Gartner for HR Leaders

Introducing the
Model of a World-Class
CHRO: Chapter 2
Abstract
The first Model of a World-Class CHRO, acumen and business strategy development.
launched in 2017, established a global standard Four of the five roles, however, reflect a new lens
for excellence in chief human resources officers with today’s context. Like the original model, this
(CHROs). During the past five years, the new chapter defines what its authors see as the
business landscape shifted in numerous and high bar of how the CHRO role is performed
unprecedented ways. These dynamics impacted today by leading practitioners, while staying
the CHRO’s role, elevating what “great” looks like. applicable across industries, geographies and
In response to these shifts, the Global CHRO business cycles. The authors continue to offer
Board, in partnership with leading CHROs, this model as an “open source” resource for
refreshed the model to develop the Model of organizations based on widespread feedback
a World-Class CHRO: Chapter 2. Upholding the about its utility since the original launch among
same goal for a world-class CHRO — driving CHROs, CEOs, boards of directors, universities
business results — it keeps foundational and associations.
elements from the original model, including
functional business leadership, business

Model of a World-Class CHRO

Drive business results

Board and CEO’s Leading through

Win in a dynamic Leader of enterprise Trusted advisor and
leader of human evolving stakeholder
talent landscape strategic change coach
capital & culture scenarios

Ensure top talent and Create organization Anticipate and

Plan and support CEO Advise and coach
capabilities for critical agility and resilience respond to external
and C-level succession the CEO
roles capability trends
Build effective Align and link
Embed DE&I into Assess and catalyze
compensation organizational metrics Maximize senior team
talent and culture actions to drive
supported by to stakeholder effectiveness
strategy competitiveness
shareholders expectations
Deliver a compelling Integration of
Drive culture and Focus on workforce as Coach and develop
employee value organizational levers
purpose a primary stakeholder key enterprise talent
proposition to sustain change

Business acumen Business strategy development

Functional business leader

Create a future-focused, technology oriented, operationally capable, and financially disciplined team to
run the HR function.

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Research Methodology
The original model was developed in 2017 by Model of a World-Class CHRO:
members of the CHRO Global Leadership Board Chapter 2 (Sprint Team)
(CGLB), with support from a research team at
Steering Committee
Gartner. Its design was reviewed and validated
in extensive interviews with CEOs representing • Kevin Cox, GE
large-cap companies across industries. The • Carol Surface, Medtronic
original model was designated as “version 1.0,” • C
 eree Eberly (Emeritus),
signaling the importance of continuous study The Coca-Cola Company
of the CHRO role given the dynamic nature
• Laura Cococcia, GE
of business.
• Matt Walter, Medtronic
In 2021, given the numerous shifts in the societal
and business landscape, the CGLB decided to Contributors
refresh the model and create “Chapter 2.” This • Paulette Alviti, Mondelēz International
version intends to capture the evolving nature of
• Lucien Alziari, Prudential Financial
the CHRO role while integrating new expectations
of and opportunities for top CHROs. • Dick Antoine (Emeritus)*, P&G
• Nic Brassey*, Amazon
• Sheri Bronstein*, Bank of America
• Heidi Capozzi, McDonald’s
• Michael D’Ambrose, Boeing
• Roberto Di Bernardini*, Santander
• S
 ebastian Fernandez Silva*,
Mercado Libre
• Ashley Goldsmith*, Workday
• Monique Herena, American Express
• Lynanne Kunkel*, Vail Resorts
• Abbe Luersman*, Otis Worldwide
• Ruth McGill*, ING Group
• Michael O’Hare, Estée Lauder
• Christy Pambianchi, Intel
• Chris Scalia*, Hershey’s
• Ronald Schellekens*, Pepsico
• Daniela Seabrook*, Philips
• Jill Smart (Emeritus)*, Accenture
• Aileen Tan*, Singtel
• Kevin Walling*, PPG Industries

*CHRO Global Leadership Board (CGLB) Members

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Introduction
1. About the CHRO Global 2. A New Chapter for the
Leadership Board World-Class CHRO

