Does HR report to the CEO? If not, your efforts to build culture may fail

April 20, 2015

What is workplace culture? In my experience, organisational culture is merely the sum total of all the formal and informal interactions we all have in the office. It really is that simple. And it is the interactions we have with the people we report to that tend to impact culture the most. And, in turn, it's those people we report to who have mirrored the way they interact with their staff from the CEO. A CEO sets the tone of an organisation - probably 20% by what they say and probably 80% by what they do and how they act. So it follows that the CEO models the culture of an organisation by how they behave. And it is their actions that speak loudest.

People & Culture / HR professionals are the best people to partner with CEOs to build culture. If a CEO is keen to build or change a workplace culture, then they will have their P&C / HR department reporting direct to them. The CEO will feel the "proximate pressure of being accountable for issues of people and culture, while holding the head of HR to the same high standards." The most profound statement a CEO can make to an organisation that indeed culture does matter is through action: making HR an active partner sends the strongest message to staff: our organisation cares about its people and its culture!

Have a read of this brief but apt article on the importance of HR having a direct line to the CEO:

http://www.inc.com/brian-evje/want-hr-to-matter-start-with-the-ceo.html

Doing a restructure? Make sure your HR department reports directly to your CEO - your workplace culture depends on it!