How a Grocery Chain Grew a Local Program into a Core Value

BY emilyludolph | February 21, 2019

The supermarket chain Wegmans is beloved for a lot of things, including being one of the best companies to work for. Among U.S. grocery chains, it typically ranks No. 1 with customers too. In Brooklyn, N.Y., where Wegmans plans to open its first store in New York City this fall, anticipation has been building for years.

Yet the family-owned company, based in Rochester, N.Y., has a lesser-known but equally impressive status: as a standard-setter in sustainability. Wegmans has made it a company-wide effort, from reduced emissions to zero waste. At the company's zero-waste pilot store in Canandaigua, N.Y., the level of recycling has reached 82.6%, with the company's other stores close behind. 

What's striking about the company's commitment is that it didn't start with a long-term vision, but with a small, local initiative. Jason Wadsworth, who oversees Wegmans’ sustainability program, can trace the DNA of its success to a small program that was never expected to roll up into a program that now directs business choices at the company. The industry-leading initiative started out as a program to donate unused, perishable food. Wadsworth told From Day One how the little program scaled up, providing a case study for anyone in a company trying to get a similar campaign off the ground.

Wegmans has been running the Perishable Pick Up Program for the last three decades, predating the sustainability program, which is now 12 years old. For years, food-pantry trucks have rolled up to the loading docks of local stores as frequently as three to seven days a week or to distribution centers at the end of a reverse-logistics chain. The program donated 8 million lbs. of food in 2017, including bakery products and nonperishables like dented cans. 

Workers at a Wegmans pick out perishable items for donation, including baked goods

As food pantries start to shift their requests toward healthier options, Wegmans upped their produce donations of fruits and vegetables to match. “We did it because it’s the right thing to do, first and foremost,” says Wadsworth, who credits the values of the late Robert Wegman, the company's former chairman—"doing the right thing, caring, and making a difference”—with setting fertile ground for the donation program.

The U.S. Department of Agriculture estimates that 11.8% of households in America, or 40 million people, are "food insecure," meaning that their regular eating patterns are disrupted because they can't afford enough food or live in "food deserts." Though Wegmans has expanded to nearly 100 stores in recent years, the Perishable Pick Up programs remain local, run by each store with local partners.

Besides the benefits to local communities and the reduction of food waste, Wadsworth pointed out that there's a business case as well. “Those folks you would be donating to today may not be your customers; they may not be able to afford it. But at some point, they will be able to afford it when they get back on their feet.” In short, the Wegmans Perishable Pick Up Program is a window into the trait that makes the company a good local actor: long-term thinking.   

Twelve years ago, the company set the more ambitious goal of zero waste. Now, in addition to pantry donations, unused products are composted or taken to farms for animal feed. The program is built on several business cases, including responding to consumer affinity toward sustainable companies and avoiding the expense of unused-food disposal. The sustainability program is not yet cost-neutral, since R&D on programs like composting require large up-front costs, but that’s Wadsworth’s eventual goal. “We shouldn’t pay more for sustainability,” he says. 

The program has had unexpected benefits as the company expands into new states where regulations may require sustainability practices. New York is the second city where Wegmans has met an existing food-waste ban, which prohibits supermarkets and large restaurants from putting unused food in landfills. Thanks to its long-term investment in processes like the perishable-donation program, Wegmans is set up in advance to comply with such regulations.

For the many companies dealing in food and beverages (manufacturers, groceries, wholesalers, caterers, and farmers), the EPA has created a step by step guide on how to build a donation-logistics program to help reduce food-waste’s role as the single largest contributor to municipal landfills, not to mention saving the energy and water needed to break down food waste for other purposes. 

For anyone interested in pushing their organizations into sustainable or other value-driven policies, Wadsworth suggests starting local. “Typically, we start with one store and it morphs until eventually it becomes a company program,” he says. True, not every company is family run, with decades of long-term thinking, but Wadsworth still believes it’s possible to change a big company by launching a program in a local branch. “Just do it,” he says. “You’ve got to start somewhere.”

