“We have bigger things to do right now than focus on value.”
This is what I have been hearing in many of the conversations I’ve been having with private equity owners and operators in the last while. We live in strange times indeed when value (traditionally expressed as market cap), an all-encompassing indicator of success, takes a back seat.
Like most CHROs, I have spent all of my career operating within the universe of talent management. The established, widely accepted practices and processes of talent management, many of which are highly consensual, have stood me in good stead. In fact, I and my C-suite partners have only ever had one serious concern when we look at our well-equipped HR departments: how we manage talent isn’t always linked tightly with what is relevant to the company’s performance.
It is up to you as CEO to calm the chaos and focus your organization’s people and resources on values-based value creation.
Considering the number and scope of the decisions you have to make these days, it’s probably not even humanly possible to look at everything being brought to you. The reality is that the important, urgent issues being thrown at you are not going to stop. The emotions being stirred up are not going to subside quickly. Spreading yourself thin to cover everything won’t get you or your company far in this day and age. What you need is leverage.
Welcome to part 3 of our New Work of HR series.
In the last installment of the series we discussed the concept of democratizing Talent Management – taking the energy that goes into placing and grooming “Top of House” talent and applying it deeper into an organization. Part 3 discusses the challenges of "democratizing" the talent management process in large organizations.
There appears to be a shift occurring in the private equity world. Sumeet Salwan refers to this as, the rise of the operating partner. I think it’s important to examine why there is now a sudden interest in the operating side of the business.