Established in 2017, the CGLB is comprised of Why refresh the model now? Since its
more than 20 CHROs from many of the world’s inception, the Model of a World-Class
leading companies with expertise in HR, talent CHRO serves as a standard of excellence
management and executive leadership. The for CHROs — it is considered a “north star” for
Board’s purpose is to lead a collaborative effort many CEOs, boards of directors, academic
among the most distinguished and trusted instructors and industry groups. However,
global CHROs, offering the global HR community as the world rapidly changed — with historic
valuable business guidance. This movement disruptions in business — so did the role of
is based on the core belief that peer-to-peer, the CHRO. From rising stakeholder demands
cross-industry collaboration is key to optimizing and shifting dynamics in the workforce to
individual and organizational success. new ways of working and increased digitization,
The Board’s work fosters a community of CHROs are facing a level of unprecedented
thought leaders dedicated to advancing the change, altering the landscape in which
HR community with an emphasis on defining a they operate.
world-class CHRO, developing the workforce of From the outset, the CGLB recognized that
the future and enabling business growth. This the Model of a World-Class CHRO could
publication addressed the first focus by sharing not remain static. In response to the significant
the global standard for a world-class CHRO, with level of change in recent years, the Board
an eye toward how great heads of HR perform determined it was time to refresh the model
their roles and how successors to the CHRO to capture the evolving nature of the World-Class
role are developed. The latter focus areas aim CHRO’s role. The refresh work was led by Kevin
to ensure that CEOs and boards understand Cox (CHRO, GE) and Carol Surface (CHRO,
how to manage disruptive business and labor Medtronic), with substantial input and assistance
market trends, and how to harness the power from several members of the CGLB. Recognizing
of analytics and processes by embedding talent the strength of the original model, the core
data and culture insights into the everyday structure and foundation remains unchanged,
business decisions of leaders. while other elements of the model have been
More information on the Board can be found at updated to reflect the new demands placed on
gartner.com/en/human-resources/research/ heads of HR and the changing character of the
chro-global-leadership-board. roles that a world-class CHRO plays.

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Like five years ago, current expectations of CHROs 3. How This Model Is Different
continue to vary widely across organizations and
among business leaders. Today, boards of directors
and CEOs are expecting more from CHROs than The Model of a World-Class CHRO: Chapter
ever before as expectations transcend historical 2 recognizes functional leadership, business
areas of focus on areas like succession, culture acumen and business strategy development
and compensation. Even within the HR function, a as the foundational requirements of a world-
CHRO’s direct reports aren’t always certain of how class CHRO. It then lays out five core roles, or
the head of HR spends their time. A model for great pillars, that are comprehensive but flexible.
HR executives creates visibility into all the aspects Each component of the model is aimed at a
of the role. Relatedly, the model asserts a baseline CHRO’s primary goal: to drive business results.
of excellence to allow CHROs to innovate more First and foremost, this model is action-oriented,
quickly in the role — and the new chapter reflects with curated guidance from CHROs representing
the evolving competencies and expectations for the world’s leading organizations. It includes
today’s World-Class CHRO. the skills that a head of HR will need to succeed
The time is now for a second chapter of the and covers the most important moments that
model that reevaluates the key roles played by can make a CHRO’s career. Second, this model
the CHRO — and sets the standard for what it has global applicability, having been tested by
means to be a world-class CHRO within those CHROs at organizations headquartered across
roles. Changing stakeholder expectations, the world to ensure it is flexible enough to adapt
transformations to the office and nature of work, to business, industry or regional variations, while
diversifying workforces and labor dislocation still being rigid enough to be meaningful. Third,
all present new challenges for today’s CHRO. the adaptability of the model, reflected in this
Competition for critical talent has and continues refresh, captures the dynamic character of the
to increase, and heads of HR are rethinking how HR function, while demonstrating that the core
they deliver HR services to their organizations. structure of the model remains an enduring
The next chapter of the model addresses the foundation for CHRO success. Finally, this model
challenges CHROs face today, while anticipating escapes the “HR echo chamber” through its
the broader context of the near and midterm. validation directly with CEOs. Interviews with
CEOs have provided a level of certainty that
this model aligns to the value CEOs envision
their CHROs providing. The model strives to use
“I expect my head of HR to be a broad-gauge
the language of CEOs and the language of the
business executive, to not only lead HR
but to speak up on business strategy issues
business that is intelligible to all business leaders
across the enterprise.” and avoids HR jargon.
CEO, Financial Services Industry

