Can CHRO Make a Good CEO? [2026]

Team DigitalDefynd

The journey from Chief Human Resources Officer (CHRO) to Chief Executive Officer (CEO) is a testament to the strategic importance of human capital in today’s corporate world. As organizations increasingly recognize the value of talent management, leadership development, and organizational culture in driving business success, the role of the CHRO evolves beyond traditional HR functions. This path to the top echelon of corporate leadership embodies a broader understanding of business operations and strategic thinking. For CHROs aspiring to become CEOs, the transition involves leveraging their unique insights into the workforce and organizational dynamics to influence all aspects of the business. This ensures they are not only people experts but also seasoned strategists and visionaries capable of leading entire organizations toward sustainable growth and innovation.

Detailed Guide on How a CHRO Can Become the CEO

Transitioning from Chief Human Resources Officer (CHRO) to Chief Executive Officer (CEO) involves expanding one’s skill set, gaining broad business experience, and demonstrating strategic leadership capabilities. Here is a detailed guide for CHROs aspiring to become CEOs:

1. Develop Business Acumen

A CHRO needs to cultivate a deep understanding of the business landscape to transition into a CEO role. This involves grasping the financial and strategic aspects of the organization to make informed decisions that align with corporate objectives.

a. Understand Financial Metrics: A CHRO aspiring to become a CEO must comprehend the company’s financial underpinnings. This involves understanding how the company generates revenue, identifies key financial metrics, and sees how different departments contribute to the organization’s financial health. Gaining a solid grasp of financial statements, budgeting processes, and financial forecasting is crucial.

b. Strategic Thinking: CHROs should actively participate in strategic planning, demonstrating how HR strategies can align with and drive the overall business objectives. This involves thinking beyond the HR function to consider the broader market, competitive forces, and business opportunities.

Related: Mistakes CHROs Must Avoid

2. Gain Cross-Functional Experience

Exposure to various business functions is crucial for a CHRO to comprehensively comprehend the organization’s operations. This experience aids in developing a holistic view that is essential for a CEO.

a. Lead Projects Outside HR: To broaden their experience, CHROs should lead cross-functional teams or projects, gaining exposure to operations, sales, marketing, or product development. This experience helps understand different aspects of the business and contributes to a more holistic leadership approach.

b. Pursue Rotational Assignments: Engaging in rotational assignments across different departments or business units allows CHROs to understand various operational challenges and processes, fostering a comprehensive view of the organization’s functioning.

3. Build a Strong Network

Networking is key to understanding the broader business environment and forming alliances supporting strategic objectives. A CHRO ought to cultivate connections both internally and externally to the organization.

a. Internal Networking: Building strong relationships with other senior leaders and organizational stakeholders is vital. This networking helps understand different perspectives, departmental challenges, and how HR can better support the business objectives.

b. External Networking: CHROs should connect with peers in the industry, join professional associations, and participate in conferences to stay abreast of industry trends, which can lead to valuable partnerships and insights.

4. Demonstrate Leadership Skills

Leadership is at the core of the CEO role, requiring a CHRO to show they can guide the entire organization towards achieving its vision and goals.

a. Visionary Leadership: CHROs should be able to lead the entire organization, not just the HR department. Developing and communicating a clear, strategic vision for the company’s future is essential in demonstrating readiness for the CEO role.

b. Crisis Management: A CHRO must navigate crises and show resilience and decision-making skills under pressure. This proves the CHRO’s capability to handle high-stress situations, a necessary trait for a CEO.

Related: CHRO KPIs

5. Enhance Communication Skills

Effective communication is vital for a CEO to articulate the company’s vision, strategy, and value to various stakeholders, including the board of directors, employees, and external parties.

a. Board Presentations: CHROs must excel in delivering presentations to the board of directors, clearly communicating the significance and effects of HR initiatives on the business, and ensuring these initiatives are in harmony with the organization’s strategic objectives.

b. Public Speaking: Public speaking skills are essential for representing the company in external events, media interviews, and industry forums.

