking place. There is a strong correlation between employees understanding the vision and values of their organisation, the part they play in the organisation’s long-term plan, and their level of engagement. Social media is continuing to transform the way in which organisations work, and better understanding of its power and potential can play an important part in confirming and supporting a leader’s influence. What employees want from their leaders today is transparency, openness and truthfulness. In other words: authenticity. Social media tools can help facilitate this if leaders do a degree of the heavy lifting themselves and do not delegate their communication to a function. What can have more impact than knowing that there is someone listening and acting on your feedback? Leaders across business need to think about how to incorporate these tools into their communication style and remember that the social networks are being seen by the world, so honest communication is a must. The effect of the up-front and honest communication that social networks have created can further influence how we communicate with colleagues overall. Colleague communications, customer communications and recruitment communications are now blended together into one set of solid market messages. There is no difference in the internal and external story, this helps with the recruitment of the right colleagues and with retaining staff who understand and believe in the direction the organisation is going. Leaders who participate in and enable learning conversations across an organisation at all levels, and who can connect their organisation’s aims to its customer and market, will have the most effect in ensuring their company’s values are lived and breathed each and every day. Doug Sawers is managing director of Ceridian UK We need to talk about trust “When we trust our colleagues and we enjoy their trust in return, we enjoy work more, which makes us more motivated. We make decisions more quickly and we enable one another to better realise our potential. This in turn increases productivity and talent retention – so it’s a win-win situation for employees and employers alike.” So says Ruth Sutherland, chief executive of UK-based charity Relate, which provides impartial and non-judgemental information, support and counselling. At the Open University Business School we’ve worked with Relate to co-create a new online open programme teaching people the tenets of workplace-based trust, and how to employ strategies that will build trust in their own practice. But why is it necessary? Trust has become something of a Holy Grail concept to business leaders since the toxic fallout of the financial crisis of 2008. hrmagazine.co.uk As the newspapers (sometimes gleefully) report scandals in banking, the energy sector, politics and rival tabloids, trust in the workplace, once a given, is now recognised as something to be worked on and developed. But it’s not just the litany of scandals eroding trust in our workplaces. Changes in the way we communicate have had a profound effect on levels of trust. Email and social media have made communication both more frequent and more remote. A lack of face-to-face communication disenfranchises employees and can be corrosive to trust levels. Another factor is the change in the employment relationship since the pre-1990s when continuous employment was the norm. Now employment relationships tend to be transactional as people accept they won’t have a job for life and businesses rely on outputs and KPIs with less emphasis on building long-term commitment, and subsequent trust. The other side of this coin is the rise of individualism. During prosperous times, when the desires of output-focused employers and self-seeking employees align, this isn’t too much of a problem. However, when a crisis hits the lack of mutual trust and neutrality is thrown into relief. At the same time high levels of organisational change, such as globalisation, flexible labour relationships and virtualisation through technology mean interpersonal relationships are looser and behaviours are harder to monitor. As hierarchy is replaced by matrix processes and team working and we move to an ever more knowledge-based economy, trust is vital to drawing people together. Diannah Lowry is a lecturer in HR Management at Open University Business School and academic lead of Developing High Trust Relationships November 2014 HR 9 HR MOST INFLUENTIAL 2014 MOST INFLUENTIAL PRACTITIONERS HR Most Influential Practitioners: By sector BANKING/FINANCIAL SERVICES AND INSURANCE Sandra Campopiano, chief people officer, Thomas Cook Sandy Begbie, chief operations officer, Standard Life Eugenio Pirri, VP, people and organisational development, Dorchester Collection Amanda Brown, group HR director, Hiscox Tracy Clarke, director of compliance, people and communications, Standard Chartered Bank Simon Lloyd, people and talent director, Santander Tim Jones, group head of HR, London Stock Exchange Therese Procter, chief personnel officer, Tesco Bank Caroline Williams, senior vice president HR, ACE Group CONSTRUCTION Richard Latham, group HR director, Persimmon HEALTHCARE Karen McCormick, group HR director, Care UK Marcus Powell, group organisation development/HR director, Nuffield Health Stephen Robson, director of people, Virgin Care HOSPITALITY AND LEISURE Ben Bengougam, vice president HR, EMEA, Hilton Worldwide Natalie Bickford, HR director Europe, Sodexo 