Sam is an Australian based Non-Executive Director and former CEO. She chairs the Remuneration and People Committee at Newcastle Permanent.
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Now more than ever, companies need to be ready to pivot, duck and weave through the minefield of Covid-19 and post-pandemic uncertainties. Yet they must also know how to hold their ground, when to stand firm on what is unquestionably the right thing to do. To do this, people and culture directors must take their place at the boardroom table, have their say — loud and clear — and ensure objectives are met.
Rightly so, much has been opined about the challenges corporate organizations face today. I have noticed that the discourse and debate has increasingly focused on people and culture. As a non-executive director, I chair people and culture committees in a board governance role, so this subject matter is front and center for me.
I recently read a terrific paper published by Accenture titled “Modern Boards,” in which the authors consider the ways in which traditional boards need to evolve. I was very pleased to e-meet co-author Eva Sage-Gavin at the 2021 Valley2Valley Women Leaders’ Study Tour, an event I am closely involved with that unites women leaders. This year, I assisted in planning and staging the event and performed a moderator’s role on the panel alongside other regional business leaders on opening night. It’s a terrific opportunity to meet with peers and share ideas.
The June forum’s theme was the (new) experience of work, and I was eager to see what delegates had to say about what I have called “the quiet regional revolution.” This is how I describe the manner in which our region (the Hunter region of New South Wales, two hours north of Sydney, Australia) is re-inventing itself in the last few years and moving forward. I found that many discussions kept coming back to issues around people and culture; this being my area of expertise, I was delighted to offer my insights and suggestions.
The Accenture article really resonated with me, as I concur with its findings and proposals as to why workforce strategy needs a seat at the boardroom table. The authors discuss the five M’s: mindset, mission, metrics, muscle and makeup. The article asserts that these elements need to be fine-tuned in order to become a modern board.
In my experience, advancing mindset and mission has been about promoting the prominence of people and culture reviews at the boardroom level, continually and consistently pushing workforce strategy along to the front of the queue on the board’s agenda. It’s not easy, as many board members with more traditional outlooks try to avoid the “touchy-feely” topics. But this is simply not acceptable anymore.
For people and culture directors finding obstacles in the way, tenacity is the key. Keep on explaining how extensive research and analysis has shown that companies ignore workforce strategy at their peril. Hard evidence demonstrates that better human capital management brings better business outcomes.
Mission these days means more than a statement; it means actions that speak louder than words and the presence of a clear purpose; this needs to be demonstrable both internally and externally. Much young talent now demands this from an employer. I have persistently raised this matter at board meetings and have been really pleasantly surprised at the fascinating and amazing conversations that blossom when directors get down to the nitty-gritty of just what is the organization’s purpose. But the talk has to walk.
Metrics are all about regularity. Measurements and data need to be reviewed more often. People and culture directors should make it a goal to demonstrate along management lines that data is effectively used to advance governance, culture, remuneration and accountability.
Muscle means doing what you say you’re going to do. Strive to give management that crucial confidence — needed when it comes to handling recruitment, learning and development, employee engagement and experience and talent retention. The C-suite and management need to know that the board’s got their back.
Boards now need to think about their makeup, too. Does it reflect their workers and customers? Where possible, it should. Diversity at the board level needs to be demonstrated, not just mentioned. Movements such as #MeToo and Black Lives Matter cannot be underestimated for the breadth and depth of their influence. Customers, investor groups and other shareholders are looking at companies now and expecting them to step up when it comes to acknowledging social issues. Women in the workplace also demand careful consideration. We may have come a long way, but there is plenty more to do; this is a cause close to my heart.
Boards are responsible for ensuring the people and culture blueprint receives as much attention as fiduciary and operational strategies. Objectives such as diversity, inclusion, and health and safety are essential to overall business best practice and, importantly, transparency and trust. These latter points are no longer buzzwords or concepts but rather are critical tools.
People and culture directors enable companies to optimize performance; we occupy significant strategic positions at boardroom tables. Ideally, these tables are welcoming and comfortable — perhaps circular — and should be solid, balanced and in keeping with contemporary attitudes and aspirations.
Forbes Human Resources Council is an invitation-only organization for HR executives across all industries. Do I qualify?
