The CEO is generally considered a ”vision & strategy” person; a chief financial officer (CFO) is generally considered a “math person,” while a chief human resources officer (CHRO) is more of a “people person.” Moreover, in today’s changing corporate culture, collaboration between these three drives better business outcomes.
A recent EY survey demonstrated that when there are high levels of collaboration between HR and finance departments, net earnings (EBITDA), employee engagement and productivity are all increased by more than 10%. (*)
How can the CEO facilitate collaboration?
- Communicate openly: The CFO and CHRO each contribute to the formulation of goals and strategies.
- Try to understand the ‘different languages’ of the CFO and CHRO and press for clarification where necessary.
- Encourage financial and workforce analytics to identify opportunities and risks for the business-as-a-whole. Such analyses will make for a ‘big picture view’ and greater common ground.
- Facilitate open dialogue on any issues between the CFO and the CHRO without taking sides unless there be a very strong business case for doing so.
How would you describe the day-to-day communication between the CEO, CFO and CHRO in your business? What strategies might you put in place to facilitate such communication? Please feel free to comment or send me a private message.