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4. How to Use This Model Use Case 4: Developing likely CHRO
successor(s)
The model can be used as a development
The Model of a World-Class CHRO is tool, helping to point out gaps that may not
intentionally aspirational and represents the be obvious.
best demonstrated qualities of HR leaders. The Use Case 5: Adapting the model to BU/division
key point is that leading CHROs never ignore any heads of HR
of these roles, even if they disproportionately These leaders may need to elevate their
prioritize one or two in a given year. Relatedly, strategic contributions, beyond the tactical.
the CGLB recognizes that HR leaders may find Use Case 6: Helping a CEO (or a search firm)
it impractical to simultaneously excel at every go beyond the “comp and talent” CHRO job
component of the model. description
To navigate this challenge, we continue to The model lends clarity to what can be
encourage CHROs to discuss with their CEOs expected from a CHRO.
how they should prioritize the five core roles at Use Case 7: Educating the executive leadership
the center of the model, based on the CEO’s team about the role of the CHRO
priorities and the strategic position and direction The model can be used to help peers
of the business. Based on feedback from the understand the distinct roles CHROs play
and what they prioritize.
original model, the CGLB notes this as a useful
practice as a part of annual goal setting and
performance check-ins.
Additionally, there are several distinct use cases
for the Model of a World-Class CHRO: Chapter
2. While this list is nonexhaustive, it is intended
to provide clarity on how a world-class CHRO
can leverage the model with their peers, direct
reports, CEOs and other key stakeholders.
Use Case 1: Contracting with new CEOs
The model allows CHROs the chance to align
on mutual expectations with new CEOs.
Use Case 2: Recontracting with
current CEOs
The model provides a framework for CHROs
to elevate with their existing CEO and continue
to climb the value-added stack.
Use Case 3: Using the model in board
of director contexts
This can include conducting one-on-one
orientation meetings with new Board members.

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5. The Model of a World-Class Business Strategy Development
CHRO: Chapter 2 Superior CHROs go beyond integrating HR and
business strategy. They shape, influence and
create the business strategy itself. Today’s business
Foundation
headlines suggest, and in all likelihood demand,
Functional Business Leader that CHROs provide a greater measure of leadership
to CEOs, as they face scrutiny when culture falls
Running a credible, capable and fiscally
short. World-class CHROs are viewed as business
responsible HR function is the bedrock upon
executives who happen to be HR experts, rather
which a CHRO builds their credibility. Leading
than HR experts supporting the business.
a corporate function while simultaneously
tending to the needs of the board, the CEO and
peers on the executive leadership team require
an exceptional supporting HR organization. “HR leaders need to continually focus on
Great CHROs must ensure they have high- the vital few roles that match that particular
performing HR leaders who capably manage moment of the company. HR efforts should
be highly situational within a long-term view.”
talent acquisition, executive compensation and
leadership development, to name just a few. CEO, Agriculture Industry
Although it is logical for any career HR expert
to be passionate about nurturing talent through
carefully crafted processes, great CHROs The Roles
recognize that leading the function requires
At the center of the model are five roles played
selecting and motivating an excellent HR team
by a world-class CHRO, and within each role are
to deliver business value. By enabling them to
three activities that satisfy the role. The roles are
use data and technology, great HR functions
designed to be coequal and should be weighted
can more efficiently manage HR systems and
and reordered based on the CEO’s priorities and the
processes and inform strategies.
strategic position and direction of the business. But
Business Acumen none of the roles can be neglected completely,
and great CHROs ensure that pillars that have been
For today’s CHRO to be successful, business
deprioritized are covered by a strong member of
acumen — an understanding of the business
the HR team. However, it is notable that world-class,
model, financials, markets and customers — is
influential CHROs are rated as competent in most of
never optional. HR leaders must understand
these pillars by their boards.
how the business operates, delivers value to
its ownership and upholds the promise of its
brand and reputation to stakeholders — from
customers to business partners to its
own employees.