Emily Ludolph is a senior editor at 99U and an alum of TED Conferences and Vassar College. She has published in the New York Times, the Atlantic, Narratively, Artsy, 99U, Quartz, and Design Observer

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5 Priorities for 2025: How HR Leaders Plan to Meet a New Wave of Change

In 2025, HR will be at yet another inflection point. With high levels of employee detachment, anxiety about the arrival of AI, and a huge demand for new skills, corporate CEOs are saying to their chief people officers (CPOs): We need you to fix these things. And by the way, restructure how your own HR operations run–and keep spirits high too!It’s a lot, but chief HR officers are gearing up for another wave of change, even after the incessant disruption in the five years since the pandemic arrived. The consulting firm Heidrick & Struggles interviewed 70 chief people officers around the world about what it takes to do the job. Jennifer Wilson, the co-head of the global HR-officers practice at the firm, wasn’t surprised by the substance of their findings—artificial intelligence, generational changes, and the need to adapt to a stream of curveballs are all priorities they expected to find. What surprised her is the urgency that CPOs expressed, and the evidence that CEOs are leaning so heavily on them for answers. CPOs are super-connectors, the report says, with demands on their attention coming from all sides. As a result, “progressive organizations are playing with their HR functional models,” Wilson said.From Day One spoke to HR leaders and the consultants who work with them about their plans for the new year. Among the myriad responsibilities on their plate, what will they focus on in 2025? This is what they told us they plan to do.Renew the Focus on Company CultureSpeculation about the future of work once conjured images of workers zipping around the office on hoverboards, said Dan Kaplan, senior partner at consulting firm Korn Ferry. Now, futurists train their focus on culture. “It should be the guiding light for companies,” he said, but “they’ve gotten away from that.”The percentage of U.S. workers who say they’re thriving in life has hit a record low: Just 50% of workers Gallup surveyed in 2024 are feeling good about their current life and future prospects, a figure that has declined in the past decade. Gallup also found that employees are detached from their jobs. The chief culprit: rapid organizational changes and the persistent uncertainty around flexible work schedules. If CPOs are still fighting with their CEOs and boards about workers returning to office in 2025, “then you’ve lost,” Kaplan said. The HR leaders who will win are those that can push executives closer to their employees, and inspire them to deliver.Elaine Becraft, the SVP of HR at global medical-tech company Siemens Healthineers, believes that company culture must connect workers to each other and to the mission of the business. Long gone are the days of clocking in and clocking out to collect a paycheck. In 2025, she’s going to focus on holistic employee care.Workers need a new relationship with their employers, and that responsibility has been handed to HR. “There is a recognition that the workforce overall is tired,” said Wilson at Heidrick & Struggles. “We’ve been through a lot over the last few years. The nature of work is changing. Mental health issues in the western world are more prominent than they’ve been in the past, and that’s really become a reality for chief people officers.”Get to the Next Steps on AIArtificial intelligence is unavoidable, but there’s a gap between expectations by CEOs and the actual embrace of AI by workers. “So far, employee adoption of AI in the workplace is lagging behind the hype,” Gallup reports. If your company isn’t an early adopter, it’s probably trying to catch up. Among the innovators is media agency VML, where the global head of organizational development, Loren Blandon, is prioritizing AI upskilling. “In our industry, it’s really critical that we position ourselves as a leader in integrative use, application, adoption, and innovation of AI. We need people fully embracing and using it,” she told From Day One.How do you get world-class creatives to adopt technology that poses an immediate threat to their jobs? “You have to show them that it’s going to amplify their work,” Blandon said. “Then you get them to understand that whether you accept this or not, it’s coming, and it’s in your best interest to start using it rather than fighting yourself into being obsolete.” She’s found that many who dig in their heels just haven’t experimented with AI yet. But when you invite them in and show them how to play, the wheels start turning, and suddenly it’s cool.Ninety-one percent of early-adopting firms report positive results with AI, including increased productivity and cost-savings, according to a report from the Institute for Corporate Productivity, or i4cp. And companies that operationalize AI will outpace their peers.Workforce concerns about AI will continue, with employees anxious about their being displaced or replaced. “That has landed in the CPO’s lap,” said Wilson. HR executives are responsible for equipping the workforce with AI skills, but with no precedents for use, it’s still not always clear when, where, how, or why they’re meant to apply those skills–at least not yet. Of course, HR has its own misgivings about AI encroaching on its territory, and CPOs will have to quell concerns from their own teams at the same time they upskill their colleagues.Invest in the Skills-Based WorkforceForget the traditional concept of a job. It’s a skills-based world now, with much more malleable definitions of roles and projects. And “until companies shift their cultures, efforts to scale skills-based marketplaces will stall,” i4cp’s report says.In a skills-based workforce, employees flow from one assignment to the next, pick up skills in fractional roles, dip into new teams with temporary projects, and volunteer their expertise in new departments. Ideally, all work is promotable and company tenure is no longer a deciding factor.  