Leadership Connections 2015, HR and the C-suite
New research from Ipsos Loyalty and Cirrus highlights the challenges C-suite leaders face post-recession to build a long-term, sustainable future for their businesses and the role HR departments play in helping them achieve this.
In the eyes of Britain’s leaders the biggest priorities, shared by almost two thirds of leaders, are making sure their companies are agile (65%) and have a shared sense of direction (64%).
However, our research finds that many C-suite leaders feel HR could do more to help them achieve these goals: only 15% feel that HR helps their organisation become more agile, and just 19% believe their HR departments are effective in helping them create shared purpose and direction.
What do HR leaders think about this? Our research interviews with senior HR leaders find they agree that these areas present great opportunities. Some also comment that HR needs to shift the perception of many C-suite leaders. Many HR leaders are already developing the HR function itself to become more agile, as well as becoming increasingly strategic and developing agility across organisations.
The next bands of priorities for the C-suite are collaboration and creating shared values, prioritised by just over half of British leaders (58%). Surprisingly, shared decision making is prioritised by only 17% of leaders.
This research explores how much the Cirrus five-factor model of Connected Leadership resonates with the senior leaders of corporate Britain.
“Connected Leadership embodies the shift away from the old style of command and control leadership and hierarchical structures. It is about leading through influence rather than control, which relies on effective communication and connection across the organisation. For Connected Leadership to work effectively, a successful relationship between HR and the C-suite is critical,” says Simon Hayward, CEO of Cirrus.
While overall, agility is seen as the top challenge by leaders, there are some interesting variations between sectors. Agility is particularly key in the service, banking and retail sectors. In the industrial and construction sectors, however, there is far more emphasis on creating a shared direction.
One concern highlighted from the research is that as British businesses emerge from the recession, companies are focusing on the short term in how they are developing their future plans, risking their success over the longer term.
“The message from this research is an optimistic one,” says Ben Page, CEO of Ipsos. “C-suite leaders recognise that short-termism is not the answer. For the clear majority, there is a desire to embed the agile capability to keep responding to threats, challenges and opportunities that get thrown at their companies.”
Ben continued: “Many C-suite leaders – as well as HR leaders – clearly want HR to be more involved in the game. As HR continues to shift both practice and perception from the transactional to the true strategic partner, they are pushing at an open door. One message from this research is that many business leaders across the UK want HR to keep pushing.”
The research involved speaking to some of the most influential leaders and HR professionals in the country – both through Ipsos' survey of over a hundred Captains of Industry, and Cirrus' qualitative interviews with a wide cross section of HR leaders.