10 HR November 2014 Toby Peyton-Jones, director of HR, Siemens UK & North West Europe Des Pullen, group HR director, Associated British Foods Tracy Robbins, executive VP HR and group operations support, IHG Simon Nash, senior vice president, HR, Reckitt Benckiser Jacky Simmonds, group HR director, TUI Andrew Newall, group HR director, Imperial Tobacco Louise Smalley, group HR director, Whitbread Amanda Underwood, HR director, Pizza Express Andrea Wareham, group director of people, Pret A Manger Nikki Rolfe, group HR director, Rexam Richard Smelt, HR director, McCain Foods Geoff Tranfield, group HR director, IMI IT/HI-TECH SERVICES Sue Yell, HR director, Warburtons Mary Alexander, senior director, HR, PayPal EMEA OIL/GAS AND MINING Daniel Cloke, HR and property director, Vodafone Hugo Bague, group executive, organisational resources, Rio Tinto Jennifer Duvalier, executive vice president people, ARM Graeme Cook, group HR director, EnQuest Kelli Hughes, head of people operations, Europe (Northern and Central), Google Gordon Headley, chief HR officer, Tullow Oil Ann Pickering, HR director, Telefonica UK Hugh Mitchell, chief HR and corporate officer, Royal Dutch Shell MANUFACTURING PHARMACEUTICALS Quintin Heath, HR director, AB Sugar Helen Maye, group director of HR, Smith & Nephew Joanne McAdam, group director, JCB Corporate University Rosemary McGinness, group HR director, William Grant & Sons Adrienne McFarland, head of centres of expertise, Nestlé UK & Ireland Gifford Tanser, head of corporate organisation development, Boehringer Ingelheim Claire Thomas, senior vice president HR, GlaxoSmithKline hrmagazine.co.uk MOST INFLUENTIAL PRACTITIONERS HR MOST INFLUENTIAL 2014 PRINT, MEDIA AND PUBLISHING Moira Slape, global HR director, Eversheds Carol Kavanagh, group HR director, Travis Perkins Deborah Baker, director for people, BSkyB Jan Woods, director, Lion Capital David Russell, group HR director, William Hill Paul Chesworth, chief people officer, Perform Group Derrick Crowley, group HR director, News UK Neil Foulger, managing director, HR, Liberty Global Group Diane Herbert, HR director, Channel 4 Valerie Hughes-D’Aeth, director of HR, BBC Neil Morrison, group HR director, UK and international companies, Penguin Random House Mark Sandham, senior vice president, organisational effectiveness and HR operations, Thomson Reuters PROFESSIONAL SERVICES (LEGAL/CONSULTANCY/ PRIVATE EQUITY) Carol Ashton, international HR director, DLA Piper Stephen Dando, operating partner, Bain Capital Dan Flint, group HR director, Simmons & Simmons PUBLIC SECTOR Andrew Dodman, director of HR, University of Sheffield Sheila Gupta, HR director, University of Cambridge Althea Loderick, chief operating officer, London Borough of Waltham Forest Gillian Quinton, strategic director (resources and business transformation) Buckinghamshire County Council Dean Royles, director of HR and organisational development, Leeds Teaching Hospital Jabbar Sardar, director of HR and organisational development, Cafcass RETAIL Pauline Best, group HR director, Specsavers Optical Group Jonathan Crookall, people director, Halfords Tanith Dodge, HR director, Marks & Spencer Guy Eccles, HR director UK&I, B&Q Christine Lynch, global HR director, Linklaters Helena Feltham, global HR director, Topshop Topman Andrew McEachern, global director of people and development, Norton Rose Fulbright Siobhan Forey, group HR director, Arcadia Group Robert Potter, group HR director, Hays Andy Street, managing director, John Lewis Partnership Hayley Tatum, executive people director, Asda Lynne Weedall, group HR & strategy director, DixonsCarphone Group THIRD SECTOR/NOT-FORPROFIT Helen Giles, executive director of HR, St Mungo’s Broadway Ria Goldby, assistant director HR, One Housing Group TRANSPORT AND LOGISTICS Mike Campbell, group director, EasyJet Richard Doyle, director, HR, Network Rail John Evans, group HR director, First Group Darren Hockaday, HR director, LOROL Julie Welch, HR director, Wincanton UTILITIES Robert Booker, executive vice president, HR, BG Group Shirley Campbell, director of people, workplace and OD, Scottish Water Janet Hogben, chief people officer, EDF Energy Mike Westcott, global HR director, National Grid DISTRIBUTORS AND SERVICE PROVIDERS Celia Baxter, director of group HR, Bunzl Geoff Lloyd, group HR director, Serco Bob Morrison, group HR director, Wolseley hrmagazine.co.uk November 2014 HR 11 HR MOST INFLUENTIAL 2014 MOST INFLUENTIAL PRACTITIONERS Readers’ Choice Readers see Eugenio Pirri as an “inspirational” leader While the HR leaders on the Most Influential Practitioner and Sector lists are chosen by our expert panel of headhunters, academics, former HR directors, chief executives and journalists, we wanted to know who the wider community is looking up to. So HR magazine ran an online poll asking readers for their choice from a shortlist featuring all the directors appearing on the Most Influential Practitioner list. Readers were invited to vote for the top five people they have been influenced by in HR. Votes were only counted if they were from an HR director or HR professional from outside the nominee’s organisation. Would readers have the same views as our expert panel? The top 10 are listed below. 