Where Does Human Resources Sit at the Strategy Table?

12 Pages Posted: 19 Feb 2019 Last revised: 25 May 2019

See all articles by Courtney Hamilton

Courtney Hamilton

The Miles Group (TMG)

David F. Larcker

Stanford University - Graduate School of Business

Stephen Miles

The Miles Group (TMG)

Brian Tayan

Stanford University - Graduate School of Business

Date Written: February 15, 2019

Abstract

Two decades ago, McKinsey advanced the idea that large U.S. companies are engaged in a “war for talent” and that to remain competitive they need to make a strategic effort to attract, retain, and develop the highest-performing executives. To understand the contribution of the human resources department to company strategy, we surveyed 85 CEOs and chief human resources officers at Fortune 1000 companies. In this Closer Look, we examine what these senior executives say about the contribution of HR to the strategic efforts and financial performance of their companies.
We ask:

• What role does HR play in the development of corporate strategy?
• Does HR have an equal voice or is it junior to other members of the senior management team?
• Do boards see HR and human capital as critical to corporate performance?
• How do boards ascertain whether management has the right HR strategy?
• How adept are companies at using data from HR systems to learn what programs work and why?

Keywords: Corporate governance, human resources, strategic human resources, strategic HR, human capital management, performance measurement, succession planning, war for talent, boards of directors, corporate governance research

JEL Classification: G30, M5

Suggested Citation

Hamilton, Courtney and Larcker, David F. and Miles, Stephen and Tayan, Brian, Where Does Human Resources Sit at the Strategy Table? (February 15, 2019). Rock Center for Corporate Governance at Stanford University Closer Look Series: Topics, Issues and Controversies in Corporate Governance No. CGRP-76. Available at SSRN: https://ssrn.com/abstract=3335268 or http://dx.doi.org/10.2139/ssrn.3335268

Courtney Hamilton

The Miles Group (TMG) ( email )

630 Fifth Avenue Suite 3210
New York, NY 10111

David F. Larcker (Contact Author)

Stanford University - Graduate School of Business ( email )

Graduate School of Business
518 Memorial Way
Stanford, CA 94305-5015
United States
650-725-6159 (Phone)

Stephen Miles

The Miles Group (TMG) ( email )

630 Fifth Avenue Suite 3210
New York, NY 10111

HOME PAGE: http://miles-group.com/

Brian Tayan

Stanford University - Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States

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