“Great CHROs speak out on any business

issue. Anything that rises to the executive
leadership team is fair game.”
Former CEO, Technology Industry

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Board and CEO’s Leader of Human

“
Capital and Culture I received a meaningful leadership lesson
from a hotel cleaning woman who greeted
Great CHROs guide the board and CEO’s
me cheerfully and told me she was there ‘to
thinking on a range of talent topics. Wherever
make sure I feel at home every day.’ She had
major strategic shifts in markets or society transformed her job into something much
intersect with human capital, CHROs should be more noble that had nothing to do with
on hand to provide a point of view and strategy. cleaning hotel rooms, drawing energy from
Most recently, shifts in the nature of the always thinking about the next customer she
would help to feel at home while on vacation,
workplace have intensified the Board’s focus on
something to which we all aspire.
human capital and culture, where world-class
CHROs successfully provide thought leadership. Every company needs to invest energy in
helping employees transform every activity
Three components that define excellence in
they do into that nobler purpose. The first
this pillar include CEO and C-level transitions, mission of any company is to define what
building effective compensation supported by it does beyond generating a good profit.
shareholders and driving culture and purpose The purpose is something that leaves a
in organizations. unique fingerprint in society. If you define a
meaningful, impactful purpose, you will have
Plan and Support CEO and C-Level much less trouble attracting and retaining the
Succession best talent.
Defining a purpose is critical for an FMCG
World-class CHROs know that CEO and C-suite
company because today we need to attract
succession are among the most important people who are experts in e-commerce,
conversations they have with the board — and profit revenue growth management, not only
are unique conversations that differentiate them marketing. But people with these skills are
from other executives. Succession requires targeted by every industry. Without a purpose
the construction of a future-facing scorecard, that is completely different and defines our
value in society, we can never compete across
objective evaluation of peers for key roles
industries. Our employee value proposition
and, uniquely in the case of CEO succession, talks about our unique economic and social
valuable input on who their own leader should project — our mission to bring health through
be. As boards increasingly expect executive food to as many people as possible, our
succession to be an evergreen process that commitment to humanism and our strong
occurs well in advance of an expected (or sustainability agenda … and we inject
elements of that purpose into all of our people
unexpected) succession event,1 world-class
processes, from recruiting to compensation to
CHROs prepare for this role by constantly performance management.”
seeking out and developing new talent to fit
Roberto Di Bernardini, Chief Human
top-level roles — they are analytical, calling Resources Officer, Danone
on a combination of evidence and experience
when evaluating potential leaders for fit.

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Build Effective Compensation Supported Drive Culture and Purpose
by Shareholders
While CEOs own organizational culture,
Compensation, not only for executives but for the CHROs are their partners in building a culture
entire organization, is a dominant discussion for that drives performance, working together to
CHROs in the boardroom. World-class CHROs link tie organizational purpose and culture back to
expertise in compensation to their understanding business strategy. Almost all CEOs believe in the
of business strategy, translating it into a performance importance of culture — it is expected that 71%
management and rewards system that creates of CEOs will increase their investments in people
business value for shareholders. These CHROs and culture development in the immediate
counsel the board as to when it’s appropriate to future.2 Discussions of culture and purpose are
listen to shareholders or when to be contrarian — vital and must not be deferred until moments of
effectively framing this discussion is critical. crisis, especially as external trends and business
disruptions are subjecting culture to more scrutiny
from stakeholders. A world-class CHRO knows
how to partner with their CEO to align workforce
“Any VP of Compensation can follow the
recommendations of advisory firms, but a to organizational culture, holding people,
CHRO has the unique understanding of what programs and processes accountable.
the organization is trying to accomplish.”
For today’s CHRO to be successful, business
Former CEO, Professional Services Industry acumen — an understanding of the business
model, financials, markets and customers — is
never optional. HR leaders must understand
how the business operates, delivers value to
its ownership and upholds the promise of its
brand and reputation to stakeholders — from
customers to business partners to its
own employees.