01 Eugenio Pirri, VP people and organisational development, Dorchester Collection 02 Geoff Tranfield, group HR director, IMI 03 Tanith Dodge, HR director, Marks & Spencer 04 Jabbar Sardar, director of HR and organisational development, Cafcass 05 Dean Royles, director of HR and organisational development, Leeds Teaching Hospital MAKING WAVES Who do we expect to see on our HR Most Influential lists in the future? With a little help from HR magazine’s friends across the profession we have identified the people, from organisations big and small, that we will be keeping an eye on. Some have wide experience and longevity in HR, others are accelerating up the HR career ladder. All are making waves in the world of HR. Andrea Cartwright, group HR director, SuperGroup Paula Jordan, HR director, McCarthy & Stone Baljinder Kang, head of HR, Midland Heart 06 Therese Procter, chief personnel officer, Tesco Bank Simon Lenton, HR director, Jaguar Land Rover 07 Richard Latham, group HR director, Persimmon Liz McGivern, vice president HR, Red Carnation Hotels 08 Tracy Robbins, executive VP global HR resources and group operations support, IHG 09 Neil Morrison, group HR director, UK and international companies, Penguin Random House Tanya Lightbody, group people director, Skagen Services David Morkeberg, vice president HR Europe, Rexam Simon Nash, HR director, Carey Olsen Ted Smith, group HR director, Medical Research Council Lesley Sommerville, HR director, Trinity Mirror 10 = Darren Hockaday, HR director, LOROL Rachel Stock, HR director, Hearst Magazines 10 = Natalie Bickford, HR director Europe Sodexo James Watts, vice president HR, KFC UK & Ireland 12 HR November 2014 hrmagazine.co.uk [ A DIFFERENT SL ANT X X X X X X 58 HR January 2015 ] hrmagazine.co.uk HR MOST INFLUENTIAL 2014 MY BIGGEST INFLUENCE My Biggest The practitioners on the HR Most Influential rankings are the wider industry. But who has had the biggest impact on them? The first major influence on my career was my father; he was the son of Eastern European immigrant parents. He consistently advised me I should always be able to look after myself financially, and never rely on anybody else. At times when my children were young, I was juggling like crazy. My husband was enjoying a successful career in the City, and it would have been tempting to take my foot off the pedal. But I never did, as I always had my dad’s voice in the back of my mind egging me on. I am always grateful to him for his consistent support and belief, and to this day I like to succeed at work to make him feel proud. Alison Brittain, group director of Lloyds Banking Group’s retail division, has also had a major influence on my career. She was my boss at Barclays when we were both under 30, later my mentor and now my friend. Alison epitomises the successful career woman to me. She is brilliantly successful in the business world, a challenging but genuine leader, great wife and mother, and allround very funny person. Watching her has taught me that you can succeed in the workplace as a woman, without needing to change who you are as a person. Natalie Bickford, HR director Europe, Sodexo 14 HR November 2014 I believe every day is a learning opportunity, a chance to develop and a way to improve yourself, I have had lots of influences on my career but three have had a profound impact. Firstly: my upbringing and the values instilled in me at an early age. I come from a working-class background, which taught me the values of respect, fairness, hard work, honesty and a belief that you should never treat anyone in a way that you wouldn’t want to be treated yourself. These might seem straightforward but in practice and in the workplace they are often missing. I use these values to inform my decisionmaking and how I treat people. Secondly: working in three different sectors with four different companies has also had a big influence on my career. You will be a more rounded HRD if you spend time in different sectors developing and refining your experience. I constantly draw upon my time at all the companies I have worked in to help me manage complex organisational challenges. Finally, my current CEO David Nish has had a significant influence on my career. He is a hugely motivational and inspirational leader. He also has a rare quality in a leader: he never stops trying to develop himself and seek feedback to improve. He has influenced me significantly, and I’ve had the pleasure of working with someone to whom I can give honest feedback. Sandy Begbie, chief operations officer, Standard Life I’m at my best working with people who are a little restless – those strategic visionaries. And I’ve been very lucky to work with a number of business leaders like that who have influenced me. I was head of HR for George Davies, the retail entrepreneur who set up Next and George clothing at Asda, when he was setting up the Per Una business that was sold to Marks & Spencer. To have had the opportunity to work with someone so incredibly creative and commercially focused during my formative years was a huge privilege. That role also gave me access to Stuart Rose, Marks & Spencer’s CEO at the time. To get to spend time with and work for [Davies and Rose], to understand commercial thinking and see how they approach hrmagazine.co.uk in F re m? MY BIGGEST INFLUENCE HR MOST INFLUENTIAL 2014 Influence influencing their organisations, peers and Five HRDs share who has inspired them in their careers My father always told me that once you made a commitment, you stuck to it. It’s a lesson that has served me well throughout my career. He also taught me life is too short to stuff a mushroom – I’m not entirely sure what to take from