Leadership Shake-Up in IT/ITES: How Should HR and Finance Navigate New Challenges?

Leadership Changes in the IT/ITES/KPO/BPO Sector

Our company is in the IT/ITES/KPO/BPO sector. The founder is in the USA and serves as the Technical Head of our company. Two months ago, due to a management dispute, the founder was changed. The management appointed two other Technical Heads as Directors of our firm.

Challenges with New Leadership

The problem now is that both leaders are from a technical background, with no knowledge of Finance or HR. They are asking the HR Manager and Finance Manager to teach them every aspect of Finance and HR. The founder has full faith in them, as they have been with him in the business for the last 8 years. One leader holds a Diploma in Engineering - Computers, and the other is a B.Com Graduate.

Policy Changes and Communication Issues

Both leaders are now changing every rule in our company, including policies, even the sandwich rule in the leave policy. Since they are our reporting Managers in the company, there is no direct coordination with the founder. He is not even ready to listen to anything.

Request for Guidance

Please guide on the next steps for the Finance and HRD teams. The company has a workforce of 180 employees.

Regards,
Ashish

We can provide some valid suggestions once you share incidents that have occurred in your company. Nevertheless, do not be disheartened. You clearly stated that these individuals are from different functions and lack knowledge in Finance & HR. Therefore, they may not easily comprehend the implications of policy changes, and it will take time for them to grasp. It will not occur instantaneously.

Recommended Steps to Address Policy Changes

1. Instead of feeling disheartened, strive to understand their expectations. Try to determine why they are adamant about policy changes and what positive intentions they may have. If you are clear on these points, you will not perceive everything negatively.

2. We would understandably feel disappointed if someone from another function alters something without understanding our perspective. We are the ones who formulated and executed the policies, so we consider this our domain.

3. Gather data that supports your arguments and present them to your managers. Make them realize the repercussions of their actions. Diplomatically convey that if this continues, it could have a negative impact on the business or employees.

4. Ultimately, management aims for profit and business growth. They may be open to change if your policies and actions contribute positively. Present your case in a way that demonstrates how altering something could affect the company's results. Back up your statements with evidence such as attrition rates, employee dissatisfaction, reports of fraudulent activities, or cost savings.

5. If changing or removing policies leads to better results, then maintain the status quo. Being receptive to feedback for the company's benefit is important. However, if it hampers business growth or employee satisfaction, intervene with relevant data to illustrate the effects.

6. Remember that you now work under their authority, and they are your superiors. "When in Rome, do as the Romans do," but ensure you excel. While you can express your views, if they are not accepted, respect their decision and let the consequences speak for themselves.

7. Embrace the opportunity to learn and witness real-time effects of altering rules or policies in the company. Decide whether to follow these experiences or retain them for developing your subordinates in the future.

Regards,

M. Kannan

Thank you very much for the valuable suggestion; I will keep it in mind. Please suggest what we can do about teaching them Finance and HR functions, including labor laws, as they are wishing that we have to teach them. As an HR person, how can I give them training on labor laws such as PF, ESI, PT, TDS, bonus, leave encashment, gratuity, minimum wage, etc.? They are asking for Finance people to provide training on Tally and other government rules. What about our job security if we train them on all subjects? Because mainly, every individual wants to be like an HR. Sir, please guide us.

Thanking you,

Regards,
Ashish

Assuming that you have your learning plans in place with them, have you tried sharing the statutory and the minimum standards to be maintained in terms of functioning?

Understanding the Employee-Friendly Environment

An understanding of the employee-friendly environment comes with time. Please share the data on the repercussions of the policies that they may implement.

They have seen the support function since the beginning of their career. Help them identify the difference between being managed and managing these functions.

They will begin from the premise of what they have seen and what is good for business. Running a show is different from watching it. When they make a suggestion, help them define a map for implementation and its risks.

Addressing Attrition and Discontent

Attrition is an extreme case. What will eventually brew is discontent at work. It's a killer to productivity, and they know it better as they have been managing teams all this while.

Use their ground zero understanding to design a better HR function. What may sound good for business might not turn profitable when it's the talent of the firm in question.

Help them see every dimension of the way they want to operate. Believe that they are here for good and will turn things for the better.

