Today’s business environment is shaped by economic uncertainty, rapid technological disruption and changing employee expectations. As organizations adapt to these forces, effective organizational design is becoming essential to ensure agility and resilience.
“We are entering one of the largest change management exercises in history, and every business leader and professional will need to embrace it in order to unlock the value of AI,” wrote Dan Shapero, chief operating officer at LinkedIn, in a piece for the World Economic Forum Annual Meeting.
What CEOs need from CHROs
As key organizational leaders, CHROs are tasked with building operating models that can withstand this continuous change while driving resilience through focused talent strategies. Many HR leaders report that the pressure to reimagine traditional structures, without sacrificing workforce stability, is greater than ever.
Business leaders look to HR executives to solve critical business problems, craft innovative talent models and retain a valuable workforce during turbulent times, says Karalee Close, Accenture’s global lead for talent & organization.
With increasing pressure on businesses, CHROs must develop strategies that promote resilience through skills development, fluid operating models, employee engagement and operational efficiency, according to Accenture’s research on the CHRO as a growth executive. Close says that HR leaders must build capabilities to manage continuous transformation and think more deeply about opportunities in what’s becoming known as the intelligence age.
Rethinking organizational design
One critical area where many CHROs seek focus is organizational design, which Close says has become significantly more data-driven. She suggests that HR leaders need to consider:
- Breaking down traditional jobs into component tasks
- Addressing structural implications of functional silos versus end-to-end data availability
- Creating units that evolve alongside an increasingly agentic workforce
- Fostering collaboration between units, recognizing that AI agents excel at making connections
- Adjusting organizational structures to accommodate entirely new functions
- Integrating AI agents and human talent
Recent research from Accenture reveals both urgency and opportunity in AI adoption, based on lessons learned from 2,000-plus gen AI projects and surveys with more than 3,000 C-level executives. Only 36% of executives report having scaled generative AI solutions, and just 13% claim to have created significant enterprise-level value. Close says the key to unlocking this potential lies in talent management.
HR leaders should communicate clearly what AI agents are and how they’ll interact with the workforce. “Don’t say agents will take a job,” Close advises. “Consider them neutral.”
Avoid overly humanizing them, and instead of assigning a job title, focus on the tasks they perform.
Close reminds HR leaders that people have careers, not jobs. This mindset can help employees feel more secure about their role within the organization.
When incorporating AI into the workplace, Close suggests HR leaders should:
- Consider how agent capabilities complement human proficiencies within skills taxonomies
- “Onboard” agents by training them on cultural norms
- Think carefully about the language and presentation of AI tools
- Determine how “human” to make these technologies
- Consider whether AI tools belong on organizational charts
“Consider AI to be ‘amplified, not artificial,’ ” Close suggests. This concept of “amplified intelligence”—the network of interactions between AI agents and workers who co-learn to create innovations—represents the next major workforce trend, says Close. “Remember, it’s about people.” Despite progress, challenges remain.
Research from Accenture shows that 82% of workers believe they understand generative AI technology and 94% are confident they can develop the necessary skills. However, 63% of employers still cite skill gaps as a major hurdle.
Leading with purpose and collaboration
Successful HR leaders will use AI to bring big ideas to life while using data to support both employee and business value propositions. As Close puts it, “Always come back to the purpose, the why. It’s not the robot taking over the universe, it’s unlocking new potential.”
Close identifies corporate learning as a “massive place for reinvention.”
Creating opportunities to develop future-focused skills is essential, potentially with intelligent agents enhancing the learning experience.
People leaders should focus on identifying the right problems, assembling appropriate teams and managing change, notes Close, with HR taking ownership of the human elements. As both humans and AI systems learn and develop, Close offers a clear call to action for HR leaders: Shape the dialogue around agents and build a common lexicon. “People who are more fluent [about AI] take away the scariness,” she notes.
Close says HR departments should:
- Support organizational talent with new skills development
- Maximize job creation opportunities
- Embark on their own AI journey within HR functions
- Enhance talent infrastructure and skills
Read more | The skills-based workplace: Lessons from a bold CHRO
In any work redesign effort, HR leaders should use tech to create a more fluid experience for the workforce, Close recommends. “Consider tech to be the human advantage,” she says. “Why are we thinking it will take over the world? Take a step back and unlock the way people work and unlock a growth engine.”
The relationship between IT and HR shouldn’t be viewed as “either/or,” says Close—she says HR leaders can shape the narrative while working collaboratively with technology teams. Data fluency is becoming an essential part of the HR career path, she says, with future leaders needing data, tech and AI sense alongside traditional functional expertise. HR executives must work across functions and develop solutions that enhance team performance and culture, notes Close.
Important leadership qualities include understanding context, mastering core domains, demonstrating curiosity and connection and having “the courage to set a bolder ambition,” according to Close. HR leaders must continuously learn while addressing business problems through talent strategy. She puts it this way: “We are trying to solve the talent problems of tomorrow, today.”
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