How HR can get a seat on the Board

1. How HR Can Get A Seat On The Board
Sunday 3 May 2015, 16:30 – 17:30 (UAE Time)
WEBINAR WILL START SHORTLY
Presenter – Tom Raftery

2. About the HR Observer
• The HR Observer is an initiative by IIR Middle East
aimed at becoming a platform for HR professionals in
the Middle East to exchange insights and expertise,
both online and offline, in an effort to take the industry
forward.
• The initiative features a blog, LinkedIn group, Twitter
feed, online webinars and a series of offline informal
networking functions.

3. Housekeeping
• You can type your questions throughout the session
• Time will be allocated in the end for the speaker to
address your questions
• Unanswered questions will be posted with answers to
our blog
• Slides will be available on our Slide Share page, link will
be emailed to you
• Recording of the webinar will be available to download,
link will be emailed
• Take the time to complete post-webinar survey that will
pop up at the end

4. Today’s Presenter
Tom is the founder and director of – it’s all about people – a Human
Capital Consultancy based in Dubai. Tom has over 30 years’ international
HR experience in senior line roles, mostly recently on the divisional board
of Arc International, and with such companies as British Aerospace,
Sedgwick Forbes, British Gas and the Nazer Group, based in Jeddah. In
addition, he has extensive consulting experience working for Towers
Watson, Arthur Andersen and MEIRC. He has lived and worked in the
Middle East for over 18 years and has also worked across Europe, Africa
and Asia.
He has extensive experience in HR strategy, processes and systems,
organisational redesign, performance, compensation and benefits, change
management and leadership development.

5. HRDs on The Board: The Reality
• Generally HR is not on the main board
• FTSE100 do not have a HRD on the main board
• Overall the number of executives on the main board is
limited due to regulations: non executive directors
BUT
• HRDs are being taken more seriously at board level:
• Leadership successionwar for talent
• Creating the right organisation structure
• Building the right culture
• Recruiting HRDs from outside HR
• More high flyers are being placed in HRD roles

6. Influence of HR on Board Directors*
• 43% significantly increased
• 29% slightly increased
• 16% not changed
• 8% slightly decreased
• 5% significantly decreased
*Korn Ferry study of UK executives in 2011

7. How CHROs Compare with Other
Directors
Study by Ellie Filler: Senior Client Partner for Korn Ferry specialising in
recruiting CHROs globally and Dave Ulrich University of Michigan
• Looked at pay levels of high performing C suite executives
in the top decile of earners:
• CEOs & COOs the highest paid
• CHROs were the next highest paid
• Studied 360 degree assessments of executives against 14
aspects of leadership carried out by Korn Ferry:
• Except for COO the executive whose traits were most
similar to those of the CEO was the CHRO
• Conclusion: more companies to consider CHROs to fill the CEO
position

8. HR at the Table Improves Profitability
• Companies that identify HR risks in their annual reports
outperform their industry peers
• Companies that review employee performance
throughout the year consistently meet financial targets
and have a better annual growth rate
• Companies with higher percentage goals aligned and
completed do better on financial metrics
• Having a CHRO correlated with a company’s bottom line
Fortune 500 research by Success Factors

9. HR not Strategic Enough
• HR has evolved but it has room to grow in most companies
• HR is still not viewed as a serious contributor to strategy
• Seen as being too involved in the day to day issues
• Seen as advisors rather than decision makers
• They are not in a position to bang the table and say “back
me or sack me”
• Need to proactively generate more conversations with the
main board directors
• HRD positions are now being filled by directors from other
operational departments

10. HRDs on Boards in the Middle East
• HRDs are on the divisional boards of multinationals
• Only a handful on the main boards of companies
• Still seen as administrative or at best tactical & not
strategically important, but its changing
• Growing number of high performers moving into HRD
roles, particularly nationals
• War for talent and nationalisation are key challenges at
the board level

11. Business Savvy: Giving HR the Edge*
• Understand the business model
• Generating insight and impact through data
• Connecting and collaborating with curiosity
• Leading with integrity
*CIPD Research report: March 2012

12. So what do you need to do to get
a seat at the board?

13. Excellent Delivery of HR Services

14. Understand the Business Drivers

15. You have to ‘Get’ the Numbers

16. Seek Experience Outside
Operational Departments Non Exec Director

17. Measure Outcome & Achievement Not
Work Processes

18. Master HR Analytics

19. Talk the Language of the CEO

20. Build Confidence Through Knowledge

21. Concluding Remarks
• All the previous points apply to everyone in HR
• You need to apply this in your work regardless of your
level
• You need drive and hunger to succeed
• You need to take yourself out of your comfort zone
• Influence the right people
• As far as possible put HR solutions in financial terms
• Have courage and challenge