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The Chief Human Resource Officer (CHRO) has rapidly become one of the central figures in the C-suite.
It’s an exciting time for the profession. Businesses increasingly recognize and expect support from their top HR chiefs to help navigate change and ensure all people teams are pulling together to drive company-level objectives. Goodbye administrative reputation, hello strategic status.
But to fulfill this brief – and ensure businesses continue to recognize the need for engaged, healthy, and supported employees – CHROs need a rich skillset, ranging from improved financial acumen to emotional intelligence.
While the role of the CHRO will continue to evolve, aspirational HR managers and directors should proactively develop the skills that will cement them as viable candidates for internal or external C-suite roles, and perform effectively when they arrive at this level.
Reflecting on their own careers, alongside their firsthand experience of the transforming CHRO role, Tammy McCormack, CHRO at Nassco Inc., and Philip Waddel, CHRO at LIBERTY Steel Group speak to HR Grapevine to give their advice to HR professionals with their eyes on a future C-Suite role.
1. What’s the most sought-after skill other business leaders want to see in aspiring CHROs?
Waddel: More financial acumen. An effective business partner must deeply understand how the business makes money, and what levers can be pulled to influence financial outcomes.
Business leaders aren’t as interested in how you can be better at HR, as they expect competency as the price of admission. They are interested in how you can develop business insight and then channel that into activities that align HR strategy to the business strategy—how you can directly impact and enable business results. The latest cool HR stuff is meaningless unless it readily advances the success of the business.
Thinking and communicating in numerical or financial speak will improve your relationships. Leaders with those biases often feel HR is too touchy-feely, and they are looking for hard facts to support your actions and ideas. Everything you do needs to be looked at through the lens of an investment in the business. So, develop insight from data. What you think or feel are relatively meaningless. They want to see empirical evidence of an issue or opportunity. Data matters.
McCormack: Be well-rounded within human resources. Be open to learning from others on your team and in your industry and obtain a mentor. Emotional intelligence, in my opinion, is the most needed and sought-after skill in an HR professional.
2. Who should HR professionals build partnerships with to support them on the journey?
McCormack: Build your relationships with key stakeholders, other managers, and leaders at your organization. If there is a volunteer committee, be an active member so that you can meet other people within the company.
Do not stay in your HR silo, meet with other business groups. Go to lunch, chat, and introduce yourself. If possible, be in the office and not remote. That is how solid relationships are created.
Waddell: Build strong relationships with all your key stakeholders, in particular operations and finance, which might vary depending on your business model as to whether it is operations, sales, or supply chain driven.
Be responsive and develop relationships at least 2 levels down in the organization that will enable you to anticipate things that are coming and “see around corners.” Build strong relationships with relevant Board members (particularly those that sit on the compensation committee), and know your stuff when you go in.
3. Philip, what strategic capabilities does a modern CHRO need to have?
Waddel: Be a purveyor of solutions. Understand where the stakeholder needs to go and why, then provide solutions and not block.
HR strategy is critical. Understand where the business is going over the next 12-month horizon, 3-year horizon, and 5-year horizon. Assess the implications of that business strategy on the capabilities of the organization and develop strategic initiatives to get ahead and support.
For example, imagine that you are moving to a sales model that will stop or reduce margin erosion due to selling primarily on price and discounts. This new approach will be based on a consultative approach, the capability of effectively selling the brand value, and negotiating a great contract based on value and not discounts.
In this case, you might want to think about whether your current sales team has the negotiation skills, or know-how, to constructively engage and sell the brand value without giving away margin dollars. Additionally, does their compensation plan need to be adjusted to reward differentially and drive behavior for maintaining and improving margin?
4. Tammy, what advice would you give to an HR manager or director who is afraid to take the leap?
McCormack: If you are a manager or a director, apply for those VP and CHRO roles. Remember that rejection is free. You need to put yourself out there and have the confidence to apply. Share with your network that you are ready for the next step in your career, as it only takes that one connection to land your dream job.
Place yourself outside of your comfort zone and always be learning. Gain experience at your organization as well as outside of your organization—again, think about volunteer opportunities. Is there a non-profit that can benefit from your experience that you in return can gain knowledge and vital connections?
5. Lastly, why should career-minded HR professionals prepare for a CHRO role sooner rather than later?
McCormack: The HR field is constantly evolving. All of us need to stay on top of the latest happenings. Learn a skill now as it will change, and you will have the opportunity to change with it. Today there are so many ways to obtain skills, so think outside the box.
Waddel: Develop these skills now, so that you are not a “newbie” trying to learn when asked to deliver this level of support. The business will need your competency and capability in this role on day one. Not being prepared will lead the organization to look outside for someone who has demonstrated that level of thinking and insight. Show them now that you can legitimately compete for the top job, whether it i
