HR Strategic Transformation: how HR leaders are embracing the challenges of tomorrow
In recent years, in a world where digital transformation and business agility have become priorities for organisations, the role of Human Resources (HR) in Portugal has evolved. Though not yet entirely consolidated, this evolution is already being sensed within these teams, which now assume a more strategic role as opposed to their previous predominantly transactional one.
This evolution is coupled with a closer proximity to the "decision-making table", with 61% of the participants indicating that they report directly to the CEO. This marks a significant change from the past, where most HR areas reported to the CFO, and reflects the increasing significance and influence that HR has been gaining. This direct connection also presents an opportunity to place the issue of talent on the strategic agenda of organisations.However, despite the evolution of the HR role, there are a few challenges that HR teams still face.
The Odgers Berndtson leadership model identifies 3 main responsibilities of a strategic leader: Anticipating the future, Inspiring people and Delivering sustained results. However, many of the HR leaders that participated in the study recognise that, in practice, most of their time is still spent on delivering short-term results. This prevents them from freeing up the time and attention needed to focus on anticipating trends and opportunities and inspiring key stakeholders, which are necessary for driving organisational transformation.
The present study identifies the challenges that outline the path that HR will have to take and that are reflected in 5 main priorities for the future:
- Ensuring a strategic business-oriented agenda, sharing and delegating responsibility for talent management and the development of future leaders with the business, as well as rethinking HR’s KPIs/scorecard in line with strategic objectives.
- Empower the Human Resources area by establishing a closer proximity to Senior Management, defining a clear vision for the future, leading strategic talent forums and ensuring decisions are based on concrete data.
- Defining an Organisational Model geared towards Change-lead, implementing new models that make HR teams more agile and efficient, while diversifying their scope of action by incorporating new areas, such as Sustainability, Internal Communication or Transformation.
- Ensuring diversity of skills in HR profiles, incorporating analytics, transformation and digitalisation profiles. On the other hand, HR teams should ensure the diversity of experiences and facilitate increased mobility between HR and business areas, in order to better understand the context and challenges of the business.
- Transform the profile of the Human Resources Director (HRD), evolving from a People Manager to a Transformation Leader with high proximity to the business, strong strategic and stakeholder management skills and high adaptability. In short, a true business leader.
To become an influential voice, the Chief Human Resources Officer (CHRO)/Human Resources Director (HRD) must bring the perspective of a strategic leader to the HR function. It is essential that HR Leaders honestly reflect on how prepared they are to address the various strategic priorities and challenges that shape the future.Discover our reflections and how Odgers Berndtson can help align the organization's strategic challenges with the priorities of its leaders.
You can download the full report below.
Download the portuguese version here.
