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As businesses get bigger the roles inside the firm undergo consequent changes. The Founder realises that he cannot manage the firm by himself and soon the Organisation undergoes structural changes as functional leaders are assigned responsibilities and are held accountable for delivering on business commitments. Soon enough without much surprise, the interpersonal dynamics of the firm change and it is not unusual to find that there are individuals jockeying for power and attempting to influence the Founder or the Chief Executive Officer (CEO).
While there is no denying that all functions are important to the firm's success, at the core of the firm is the G3. As envisaged by Ram Charan and his colleagues in a well-known Harvard Business Review article, this triumvirate forms the inner core that keeps the organisation on track towards its long-term destination.
Who are the members of this caucus? Any keen observer of an Organisation will tell you that the main voice that is heard by the CEO is that of the Chief Financial Officer (CFO). The CFO is the one who is keeping a close eye on the dashboard as the vehicle speeds away in the market place. This is not to say that the CEO operates on autopilot. He continues to be the commander of the aircraft but the fuel gauge is closely monitored by the CFO who is directly ensuring that the fuel tank (read working capital) is appropriately topped up for the journey.
What about the Chief Human Resources Officer (CHRO)? Potentially, he could play Spock to Captain Kirk. Besides being a key aide in strategic decision making, he also becomes the conscious keeper for the CEO, an invaluable counsellor at all times and also the true connector between the employees and the top echelons of the firm. This is a high ask admittedly, as it presupposes a very high degree of trust and partnership between them with a common vision of the future. Through close monitoring of the pulse of the team, the CHRO can then be the true interlocutor for the CEO - if the need arises in the course of the organisational journey - thereby providing added impetus to the firm's processes.
I reiterate that this in no way undermines the role of the other leaders in the C-suite. But the fact is that there will always be a core team that is the genuine brains trust of the firm. In the words of Ram Charan et al, 'The CEO should create a triumvirate at the top of the corporation that includes both the CFO & the CHRO. Forming such a team is the single best way to link financial numbers with the people who produce them.'
The real question remains: while CHROs are many in today's firms, do we have CHROs who have earned the confidence of their CEOs & form an integral part of the G3? The jury is still out on this one.
To read the complete issue click here.
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