On Strategy: Welch on IT, HR - and the CFO
Copyright Jack Mixner. 714 449 1040 www.mixnerstrategy.com
The Welchs comment on a company where the IT department reports not to the CEO but to the CFO. Since the CFO is very busy, IT initiatives are not implemented expeditiously. Their fix? Make sure IT - and by extension HR - report directly to the CEO (Welch, page 116).
Strategic Implications
Speed of implementation is crucial. Also, new hires will be able to quickly tell if their suggestions are carried to the CEO and the Board in a timely manner. Ultimately, it will be harder to keep talented individuals - and attract new ones.
Reference
Welch, Jack and Suzy Welch. A Twisted Chain of Command. BusinessWeek. 18 September 2006. Page 116.