that. Dad had a career managing prisons and I can’t think of many greater leadership challenges, particularly during difficult times such as after the Parkhurst escape in 1995. The thing that always came through was how genuinely he cared for his staff. Since then, I’ve been lucky to work with a number of amazing leaders: Terry Duddy, Kate Swann, Gail Rebuck and Tom Weldon to name a few. While each has a unique approach, watching how they led and ran successful companies, and how they led their people, has been a huge influence on me as a practitioner and as a leader. Most of the influence from within HR comes from my reaction to bad HR practice. When I talk to people and hear about some of things our profession inflicts on employees, it makes me more determined to do better. Not a week goes past without someone telling me about another bit of HR stupidity. Wanting to make the profession better for employees and their companies is perhaps my biggest driver and influence. Neil Morrison, group HR director, UK and international companies, Penguin Random House matters was hugely developmental. Thanks to the real commercial approach they used on everything they did, the people I work with now think I’m an exceptionally commercially focused head of HR. I’ve been able to take that with me. I also spent five years working in advertising and media, alongside industry veterans. And where I am now, the London Stock Exchange, I get the pleasure of working with an established board, a strong Remuneration Committee and a FTSE 100 CEO – Xavier Rolet – who is a real strategic visionary. In many ways, I feel privileged because I’ve had all these fascinating jobs and I’ve been able to work with industry-leading figures in a variety of sectors. I have learned an immense amount from them, and it’s helped me become influential in my own roles. Tim Jones, group head of HR, London Stock Exchange hrmagazine.co.uk I’ve been fortunate to have lots of excellent bosses, many of whom have been fabulous mentors. My most recent boss Nigel Paul, vice principal and director of corporate services at the University of Edinburgh, is one of the best. He epitomised everything that makes an outstanding leader: inspiring, innovative and someone who invested in people. He was visionary, supportive, and gave you the autonomy to realise your ideas. At his leaving do, all his direct reports said he was the best boss we’d ever had. Some pivotal moments in my working life have influenced me. When I began my career, I worked for two local authorities that were very different: one was extreme left; the other extreme right. It was an excellent experience of how to operate successfully and drive transformational change in a highly political environment. Working in the education sector for most of my life, an idea that was a ‘lightbulb’ moment was reading that leading professional services staff in an academic environment is not that different to leading academics. You need to coalesce them around a compelling vision, give them autonomy, and continue to give key messages to maintain engagement. The minute you get that, you understand what buttons you need to push. Another influential idea came from a friend of mine. She advised me to get involved with professional networks and engage in the world outside my organisation. As a consequence, I ended up involved in and even chairing several professional HR groups. Some of the most pivotal ideas are sitting next to you. We work in people-based organisations, so we should talk to people. They are the most fabulous resource for inspirational ideas. Finally, my most inspirational person is Nelson Mandela. For me, his quote ‘Education is the most powerful weapon you can use to change the world’ encapsulates all that I believe in and provides my motivation to do what I can in this dynamic and exciting sector. Sheila Gupta, director of HR, the University of Cambridge November 2014 HR 15 HR MOST INFLUENTIAL 2014 MOST INFLUENTIAL PRACTITIONER Dean Royles: People issues are on the table L HR Most Influential Practitioner 16 HR November 2014 “HR is a vibrant profession, and that’s something we should welcome” eeds Teaching Hospital NHS Trust must be feeling pretty pleased with itself. The reason? Its new director of HR and OD has just been ranked the Most Influential HR Practitioner for the third consecutive year. Dean Royles, former CEO of NHS Employers, joined Leeds just before the rankings were announced, after nearly four years at NHS Employers. Those four years have been a rough ride for the NHS, with scandals such as MidStaffordshire hitting the headlines. So it’s no surprise Royles says he’s learned a lot. “The NHS does remarkable things every day, and many of those who work in it thought all the brilliant stuff could compensate for any bad stuff,” he says. “Now we appreciate that if you didn’t get great care, nothing could compensate you for that. Reconnecting with trying to get it right for everyone, all of the time, has been a really important learning point.” Then there’s the fact that HR has become much more central to NHS performance. “It’s becoming increasingly evident that staff engagement has an impact on patient care, and that has created a huge opportunity for HR to change culture and the way we deal with staff management,” Royles says. “We went from questions about the role of HR on the board to an absolute understanding by boards that HR is central.” Not too surprisingly, when