6. Drive Organizational Change

Leading change is a critical capability for a CEO, as it involves managing transitions, realigning the organizational culture with business strategy, and driving performance improvements.

a. Change Management: Leading significant change initiatives showcases the ability to manage transitions, realign organizational culture with business strategy, and enhance performance.

b. Innovation: Promoting a culture of innovation within HR and across the organization demonstrates the company’s capacity to adapt to new market trends and technologies.

7. Pursue Continuous Learning

A commitment to continuous learning helps a CHRO stay relevant and knowledgeable, equipping them with the insights and skills needed to lead as a CEO.

a. Education and Training: An MBA or advanced business degree can provide the necessary knowledge and skills. Executive education programs in leadership and business management are also beneficial.

b. Mentorship and Coaching: Seeking mentorship from current or former CEOs and engaging in executive coaching can offer insights and guidance on becoming a CEO.

8. Demonstrate Financial Responsibility

Financial stewardship is a key aspect of the CEO role, necessitating a CHRO to manage budgets effectively and demonstrate how HR initiatives contribute to the organization’s financial success.

a. Budget Management: Effectively managing the HR budget, controlling costs, and allocating resources efficiently shows an understanding of financial stewardship.

b. Revenue Growth Contribution: Highlighting how HR initiatives have driven revenue growth, profitability, and shareholder value is crucial in demonstrating the strategic value of HR in the broader business context.

Related: Can HR Manager Become CEO?

Skills Required by CHROs to Become the CEO

A comprehensive set of skills is required for a Chief Human Resources Officer (CHRO) to successfully transition into the role of Chief Executive Officer (CEO). These skills span across various domains, reflecting the multifaceted nature of the CEO role:

1. Strategic Vision and Business Acumen

a. Strategic Thinking: Ability to formulate and implement long-term strategic plans that align with the overall business objectives.

b. Business Acumen: Understanding business operations, market dynamics, and financial principles to make informed decisions and drive company growth.

2. Leadership and Management

a. Visionary leadership entails crafting and conveying a compelling vision for the organization’s future, establishing distinct objectives, and rallying individuals to work towards these goals.

b. Change Management: Ability to effectively steer and administer changes within the organization, guaranteeing seamless transitions and the successful execution of new strategies.

3. Financial Literacy

a. Financial Understanding: Knowledge of financial metrics, budgeting, financial reporting, and investment analysis to oversee the organization’s financial health.

b. Cost Management: Ability to manage resources efficiently, optimize spending, and contribute to the financial stability and profitability of the company.

4. Operational Expertise

a. Cross-Functional Experience: Experience in various business areas beyond HR, such as operations, marketing, and sales, to understand and manage different aspects of the business.

b. Process Improvement: Skills in assessing and improving operational processes to increase efficiency and effectiveness.

Related: Is the Job of CEO Stressful?

5. Communication and Influence

a. Effective Communication: Proficiency in conveying ideas clearly and persuasively to various stakeholders, including employees, board members, and external partners.

b. Stakeholder Management: Skill in establishing and sustaining robust connections with essential stakeholders, navigating their anticipations, and promoting cooperative efforts.

6. Innovation and Adaptability

a. Innovative Thinking: Capacity to drive innovation within the organization, encouraging new ideas and approaches to business challenges.

b. Adaptability: Flexibility to adapt to changing market conditions, business needs, and technological advancements.

7. Ethical Leadership and Corporate Governance

a. Ethical Decision-Making: Commitment to ethical standards and integrity in decision-making, ensuring transparency and accountability in corporate governance.

b. Risk Management: Understanding risk assessment and developing strategies to mitigate potential risks to the organization.

8. People Management and Development

a. Talent Management: Expertise in developing talent, building strong teams, and creating a culture that promotes professional growth and performance excellence.

b. Emotional Intelligence: High self-awareness, empathy, and interpersonal skills to effectively lead and manage diverse teams.

9. Learning and Personal Development

a. Continuous Learning: Dedication to ongoing personal and professional growth, keeping abreast of industry developments and leadership methodologies.

b. Mentorship and Networking: Engaging in mentorship and building a network of peers and advisors for guidance and support.