There’s a large share of the workforce that may be attracted to the fluidity of skills-based work. Sixty-five percent of workers feel stuck in their current roles, according to a Glassdoor survey, a situation that can breed resentment. “It used to be that you stepped into a defined job with tasks, and that was your role all the time. Now it’s more project-based,” said VML’s Blandon. For one team you might be the brand leader, and for another you’re the project manager. “I think jobs need to be fundamentally redesigned to tap into people’s ‘gig desires.’ They want to bring more skill sets to the table. They want to explore more things, and I think we can be savvy in leveraging that.”Maintain a Commitment to DEI, But Change the LanguageDespite recent high-profile changes in diversity, equity, and inclusion (DEI) programs by the likes of Walmart and Ford in the face of anti-DEI activists, the overall corporate commitment to DEI’s principles isn’t dead. “Activists are overstating the surface-level changes many companies are making to get rid of the heat,” CNN reported this week based on a review of company policies. “Nearly all the largest companies in America still say they are committed to promoting DEI.”Companies are motivated to persist with the principles of DEI because, in an increasingly diverse population, it has been proven to be good for the bottom line, as well as employee retention and motivation. That said, companies still want to avoid the political flak, so they have shifted the emphasis of their language, focusing more on inclusion and belonging. The values have already been operationalized and, in some cases, leaders have asserted that they have not abandoned those values, but are waiting to see what the temperature will be under a second Trump Administration before speaking out more.How can HR make sure thier companies evolve their practices, and not just the labels? The NeuroLeadership Institute’s DEI Impact Case recommends three actions that organizations can take to maintain their investments in DEI, no matter what they’re calling it, as Fast Company reports: “prioritize diversity by aligning it with specific business goals, habituate inclusion through targeted learning and performance tools that integrate it into daily practices, and systemize equity by examining policies and procedures to embed and sustain fairness throughout.”Reshape Organizational StructuresThe new skills-based economy is shaking up corporate structures, and companies are “delayering” their organizations, removing expensive middle managers believed by some to stymie productivity, while companies are also trying to teach managers to be more effective. Blandon says we’re due. “When was the last time we truly thought about reframing that? Manager, subordinate. It hasn’t been really tweaked in a long time, and people are questioning it.”Some companies are delayering to usher in the next generation of executives. Baby Boomers in the C-suite are retiring, and “you’ve got to get that next layer ready,” Wilson said. As vacancies open en masse, “how do you make sure that you don’t have business disruption from that newness?”Kaplan hopes that a shallow hierarchy will shrink the distance between the CEO and the rank and file–and motivate the workforce. “The CEO should be the most inspiring leader in the company,” he said, and by bringing workers closer to their leader, they may feel more connected to the company.At many comppanies, the HR department is getting a reorganization of its own. The traditional “centers of excellence” model, in which HR segments specialize in narrow disciplines, is on its way out, and a cross-functional model, in which HR teams are multi-skilled and capable of working with all departments, is gaining popularity. People ops no longer waits for requests, but goes problem-solving on its own. “We’re seeing agile teams form and disband for specific organizational issues,” said Wilson.Experiments abound. Some companies have moved all administrative tasks to a general shared-services center, leaving HR to “focus entirely on talent, leadership, succession, bench strength, organizational design, and [organizational development].” And, according to Wilson, this could be “a smart way to get HR out of the administrative chains that it’s been under for so many years.”Maybe it’s time for HR and people operations to get a new name? “Talent operations,” Wilson suggested, but then paused. Even that suggests the team is doing more admin than it really does, and the discipline continues to grow. “Maybe talent advisors?” Whatever the name, she said, it should demonstrate that talent is at the center of its responsibilities.“We’re like the lookout on a boat,” Becraft said about her team at Siemens Healthineers. “We see issues, challenges, and opportunities coming toward the company, and it’s our responsibility to bring those to the right people and make sure they understand what’s going on out there.”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the Economist, the BBC, The Washington Post, Quartz, Business Insider, and Fast Company.(Featured image: Photo by Kobus Louw/iStock by Getty Images)