reflecting on his time at NHS Employers, he says the most difficult aspect was the “endless” negative press coverage. “Trying to cut through that and provide hope about things getting better was particularly challenging,” he says. “It has been, and still is to some extent, relentless. I’m an optimistic person, but looking at press cuttings each day, I’d find myself thinking: What can I do? And I’m in a position of influence; it’s so much harder for a middle manager or frontline member of staff.” Why did he decide to move on? Part of his decision was a desire to get back to the “core” of HR in the NHS, he says. “You get national jobs because you’ve got experience and expertise in that area,” he explains. “The longer you do them, the less relevant that becomes. It’s a good thing to be reconnecting with your core point.” And as Leeds has 15,000 staff, a £1 billion turnover and is the largest NHS Trust in the country, he is hardly taking a step back. While some gripe that HR is led by fads, Royles sees it differently, and puts a typically more positive spin on things. “This is a profession given to constant change, unlike, say, finance,” he says. “It’s great seeing all the thinkers, UK and internationally, shifting the dynamics. It makes it a vibrant profession, and that’s something we should welcome, rather than thinking ‘here we go again’.” He believes “everyone is tired of the debate on the value of HR”, but points out at least that means “people issues are on the table and people are talking about them”. Does he believe business is starting to take people issues more seriously? “I do. When we were trying to say HR is a key business function, many interpreted that financially – as long as the bottom right-hand corner of the balance sheet was black, everything was fine. But that’s not the same as a business function, which is about providing the best products and services, and getting our people aligned around that. The recession has taught us that if you do that well, you will make profit. That’s where your emphasis should be, not on a balance sheet. People issues are a lot more central to that.” One of the reasons Royles has consistently topped HR Most Influential rankings is his total transparency and willingness to speak openly about some difficult issues. His social media presence – at the time of writing he has almost 9,000 Twitter followers – means he is accessible to the wider profession. He’s also a regular blogger for the HR magazine website. “You’ve got to see social media as a fantastic opportunity to engage with staff and customers,” he believes. “It’s a key business skill of the future. If you’re restricting people from using it, you’re denuding them of skills that will be central for jobs in the future. The other mistake is seeing it as a broadcast medium; if people saw it as a listening opportunity, they would start to see the real benefits.” There’s little doubt that even in his new role, the HR profession will be keen to keep listening to what Royles has to say. hrmagazine.co.uk MOST INFLUENTIAL UK THINKER HR MOST INFLUENTIAL 2014 Cary Cooper: I’m an industrial social worker s important as the HR Most Influential rankings are, there aren’t many people on it who have also been honoured by royalty. Not only has Cary Cooper, distinguished professor of organizational psychology and health at Lancaster University Management School, received a CBE, this year he was also knighted, and recognised in the 2014 birthday honours list for his services to social science (it’s been a pretty good year). Cooper, the son of immigrants from Romania and Ukraine, originally thought he was going into the law. But a series of classes in workplace psychology changed all that, and it’s HR’s gain. Coming from a working-class background, he was earning as he learnt at university, as a social worker in Los Angeles. “I saw deprivation like I’d never seen in my life,” he recalls. “I thought: ‘I’ve got to do something that helps people’. When I came to England, I realised the way to do that was to help them in the workplace, to be an ‘industrial social worker’.” Cooper has been helping people to thrive in the workplace ever since, with a particular focus on mental wellbeing. So, in his decades as an observer of the world of work, how has he seen HR develop? First, the good news. “By encompassing areas like creating healthier work environments and not just traditional talent management, HR people have widened their scope,” he says. “We have a better professional body, with really talented people in it and a lot more women in senior roles.” But then there’s the bad news: in Cooper’s view, HR directors actually have less influence in many companies than they did in the past. “When I was first involved in HR and organisational psychology, HR directors were stronger than they are now,” he says. “Almost all of them were on boards, and I’ve seen that withering away. Those that are on the board often perceive they are the weakest link, and that they are vulnerable and won’t have the support of other more bottom-line focused board directors. We should be campaigning for a qualified HR director on every board.” According to Cooper, HR directors often have more power than they think; they just need to hrmagazine.co.uk use it – even if that means taking a risk. “Many HRDs are reticent to exercise the power they have with the CEO, for fear of losing their jobs,” he says. “I would love to see more robust and outspoken