Tom Alstein

Jeroen: Thank you for taking the time, Tom Alstein, Partner at Deloitte, to speak to Leaders in Finance in the run-up to the CHRO event on June 19th this year. I appreciate you making the time.

Tom: My pleasure.

Jeroen: First of all, we’d love to hear a little bit about you — both from a business perspective and from a personal perspective

Tom: Let me start with the professional side. As you mentioned, I’m currently a partner at Deloitte, based in the Dutch practice in Amsterdam. I lead our Human Capital practice within Financial Services, with a focus on the financial services industry. I’ve been with Deloitte for 15 years now, having spent a few years as a partner in our Australian firm before returning to the Netherlands about three years ago. Before Deloitte, I worked at a smaller agency. I’ve always focused on operating model transformations in the industry.
From a personal perspective, after our adventure in Sydney, we settled in The Hague, where I now live with my wife and kids. We actually just got the keys to our new home, and we’re hoping to move in very soon. Besides that, I really enjoy spending as much time as possible with my family. I also like staying healthy and doing sports. About three years ago, I picked up Pilates, which has been quite interesting I practice it regularly now. So, that’s a bit about me on the personal side.

Jeroen: I’m just curious — as a partner at Deloitte, picking one or two things, what do you enjoy most about your job and your current role?

Tom: That’s actually a simple question for me, because I ask myself that quite often. And there are really only two things. First, I enjoy solving complex problems. We usually only come into the picture — or get hired — when our clients, who are themselves mature, smart, and sophisticated, have an additional question or need help solving something. So, building the trust and relationships necessary to address complex issues is one key aspect. The second is being able to do that with a passionate and diverse group of talented people. For me, that’s still the beauty of Deloitte. In the end, it’s a group of talented, passionate individuals who want to make a difference for our clients. So, connecting those two — working with inspiring people on inspiring problems — those are probably the two things I value most.

Jeroen: Since we’re talking about the CHRO in this interview, from a hiring perspective — on a scale from very easy to very difficult — is it hard or easy for you to find great talent?

Tom: I think it’s a bit difficult to label it as simply easy or hard. It needs to be done in a very conscious way. We’re keen to stay one step ahead, and we’re operating in a context that involves a lot of uncertainty and requires a great deal of inventiveness. So, finding the right match is important — not just intellectually, but also in terms of interaction and social dynamics. At the same time, we need to build a very diverse group, because that stimulates the kind of thinking we’re looking for. So, it’s definitely a conscious and intentional part of our agenda — not just finding the right individuals but really composing the right team. Is that hard or easy? I find it difficult to put a simple label on it. But it’s definitely something that is front and center in terms of importance.

Jeroen: That makes total sense. As we look ahead to the event, you’ll be leading a panel focusing on one of its main themes: the strategic perspective of the CHRO. What do you believe sets apart a CHRO with a truly strategic mindset from others?

Tom:  There are a couple of important points. First of all, when I think about a more strategic CHRO role—or a strategic mindset and capability—the first thing that comes to mind is alignment with the business strategy and contributing to value creation for the organization as a whole, rather than solely acting as an advocate for people. In my view, an organization exists to create value for its stakeholders. So the question is: how can you, from your HR role, contribute to that in a more direct and meaningful way? That’s one part of the equation.
The other point is that we should remember that, in the end, organizations are social constructs. They are, nothing more and nothing less than groups of people trying to do the right thing to create value. So when you consider the importance of how you organize people, how you connect them, how you create passion, how you ensure they have the right capabilities, how you align them toward a shared direction, and how you encourage them to bring their whole selves to work—all of those elements are truly what set an organization apart.
From an HR perspective, I believe we have to take a step up by drawing more on that understanding—especially the social sciences background that many of us have. Because, as I said, an organization is fundamentally about making a social construct work effectively. And I think that’s where HR, from a strategic standpoint, can increasingly add value—complementing what finance, IT, or other content experts bring to the table.

Jeroen: So, let’s dig a little deeper into your point about alignment with business strategy. I’m curious: let’s say I’m a CHRO at a financial institution, and I read this interview and think, That’s true. I should be more aligned with the business strategy, instead of spending most of my time supporting the traditional people/HR function. So, what’s the first thing I should do?

Tom: The first thing you need to do is gain a deep understanding of what makes a difference in your business. It’s not just about understanding the vision, strategy, or financials, and ensuring you have a solid grasp of how the business model works. That’s expected of any board member. It’s also about identifying what sets the business apart. What makes it truly unique? Once you’ve identified that, you can focus on how to embrace, stimulate, and drive interventions that enhance the areas that make the greatest impact.

Jeroen: Does this also mean that we should expect to see more CHROs coming from business leaders who later transition into the CHRO role?

Tom: I have somewhat of a schizophrenic view on this. On the one hand, I very much agree with it. I believe that having a deep understanding of the business—as a CEO would—and being part of the fabric of the organization, knowing how it really runs, not just formally but also informally, greatly helps in your ability to configure the organization in the right way. So, in that sense, yes, I would love to see that flowing.
On the other hand, these types of comments sometimes create the perception that everyone can do HR — that it’s an easy job. I think we need to move away from that stereotype. As I mentioned earlier, it might seem simple because we make it appear so, but if we truly consider the social sciences and delve deeper into what a proper business configuration entails, it actually requires a more in-depth and specialized background. So that’s the other side of the equation. While I appreciate the inflow of knowledge, it doesn’t change the fact that HR requires specialized and targeted capabilities to be successful.

Jeroen: You’re right, you need to do both! What would you say are other major challenges for CHROs, specifically in the financial services?

