CHROs and Future Thinking: Shaping a Positive Culture

November 27, 2024 – The CHRO role has evolved to encompass not just internal talent management but also the broader responsibility of shaping organizational culture in ways that contribute positively to society. As part of this growth, Blue Rock Search’s Ruben Moreno emphasizes “future state thinking” to help HR leaders build agile workplaces aligned with business goals. The is a strategic approach that encourages CHROs to envision and build a workplace culture that supports business objectives and promotes social responsibility, sustainability, and inclusivity.

“Your leaders today are the key to driving your success tomorrow,” Mr. Moreno says. What immediate actions should CHROs and HR leaders consider to secure a thriving future? Blue Rock Search lays it all out.

Beyond Diversity, Toward Inclusion

Despite backlash from some corners, DEI&B (diversity, equity, inclusion, and belonging) are still significant for all kinds of organizations, according to Mr. Ruben. “The shift is not away from the concept overall but rather from where it’s focused,” he says. “Instead of focusing on the diversity component—and using a numbers-based approach to representation—more organizations are turning to the inclusion element.”

In a recent interview with The Washington Post, Johnny C. Taylor Jr., chief executive officer of the Society for Human Resource Management, explained that HR thinking has begun to realize that inclusion, rather than ‘mere’ diversity, may be a more powerful focus. “We underestimated that inclusion was the real challenge,” Mr. Taylor said. “Now, people are saying, not only should we probably call it something different, but we should also probably evolve it.”

Ruben Moreno leads the Blue Rock HR executive search practice specializing in the identification, assessment, recruitment, and onboarding of chief HR officers and their teams. As a subject matter expert and specialized executive recruiter, he has been dedicated to partnering with his clients to identify, assess, and recruit the best human resources leadership talent available for over 12 years.

To be clear, Mr. Ruben stresses that diversity still correlates clearly with success for many companies. Companies with the highest racial, ethnic, and gender representation are 39 percent more likely to financially outperform their less-diverse counterparts, according to a 2023 study by McKinsey. Similarly, a study by Moody’s revealed that greater racial diversity (both on boards and within company leadership) tends to correlate with higher ratings. Mr. Taylor also told the Post that “there’s been a spike of interest in employee resource groups, particularly those that aren’t race-based, such as groups for caregivers, veterans, and first-generation Americans.”

“The key is seeing this growth in diversity as a starting point, not the end goal,” Mr. Ruben said. “Today’s successful organizations focus on building a sense of greater responsibility, thoughtfulness, and genuine inclusion. Workplace culture, as set by the CHRO and other top HR leaders, should drive a feeling that everyone belongs and has the resources they need to succeed, rather than one size fits all or simple diversity metrics. The CHRO must take the reins to model and drive this culture at every level, especially among the top echelons of organizational leadership.”

A Change is Going to Come (So Be Ready)

Mr. Ruben explains that future thinking isn’t about predicting the future, rather it’s about putting systems in place so you can handle whatever the future brings. He says it’s about agility and adaptability in your leadership and the policies and structures they build.

Related: Navigating the Road to Diversity

MIT Sloan experts said: “Adaptable organizations lean more heavily on guidelines and principles. When they do rely on rules and policies, they provide a clear rationale for why and how they enable business success.” That last statement is often critical for organizations—and leaders—trying to implement a more future-looking approach,” Mr. Ruben notes. “On-the-ground employees are often removed from top-level decisions by multiple layers of management and communications channels,” he said. “That means more opportunities for messages to get muddled or lost altogether. When employees don’t know important facts about the company’s performance, strategy, or expectations, they’re less likely to contribute to those successes effectively—and they’re also more likely to come to their own, potentially incorrect, conclusions.”

Future-focused organizations build systems that harness expertise at every level, according to Mr. Ruben. “To create more agile and adaptable structures that are prepared for whatever lies ahead, prioritize systems that empower those closest to the decisions and their consequences,” he said. “A company’s greatest asset is its people, so engage them fully, keep them informed about expectations and challenges, and tap into their unique expertise to drive success.”

Deploying the Right Diversity, Equity, Inclusion, and Belonging Strategy to Drive Business Results

In a period of economic uncertainty, companies are reducing expenses on diversity, equity, inclusion, and belonging (DEI&B). Instead, they should be doubling down as the following case studies from DHR Global will show how you can drive business results through proactive and thoughtful DEI&B strategies. The right actions can unlock innovation, access new markets, design relevant products, and develop a differentiated go-to-market strategy – allowing companies to build competitive advantage, drive revenue, and gain market share, according to the DHR study, which is authored by John Staines. What’s more, involving employees in addressing pain points leads to improvements in sales, pipeline development, market expansion, and talent retention.

DHR interviewed the CEOs and CHROs of over 60 companies, employing over three million people worldwide, to learn about their DEI&B initiatives and how they are used to drive business outcomes. The search firm wanted to know what companies are doing to attract, develop, inspire, reward and recognize their diverse talent. Finally, DHR sought examples of business results achieved through great DEI&B initiatives. The firm’s recommendations provide a roadmap for more companies wanting to use diversity programs to address problems and drive success.

MIT Sloan’s experts also identify some key traits of a performance-enhancing culture, which, in turn, can be a cornerstone for future state thinking, as follows:

• Culture has a real, significant influence across the organization.
• Culture informs and shapes organizational strategy.
• Culture integrates an awareness of both internal and external dynamics.
• Culture encourages smart risks while caring deeply about everyone involved (customers, stakeholders, and employees at all levels).
• Culture embraces change as a constant and values those people and processes that can create useful change.
• Culture encourages leadership from more people.

Mr. Ruben also explains that creating this culture requires more than simple statements from the top; it also requires real action and cultural shifts. “Top HR leaders, including CHROs, can drive the development of this kind of culture—one that prioritizes open communications, empowers employees to make informed decisions, prioritizes sustainability in every sense of the word, and encourages trial and error in pursuit of excellence and positivity,” he says. “However, drivers must also be masters of the behavior they wish to see exhibited as part of the culture. Developing these skills is a vital piece of the future thinking puzzle. Whether coaching your current leaders or building your own future state thinking prowess, it’s a valuable tool. Future state thinking is critical for organizations to prepare for the future with agile systems and people-centric approaches. CHROs are the transformative drivers of these critical outcomes of successful organizations.”

Blue Rock Search is a 100 percent minority/female-owned executive search firm. As a member of the SRA Network, the firm is also a Hunt Scanlon HR/Diversity Recruiting Power 65 recruiter. The firm’s consultants specialize in the targeted identification, assessment, and placement of executives across five distinct practice areas: Private equity, human resources and diversity, franchise, higher education, and CX. Blue Rock’s processes, technology, tools, and search methodology are designed to flex to the needs of its clients.

Related: The Evolving Role of Chief Diversity Officers in Shaping DEI

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor  – Hunt Scanlon Media