An analysis of the competencies, personal traits and leadership styles of CEOs and CHROs reveals striking similarities between the two roles, according to a recent research report, which has suggested that CHROs should get a closer look when it comes time to put together the CEO succession slate.
The Korn Ferry report noted that Chief Human Resources Officer’s are a good fit to be a trusted coach for the CEO, and the architect of talent strategy to implement the CEO’s vision.
It found that “best-in-class executives” (those in the top 10 per cent of pay for their function) tend to have leadership styles that motivate employees, develop future leaders and create appropriate cultures.
Authored by RBL Group’s Dave Ulrich and Korn Ferry senior client partner Ellie Filler, the report was based on Korn Ferry’s psychometric assessment profiling of the leadership styles of thousands of senior executives including CEOs, COOs, CHROs, CFOs, CMOs and CIOs.
The assessments gauged how much emphasis individuals place on 14 attributes that have been sorted into three categories: leadership style, thinking style, and emotional competencies.
“What is fascinating is that best-in-class CHROs are so much more similar to CEOs than are CFOs, CIOs, or CMOs”
Although most best-in-class executives reveal a similar silhouette, “it is clear that CHROs are cut from the same cloth as CEOs and COOs,” said the report, CEOs and CHROs: crucial allies and potential successors.
“It is not a surprise that COOs and CEOs have similar profiles, given that they play similar roles,” said Ulrich and Filler in the report.
“What is fascinating is that best-in-class CHROs are so much more similar to CEOs than are CFOs, CIOs, or CMOs.
“Even examining nuanced distinctions, we find that the CHROs profile is statistically closer to that of the CEO and COO than are the other key functional leaders.”
The report predicted that, in the future, CEO successor candidates may come from HR, in addition to finance, marketing, operations and IT.
Ulrich and Filler observed that most failures of succession occur when an organisation focuses on people more than the requirements of the position.
“In general, two or three leading candidates are identified and monitored, maybe even coached,” they said.
“The evolving demands placed on CEOs, however, aren’t rigorously discussed or defined.
“If future CEOs must manage organisational challenges as much as customers, products, and financial difficulties, then CHROs may uniquely have the skills to move into this role.”
The report said today’s CHRO already resembles the CEO on leadership traits as much or more than does any other functional executive.
“If the ability of an organisation to change and adapt becomes the key differentiator, then CHROs who have mastered these skills may become excellent candidates for CEO succession,” the report said.
“Of course, CHROs cannot expect to be on the succession slate without experience and grounding in business operations.”
However, if CHROs master these table stakes skills, Ulrich and Filler said they may be viable candidates for CEO roles.