Tom: I think there are four main challenges in the financial services sector. The first is the new reality of continuous change. In the financial sector, we are constantly faced with changes—whether from a regulatory, technological, societal, or geopolitical perspective. The key question is how well, and at what pace, we can absorb these changes without disruption, turning them instead into opportunities for growth. Driving an organization with the capacity to adapt quickly to change and transform disruption into a benefit will be crucial. This involves governance, operating models, culture, leadership capabilities, and the flow of decision-making—all organizational elements that make a difference.
Secondly, all financial institutions need to tilt towards a more cost-effective organisation. An important part of your cost base, and productivity base, is the people. The straightforward solution is often to reduce headcount, but the real challenge for HR is how to achieve this sustainably. How do we reduce headcount while ensuring that the organization continues to function effectively? This requires rethinking operations, exploring how AI can be leveraged, and considering new ways of working.
The third challenge is the talent, skills, or capability gap, depending on how you want to phrase it. There is a significant gap between where financial institutions are now and where they need to be. Strategic workforce planning, anticipating this gap, and implementing reskilling programs are crucial.
Finally, the last challenge, which is a topic everyone is discussing these days, is AI. There’s a lot of focus on AI from both a technological and use-case perspective. However, if we truly believe that AI is the new internet and the new digital, it will fundamentally change how we operate. This shift will fundamentally raise questions for HR, such as: What will the organization of the future look like? How do we embed AI into our workforce, leadership, and organizational structure?

Jeroen: You mentioned AI earlier—do you believe that AI will significantly change how we work in financial services?

Tom: I actually deeply believe that. It might even have a somewhat philosophical answer, but in the end, if you look at humankind and humanity, the reason we’ve been able to set ourselves apart from all other species is actually due to three things. First, more of our energy goes to our brains compared to many other species. So, intelligence has always been a key factor in distinguishing us and driving our development. The second thing that set us apart is that we started using technology, starting with fire and sticks, etc. But that’s still the thing that differentiates us today — our ability to use and develop technology. The third thing is collaboration. As humans, we are incredibly capable of creating human systems in which we all work together to achieve goals. With these three things — intelligence, technology, and collaboration — we have managed to dominate the world, both in positive and negative ways. I believe AI is actually bringing all of this together because it combines intelligence, technology, and ultimately collaboration between humans and that intelligent force. So, I think it will be a serious wave that we’ll see in the next few years.

Jeroen: I like that answer. To make it a bit less philosophical, and more concrete: Is ultimately the current CHRO, the HR leader, ready for all this change?  Not their organization, but the individual — are they informed, educated, and actively developing their own knowledge to keep up with the disruption and opportunities you mentioned?

Tom: I think every CHRO should ask themselves this question. It’s a bit challenging to provide a generalized answer on whether CHROs are ready, but I believe assessing readiness is really important for them. This applies to any function in any business. Readiness, however, isn’t so much about where they are today, but rather whether they are open to the challenge. Are they open to the new world? Are they willing and able to explore it? Can they connect the technological wave with the essence of an organization, which is a social construct? Technology can be integrated endlessly, but as long as people are involved, it remains a social construct. If CHROs have a growth mindset and can combine that with their backgrounds, they will be the ones who shape this in a positive direction.

Jeroen: The CHRO is probably the first person who should be willing to adopt an open mindset and to explore the opportunities, but also the potential threats.

Tom: I agree, also in terms of the threats. They are also the ones who protect the organization and its people to some extent. For me, that’s not a contradiction. You need both: you need to move forward, and you need to protect. I think that’s the continuous balance. We shouldn’t place them at opposite ends of the spectrum but rather move forward together.

Jeroen: You have this huge privilege of seeing all these different financial institutions from the inside. Do you find that many CHROs are actively educating themselves on AI, or do they tend to come to you with a lot of questions on the topic?

Tom: I think it’s both. And again, it depends a little bit on the individual, but there is definitely an openness and willingness to learn, along with time being spent truly understanding it. At the same time, there are a lot of questions — which is a good thing, right? You should ask questions, because in the end, it’s relatively new for all of us. We’re all still exploring what the future direction will look like. But I definitely sense there’s openness, urgency, and a much greater willingness not just to take a seat at the table, but to actually take the reins.

Jeroen: Last question before we wrap up. Recently, we realized that we’ve asked this question over 400 times to leaders in financial services — CEOs, professors, members of parliament, bank presidents, and many others. But we’re definitely going to ask you as well, because every time we hear a new perspective. One day, we might even publish a book featuring all 400 answers to this question.
Let’s say you’re starting your first job in HR, specifically in the financial services sector. Do you have any advice for someone with strong ambition who excels in three key areas: a sharp mind, comfort with technology, and strong collaboration skills?

Tom: I would take the extremely nerdy path during the first couple of years of my career, immersing myself in social sciences and combining that with AI. And please show us how that combination can truly drive passionate productivity within organizations. My advice would be to embrace the ‘nerdy’ path in those early years.

Jeroen: What exactly does the “nerdy” path mean? Does that mean reading a lot, for example?

Tom: Reading is certainly part of it, but I believe it’s also about connecting people with diverse backgrounds, experimenting with different concepts, and looking beyond the borders of our country—connecting internationally. For me, being ‘nerdy’ isn’t just about reading books or attending university. It’s about engaging with the topic out of genuine interest and exploring it from a wide range of perspectives.

Jeroen: Thank you so much for taking the time to speak with me and for Leaders in Finance, I truly enjoyed this interview. This interview will be published in the lead-up to the Leaders in Finance CHRO event on June 19th, where you, Tom Alstein, a partner at Deloitte, will be one of the speakers. We’re very much looking forward to that.

Tom: It was a pleasure. Thank you.