Emily McCrary-Ruiz-Esparza December 18, 2024

How Companies Can Lead in an ‘Age of Outrage’

The nation is on edge. We’re anxious and angry, distracted at work, and eager to brawl out our differences in public. At the highest level, our presidential candidates have framed Tuesday’s election as “an existential battle for the nation’s character, its democracy and the safety of its residents.” Social media influencers on both sides of politics have turned pain and rage into a lucrative business model. More and more families are becoming estranged over disagreements great and small, while contempt and disrespect have become ingrained habits for many.The mood seems contagious, with “assuming the best in others” in rare supply. Boeing endured a costly, contentious strike by unionized machinists who demanded restoration of their pensions. In September, Fortune reported that employees at Amazon were “rage applying” for other jobs after their CEO ordered workers back to the office five days a week.Is this our new modern culture–or are there ways to reduce the rage? Karthik Ramanna, professor of business and public policy at the University of Oxford, describes the moment as an “age of outrage” in his new book, The Age of Outrage: How to Lead in a Polarized World, published last week by Harvard Business Review Press.As election season in the U.S. reaches its peak, rhetoric is sharpening (not to mention quite foul) and the public is feeling nervous and emotional. While tension and even anger over political, ideological, or values differences is nothing new, for the title of his new book, Ramanna chose the word outrage. There’s just something different about the current tenor of the moment: A hotter temperature and a higher pitch. For companies, dealing with this force is no longer a PR task, but a “critical capability,” he writes.Managing in the age of outrage is not the same as managing isolated incidents of disagreement, Ramanna told From Day One. It’s a mistake to treat corporate mishandling of these ongoing issues as mere PR problems or temporary. Those who do will find themselves playing defense day after day. “Tomorrow there’ll be a new issue, and the day after there’ll be a new issue. That approach isn’t going to work,” he said.The outrage Ramanna writes about is typically focused on leaders and institutions, and HR and business executives are preparing for stress and heightened emotions following the election season. Learning from embarrassing corporate gaffes, many firms have been increasingly proactive, institutionalizing their responses to angry employees and the public with social-issues working groups. These are cross-functional committees assembled to prepare for crises, both internal and external, and determine whether the company will respond–and, if so, how–when they arise.Ramanna warns employers against prioritizing processes over outcomes when preparing a response to outrage. Agree to rules of engagement, but “we don’t want to get too bogged down in that process. We want it to be more of an informal guidance to the way we operate. It’s more important that we actually trust each other than that we have written rules that say we trust each other.” The rules should be simple, he said, “things that people can recall in an instant. If people can’t recall what the rules of engagement are when they’re in the heat of the moment, then they’re not very useful.” For this reason, Ramanna is reluctant to overly formalize the process, “because that might actually kill what you’re trying to do.”As a leader, you should temper expectations. “No matter what you do,” he writes, “you can never fully address the demands made of you.” Remember also that “you will always be seen as part of the problem.” Instead of wrongly believing you have the power to solve all problems or quell all outrage, aim for “turning down the temperature.” In The Age of Outrage, Ramanna describes how.A Framework for Turning Down the TemperatureRamanna offers a four-part, cyclical framework for turning down the heat. First, identify the source of the outrage. That is, the deep-seated and underlying causes fueling the anger. Look beyond the inciting incident to the wound it has irritated, and manage your own preconceived notions of your antagonists and their motivations.Second, determine the extent to which the organization can effectively respond. What is within your responsibility to address, and what is within your capability to address? This is where your company’s values and mission can guide you. If you say you will protect reproductive rights, for example, then it’s imperative to step up when the issue arises in the public arena. In fact, moments of anger present an opportunity for clarifying an organization’s values, Ramanna writes.Third, take stock of the leader’s influence. Now that you’ve identified what is an attainable and appropriate response, how will the