“A CHRO who thinks hard about culture is

underappreciated; it requires so much time
to understand what culture even is.”
Former CEO, Communications Industry

1
2021 Gartner Board of Directors Talent Survey
2
2022 Gartner CEO and Senior Business Executive Survey

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Competencies and Defining Moments

Competencies Defining Moments

Cultural visioning Managing a CEO transition

Ability to partner with the CEO and executive Managing a major leadership transition, from
peers to craft both the organization’s unique the development of a succession process and
purpose, based on the broader business the identification and development of successor
strategy and social context, and a culture that candidates to the exit and onboarding of the
will deliver on that purpose for customers new CEO

Process design Leading independent board interactions

Ability to harmonize HR processes to be Engaging board members in meetings and
consistent with organizational purpose and individual interactions on sensitive issues
culture and influence leaders to align business that require navigating tensions between
processes with the culture the CEO and board (i.e., CEO performance
conversations)

Crafting a new mission/vision/values

Leading work to establish a new mission,
set of values or vision for the organization to
better compete in the market after a large-
scale integration, business transformation or
leadership transition

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Win in a Dynamic Talent Landscape
World-class CHROs distinguish themselves
by their ability to identify future trends,
opportunities and disruptions to the business
“ As business leaders and CHROs, our top
focus is creating and maintaining diverse,
high-performing teams that drive business
results. Continued success depends on the
and shift their people strategies to seize unique capabilities and innovation of our
opportunities. Research indicates that the people working together, coupled with the
pace of change in the talent landscape is resources and tools they need to succeed.
ever increasing, as organizations continue to Human Resources must align that strategic
approach with the business to build a talent
face new competition and new opportunities.
framework that leverages the strengths of
Simultaneously, the shift to different ways of
each person. Every teammate should be in
working, difficulties in retention and recruiting, the right role and on the right team to drive
and the enduring importance of diversity, success and achieve extraordinary results.
equity and inclusion (DEI) place ever-greater CHROs must have multifaceted knowledge
demands on the CHRO to create an engaging about business priorities and an understanding
of teammates’ capabilities and potential
and effective talent strategy — staffing the right
while implementing individual and enterprise
people in the right roles at the right place and
development strategies.”
time to drive business outcomes. Talent and
Michael D’Ambrose, EVP and Chief Human
business strategy discussions are not distinct
Resources Officer, Boeing
but concurrent and complementary; CEOs
and organizations rely on the CHRO’s vision for
finding, managing and developing employees
Ensure Top Talent and Capabilities for
to accomplish their strategic goals as boards
Critical Roles
anticipate that it is in this role that CHROs will
spend the most time.3 Ensuring top talent and CHROs are often personally involved in
capabilities for critical roles, embedding DEI identifying the handful of roles most critical
into talent and culture strategy, and delivering to an organization’s success — and engaged
a compelling employee value proposition (EVP) in the process of filling them. Recent years
are three primary distinctions of excellence in have seen up to a 43 percent increase in
this aspect of the role. attrition, and hiring demand has spiked to its
highest levels across virtually every function.4
In addressing this, CHROs need to be able
to identify overlooked, but valuable, existing
roles, as well as new roles that will be crucial
in the future to build a pipeline of top talent.

“The design and development of a talent

vision is crucial. A CHRO needs to understand
and assimilate the context and direction
of the organization to develop the strategies
to implement that vision.”
Former CEO, Manufacturing Industry

3
2023 Gartner HR Priorities Survey
4
2021 Gartner Hybrid and Return to Work Survey, Gartner TalentNeuron™ Analysis

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Embed DEI Into Talent and Culture Strategy Deliver a Compelling EVP
Great CHROs recognize that DEI initiatives must be Evolving workplace dynamics have increased
integrated into every aspect of their organization’s pressure on businesses to develop compelling
people strategies. While most organizations cite employee value propositions that go beyond
diversity and inclusion initiatives as strategic benefits and financial rewards. In response, a
priorities, shifts in the talent landscape, such as world-class CHRO seeks constantly to develop,
tighter labor markets and recent social justice crises maintain or enhance their organization’s EVP.
have intensified calls for more comprehensive DEI Attrition is a growing challenge for organizations,
strategies. Sixty-eight percent of surveyed board as are recruiting difficulties. At the same time,
directors desire more support from CHROs in plans employees are demanding a more human-centered
to maintain or increase organizational diversity.5 approach to EVP that speaks to the entirety of
At the same time, 60% of employees believe their their work experience, while, in several industries,
organizations are already doing enough to drive flexibility in both location and schedule have
DEI outcomes.6 World-class CHROs must balance become foundational.7 World-class CHROs balance
stakeholder demands to build an employee-centric these dynamics to shape the employee experience
approach to DEI- aligned talent and culture strategy. in line with the promised EVP and desired culture
to drive engagement and high performance.

