The Chief HR Officer | COST CENTER or Strategic Contributor?

CHRO – Contributor Happiness Outgoing

Earlier this year an independent focus group were asked the question.  Human Resources — Cost Center or Strategic Contributor.  The Focus community had quite a lot of insightful feedback and strong opinions when a member recently asked, “Why do CEOs feel HR plays a small role in an organization’s success?” So, how has the HR department let itself slip off the CEO’s radar — or worse yet, become defined by the top brass as simply a cost center? And, more importantly, how can it transform itself into being seen as a strategic contributor to the business?

The CEO sees HR as a cost center.

CEOs see HR as a tactical, rather than strategic, partner within the organization.

HR tends to shy away from broadcasting the value it brings to the organization.

The Focus Research team compiled the most compelling passages in the ensuing conversation for this report.  After reading this guide, check out the entire discussion and join the conversation:

RevenuePerform  was a contributor to this forum and our partner Wayne Wood made the following statement.

"The CEO's prime role is leadership of the company, crafting the vision and having the team (including HR) to be aligned to that vision and make every component of their respective roles part of that vision. It's not about a mission statement on a wall.. it's about a philosophy that must be embodied in the culture. The reason why there is often a disjoint between the CEO and HR, it that HR, has been trained to focus on process, compliance and governance.. unfortunately they forget that they are really about the two words in their titles;Human.. and the need to engrain human elements and the second is Resources. 

They are the custodians of HR and must make sure the CEO has access to the best in class human beings, so that he or she can engage those resources to deliver the vision... " Wayne Wood, Partner

SO are they a cost center or strategic?  RevenuePerform believes the are formost strategic and in order to demonstrate value, HR must market and promote their successes.