HR directors. We need people out there who take more risks.” Now is the time for HR to really fight its corner and seize the opportunity to gain influence, he believes. This is partly due to the fact “a different breed of CEO” is coming through – one which understands the importance of good people management. “HRDs should be more self-confident, because it’s all about talent for companies today,” he says. “The greatest resource companies have is their human resource, and that’s something we hear a lot of CEOs say. HR now has an opportunity, because CEOs are worried about talent.” And he firmly believes Britain’s woeful productivity levels would shoot up if more CEOs started listening closely to their HRDs. “A lot more would be done in British industry,’ he says. “In terms of productivity, we are pretty far down the list in the developed world.” With the economy picking up and voluntary turnover on the rise once more, another key challenge for HR opinion is the selecting and training of more “interpersonally skilled” line managers. “The line managers of the future can’t just be selected for their performance in relation to the bottom-line; they need to be good people managers,” Cooper says. “HR has to get the right kind of manager for the next decade, the decade where if you don’t manage people properly, they will move – because they can.” The next step – although Cooper believes he won’t see it become commonplace in his lifetime – is for more HRDs to make the leap to CEO. “The day will come when CEOs are chosen from HR directors,” he predicts, before making a final, rousing plea of the profession: stand up to your CEO if they are making poor, or damaging, people decisions. “I want to see more HRDs being aggressive about what they believe in,” he says. “I want to see people prepared to lose their jobs on principle. The role of HR is so critical to the business: deep down it has more power than it thinks.” “When I was first involved in HR, HR directors were stronger” HR 1 Most Influential UK Thinker November 2014 HR 17 HR MOST INFLUENTIAL 2014 MOST INFLUENTIAL INTERNATIONAL THINKER Sylvia Ann Hewlett: HR has never been so central G HR Most Influential International Thinker “We still tend to think of our people as part of a cost structure” 18 HR November 2014 rowing up in a small town with high rates of unemployment, Sylvia Ann Hewlett has always been aware how easy it is to waste talent. The founder and CEO of the Center for Talent Innovation is passionate about bringing talent to the heart of business strategy. And, as she jumped into the top spot on the Most Influential International Thinkers list this year, it seems her blend of hard data, rigorous analysis and practical actions has really hit home for the UK’s top HR directors, who are especially inspired by her work on gender and innovation. Hewlett believes the challenge for HR today may not be new, but it is more urgent than ever: the need for HR to be a more central part of business strategy and play a leading role in business thinking. “Brain power is the engine of the global economy and it does more than anything else to determine competitiveness,” she tells HR magazine, on the phone from New York. “And yet there’s a tendency to see it as a silo, not front and centre of business strategy. The problem is we still tend to think of our people as part of a cost structure, rather than as our main asset.” Of course that’s a problem many HRDs will know all too well, but in Hewlett’s view this silo mentality cannot continue, as global HR is a “hugely complex reality” for organisations. “It’s never been as central to whether you succeed or not, and it’s never been as difficult as it is now,” she says, citing global STEM (science, technology, engineering and maths) skills shortages as a reason for talent management to be taken more seriously by organisations. Where HR can play a trump card and increase its influence is to harness the power of diversity and innovation, she believes. “My work on innovation shows that when you fully engage the power of difference in decision-making, it has a measurable impact on innovation and market share,” she explains. “The full range of human talent is critical to innovation; without it, you’ll be dead in the water.” And talking the language of innovation will make HR much more interesting to CEOs, she adds. “There isn’t a CEO in the world who doesn’t see innovation as massively important. If you can show how handling human resources can transform innovation and growth, you will have the CEO’s ear.” Hewlett’s background as an economist means she has long been interested in the “trade-off between economic growth and social equality”. “The Holy Grail of succeeding in a global marketplace is making the connection between humans flourishing in the workplace, innovation and market growth,” she explains. “You cannot delink HR from the bottom line, or you’ll lose voice, agency and you get sidetracked.” Now HR leaders need to develop their ‘executive presence’, to quote the title of Hewlett’s latest book, published earlier this year. Developing “gravitas” is particularly important for women and people from ethnic minorities, she says, as they “are trying to crack a leadership culture that wasn’t designed for [them]”. She even suggests that, much as she wishes it wasn’t the case, one of the reasons HR isn’t taken as seriously as it should be is the fact it has traditionally been a female-dominated function, and