Regards,

I have already shared the statutory and other tools to maintain the functions. I am also trying my level best to guide them about all HR functions. Thank you for your valuable inputs. I am facing lots of problems, but I will try hard to learn something from this situation as I am working for the company, not just for them.

I am even thinking, what should I learn from them? Everyone is learning from their seniors.

Regards,
Ashish

Dear Ashish, you are right on track. Keep your expectations low and share data on what they want to implement. Prepare your reports on industry practices and help them review the current standards. Check if they are ready to involve any external agency to audit. This would add value to their assignment too. Follow up with insights on what they have implemented so far. They should help you learn a lot more about the business. All the best!

I think your bosses are curious to know how things are working. If they try to get involved in everything, they will mess up their own lives. The best thing is to cooperate with them, but only for the right things. If they are doing something wrong, make them aware of the implications of their decisions politely. If they don't listen, leave it. After some time, they will feel exhausted and come back to you.

It happens when someone joins an organization; one wants to prove oneself. Your bosses are trying to show off to their superiors. Don't be impatient; things will settle down with time.

Thanks,

Vikas

I have read this thread with interest. I will try to summarize the situation before making a comment. Please correct me if I am wrong. The founder manager of your company is in the States. You used to report to him before. Now, the founder has appointed 2 managers, and you have to report to them. The founder has no interest in day-to-day affairs and trusts these managers. As these managers are from the technical field, they are asking questions on HR and financial matters and expect you and the Finance Head to teach them everything.

What caught my attention and prompted me to make this observation and comment is your following statement: "And what about our job security if we train them on all subjects??? Because mainly every individual wants to be like an HR."

As others have stated, it's the duty of a boss to understand how others function; it helps them to appreciate the problems involved.

Before these directors, we had other directors who were very good at management skills with good educational qualifications. Before the change management procedures, the founder was not my reporting manager, only a director. I am in the HR Department, not in the Finance department. I am worried about the company's future as they are only good at technical aspects, not in management functions.

To reiterate, before the previous management, I was not authorized for anything, and not now. I am happy that I am involved in the change management procedure and learning extraordinarily. I hope no one (employee) takes advantage of their lack of knowledge.

Regards,
Ashish

In the circumstances, following are my views in addition to what is advised by others:

Mindset and Knowledge

First and foremost, don't carry the mindset that they don't know anything about Finance & HR. Assume they know everything, and when interacting with you, they may try to test your knowledge. This will help you bring out the best in yourself when explaining the nuances of these areas.

Adapting to New Leadership

Secondly, it is nothing new or strange to appoint someone trusted by the bosses who may have knowledge or may not. However, it is the responsibility of any subordinate to cope with the working style of every new incumbent.

Providing Educational Resources

Third, it may help you if you have two important notes that you may supply to them: 1) Finance for Non-Finance Executives and 2) Gist of all labor laws. No doubt, no one can master these two different subjects overnight, but over time, they can become masters using these notes.

Communication and Trust

Fourth, be cautious in explaining to them; don't give them room to arrive at an opinion that you are trying to mislead or provide incorrect information. Unless you gain their personal rapport and their trust in you, you can't win them over.

Professional Relationships

Fifth, don't try to portray that you are very close to your US boss, as it may create an ego clash between all of you. Never forget the watchword: Presently, they are your bosses, and 'Boss is always right' (and the boss is the boss).

Moreover, it is your learning curve, and it may have ups and downs; you should never touch the bottom of the axis.

All the best.

Regards

If the founder has allowed them to change the policy, then at a certain level, they can make changes, like implementing a sandwich rule for the leave policy. However, changing all the policies as they want is not possible, as there are some laws that nobody can deny.

It is also very hard to teach them everything about finance and HR, but yes, you can guide them on certain things when they ask, to make them aware of the reasons, etc.

Furthermore, even if they are not ready to listen, you need to send an email whenever you find that a change in a particular policy is not supported by the law or may harm in terms of ROI, production, welfare, etc., along with specifying the reasons. It's important to include your founder/head in your email.

Hopefully, they will consider it and not change policies that are not supported by the law. If they still do not agree, then you should inform them that you cannot go against the law to work in that company.