leader win the support of others in influential positions as well as the support of the workforce?And finally, build resilience. “A resilient organization (or system) is characterized by the delegation of authority,” Ramanna writes. “By situating decision-making close to ground realities, the organization both improves the informativeness of its decisions and diversifies its thinking and, as a consequence, can endure and even thrive amid negative shocks.”Are Corporate Values Outmoded?Values statements and public commitments to causes or communities may be useful guideposts for how to focus corporate response in the age of outrage, but they can also make it harder to deliver. Companies have caught themselves in dreadful thickets in the name of transparency and principles. When corporate behavior, or the behavior of business leaders, doesn’t reflect publicly stated values and beliefs, companies feel the pain. Ramanna cites Disney’s entanglement with Florida’s “Don’t Say Gay” bill in 2022. Despite being a public advocate for LGBTQ+ rights, the company did not publicly oppose the bill and was at the same time writing checks worth hundreds of thousands of dollars to politicians who sponsored it in the state senate. NPR reported that “Disney employees shared their outrage on social media when the company did not denounce the proposed legislation.” (In 2024, Disney resumed political donations to Republican candidates in Florida who voted in favor of the bill.)Being publicly “good” and values-forward can indeed make you a target, according to New York University professor Alison Taylor, who, in her book Higher Ground: How Business Can Do the Right Thing in a Turbulent World, points out that those seeking a target for their outrage will look for the companies and leaders most vocal about their principles.“Some companies can legitimately argue that these are not part of their value proposition. That’s not the case with Disney,” Ramanna said. “Part of why they got into the problem in the first place was when the ‘Don’t Say Gay’ bill was initially being proposed, they said, ‘Oh, we’re neutral in this.’ No, you’re not neutral. You’ve already established that you’re not neutral, and now it looks opportunistic to claim that you’re neutral.” Where the issues are directly related to the business or its stated values and identity, then you can’t step aside. You must proactively engage.Despite shifting political winds, “there is also little doubt that many institutions today have adopted a more progressive culture,” reported the New York Times this week. “They acknowledge bias and power imbalances between people of different genders and races. Despite efforts to roll back D.E.I. programs, few businesses or schools would doubt the importance of recruiting people from different backgrounds. A range of progressive causes—climate change reduction, workplace protections and higher taxes on the wealthiest Americans—remain popular.” Even so, in an age of outrage, corporate values aren’t as simple as they used to be. As belief systems diverge so severely, it can be tough to get people to agree, even in the workplace. Ramanna distinguishes between “opportunity values” and “outcome values.”While outcome values tend to divide, opportunity values can unify: Even if you can’t agree on the outcome, at least you can agree on the rules of engagement—how a group arrives at conclusions and makes decisions. “The commitment to the opportunity values is more meaningful than the commitment to outcome values, especially when you’re dealing with this outrage,” he said.Bracing for a Polarized Workplace Post-ElectionTo be clear, Ramanna isn’t interested in prescribing values or making ethics judgements, nor does he offer advice on business strategy. Companies have to do that on their own, he said. But when it comes to managing in an age of outrage, he does advocate a kind of corporate stoicism: Concern yourself only with what you can control.With the election and its aftermath upon us, Ramanna urges employers anxious about the workplace climate not to quit before they start, but make a plan to lead in an age of outrage. “Look, it’s never too late. On one hand, you might say, ‘Oh my God, I should have started this six months ago, five years ago,’ whatever it is. But on the other hand, if you don’t start it today, it’ll still be too late in six months.”Despite the outcome of the election, he said, leaders can count on two things. “No. 1, that we’re not going to have some magical healing on the day the elections are over or the results become clear. If anything, we’re going to be sharply divided. The second thing is, as a business, you have to figure out a way to work through that.”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the Economist, the BBC, The Washington Post, Quartz, Fast Company, and Digiday’s Worklife.(Featured photo by Solstock/iStock by Getty Images)

