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Why CEOs Must Consult HR and Finance

3 People MeditatingAny businesses worth their salt knows how important a role human resources and their finance departments play in the success of their companies. A CEO needs a dependable chief financial officer to allocate money reliably and responsibly and tell him or her what the enterprise can afford before going forward with a new venture. At the same time, HR is there to help provide the human capital needed to manage a project from start to finish and handle any issues employees might face along the way.

Both of these branches of your business must play a part in any company strategy you make if you want it to get off the ground. Let’s take a look at why you need the assistance of these two departments as you draw up a new game plan for your company:

Think of HR and finance as the two engines that keep your business flying. If you want to hit warp-speed you must consult with both to see how much power you have before making the executive order.

Giving greater insight
If you remember your pop culture, then you’ll recall that Captain Kirk of Star Trek always consulted Scotty, the engineer of the Starship Enterprise, to ask how much power the engines had left before making his decision. While all this took place in a fictional space world, CEOs must do the same before making an executive decision. Company heads must consult their finance and HR departments before making a judgment call that could affect everyone on board whether that be a spaceship or an office.

While HR used to solely provide services to the rest of the business by filling out employee paperwork and offering support for staff members, the department is changing. Data analytics that allow HR to study employee performance means HR is increasingly speaking the number language the finance department is already used to, Business News Daily noted.

With the U.S. economy adding 271,000 jobs in October alone, businesses across the nation create more positions, and coupled with that will be a race to snatch up top talent. HR can give an enterprise the insight it needs regarding where the pools of talent are and how to recruit them, Entrepreneur noted.

Additionally, they know how efficient your current workforce is and how much you can reasonably get out of your staff.

Identifying the gaps
The other engine of your enterprise that you must consult before making any big decisions is your finance department. Your CFO and his or her department has the acumen to examine the money coming in and out of your business and can assist you in making an educated choice by showing you any funding shortfalls. Finance can perform risk assessments as well as growth indices to identify if a strategy could pay off for you and your business, according to Graziadio Business Review.

The department examines profitability ratios, so just like HR, it can see where gaps in efficiency are occurring and give you the feedback you need before setting out with a new business strategy.

Giving it full power
Having your HR and finance departments work together and share their data enables your business to operate both engines on full blast. These two sections can identify where the company can make changes and how it can use its capital – both human and monetary – to operate more efficiently. They also give you the insight and data needed to make the big decisions become great successes.

Smart CEOs, CFOs, and chief human resource officers know that combining their forces and information to make expansion decisions is crucial in today’s marketplace.

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