As a C-level executive, making financial and investment decisions on behalf of your organization is serious business. Nobody wants to put their role or reputation at stake by making decisions that may later prove to be errors in judgement.
Technology spend is growing for most organizations as software becomes a critical component of effective management, competitiveness and critical decision making. Justifying the cost of business technology is often not an easy process in itself, and in functions that are often considered as “support functions”, the job is even harder. The Human Resources function generally falls into this proverbial category and while there is a relatively easy case to be made for administrative systems such as Payroll, it’s more difficult justifying other HR systems such as Talent management, Learning or Career development.
Executive decision makers can sometimes be reluctant to spend capital on non-administrative HR software because they lack confidence in HR and the technology to add value to the organization. This is an absolutely legitimate concern as the HR Profession has not been an exemplary case study. But the organizational value derived from HR initiatives and activities is not only a factor of good HR competency and skill, but more about how the executive leaders have positioned the HR function and what roles they are allowing and supporting the function to execute.
It’s a frustrating process for senior HR managers and executives to be denied funding for what they believe is important, and likewise the executive decision makers are often just being overly cautious because they lack real HR insight and don’t want to be associated with spending capital with little or no return.
There is another way to deal with this dilemma ~ and that is for executives to understand how HR value is derived and where, as an organization, they are positioned from an organisational and HR Maturity perspective. You see, there is a direct relationship between deriving HR value from HR technology and the level of organizational and HR Maturity you find yourself at. As an executive you can help HR fund seekers better understand how to balance their desire for HR technologies with the HR Maturity level they are currently at, and feel more comfortable making capital spend decisions that are significantly lower in risk and highly likely to return organizational value.
The 10 minute "Learning Snippet" video below, presented by Rob Scott, our Global lead: HR strategy & Innovation, will provide you with further insights into HR Maturity and explain why your role as an executive is key to determining what value HR can achieve in your organization.