Reflections and Insights: Perth CHRO Breakfast

The observation that "leaders haven't caught up with what their job is today" underscores the need for systems thinking about the role of leadership. This involves a holistic approach to understanding how different parts of the organisation interact and influence each other. 

Leaders need to catch up on several fronts:

• Adapting to Technological Changes: Embracing AI and automation to enhance efficiency and decision-making.
• Cultural Integration: Connecting organisational culture with performance metrics.
• Strategic Focus: Aligning leadership strategies with broader organisational goals, such as DE&I and ESG initiatives.

In today's rapidly evolving business landscape, leaders face unprecedented challenges that require continuous adaptation and innovation. Traditional expectations of leadership are shifting, with a greater emphasis on integrating technology, such as AI and automation, to enhance efficiency and decision-making. Leaders must adopt systems thinking to understand the interconnectedness of their roles within the broader organisational context. This holistic approach enables them to align their strategies with broader goals, such as diversity, equity, and inclusion (DE&I) and environmental, social, and governance (ESG) initiatives.

Despite significant investments in leadership development programmes, many organisations are not seeing a corresponding uplift in performance. This raises critical questions about the value and effectiveness of these programmes.

One CPO highlighted the need to evaluate whether leadership programmes truly lift capability, while another questioned their return on investment. Leadership development must be approached with flexibility, as the business environment is constantly changing. Innovative and adaptable programmes are essential to keep pace with these changes. 

Additionally, the challenge of promoting individuals too early due to talent shortages highlights the necessity for innovative leadership development. Emerging leaders often lack the opportunity to mature and gain experience, creating a gap that needs addressing. Organisations must concentrate on "building humans," acknowledging the principle that "human is human and people are people." This comprehensive approach to leadership development supports both personal and professional growth.

Furthermore, the cyclical nature of the WA economy affects leadership development initiatives, necessitating adaptable and resilient strategies. As one participant noted, "We have an awesome culture, but it might not necessarily drive performance." Thus, balancing a positive culture with performance metrics is essential for fostering a results-oriented environment.

AI and HR: An Exciting Time For Reinvention

The integration of artificial intelligence (AI) into human resources (HR) offers a significant opportunity for the field to evolve. By automating routine tasks, HR teams can focus on more strategic and innovative activities. Participants in our discussions highlighted AI's potential to "reinvent HR" by streamlining processes, allowing HR professionals to concentrate on strategic thinking and creativity. This shift enables HR practitioners to move away from repetitive tasks toward roles that require strategic insight and innovation.

As AI takes over repetitive functions, HR teams can dedicate their efforts to developing ideas and solutions that enhance organisational growth and performance. One Chief People Officer emphasised the importance of HR teams becoming strategic thinkers and innovators who bridge the gap between technology and human resources. By utilising AI, HR can delegate cultural leadership to line managers while retaining oversight of strategic initiatives. This transformation empowers HR to focus on the creative aspects of their roles, fostering a culture of innovation within the organisation.

The future of HR lies in cultivating teams that are not only proficient in processes but also creative and forward-thinking. There is a strong desire for HR teams to include individuals who are imaginative rather than solely process-oriented. This approach encourages HR professionals to leverage AI to augment their strategic capabilities. By embracing AI, HR can play a crucial role in shaping the future of work, driving organisational success, and establishing a dynamic and innovative workplace culture.

Other Subjects 

The conversation highlighted several key themes in the current geopolitical and corporate landscape. A new strategy prioritising climate action, regional and remote Australia, and gender equality was emphasised. Concerns were raised about the impact of Trump's policies on funding for critical issues like climate change and diversity and inclusion (DE&I). Despite these challenges, major philanthropic organisations such as the Gates and Bloomberg foundations are stepping in to bridge the gap. There was a palpable sense of frustration regarding Trump's stance on DE&I, gender, and vulnerable communities.

Insights were provided on managing Trump's impact on DE&I, particularly within US organisations where employees feel vulnerable. The importance of framing and language to mitigate potential negative effects on US businesses was underscored, viewing DE&I as the first step and Environmental, Social, and Governance (ESG) as the next. The discussion also touched on generational training courses, highlighting approaches to managing generational differences, language triggers, pronouns, and cultural nuances. The debate over voluntary versus mandatory DE&I metrics and the significance of education on pronouns was notable, with examples such as companies dropping marital status references in annual reports.

The return-to-work policy remains contentious, with varying opinions on mandatory office days. While some advocate for a minimum of three days a week, executive leadership teams and management roles are encouraged to be in the office at least four days a week. The impact of remote work on productivity was discussed, with some companies opting for a gradual return-to-work process. Career-focused individuals are returning voluntarily, driven by the fear of missing out (FOMO). The cost of floor space and the need for careful messaging to avoid Fair Work issues were also considered.