Emily McCrary-Ruiz-Esparza November 04, 2024

Who Are the Next CHROs? A High-Stakes Recruiting Task Gets Serious Attention

Not long ago, if you’d asked someone what the most conservative part of an organization was, chances are the answer would be the HR department. Well, maybe tied with the general counsel’s office, but the image of the top HR officer as a high-ranking paper-pusher or disciplinarian carried on for decades.No longer. In the information age, when companies are increasingly investing in human capital over physical capital, the chief HR officer plays a pivotal role in a company’s fate. Today’s CHRO is a business leader, operating what Deloitte named “boundaryless HR,” in which “the traditional people discipline itself starts to merge with other related disciplines like decision science, behavioral economics, and academic disciplines such as psychology, sociology, and anthropology.”The question now becomes: Where can companies find a person like that for such a high-stakes role? Turns out, CEOs are far more proficient in CHRO selection today than they were a decade ago, says John Bremen, a managing director at consultancy WTW, where his job is to imagine the future of the C-suite. “People issues today are so much more pronounced and so much more prominent than previously.”From Day One spoke with CHROs in the Fortune 1000 and the consultants who recruit them to find out what it takes to be a CHRO at the world’s biggest companies. What do CEOs look for in an HR chief? And who’s next in line for the job? No one single formula emerges, but several key attributes emerge, including previous experience as a CHRO, demonstrated HR savvy plus a law degree, or a proven track record of adaptability across multiple industries.All Eyes on the CHROCHROs are experiencing unprecedented attention, thanks to their inestimable value confirmed by the pandemic, economic swings, social unrest, return to work, and now the global skills shortage. Dan Kaplan has spent 15 years recruiting CHROs at consulting firms like Heidrick & Struggles and Korn Ferry, where he’s currently a senior partner. He told From Day One that private-equity firms, in particular, have homed in on the position as they restructure companies, assessing not just CEOs and CFOs rigorously, but now the CHRO as well. Some PE firms replace the CHRO first, he said, “with a view that that person becomes the catalyst to assess and replace the rest of the leadership team.”Given the scope of the role, executives are appointing fewer first-timers than they have in the past, according to the CHRO Turnover Index by Russell Reynolds Associates. The number of rookie CHROs has been decreasing globally since mid 2022. Among S&P 500 firms, first-time appointments are down 19 percentage points since that year. This is even more true for FTSE 500 companies–the UK’s answer to the S&P 500–where for nearly a year in 2022-23) every incoming CHROs was a veteran of the role.Maral Kazanjian, the CHRO at the credit-rating agency Moody’s (company photo). Featured photo at top: Kate Gebo, CHRO of United Airlines, spoke at From Day One’s Chicago conference this springThere’s also an appetite for highly varied professional experience. The lion’s share of CHROs today are cross-industry hires. Analysts at Heidrick & Struggles examined the 2024 Fortune 1000 companies and found that more than 77% of external CHRO hires were from other industries. With a few exceptions, the CHRO is an “industry agnostic” role, said Kaplan, and HR chiefs tend to glide easily between industries. Among the most coveted qualities in a HR chief is agility, and cross-industry work naturally develops that skill. Now companies recruit CHROs with much of the same criteria they use when recruiting business leaders: experience with mergers and acquisitions and the grunt work of combining workforces, knowledge of a P&L, plus familiarity with thorny issues like labor-union negotiations. “At a company juncture—say, a new CEO comes in and they’re tasked with some turnaround—they often need a different type of CHRO for that phase of the company,” said Jennifer Wilson, co-head of the global HR officers practice at Heidrick & Struggles. “With the amount of M&A and cost-cutting, and then getting back to growth, they want to find somebody who’s been through that cycle.” Why Your Next CHRO May Also Be a JDIf you’re looking for a CHRO with cross-industry experience, plenty of exposure to the C-suite, plus experience with assembling multiple companies and quelling labor disputes, a labor-and-employment lawyer often satisfies the brief. With greater exposure to risk (as a sample: reputational, environmental, technological, privacy, and supply chain) it’s