Inside the C-Suite: How Executive Management Shapes Strategy and HR Drives Impact

 

Executive Management

Executive management (often referred to as the C-suite) is ultimately responsible for all of the core business functions and their effect on the organization's performance. The primary responsibilities of executive management are to:

·          Develop and communicate strategy to the organization's components.

·          Monitor and control implementation of strategic and operational activities through control of financial resources.

·          Be the primary interface with the organization's stakeholders, from investors and regulators to customers and communities.

·          Lead the organization through a shared vision and the values they model in all interactions.

Executive management commonly includes an individual who holds ultimate' control of organizational resources and responsibility. Titles vary-for example, chief executive officer (CEO), president, or executive/managing. director. In a publicly held company, this individual may report to a board of directors, compensated individuals from outside the organization. (Nonprofit organizations may also have boards whose members are compensated for expenses.) The board is responsible for reviewing and approving strategic plans, appointing and approving compensation of executive management, and overseeing organizational governance.

The heads of the organization's financial operations and day-to-day operations are also at the executive level. According to an organization's mission and values, there may be other positions in executive management, such as heads of information, innovation, or risk management. Some of these positions may be "double-hatted"-they may be held by someone in the organization in addition to that person's primary responsibilities.

How HR Interacts with Executive Management

HR leadership interacts directly with executive management. HR contributes to the development of organizational strategy, advising on the human capital implications of strategic decisions. It may work directly with the board to advise on executive compensation and matters of governance and with other members of the C-suite as they manage the development and implementation of operations and strategic initiatives.