Chief Human Resources Officers (CHROs) possess a unique set of skills that make them well-suited to the role of CEO. Their experience in managing talent, understanding organisational dynamics, and dealing with regulatory issues provides them with a broad perspective of the company. CHROs also have a deep understanding of people and culture, crucial aspects that drive business performance.
The transition from CHRO to CEO is not without challenges. It requires a shift from an advisory role to a decision-making one, and from focusing on employees to considering all stakeholders. Despite these challenges, CHROs have a track record of successful transitions to CEO roles. Notable examples include Mary Barra at General Motors and Anne Mulcahy at Xerox.
A study on CEO transitions found that companies led by former CHROs performed better financially than those led by CEOs from other backgrounds. The study also revealed that former CHROs were more likely to maintain their positions during crises, suggesting they bring stability to their organisations.
There is a growing recognition of the value of HR experience in CEO roles. This trend is likely to continue as businesses increasingly value people and culture in their strategic planning. The unique skills and perspectives of CHROs can provide significant benefits to companies and their stakeholders.
Go to source article: https://hbr.org/2014/12/why-chief-human-resources-officers-make-great-ceos