that female-friendly functions are often “devalued”. To help make organisations more diverse, especially at the top, Hewlett is passionate about the importance of sponsorship. She is the author of perhaps the most influential book on the subject, Forget a Mentor, Find a Sponsor. As she puts it: “certain people are tapped up for leadership, and others aren’t” – and most of those people are “white, straight men”. By making the process more transparent, and showing people how to earn sponsorship, she hopes we will see more diversity, which will in turn drive more innovation. The growing importance of attributes like emotional intelligence and empathy in leadership today should also serve to increase diversity. Overall, Hewlett has a positive message about the future of talent management and HR: its time is very much now. “There’s a sense of urgency and a sense that we are very close to achieving that place in the sun where we will make a massive difference to how organisations are led,” she says. “It seems to be so tantalisingly close.” hrmagazine.co.uk Leaders are made not born.* *We’ve been making them since 1959 Learning to lead takes proven approaches designed to achieve tangible results. All grounded in a deep understanding of today’s organisational challenges. It’s how we develop the leadership skills of hundreds of executives each year, and what makes Ashridge one of the world’s most respected business schools. See the difference we can make at ashridge.org.uk Tel: +44 (0)1442 841026 Email: [email protected] 2014 • Full biographies of the Most Influential Practitioners and Thinkers • See the best HR directors across the different industries • Read about the ones to watch in the Making Waves category • Delve into the methodology behind HR Most Influential • Read the latest thought pieces from our partners • Who makes it into the HR Most Influential Hall of Fame? And who did HR magazine’s readers vote top? • Video interviews Find all this, and more, on hrmagazine.co.uk/hrmostinfluential HRMI 14 ad_half hori 158x112.indd 1 21/10/2014 13:06 HR MOST INFLUENTIAL 2014 CEO RESEARCH CEOs on what makes H What do CEOs think makes an influential HR director? ASHRIDGE BUSINESS SCHOOL interviewed key industry leaders to find out 20 HR November 2014 W hen it comes to what makes an HR director influential, who better to ask than the CEO? That’s why, as part of this year’s HR Most Influential, HR magazine’s research partner Ashridge Business School has completed a series of interviews with CEOs, resulting in qualitative research on what makes HR influential. The six CEOs interviewed came from a variety of industries including professional services, hospitality and the public sector. The whole report will be published as a downloadable ebook soon, but to whet your appetite here are some of the top findings. HR as an equal When you hear the word ‘equality’ in relation to HR, it’s likely your first thought is about diversity. But after talking to the CEOs, Ashridge uncovered that to them equality also means having HR at the same level as every other business function, and at the heart of the decision-making process. One CEO put it like this: “HR is as much of a change agent in this business as any other hrmagazine.co.uk CEO RESEARCH HR MOST INFLUENTIAL 2014 s HR influential CEOS ON WHAT THEY WANT FROM HR The following are direct quotes from CEOs on the key skills they want from their HR director: Integrity, charisma and the ability to find the right person for the job. It’s important they are emotionally aware and understand themselves. I wanted someone who could help us employ the right people. But it’s not simply the talent issue of finding the best people; our HR director will advise on why one new recruit might fit in better at a certain [location] but would not be successful at another. [An HRD must have] the ability to be a ‘driver’. We’re in a situation where constant change is happening and this will not stop. If we stand still and stop changing, we will go backwards. We have to manage change well. There is no option. Therefore, HR needs to not simply be a holder of procedures and policies but able to drive and lead the change that’s necessary for us all. That’s why the HR director must be on the senior team. You need someone who can persuade others about new ideas. One key issue for HR is its part in promoting the company culture, strongly embedding the values we have and making sure that our mission is totally understood. We want all employees to see the benefits of our mission and so communicating that and building trust is really important. If we create an environment where we are always truthful with our staff if there is bad news then they will accept that. They know that they can trust us. It’s someone who has the ability to get ‘great’ from ‘good’. We may all know what ‘good’ learning and development looks like – their skill is to move it to ‘great’. It also needs to be framed in boardroom language. They have to speak the language of the organisation, not only the language of HR. It is a journey for HR, a challenge. function. At its best I think HR is just as important as any other part of the business.” The same CEO added that HR needs to go beyond business partnering to be “more active” and “more challenging”. Most CEOs interviewed said they believed that the HR director must have equality with other members of the senior team. This directly undermines the view that it doesn’t