The chief human resources officer (CHRO) role has evolved to encompass not just internal talent management but also the broader responsibility of shaping organizational culture in ways that contribute positively to society. As part of this growth, Blue Rock Search is shining a spotlight on ‘Future State Thinking,’ a strategic approach that encourages CHROs to envision and build a workplace culture that supports business objectives and promotes social responsibility, sustainability, and inclusivity.
Your leaders today are the key to driving your success tomorrow. What immediate actions should CHROs and HR leaders consider to secure a thriving future? Let’s dive in.
Beyond Diversity, Toward Inclusion
Despite backlash from some corners, DEI&B (diversity, equity, inclusion, and belonging) are still significant for organizations. The shift is not away from the concept overall but rather from where it’s focused. Instead of focusing on the ‘diversity’ component—and using a numbers-based approach to representation—more organizations are turning to the inclusion element.
In a recent interview with The Washington Post, Johnny C. Taylor Jr., chief executive of the Society for Human Resource Management, explained that HR thinking has begun to realize that inclusion, rather than ‘mere’ diversity, may be a more powerful focus.
“We underestimated that inclusion was the real challenge,” Taylor said. “Now, people are saying, ‘Not only should we probably call it something different, but we should also probably evolve it.’”
To be clear, diversity still correlates clearly with success for many companies. Companies with the highest racial, ethnic, and gender representation are 39% more likely to financially outperform their less-diverse counterparts, according to a 2023 study by McKinsey. Similarly, a 2023 study by Moody’s revealed that greater racial diversity (both on boards and within company leadership) tends to correlate with higher ratings. Taylor also told the Post that “there’s been a spike of interest in employee resource groups, particularly those that aren’t race-based, such as groups for caregivers, veterans, and first-generation Americans.”
The key is seeing this growth in diversity as a starting point, not the end goal. Today’s successful organizations focus on building a sense of greater responsibility, thoughtfulness, and genuine inclusion. Workplace culture, as set by the CHRO and other top HR leaders, should drive a feeling that everyone belongs and has the resources they need to succeed, rather than ‘one size fits all’ or ‘simple’ diversity metrics. The CHRO must take the reins to model and drive this culture at every level, especially among the top echelons of organizational leadership.
A Change Is Gonna Come (So Be Ready)
Future thinking isn’t about ‘predicting’ the future, rather it’s about putting systems in place so you can handle whatever the future brings. It’s about agility and adaptability in your leadership and the policies and structures they build.
MIT Sloan experts said, “Adaptable organizations lean more heavily on guidelines and principles. When they do rely on rules and policies, they provide a clear rationale for why and how they enable business success.” That last statement is often critical for organizations—and leaders—trying to implement a more future-looking approach. On-the-ground employees are often removed from top-level decisions by multiple layers of management and communications channels. That means more opportunities for messages to get muddled or lost altogether. When employees don’t know important facts about the company’s performance, strategy, or expectations, they’re less likely to contribute to those successes effectively—and they’re also more likely to come to their own, potentially incorrect, conclusions.
Future-focused organizations build systems that harness expertise at every level. To create more agile and adaptable structures that are prepared for whatever lies ahead, prioritize systems that empower those closest to the decisions and their consequences. A company’s greatest asset is its people, so engage them fully, keep them informed about expectations and challenges, and tap into their unique expertise to drive success.
MIT Sloan’s experts also identify some key traits of a performance-enhancing culture, which, in turn, can be a cornerstone for future state thinking, as follows:
- Culture has a real, significant influence across the organization
- Culture informs and shapes organizational strategy
- Culture integrates an awareness of both internal and external dynamics
- Culture encourages smart risks while caring deeply about everyone involved (customers, stakeholders, and employees at all levels)
- Culture embraces change as a constant and values those people and processes that can create useful change
- Culture encourages leadership from more people.
Creating this culture requires more than simple statements from the top; it also requires real action and cultural shifts. Top HR leaders, including CHROs, can drive the development of this kind of culture—one that prioritizes open communications, empowers employees to make informed decisions, prioritizes sustainability in every sense of the word, and encourages trial and error in pursuit of excellence and positivity.
However, drivers must also be masters of the behavior they wish to see exhibited as part of the culture. Developing these skills is a vital piece of the future thinking puzzle. If you are interested in some quick, actionable tips to help you and your team develop the culture you seek, check out our booklet, 52 Leadership Development Skills—In Under 10 Minutes a Day. Whether coaching your current leaders or building your own future state thinking prowess, it’s a valuable tool you shouldn’t miss!
Future state thinking is critical for organizations to prepare for the future with agile systems and people-centric approaches. CHROs are the transformative drivers of these critical outcomes of successful organizations. Blue Rock’s HR practice specializes in identifying and recruiting these kinds of leaders—let us help you find the talent to transform your organization to future state thinking.
Download your complimentary Leadership Development Booklet!
About the Author
After a 25-year career in Corporate Human Resources and HR Executive Search, Ruben Moreno and his two partners co-founded Blue Rock Search based on a simple but ambitious vision of creating a firm that would “Change Lives and Organizations One Relationship at a Time.” Ruben leads the Blue Rock HR Executive Search practice specializing in the identification, assessment, recruitment, and onboarding of Chief HR Officers and Chief Diversity Officers and their respective teams — inclusive of leaders in Talent Acquisition, Total Rewards, HRBP’s, Learning & OD, HR Technology, HR Operations, and HR Analytics. Ruben has helped place hundreds of HR Executives and built deep relationships within the CHRO community across multiple industry verticals. His clients consider him a trusted partner who takes the time to understand their business and add value beyond executive search.