Understanding how the Human Capital strategy supports the overall company strategy begins with clarity about who we are as a company and where we are heading. This understanding determines what kind of people we need — their values, virtues, and capabilities — and how many of them. To create value effectively within our processes, we need people with specific competencies, abilities, and skills. To attract, engage, motivate, support, and develop such people, we must design a comprehensive human capital management system. Without a clear understanding of what the profile of human capital should be for our business, it is impossible to plan HC processes correctly or to define the strategic role responsible for them.

It is essential to ask what our main strategic goals are for the next three years and beyond, what competencies and skills will be necessary to achieve these goals, and whether we already possess them or need to develop them. We must also consider how unique these capabilities are, whether we see human capital as a strategic asset that creates competitive advantage, how that manifests in our company, and how we measure it. Another key consideration is the role of the HC leader in the top team — whether they will act as an administrative HR function or as a true strategic partner to the business, and what being a strategic partner entails in practice.

Since the role of an HC leader does not emerge in a vacuum — most companies already have HR processes, even if not formalized — it is worth first assessing the current maturity of our HC system and its processes. This assessment will indicate the level of professional maturity required from the HC leader. Various global frameworks and typologies exist to measure maturity, and the choice depends on the company’s context. The maturity of the HC system directly correlates with the company’s overall maturity. It is therefore useful to reflect on whether we have an HR or HC strategy or whether we operate mostly reactively, whether our existing HC processes support the company’s strategy, and whether our structures, technologies, and solutions correspond to the company’s strategic level. It is also necessary to determine who is truly responsible for human capital, whether we have relevant data and analytics, what we measure and how we use that information for management, whether these indicators are aligned with business goals, and to what extent our HC processes are automated or digitized.

Even when the strategic focus related to human capital is clear and future needs are defined, current challenges cannot be ignored. These challenges may stem from internal issues such as organizational inefficiencies or process immaturity, or from external factors. Understanding and differentiating between these issues helps identify which HC processes should be prioritized and defines the initial tasks and strategic areas of focus for the HC leader. It is important to identify what the organization’s pain points are — whether high turnover, low engagement, skill gaps, ineffective leadership, or unhealthy culture — and how clearly these have been defined. It is also crucial to evaluate what has already been done to mitigate human capital problems, how effective those measures have been, what data and indicators are currently available, which need to be reconsidered, and which are missing. Assessing whether HC processes and solutions are truly helping to address existing human capital challenges provides the foundation for meaningful improvement.

When discussing human capital, it is impossible not to address company culture, because people create culture. Culture is an integral part of the company’s strategic journey: achieving specific goals requires a certain cultural environment, a shared set of principles, leadership styles, and communication practices. Introducing a new strategic HC leadership role represents a structural change — even a shake-up — for the company. Therefore, it is critical to understand whether the organization is ready for such change and whether the culture can sustain and support it. Managing culture is traditionally one of the HC leader’s strategic responsibilities, so it is important to be clear about what culture currently exists, what culture is needed, and what kind of culture the HC leader should embody to guide the organization in the desired direction. It is worth reflecting on whether the company’s culture today is characterized by openness, autonomy, innovation, and development, or by conservatism, control, and hierarchy, and which culture will best enable the company’s strategic goals. If the goal is to move toward a more adaptive, learning-oriented, and engaged culture, the CEO and top management must be ready to support that transformation and personally embrace change. It is also necessary to acknowledge that the HC Director’s role may require organizational restructuring, system development, or process changes that could be uncomfortable, and to assess the organization’s readiness for that. Past change experiences, leadership involvement, and HR’s role in them should also be reviewed. Understanding what leadership style dominates in the organization and whether it supports transformation is equally important.

Before creating the HC Director role or beginning the search for a candidate, the company must define the purpose and mission of the role, the clients it serves, the value it delivers, and the needs it fulfills. The position of the role in the organizational structure, its areas of responsibility, and the relationships it will manage must also be determined. It is necessary to identify which competencies, skills, and abilities are required to lead these processes effectively, what success indicators will be used, and which values, beliefs, and personal qualities are essential for the role. All these expectations should be formalized in a clear role profile that serves as a reference point when searching for the right candidate. When shaping the role, it is important to consider the company’s strategy, culture, maturity level, current challenges, and overall context. Key considerations include whether the HC leader will be part of the top management team and report directly to the CEO, owner, or board; whether they will be responsible for the full HC system or only its strategic dimension; what resources and budget will be allocated; and what the top three priorities for the role will be in the first year. It is also essential to define how success will be measured, when the first tangible results are expected, and how collaboration will be established with other functions such as finance, operations, and IT.

What level of risk are we prepared to accept when introducing the new role of an HC Director, understanding that meaningful change takes time? How will we support this new role: is there an onboarding and adaptation plan, and will there be sufficient resources allocated? What will be the involvement of the CEO or the owner? What overall nature of collaboration is envisioned between the CEO/owner and the HC Director?

The answers to these questions help create a role profile project, not just a job description. They provide essential context — strategic, cultural, maturity-related, and operational. It is similar to a diagnostic process: only by answering honestly can we clearly describe the desired role and, therefore, have a greater chance of finding a person who will be truly effective, motivated, and engaged in it.

The list of questions provided is not exhaustive; you can expand it based on your specific context and needs. The key is to view the search for an HC Director as a strategic step that will influence the entire organization.

A thoughtful and well-prepared appointment of an HC Director requires the CEO or owner to:
– have a clear understanding of the role of Human Capital in the business and in strategy implementation;
– make an honest assessment of the current state and maturity level of the HC system and its processes;
– clearly define the company’s needs and expectations for the HC Director role;
– establish success metrics and allocate the necessary resources, as well as demonstrate personal commitment to the onboarding, support, and development of the HC Director.

Only under these conditions can we expect the new HC Director to deliver real change, implement modern solutions and products, and design an effective and relevant HC system that strengthens the company’s competitive advantage through human capital.