As technological disruption accelerates and traditional operating models lose relevance, HR leaders are at a pivotal moment. Kent McMillan, Managing Director of Organization Strategy at Accenture UK, argues that HR must now lead the way in aligning organizations with CEO priorities, talent expectations, and the evolving role of generative AI.
In his book, Rethinking Operating Models, co-authored to address this challenge, McMillan outlines strategies for HR leaders tasked with building agility, enhancing workforce adaptability, and restructuring around a new digital core.
CEOs Sound the Alarm: Current Models Are Obsolete
Accenture’s research paints a stark picture:
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94% of CEOs believe their current operating models are putting growth and performance at risk.
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74% say a complete overhaul is necessary to build resilience.
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69% feel unprepared for ongoing disruption.
Driving this sentiment are outdated structures that underutilize technology, reinforce silos, and struggle to align talent with business strategy.
McMillan sums up the core dilemma with a pointed question: “How do we organize in this new world?”
Technology as Driver, People as Focus
While generative AI is revolutionizing business processes, McMillan insists that technology alone isn’t the solution—it’s the relationship between people and AI that matters most.
Accenture found:
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97% of executives believe generative AI will transform their business and industry.
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93% report AI is outperforming other strategic initiatives.
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82% of workers understand generative AI.
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94% feel confident they can build necessary skills.
Yet, McMillan cautions that plugging AI into outdated workflows won’t deliver full value. Instead, organizations must evolve their structures to integrate AI as a core part of decision-making and execution.
Organizational Agility: HR’s New Strategic Imperative
HR leaders must redesign systems and structures to meet business demands and evolving employee expectations. McMillan identifies three core frameworks to guide this transformation:
1. Collaboration Architecture
Build “self-organizing” teams that operate across functions, reduce dependency on hierarchy, and prioritize data transparency.
2. Human-Machine Integration
Design work models where humans and AI collaborate seamlessly—acknowledging that skills-based structures must evolve when machines become part of the workforce.
3. Institutional Knowledge Stewardship
Use AI to preserve and share organizational knowledge, ensuring continuity through workforce changes and enabling adaptive decision-making.
From Static Hierarchies to Adaptive Systems
McMillan believes organizations should be viewed not as fixed structures but as “living systems” constantly evolving. As AI capabilities grow, HR leaders must reshape how organizations learn, adapt, and perform—embedding resilience, not just efficiency.
“The CHRO’s job evolves again and again. This is not a one-off exercise, or something that happens every three years or when a new leader appears,” says McMillan.
HR’s Strategic Role in the Age of AI
To stay competitive, HR must:
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Align talent strategy with AI-enabled business models.
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Create flexible structures that support innovation and change.
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Balance performance with purpose, ensuring people remain engaged and valued.
McMillan calls this an “exciting time to experiment”—an opportunity for HR to lead organizational transformation, not simply support it.
Source – HR Executive
