the security industry, need to act urgently. One of the vehicles of knowledge acquisition will be the development of staff from within and through smart staff recruitment. There are five basic skills required of CHROs in the Australian security industry: 1. An understanding of owner’s/board’s/CEO’s expectations as they relate to people development and management and how human capital is able to contribute to the mission and strategy of the company. 2. Proven ability to work with the board and senior management team (c-suite). 3. Ability to build trust and networks internally and externally to promote the organisation’s best interests. 4. Ability to continuously adapt and re-prioritise strategies so they continue as a fit with the everchanging operating environment in the Australian security industry. 5. Soft skills and behaviours such as effective decision making, a learning mindset, resilience and problem-solving skills that will allow the CHRO to identify why an organisation is not performing well or meeting target. The Approach If it is accepted that the CHRO is important to create a resilient HR department, then the implementation and development of the role should be done with careful consideration and good judgement. It is suggested that large security companies identify, recruit and appoint a HR professional, enter the person into a binding contract and integrate the position into the boardroom alongside the CFO. As suggested by Charan et al (2015), there is no need to have any other people at the table because there is clear linkage between financial numbers and the people who produce them. All management positions in the company could report directly to either of those three positions. The client manager, risk manager and operations manager could report directly to the CEO. The personnel manager and/or industrial relations manager could report to the CHRO and the finance department to the CFO. In smaller companies that cannot afford a fully devoted HR professional
position, the role of CFO/CHRO could be dual or the CEO (owner) could skill up on HR principals and systems sufficiently to competently carry out the role. An international CEO was recently interviewed regarding this CFO, CHRO and CEO structure and stated, “It adds significant value.” Yet another stated, “The CFO and a CHRO structure has charted a way forward for our company whilst working together to consider financial and talent considerations.” To create a resilient HR department, the CHRO should develop excellent soft skills and concentrate on talent management. Excellent soft skills will enable the CHRO to put the issues on the table; explain to the board what the problems are, where they came from and what the company should do about them. Talent management includes identifying hidden talent and vertically moving that person through the organisation. Recruitment of talent is also seen as a method of increasing HR resilience as it boosts a company’s responsiveness to the external environment and internally develops capabilities such as knowledge of analytics, algorithms and the willingness to change rapidly. Resilience development also involves avoiding certain behaviours. This would include, for example, in medium and large organisations, transactional and administrative work of HR, which could be delegated to junior staff reporting to the CHRO or removed from the HR function all together. As highlighted by Charan et al (2015), Netflix devolved traditional HR functions to finance and made the CHRO purely responsible for talent scouting and coaching. The NSW Government has created shared service departments that are headed up by CFOs or directors who administer wages, entitlements, compensation, recoup of invoices, and manage workers’ compensation. Performance of the CHRO As with any industry, measuring the performance of a CHRO will be problematic for the security industry. HR has traditionally been judged on the delivery of tangible outcomes and not so much on the creation of a resilient HR department or culture. To measure the performance of a CHRO,
security management should still measure tangible outputs, but change what is measured. They should link the CHRO’s performance to revenue, profit margin, brand recognition, or market share. But do it in such a way that reflects how the outcome has been affected by the actions or performance of people. For example, staff movements that result in changes in bottom line performance, skills development, critical recruitment appointments, or sorting out conflict that is affecting the confidence of a client. All this is observable, verifiable and closely related to the company’s performance and numbers. The Transition to the New HR Any CEO or board of a security organisation in Australia that recognises people are capable of either being the ultimate source of competitive advantage or literally bringing the organisation to its knees must take the rejuvenation and elevation of the HR function seriously. Creating a mechanism that knits the CFO and the CHRO together will improve the business and expand the CEO’s personal capability. It will not happen overnight – studies have shown that in larger organisations, the transition could take up to three years. Creating ways to blend business and people acumen should follow. Redesigning career tracks and talent reviews will take the company further still. But none of this will happen unless the CEO personally embraces the challenge, makes a three-year commitment and starts executing. For a full reference list, email: admin@interactivemediasolutions.com.au Greg Byrne is the CEO of MultiSec Consultancy Pty Ltd. Recently retired from the NSW Police Force after 32 years, Greg currently teaches an undergraduate diploma in policing at Western Sydney University and is a sub-editor and board member of the Australian Police Journal. His academic qualifications include Master of Management, Diploma of HR, Grad Cert in Leadership and a Diploma in Security Risk Management. Greg also possesses a current NSW security licence – class 2ABD. He can be contacted via email greg@multisec.com.au
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