CEO AdvisoHR | Setting Your CHRO Up for Success: The Path to Strategic HR Leadership

Dear CEO

The role of the Chief Human Resources Officer (CHRO) has transformed significantly, evolving from a compliance-focused position to a strategic leadership role that directly influences business outcomes.

However, as highlighted in a recent article on Reworked (Read the full article here), many CHROs are still struggling to gain the legitimacy, resources, and authority needed to drive impactful change.

In this week’s edition of CEO AdvisoHR, we explore the challenges facing CHROs today and the steps organizations must take to empower HR leaders to thrive.

?? The Expanding Role of the CHRO

As organizations face growing pressures—from economic uncertainty to workforce diversification—the CHRO’s role has expanded to include:

1?? People Strategy and Risk Management: Guiding boards on talent risks, AI adoption, and workforce dynamics.

2?? Talent, Skills, and Sustainability: Attracting, developing, and retaining critical skills while embedding sustainability in corporate culture.

3?? Culture, Engagement, and Productivity: Using HR initiatives to build a high-performance, inclusive, and adaptable organizational culture.

CHROs must not only manage people effectively but also act as strategic advisors who influence decision-making at the highest levels.

?? Key Challenges Facing CHROs

Despite their growing influence, CHROs face significant obstacles:

1. Lack of Legitimacy and Strategic Credibility

Problem: Many organizations still perceive HR as a support function rather than a strategic business driver. This perception limits the CHRO's ability to influence key decisions.

Solution:

• Elevate HR’s Role: CEOs must actively include CHROs in C-suite discussions and provide them with the resources to drive strategic initiatives.
• Promote Business Acumen: CHROs should demonstrate how HR impacts revenue, innovation, and efficiency through data-driven decisions.

2. Limited Representation on the Board

Problem: HR’s voice is often absent in board-level discussions, making it difficult to align people strategy with business objectives.

Solution:

• HR on the Board Agenda: Allocate dedicated time for people strategy, talent risks, and workforce planning in board meetings.
• Appoint HR Experts to the Board: Including CHROs or experienced HR professionals on the board can help integrate people strategy into business decisions.

3. Building Strong CHRO Pipelines

Problem: Many CHROs feel unprepared for the role, lacking exposure to core business functions like finance and strategy.

Solution:

• Cross-Functional Exposure: Develop leadership programs that provide HR leaders with experience in finance, operations, and strategic planning.
• Continuous Learning: Establish ongoing development opportunities focused on emerging HR technologies, AI, and data analytics.

?? What Can We Do to Set CHROs Up for Success?

For CHROs to thrive, organizations must focus on these four critical areas:

1?? Create Legitimacy for the CHRO Role

? Action Steps:

• Include CHROs in C-suite decision-making as strategic partners, not just operational leaders.
• Provide resources and authority for HR to lead transformative people strategies.

2?? Address HR’s Credibility Challenge

? Action Steps:

• Highlight HR’s Business Impact: Share success stories where HR initiatives have improved retention, productivity, and revenue growth.
• Leverage Data: Use HR analytics to present actionable insights to the C-suite and the board.

3?? Ensure HR is Represented at the Board Level

? Action Steps:

• Integrate people strategy discussions into every board meeting.
• Advocate for HR expertise on the board, either through dedicated seats or advisory roles.

4?? Build a Robust HR Talent Pipeline

? Action Steps:

• Invest in cross-functional training to prepare HR leaders for the C-suite.
• Offer AI and digital transformation programs to build a future-ready HR leadership team.

?? The Role of Middle Managers in Supporting CHROs

Middle managers play a crucial role in translating the CHRO’s vision into actionable strategies. They are the bridge between HR leadership and frontline employees, ensuring that HR initiatives are executed effectively.

?? Key Actions for Middle Managers:

• Champion HR Initiatives: Act as advocates for new HR policies and practices at the team level.
• Provide Feedback: Act as conduits for real-time feedback to HR leaders, helping refine strategies based on frontline realities.
• Develop Talent: Support HR’s leadership pipeline by identifying and mentoring high-potential team members.

?? Building a Future-Ready HR Function

The path to empowering CHROs is clear: organizations must prioritize legitimacy, strategic influence, and resources for HR leaders.

By addressing these areas, companies can build a robust HR function that drives sustainable growth, talent retention, and a high-performance culture.

?? Read the full article: Are You Setting Your CHRO Up for Success?

Let’s set the stage for HR to lead boldly into 2025! ??

Regards,

Helder Figueiredo

Disclosure: This newsletter, CEO AdvisoHR, is written with the assistance of artificial intelligence (AI) to ensure timely and insightful content on HR and leadership topics. While AI is used to generate ideas, structure, and enhance the clarity of each article, all content is reviewed and refined by me to ensure it aligns with my values, and the specific needs of our readers.

I believe that AI is a valuable tool that allows us to bring you thoughtful and relevant information efficiently, yet I remain committed to maintaining the human perspective and expertise that defines this publication.

In addition to this newsletter, I am also an author, with a few books published on Amazon, where I try to delve deeper into various aspects of HR and leadership.

https://www.amazon.com/stores/Helder-Figueiredo/author/B0DGJHXFWV?ref=ap_rdr&isDramIntegrated=true&shoppingPortalEnabled=true