n. This unfortunate but accurate observation is caused by HR’s total lack of participation and involvement in the practical operation of the business and its lack of business acumen. HR’s active participation in the achievement of any of the company’s business objectives and other business-related matters will significantly improve its reputation, though it will likely take several years to fully attain such a reversal.
o. This highly confidential program should be designed and administered by the top HR executive who has the respect of the CEO as a business person and executive peer. The plan should list only realistic and viable candidates who have higher line management potential and support. Questionable candidates should be thoroughly evaluated by higher line management executives regarding their most recent performance results, experience, relevant job knowledge, management/executive skills, financial acumen, and leadership skills before being listed.
Assuming the program lists only viable candidates, the key to its success is how the data is used throughout the year as promotional, compensation, and development opportunities arise. HR should track all such matters so that all succession candidates are given fair yet appropriately better treatment.
p. HR should be responsible for the design and administration of the company’s salary administration, incentive plans, management bonus, and stock compensation plans. All such plans should be competitive within the industry and/or geographic market, while being fairly administered to provide for internal and external equity. These plans act as a foundation upon which all other HR plans and programs are built.
q. To effectively support these critically important companywide efforts, HR needs to reexamine its related policies, practices, and programs to ensure that they fully complementary of both efforts. This includes its company culture, interviewing, selection, onboarding, compensation, training (problem-solving, conflict resolution, trust-building and collaboration skills), team and innovation recognition, remote employee involvement, and employee advancement.
When, and only when, the CHRO or HR Leader offers some pragmatic and innovative HR projects, services, and solutions that help senior and higher line management executives to achieve some of their business objectives will HR ever be considered an equal business partner.
- Governing Law. I declare that this will shall be governed by the construed in accordance with the laws of the state of Illinois and the United States of America.
- Codicil. This critical supplement is intended to provide CHROs and HR Leaders, as Executors of this will, with some practical guidance regarding the administration of it. It provides some pragmatic examples of how various innovative and significant HR projects can assist line management executives in achieving their business objectives.
Before proceeding, it is important to clarify two major terms. First, practical business value is achieved primarily when an HR project or service is directly related to the achievement of one of the company or division’s specific business objectives regarding financial, operating, or strategic matters. Typically, it is achieved to a far lesser degree by improving an existing HR program or service which is usually only indirectly related to the business in general. Secondly, being directly related means that the HR project or service is in support of a specific business objective which has a direct impact on increasing sales, improving cash flow, reducing costs, improving productivity, enhancing customer care, fostering new product development and market introduction, and so on. In other words, the business.
Financial Objectives
To improve earnings per share from “X” to “Y” dollars/share.
- With Finance, implement a Cost Control/Profit Improvement workshop to identify and quantify potential cost savings and profit improvement opportunities.
- With Engineering and Marketing, implement a Product Improvement workshop to identify various product and/or service innovations that can help gain market share and/or reduce product cost.
To increase cash flow by “Z” dollars.
- Train Sales staff how to resolve and collect outstanding receivables to bring in more cash.
- With Manufacturing, implement an Inventory Reduction workshop to identify and quantify items that can be eliminated, reduced, or replaced by less expensive ones.
Operating Objectives
To reduce time-to-market for product “A” by 30%.
- With Engineering and Marketing, implement several team efforts to reengineer and streamline the entire design and launch cycle.
- Retrain management on key changes.
- Conduct a Project Management workshop to ensure that this project, and all subsequent product development projects, are achieved on time.
To improve customer care to exceed industry standards.
- With Customer Care, survey outside and company experts to catalog new key service principles, standards, measures, and reporting requirements.
- Determine the new key skills areas required for success and assess the competency level of current staff on all required skills.
- Identify new positions and retraining that is needed for all staff on new principles, standards, processes, measures, and reporting requirements.
- Conduct ongoing Innovation Workshops to continually improve service.
Strategic Objectives
To develop 20 general managers who can operate a $50M/year business.
- With outside experts, develop a General Management Workshop that covers strategic planning, financial management, product/market development, sales, and leadership.
- Set up a personalized development plan for each general manager.
- Review the entire compensation package for each general manager annually.
To increase sales 20% by acquiring a business that uses an important new technology.
- Update the Sales Incentive plan to recognize the new technology and improved profit.
- With Sales, evaluate the competency level of the Sales staff in the new technology.
- Evaluate the current recruiting sources in the new technology and identify new ones.
In witness whereof, I have hereunto set my hand and seal this 30th day of June, 2024,
Jack P. Bucalo
Signed, sealed, published, and declared by Jack P. Bucalo as and for this last will and testament, in the presence of, who, at their request, in their presence, and in the presence of each, have subscribed our names as witness on the date above.
Witnesses:
- _____________________
- _____________________
- _____________________
