{"id":2194,"date":"2022-06-07T21:16:11","date_gmt":"2022-06-07T20:16:11","guid":{"rendered":"https:\/\/www.theofficialboard.com\/best-articles\/?p=2194"},"modified":"2022-06-07T21:24:01","modified_gmt":"2022-06-07T20:24:01","slug":"five-differentiators-of-high-growth-technology-cpos-from-fortune-500-chros","status":"publish","type":"post","link":"https:\/\/www.theofficialboard.com\/best-articles\/2022-05\/five-differentiators-of-high-growth-technology-cpos-from-fortune-500-chros\/","title":{"rendered":"Five differentiators of high growth technology CPOs from Fortune 500 CHROs"},"content":{"rendered":"\n

Viewed in Russell Reynolds<\/em><\/a><\/p>\n\n\n\n

If you had a chance to read our most recent blog, \u201cGrowing (and Shrinking) Functions at the Top,\u201d<\/a>  which we posted just a few days ago, you already know the big take away from it. <\/p>\n\n\n\n

In a thorough comparison we conducted on C-suite executive moves at the world\u2019s largest companies over the past two years,  no change has proven more profound than the significant obligation large companies have felt to identify new executive talent in human resource-related functions.<\/p>\n\n\n\n

In just two years, from January 2020 to January 2022, we found that vice presidents of recruitment and vice presidents of talent development at the world\u2019s largest companies have been in greater demand than any other executive function, growing at 131 percent and 97 percent, respectively. <\/p>\n\n\n\n

Unprecedented human-related resource challenge<\/h5>\n\n\n\n

While there were other findings of consequence in our research of C-suite changes these past two years, this was our most significant finding: The world\u2019s largest companies are moving expeditiously in identifying and hiring top-level talent that can address significant and nearly unprecedented human resource-related challenges and obligations they now confront as employees largely return to post-pandemic work life.<\/p>\n\n\n\n

Recruiting<\/h5>\n\n\n\n

In this May 16, 2022 report by Russell Reynolds, the New York City-based global management consulting giant, this theme again emerges, validating that companies\u2019 most significant executive recruiting obligation and challenge is identifying the increased demand for seasoned and effective executives in the often complex human resource function.<\/p>\n\n\n\n

The fast-growing companies are more demanding<\/h5>\n\n\n\n

In this report, Russell Reynolds found the demand for exceptional leadership in these functions is proving even more taxing to fast-growing  companies  (especially in the technology sector) than it is to more traditional Fortune 500 corporations with more modest growth trends and expectations. <\/p>\n\n\n\n

In the case of fast-growing companies, this report concludes, the depth of expertise and tested internal managerial talent is in vastly shorter supply than it is at larger and more established Fortune 600 corporations. Reason: These larger companies typically have more experienced top human resource executives, usually holding the title of chief human resource officers (CHROs), along with deeper managerial human resource benches that  better position these larger companies as they face the similar challenge of expanding their human resource leadership to address enhanced challenges associated with diversity, equity, and inclusion, new corporate work cultures that often include a  greater numbers of remote workers, and other challenges associated with a post-pandemic  world increasingly labeled simply \u201cthe future of work.\u201d<\/p>\n\n\n\n

External hires for senior human resource roles<\/h5>\n\n\n\n

The numbers identified by Russell Reynolds and shared in this report make this point persuasively: At high growth companies, 88 percent of their hires, usually carrying the title chief people officer (CPO), came from external hires compared to 55 percent of larger Fortune 500 CHROs who filled  these positions with internal promotions or lateral moves within their larger and more established companies.  <\/p>\n\n\n\n

All this has accelerated a demand for creativity at some fast growing companies as they assess internal versus external candidates. This Russell Reynolds report identifies one company with two internal CPO candidates interested in this high stakes position. <\/p>\n\n\n\n

Over investing is not an option<\/h5>\n\n\n\n

As opposed to learning later that they were sufficiently prepared for the position\u2019s demands and complexities, the hiring executive decided to assess their respective preparedness. When this current PPO left for vacation, she divided her responsibilities between the two candidates–and then returned happy that she did. Result: \u201cShe returned to find that one enjoyed it, while the other was happy to step out of it.\u201d The case of a likely bad hire in the second case was thus averted.<\/p>\n\n\n\n

Board interactions, organizational design and compensation expertise<\/h5>\n\n\n\n

The challenges confronting these fast growing companies don\u2019t end there, either. Because many of these companies are still in pre-market stages of their development, it is exceedingly rare to encounter PPO candidates with any significant experience interacting with corporate boards or in structuring organizational compensation, two important functions CPO functions.    <\/p>\n\n\n\n

Last year, in 2021, over 1,000 U.S. companies and 2,000 companies elsewhere underwent initial public offerings, but did so with less pressing human resource challenges and less urgency surrounding adding to their human resource management. <\/p>\n\n\n\n

Training and external assistance<\/h5>\n\n\n\n

Today, however, the urgency attached to the function is vastly greater while the same challenge of an insufficient number of qualified internal candidates still exists. Today\u2019s fast growing company that wishes to hire internally for these positions can enhance their chances of success by ensuring these new hires\u2019 probable deficiencies in board interaction and compensation are addressed, possibly with external management consultant training. <\/p>\n\n\n\n

Internal prospects also should be afforded expanded interaction with the company\u2019s chief executive before being placed in this role to afford a sufficient amount of time for conversation and a functional professional relationship before the new PPO steps into this high stakes corporate function.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Viewed in Russell Reynolds If you had a chance to read our most recent blog, \u201cGrowing (and Shrinking) Functions at the Top,\u201d  which we posted just a few days ago, you already know the big take away from it. In a thorough comparison we conducted on C-suite executive moves at the world\u2019s largest companies over… More<\/a><\/p>\nRead more...<\/a>","protected":false},"author":1,"featured_media":1560,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[426],"tags":[222,224,215,270,245],"class_list":["post-2194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-2022-05","tag-compensation","tag-organization","tag-recruiting","tag-russell-reynolds","tag-talent-development"],"yoast_head":"\nFive differentiators of high growth technology CPOs from Fortune 500 CHROs - The Official Board\u2019s Reads<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.theofficialboard.com\/best-articles\/2022-05\/five-differentiators-of-high-growth-technology-cpos-from-fortune-500-chros\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Five differentiators of high growth technology CPOs from Fortune 500 CHROs - The Official Board\u2019s Reads\" \/>\n<meta property=\"og:description\" content=\"Viewed in Russell Reynolds If you had a chance to read our most recent blog, \u201cGrowing (and Shrinking) Functions at the Top,\u201d  which we posted just a few days ago, you already know the big take away from it. 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