The Blind Spot of CHROs: Lack of Business Acumen
Ratish Jha
President HR & IT - Hikal Ltd. Executive Committee: Employers’ Federation of India
As I reflect on the evolving role of Chief Human Resources Officers (CHROs), there is one glaring issue that remains largely unaddressed: the lack of business acumen. Despite possessing robust HR expertise, many CHROs find themselves struggling to deliver measurable business outcomes. And more often than not, they are quick to blame the CEO for not listening. But what if the real issue lies elsewhere?
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The CEO’s Perspective: A Disconnect
From the CEO’s vantage point, CHROs may sometimes appear out of touch. They may be seen as having great technical HR knowledge, but lacking an understanding of broader business strategy and operational dynamics. This disconnect leads to frustration and missed opportunities for collaboration.
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The Root Cause: A Curriculum Shortfall
Here’s where the problem begins. Traditional HR training focuses heavily on core HR competencies, while business acumen often takes a backseat. HR programs typically don’t equip professionals with the strategic mindset necessary for understanding financials, market dynamics, or operational challenges. Even when business concepts are covered, theoretical knowledge rarely translates into real-world decision-making.
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The Consequences: A Coach Without knowing the Game
Imagine a coach who has never played the sport. This is akin to a CHRO who excels in HR but lacks insight into how the business works as a whole. Though skilled in managing talent and building teams, such a leader might struggle to make informed, strategic decisions that align with broader company objectives. I’ve seen talented HR professionals succeed-not merely because of their technical expertise, but because they exhibited strong business acumen, making them effective partners to the CEO.
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The Solution: Start with Business Experience
So, what’s the solution? If we want CHROs to add true value, we need to ensure that they develop business acumen long before stepping into the C-suite. My recommendation: HR professionals should take on business-focused roles before assuming the CHRO position. This experience offers invaluable insight into the financial and operational drivers that shape strategic decision-making.
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A Personal Journey: My Eye-Opening Experience
In 2016, after nearly 16 years in HR, I took on a business leadership role-and it completely transformed my approach to HR. https://economictimes.indiatimes.com/jobs/raychem-rpg-opens-up-opportunities-for-employees-with-talent-first-agenda/articleshow/52512193.cms?from=mdr It was possible only because of best in class HR practices at RPG Group under the leadership of Dr Arvind N. Agrawal . The insights I gained from experiencing the broader business landscape allowed me to return to HR with renewed perspective, empathy, and, most importantly, a better understanding of the challenges CEOs face. It’s a shift that made me a more well-rounded HR leader and helped me see the bigger picture. I must thank to Harsh Goenka , Ramani Kasi , Sachin Nandgaonkar and Pratima Salunkhe for showing confidence on me! I would also like to thank my Transformer team Tanvi Sharma , BHASKAR MUKHOPADHYAY , Subodh Prakash and all the key team member who gave excellent support during those days.
The Ideal CHRO: A Business-Savvy HR Leader
The most effective CHROs are not just HR experts-they are business leaders who understand how the company operates, what drives success, and how to align talent strategy with business goals. By combining HR expertise with business acumen, these leaders become trusted advisors to CEOs, contributing to strategic decisions and driving business growth.
A Choice to Make
I anticipate that some HR professionals might disagree with my stance, arguing that learning business acumen is the responsibility of CEOs or business heads. My counterquestion is: Do you expect CEOs to learn HR?
If we don't make an effort to understand the business side, why should we expect CEOs and business heads to appreciate the value of HR? It's a two-way street.
The choice is yours. If you're content with the status quo, then continue on the same path. However, if you aspire to be a strategic business partner and earn a seat at the table, then it's essential to develop your business acumen.
Passionate & practiced leader in running efficacious process-oriented Operations | Quality Assurance for business turnaround fostering customer centricity, revenue growth| RPG Group|TransAsia -Erba Manheim Group
2 周Love this
Founder @ The Talent Keepers | POSH Trainer | XLRI | Building TTK | Traveller | Dogophile
2 周You're right—when organizations overlook the importance of a strong people strategy, they risk missing out on growth opportunities. When HR deeply understands the business, it moves beyond traditional functions and drives strategic growth.
Head of Corporate Communications, CSR, Digital & Marcom @ Hikal Ltd | BW 40 Under 40
2 周Ratish Jha, your article and perspective are truly insightful and serve as a guiding light for HR leaders. You are one of the rare CHROs I have met who possesses a fantastic business sense, likely due to the diverse experience you bring to the table. This is exactly the kind of thinking that can elevate HR to a true strategic partner in business. There is so much to learn from you—even for a non-HR person like me! If one can understand people the way a CHRO does and match it with strategic thinking, there’s no stopping them.
Director @ Careerist | Executive Search, Talent Mapping
2 周I completely agree with your points on the need for CHROs to develop business acumen. While HR expertise is essential, understanding broader business strategy is what truly enables CHROs to drive meaningful outcomes. Your analogy of a coach who’s never played the game is perfect—it highlights the need for HR leaders to connect their expertise with the wider business context. Gaining business experience before stepping into the C-suite is a straight drive to become a leader in a driving seat .??
HR Leader || Real Estate || E Commerce || FMCG || Manufacturing
2 周Hi Sir....This is so relevant, time and context agnostic.I can hear you say these words to me over the years as a true guide and these words coming to my rescue quite a bit of times as well. As always, trying to implement your advice . Though wishing to get business roles was as easy... ;)