In case you missed it (apparently I did), Jack and Suzy Welch crafted a LinkedIn post last week that again spoke to the importance of HR.
“HR should be every company’s ‘killer app,’ ” they wrote in the piece, titled So Many Leaders Get This Wrong.
“What could possibly be more important than who gets hired, developed, promoted or moved out the door? Business is a game, and as with all games, the team that puts the best people on the field and gets them playing together wins. It’s that simple.”
Considering this, the two noted, it’s too bad “HR rarely functions as it should” and is often relegated to the background. “If you owned the Boston Red Sox, for instance, would you hang around with the team accountant or the director of player personnel?” they ask.
They continue …
Sure, the accountant can tell you the financials. But the director of player personnel knows what it takes to win: how good each player is and where to find strong recruits to fill talent gaps. Several years ago we spoke to 5,000 HR professionals in Mexico City. At one point we asked the audience: ‘How many of you work at companies where the leader gives HR a seat at the table equal to that of the CFO?’ After an awkward silence, fewer than 50 people raised their hands. Awful!”
They then go on to propose how to fix this mess …
It all starts with the people they appoint to run HR — not kingmakers or cops but big leaguers, men and women with real stature and credibility. In fact, managers need to fill HR with a special kind of hybrid: people who are part pastor (hearing all sins and complaints without recrimination) and part parent (loving and nurturing, but giving it to you straight when you’re off track).”
Of course, these comments are right in line with others offered up by Jack and Suzy Welch in the past. In a 2004 story we ran, Jack Welch shared an anecdote similar to the one in Mexico City, pointing out that having a scorekeeper in baseball who’s more important than the director of player personnel on a team is crazy.
Also, this isn’t the first time Jack and Suzy Welch referred to HR as a “killer app.” (One reference I found dates back to 2006.)
I’m sure some of you may be scratching your heads, wondering why the two are revisiting this subject once again. But considering how many organizations have yet to adjust their thinking, I think a case could easily be made that it’s a message worth repeating. (In case you were wondering, last count, the LinkedIn piece received 163,376 eyeballs, 2,679 likes and 565 comments.)
Adding one more point of view to this discussion, Bloomberg TV interviewed former GE executive and former Home Depot CEO Robert Nardelli yesterday, asking him to share his thoughts on the couple’s piece. Nardelli, who is now founder and CEO of the investment banking firm XLR-8, said he was in complete agreement. (No surprise there, considering he describes Jack Welch as a mentor.) Companies, he said, “will spend an inordinate amount of analysis on your physical capital, and yet it’s your human capital that brings that to life.”