The HR Juggler

Does it matter who your role reports to in the organisation? Just how important is it that an HR Director reports into the CEO? Lloyds Banking Group is a recent example of a company that has removed the direct report link between the Group HR Director and Chief Executive and, in their particular case, created a new Group Corporate Functions Director, which will manage HR, Legal and Audit amongst others. Clearly there are issues to be resolved within Lloyds Banking management team and banking generally, yet there are other examples too, such as Marks and Spencer.

So, does it really matter where HR reports to in an organisation? Well, no…and yes.

On the one hand, it seems incredibly outdated to look at thing in purely hierarchical terms; to derive status and importance from the reporting line of one’s function. Just because you report to the CEO does not necessarily mean that are good at your job, listened to, have any more influence or budget than anyone else in the organisation…far from it. For the most part, organisational changes are simply that; a way of reducing the sometimes huge numbers of direct reports that a CEO may have. One’s influence within a Company and ability to drive through change and excel at one’s job should in no way be determined or limited by one’s reporting line and there are lots of examples of people who do this brilliantly and apparently effortlessly, across a wide range of roles and functions.

And yet, whilst all the above is undoubtedly true, I retain a nagging element of scepticism about the value a CEO places on the role of HR, on how committed they are to truly working in partnership and involving HR in their organisational strategy, if they don’t have HR as part of their management team and as their direct report. About what kind of HR role that would be in reality, the emphasis that would be places on different aspects of the HR spectrum. I worry about the dilution of messages, of strategy, of priorities, the ability to effectively challenge and question…and I’m not convinced I would personally wish to work in that environment. 

What do you think? Have you had a different experience that proves me wrong? I’d love to know.