HR Professional - December 2007/January 2008 - (Page 12)

LEADERSHIP M AT T E R S HR OWNS GOVERNANCE hen accounting irregularities caused catastrophes for companies such as Enron Corporation, Nortel Networks and WorldCom, the outcome was referred to by many as a “governance implosion.” Governance is, practically speaking, all about accountability. But achieving that ideal is more complicated than just stating it or hoping for it to happen. To get there organizations must define and identify core values; outline roles and responsibilities; put appropriate goals and objectives in place; develop appropriate policies vis-àvis such issues as conflict of interest, privacy and confidentiality; develop performance measures toward those objectives; assess those responsible against identified objectives; take action when deficiencies are found; and communicate relevant information in a timely and transparent fashion. Doesn’t that sound like what human resources professionals do all the time? To put it in proper perspective—HR owns governance. Good governance, in the words of Chris Bart, BY DEBBIE BENNETT W ‘‘ Boards are failing themselves, their shareholders and stakeholders by not using HR professionals to drive good governance. professor at the Director’s College at McMaster University’s DeGroote School of Business, “requires a very thoughtful, methodical, systematic process.” It must ask the right questions: Are proper structures in place for governing the organization? Are the roles, responsibilities, decision-making authority and accountabilities clearly understood? Are appropriate processes in place for motivating the board and for removing ineffective directors? Again, when you look at Nortel and Enron— and the major activities of a board with respect ’’ to good governance— it’s clear they are largely HR responsibilities. But HR is under-represented on boards, some of which might be made up entirely by industry professionals who have little or no knowledge in organizational policies and procedures. That doesn’t mean they aren’t capable board members, but it probably means they are in need of HR expertise to guide them through the process of implementing proper governance. “The role of HR to facilitate and ensure the board is in fact doing all the kinds of things it needs to do, has largely been ignored or not even thought of,” says Bart. Boards are failing themselves, their shareholders and stakeholders by not using HR professionals to drive good governance. In short, without an HR professional on the board, the very executives needed to help make the right decisions are missing. Now is the time for HR to take a leadership role. The future holds numerous challenges—the impending retirement of baby boomers, outsourcing, offshoring, immigration, emigration, globalization and increased cultural diversity, to name a few. Trying to manage these considerable challenges will be a daunting task. Trying to manage them without good governance will be next to impossible. It is a lot of responsibility but human resources professionals are well positioned to help organizations move forward. Debbie Bennett is chair of HRPAO’s board of directors. HR P R OF E S S I ON A L 12 D e c e m b e r 2 0 0 7 / J a n u a r y 2 0 0 8

Table of Contents Feed for the Digital Edition of HR Professional - December 2007/January 2008

HR Professional - December 2007/January 2008 Contents Editor's Letter Contributors Leadership Matters Website Did You Know By the Numbers Technology Study News: Ontario Regulatory Enforcement Compensation News: Postponing Retirement Legal Compensation On Message Public Image Ltd. Building Brand Equity Research Strategy HR 101 Interview with Marshall Goldsmith Off the Shelf The Last Word

HR Professional - December 2007/January 2008

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