reassuring to know there’s an attorney occupying the seat. “There’s the employee-engagement lens, and there’s the productivity lens, there’s the regulatory lens, and there’s the profitability lens,” said WTW’s Bremen. HR is no longer a static department, now it has to make things happen.Law practice also develops the confrontational confidence CHROs need. “You need to have had the experience of walking into a senior leader’s office, closing the door, giving them feedback, and challenging them on an issue where you think there’s a pretty good chance of getting fired today,” Korn Ferry’s Kaplan said. At times, it’s as diplomatic as managing the CEO’s personality and presenting even the most uncharismatic leaders to the workforce as people who can be trusted, which sounds a lot like what might happen in a courtroom.Before Claudia Toussaint became the chief people officer at the global water-technology company Xylem, she was the company’s general counsel. CHROs can’t afford to be intimidated by hierarchy, she said. They have to be prepared to tell the CEO that they’re out of line, and why it matters. The professional training of an attorney comes in handy too. Lawyers gather evidence, make conclusions, and present a case. “That skillset, I think, is far more valuable today in the HR function than five years ago or ten years ago,” Toussaint said. “I think that’s why people are increasingly saying, ‘These people that have a law degree and have been trained to think systemically, to take data, analyze data, reach conclusions from it, and then drive impact from those conclusions—that’s actually not a bad background for leading HR function.’”HR and the general counsel’s office have a natural relationship. Maral Kazanjian, the CHRO at the credit-rating agency Moody’s, felt she was effectively moonlighting as an HR professional while working as the firm’s attorney, applying the law to all kinds of employment matters. “I was really lucky because Moody’s is a very successful company and also has a really fast-growing information-services business within the traditional ratings agency. Because they were growing so fast, a lot of employment issues arose,” she told From Day One. “We were in different jurisdictions. We had different questions we wanted to answer about ‘How do we do hiring right? How do we handle performance management? How do we maintain a focus on being inclusive? How do we do promotions right?’ There are legal questions, then there are operational and human capital questions.” Kazanjian’s first time leading the people function was at WeWork during the dog days of the pandemic. In February 2022, she returned to Moody’s, where she occupies the chief people officer job today.Jennifer Manchester, the CHRO at Fiserv, is a relatively new arrival to the C-suite, and like Kazanjian, has jumped industries. Manchester first crossed paths with HR at her former employer, the Dow Chemical Co., where she worked in the general counsel’s office on mergers, acquisitions, and other corporate transactions. “I always loved the employment piece and the people side of things the best. That’s where I figured it out: That was really ultimately what I wanted to do.”Manchester moved over to Fiserv in 2015, working closely with HR as a labor attorney, and ascended to the CHRO seat last spring, “I’ve always gravitated toward people issues, trying to solve problems. It’s such a dynamic role.” But about this she was clear: You can’t just pluck any attorney out of the legal department and promote them to the chief position. “You have to have some substantive core expertise in HR or employment. HR is a real science, and I don’t think anyone can just do it.”Deep, Successful Experience in HR Counts TooA background in HR is hardly irrelevant. Among the 10 highest-ranked companies on the Fortune 500, most of their CHROs have spent decades as HR practitioners. Melissa Hagerman, CHRO at insurance firm Genworth, came up through the HR department, and, like many of her peers in the Fortune 500, has worked across industries, including consumer and automotive retail and healthcare. She joined the HR field when it was still known as the personnel department. Being an effective CHRO takes compassion and diplomatic agility, she said. And it can’t be done without a natural curiosity for businesses. “As a CHRO, you have to really genuinely care about what the business is doing and where we’re heading, and you have to care about the people that are on the path to get us there. That is something that I really try to embrace and live by every day.”Hagerman is also a keen scout, continually monitoring what’s going on both inside and outside the organization, “understanding what’s