matter whether or not HR is on the board. The CEOs Ashridge spoke to said HR must be on an equal footing to have impact. As one said: “HR is influential here and the hrmagazine.co.uk Empowering people and adding support for colleagues are important skills for HR. The people who work in our organisation have to believe in our values. and so they are special. HR has to live and breathe our values. The biggest ask is authenticity. As an HR director, if you’re not trusted then what use are you? [I want someone who is] a good facilitator and influencer as it’s a difficult job. You’ve got high ranking executives looking at you as an HR person and you’ve got to be able to stand your ground. You mustn’t get dumped with the technical stuff [and you need to take] a strategic view. November 2014 HR 21 HR MOST INFLUENTIAL 2014 CEO RESEARCH director is a key, equal measure of our senior leadership team.” The lesson seems to be that if HR is not on equal terms with other business functions, then it is likely to be regarded as a junior partner in the business and therefore will be less influential and outside the magic circle of key decision makers. “HR should not get trapped in the transactional stuff, like learning and development or health and safety,” said one CEO. “They need to be creative and an aid to t he solution – a bit like technology.” But overall, there needs to be a strong relationship between HR and the CEO in order for the function to reach its full potential. As one CEO said: “When there is a people strategy in the company, it has to be led by the chief executive. If not, it won’t work.” The message that HR cannot work in isolation comes across loud and clear. HR and innovation Regardless of sector or area of operation, CEOs are united in their desire for HR to showcase innovation, by coming up with creative solutions and new ways of working. According to the respondents, they are looking for radical new solutions that will bring significant business benefits. One CEO described this ability as “edge”. CEOs are looking for HR to drive transformation and innovation. According to the report: ‘If HR is not innovating new ideas – which of course have to be business relevant – then it is likely to be seen as more of a ‘housekeeper’ and more expendable… Being brave and striking out with a new idea, or an HR director who dares to challenge traditional ‘norms’ were skills that were particularly admired by the chief executives.’ The ability to take the lead in innovation and transformation is what makes an HR director influential. One CEO said that while HR used to be seen as “a policeman” and “a gatekeeper”, now it is seen as a positive force of energy: “They encourage others, they are problem-solvers and they are critical for us in terms of modelling the behaviours we want to promote across the organisation.” Future demands on HR The demands for HR are significant – but so too are the opportunities. ‘In order to move from good to great [HRDs] need to be forward-thinking, business (or commercially) driven and have the skills and insight to create transformational results that will help move the business forward,’ concludes the report. ‘These key HR appointments are certainly not for the faint-hearted and in order to be successful the individual needs to combine strategic clarity with diplomacy and extraordinary influencing skills.” Of course, it’s not just about the operational and keeping up to date with employment law – although these mustn’t be neglected as HR must be able to deliver on the basics. What is more important than ever is creative thinking and innovation: ideas that challenge the business or change the established order. In the traditional HR arena, the CEOs Ashridge interviewed identified the following as key areas for HR to focus on: Job redesign for high performance Redesigning HR policy and clearing away processes that slow down organisational effectiveness Understanding new recruitment trends, particularly for engaging with younger generations of talent Developing and improving learning and development provision Focusing on diversity and the competitive edge it can bring New ways of working Employee wellbeing and stress. Reconfiguring HR and increasing influence HR teams have gone through a great deal of change over the past few years. In fact, in two of the organisations that Ashridge spoke to the HR team has been almost completely renewed. In one organisation, the CEO went so far as to describe the scale of change as a “revolution”. “With the exception of two people left in the team we have had a complete change of HR personnel,” the CEO explained. “Some of them did not feel comfortable with the new type of role they would have; others felt defensive or could not change and decided to leave.” And when it comes to increasing the influence of HR, the CEOs interviewed shared a belief this will only happen if HR both contributes fully to the business, and has the ability and vision to come up with and implement innovative ideas. 22 HR November 2014 CEOs said HR must be on an equal footing to have impact As for financial acumen: yes CEOs want HRDs to be able to handle the numbers, but it’s not necessarily about the detailed nuances of ROI. ‘Rather, it’s the ability to put forward broadly the same type of case – with costs and probable returns – as would be expected at the board level of any [other function],’ says the report. 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