It’s Time to Split HR 500 words HBR article by Ram Charan…
““It’s Time to Split HR 500 words HBR article by Ram Charan, July–August Many CEOs are disappointed with their HR departments. Charan proposes a radical solution: Eliminate the position of chief human resources officer and split HR into two functions: HR-A (administration), which would manage compensation and benefits and report to the CFO, and HR-LO (leadership and organization), which would focus on improving people capabilities and report to the CEO. Here’s what our readers had to say:””
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Charan argues that the traditional CHRO role is too broad; splitting HR into administrative and leadership functions improves focus and alignment with finance and strategy.
In simple terms: Separate HR admin from people development for better efficiency and impact.
Key Takeaway
Reorganize HR to align with CFO and CEO priorities.
Themes
organizational design
leadership
human resources
strategy
Mood
analytical
strategic
Type
advisory
business
When to use this quote
- company restructuring
- executive decision‑making
- HR process improvement
Key Concepts
functional specialization
alignment
governance
Questions to Reflect On
- How will the two HR units collaborate?
- What metrics will judge success?
A Different Perspective
Splitting HR may create silos and coordination challenges.