happening politically and socially in the markets so that I can weigh in, whether that’s with our executive team or with our board of directors, or being able to think about how those may impact eventually our workforce.”HR has far more credibility and influence than in the past, Hagerman said, reflecting on her decades in the department. “The world now understands that people resources are really fundamental to the bottom line. Succession planning, development of associates—the focus on those things is far greater now than they ever were. Of course, cybersecurity, protection of data–all of those things–are more in the limelight now than ever.”Yet Your Next CHRO May Not Be Working In HR Right NowA career in HR can win you the seat at the top now, but that may not be true for the next generation of CHROs. Today, businesses seldom want an HR executive who has spent all their time in the department, said Wilson at Heidrick & Struggles. “In the companies we work with, it’s often said that if you can find somebody with a business background who’s either been in management consulting or held either a P&L role or a functional role outside of HR, that’s more interesting to us.”The next crisis is always around the corner, Korn Ferry’s Kaplan told From Day One, and HR has to be there to meet it. He rattled off a list of recent trials, from financial and economic wobbles, political unrest, racial injustice, reproductive rights, return to office, artificial intelligence, and gun crime. “If you are not prepared to put on your dance shoes and figure it out, you can’t do this job. More than academic credentials, intellect, or experience, you have to be able to tap dance.” As a result, people aren’t exactly grappling for the seat, he said. It’s a big job and it’s tough to recruit for. Some people get too close to the sun and opt out; others don’t realize what they’re signing up for before it’s too late.Everyone is looking for agility in the role. Bremen at WTW speculated that consumer-oriented industries–like retail, fast-moving consumer goods, cosmetics, or fashion–may be developing tomorrow’s most coveted CHROs. Tech firms develop great HR talent too because they have to marry operational complexity with consumer demands. Regardless of industry, he believes the most successful future CHROs are schooling themselves in the application of new technologies, particularly artificial intelligence, and have analytical capabilities far superior to their predecessors.In case you were thinking of plucking your next CHRO from the Wharton School, however, Kaplan cast doubt on the wisdom of choosing an MBA for the job simply because they’re a whiz at business. “If someone says to me, ‘I’m not an HR person, I’m a business person,’ that is a sign that I’m wasting time. I’ve never heard a CFO say, ‘I’m not a finance person, I’m a business person.’”Disciplines like finance can be taught in school, Kaplan argued, but HR is learned through apprenticeship. Management consultants who spoke to From Day One predicted that the future chiefs who are coming up through the HR department are leading complex functions at the moment, as heads of talent or directors of compensation and benefits.As today’s CHROs consider their potential successors, what are they looking for? At Moody’s, Kazanjian wants someone who is open-minded, bold, and analytical. She imagines that person might be in law, or they might be in management consulting. Toussaint wants someone who deeply understands the company culture at Xylem as well as how the business makes money, someone who’s good at data analysis, and someone who is a “truth teller,” uncowed by hierarchy. Manchester hopes her Fiserv successor has financial acumen and an always-learning attitude. At Genworth, Hagerman wants a values-driven, business-minded leader with deep knowledge of HR and a knack for diplomacy. Someone who is willing to uphold integrity, “above all else.”“Once upon a time, it was possible to be the most senior HR leader in a company and not have a grounding in the business fundamentals,” Bremen said. “That skillset is a necessary, but not sufficient, condition.” Yet business acumen alone isn’t enough without a deep understanding of the CHRO discipline, though he’s seen it happen. “They struggle. Just as you would struggle if you put someone in a chief marketing officer role who did not have a background in marketing. Sometimes leaders take those HR skills for granted.”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the Economist, the BBC, The Washington Post, Quartz, Business Insider, Fast Company, and Digiday’s Worklife.

Emily McCrary-Ruiz-Esparza September 24, 2024
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