From HR Leaders to Corporate Chiefs: CHROs Who Became CEOs

To successfully transition from a Chief Human Resources Officer (CHRO) to a Chief Executive Officer (CEO), a professional must cultivate various skills beyond human resources. These skills include strategic thinking, financial acumen, operational knowledge, leadership and communication abilities, and a deep understanding of the business’s core functions. Let’s explore real-world instances of CHROs who have triumphantly ascended to the role of CEO:

a. Mary Barra: Before becoming the CEO of General Motors in 2014, Mary Barra served in various roles within the company, including Vice President of Global Human Resources. Her extensive experience across different functional areas, including HR, helped her develop a broad skill set that prepared her for the top job.

b. Anne Mulcahy: Prior to her role as CEO of Xerox, Anne Mulcahy held the position of Vice President of Human Resources. Mulcahy’s experience in HR was part of a broader career at Xerox that also included roles in sales, marketing, and management. Her leadership as CEO culminated in her successful steering of the company through a turnaround.

c. Stephen Elop: Elop served as the head of HR for Juniper Networks before moving on to more senior roles, eventually becoming the CEO of Nokia. His journey from HR to CEO illustrates the potential for HR leaders to transition into top executive roles, especially when they have diverse experience and a strong grasp of business operations.

Overcoming Obstacles: Preparing CHROs for the CEO Succession Journey

When considering CHROs as potential CEO successors, there are several hurdles that both the individuals and the organization may face. Understanding these challenges can help in preparing and strategizing for a successful transition:

1. Perception of HR as a Non-Strategic Function

a. Challenge: There may be a perception within the organization that HR is a support function, not directly tied to strategic business outcomes.

b. Mitigation: Highlight and communicate HR’s strategic contributions to the business, including its role in shaping organizational culture, driving change, and contributing to financial success.

2. Lack of Broad Business Experience

a. Challenge: CHROs may be viewed as lacking experience in core business functions such as operations, finance, or sales.

b. Mitigation: Facilitate opportunities for the CHRO to gain experience in these areas through rotational assignments, cross-functional projects, or direct involvement in business strategy discussions.

3. Financial Acumen

a. Challenge: CHROs might not have extensive experience with financial management, which is crucial for the CEO role.

b. Mitigation: Encourage formal education in business finance, mentorship with financial executives, and involvement in financial planning and analysis activities.

4. Operational Leadership

a. Challenge: Transitioning from a focus on people and culture to managing the entire operational spectrum of an organization can be daunting.

b. Mitigation: Gradually increase the CHRO’s responsibilities in operational areas and ensure they have a role in decision-making processes affecting the whole organization.

Related: Can a Company Have Two CEOs?

5. Board and Stakeholder Relations

a. Challenge: Compared to other C-suite executives, CHROs may have limited exposure to the board of directors or external stakeholders.

b. Mitigation: Facilitate more frequent interactions with the board and stakeholders and provide governance, investor relations, and public representation coaching.

6. Succession Planning and Talent Management

a. Challenge: Filling the leadership vacuum created by the CHRO’s move to the CEO position can be challenging, especially if the organization lacks a robust succession plan.

b. Mitigation: Develop a strong internal talent pipeline and succession planning process before any transition.

7. Cultural Shift

a. Challenge: The shift in leadership style and focus from CHRO to CEO may lead to organizational cultural changes, which could meet resistance.

b. Mitigation: Manage the transition carefully with a well-thought-out change management strategy that includes clear communication, stakeholder engagement, and alignment of cultural values.

Conclusion

Ascending from CHRO to CEO is more than a career leap; it is a profound shift in scope and impact. This transition underscores the evolution of human resources from a support function to a core strategic pillar integral to company’s overall success. Aspiring CHROs to CEO must demonstrate their ability to translate their expertise in talent management into broader business understanding, showing that they can lead not only people but also entire organizations. In doing so, they redefine the leadership trajectory, proving that a deep understanding of human capital is crucial for driving forward-looking strategies and achieving long-term business objectives. Their journey is symbolic of a changing business landscape where the mastery of human dynamics is as critical as financial and operational expertise in shaping the future of corporations.