Nearly everyone has recently read an article, attended a session, or even participated in a web conference on Corporate Governance (CG). What is it about? – The ability for an organization to define a Vision, a Mission with the adequate Mechanisms, and Values that are all effectively translated operationally by the various Departments and their People.
Human Resource Management (HRM) has been more efficiently contributing to the success of companies for many years now. The key differentiator for HRM to add strong value is when Strategy, Processes and Skills Management (HRM) are wisely defined and matched, so decision-making accounts for all aspects of the business – while thoroughly assessing capabilities, dependencies & constraints.
Fine, so what is the relation between CG and HRM? Well, a number of businesses going through ambitious digital transformations and other business change have to cope with a substantial disruption during that journey. Why? It is often because of the weak ability to transition via agile methodologies (quick efficient change process that does not affect much ongoing operations). Furthermore, the change is not culturally accepted because the organization is not well prepared for it (there has been little shift from the C-level down.)
Therefore, HRM needs to create a state of readiness for change so CG can be truly implemented throughout a company while facing little or no gaps and obstacles. The CG’s Vision and more so, Mission and Values evolve in order to adapt to changing business realities. In that context, HRM will then define and encourage:
- Proposing different kind of trainings (immersion, formal, technical, mobility…);
- Setting up cross-departments task forces (to avoid working in silos);
- Helping recruit talents that are more likely able to demonstrate a high degree of Emotional Intelligence (EQ), as flexibility to adapt and reach out to others is essential;
- Going through the impact of IT and digital tools by sharing experiences of competitors or else;
- Elaborating Job Descriptions with a much stronger interaction with the business;
- Participating in proofs of concepts and pilot projects so they become a natural part of a job– but projects that have strong impact value;
- Implementing a highly comprehensive evaluation and employee’s performance scheme, so the various parties agree & share the right feedback.
Hence, XN Consultants Considers HRM should be even more deeply involved in the CG’s definition phase and in the implementation because today’s changes have yet a bigger impact on people. HRM helps shape CG because no Vision, no Mission and its Mechanisms and no Values can be implemented without first deeply assessing the capacity for people to jump on the train of change. HRM is not a component of an organization: It is the foundation that supports the business; HRM is even more than before, the key pillar of Corporate Governance because in a fast changing world, it helps make sound ambitions come true.