Competencies and Defining Moments

Competencies Defining Moments

Business decision making Driving executive decision making around a

Ability to apply holistic understanding of the key trend affecting the enterprise
organizational business model, financial data Proactively monitoring macro and micro trends
and external trends to make effective decisions (e.g., changing nature of work or the workforce)
on the current and future talent needs of the and directly influencing key business outcomes
business and resulting people decisions around rewards,
talent development and talent acquisition

Evaluating key talent Delivering capabilities for a business

Ability to continuously scout out, assess and transformation or new business acquisition
recruit key talent from diverse sources to add Identifying when a new business strategy
to the leadership bench requires a material shift in people strategy (i.e.,
turnaround, new market strategy) and then
developing, designing and implementing the
human capital plan that is needed to meet the
business demands for capabilities in the right
place and at the right time

Talent management expertise

Ability to stay current on and apply the most
effective talent management techniques to solve
the organization’s human capital challenges

5
2022 View from the Board of Directors Survey
6
2021 Gartner September Human Deal Benchmarking Survey
7
Gartner TalentNeuron™ Analysis
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Leader of Enterprise Strategic Change
Increasingly, CHROs have facilitated larger
and more rapid changes in their organizations,
and world-class CHROs recognize that their
“ During my tenure as CHRO of various
organizations, leading enterprise change
continues to be a significant part of my role. In
developing this pillar of Chapter 2, we wanted
functions are catalysts of change — the average to enforce the key point that a world-class
employee endured 10 enterprise changes in CHRO does not catalyze ‘change for the sake of
the past year.8 World-class CHROs are catalysts change.’ However, my job requires me to identify
for leading strategic enterprise change efforts and drive important cultural shifts to the status
quo, while holding our leaders accountable.
in response to business needs while ensuring
Sometimes, these changes are popular — other
change efforts are not “change for the sake of
times, they are not. As CHRO, I need to lead
change.” Relatedly, CHROs must assess the all change with courage, and coach company
capabilities required for the organization to lead leaders and HR teams to do so as well.
change effectively and develop the frameworks At GE, we are transforming our culture
and mechanism to ensure impact. through leadership behaviors, performance
management, and the integration of lean. By
Create Organization Agility and Resilience driving change through these levers to influence
Capability behavior, we are aiming to make a positive
impact on our culture and our performance. The
In an environment where change is a constant, result has been valuable to our current efforts to
CHROs need to ensure that leaders are held build three industry-leading, global, investment-
accountable for driving change, while building grade public companies focused on the growth
capabilities to support organizational agility. sectors of aviation, healthcare and energy. As
our teams work through these critical priorities,
With agility comes resilience — the more
they are leading change through a historic and
CHROs empower business leaders to respond exciting phase.”
to change, the better employees can withstand
Kevin Cox, Chief Human Resources Officer,
transformation, whether from outside or within GE
the organization.

Assess and Catalyze Actions to Drive

Competitiveness

CHROs are responsible for identifying when “HR credibility is built when its leaders come
change is needed and catalyzing that change up with ideas that will move the business
forward, that on their face have nothing to
efficiently and sustainably, challenging the status
do with HR.”
quo when necessary. This requires a world-class
CEO, Financial Services Industry
CHRO to assess the external trends that are
enduring, which may influence major shifts in
the enterprise model. It also requires CHROs to
proactively advocate for organizational change.

8
2022 Gartner Workforce Change Fatigue Survey

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Integration of Organizational Levers to
Sustain Change

CHROs use many levers to drive and reinforce

change, such as compensation, talent strategy
and metrics — a world-class CHRO understands
how to order, prioritize and integrate them to
sustainably maximize performance, as well
as drive culture change and transformation.
Properly managing these levers ensures
changes are enacted with minimum disruption
and maximum buy-in.

Competencies and Defining Moments

Competencies Defining Moments

Customer orientation Designing a strategy to enable an

Ability to articulate the case for enterprise organization to implement the right
change in terms of the evolving expectations structure for future business needs
of the organization’s customers and the Building an infrastructure that enables
implications on the workforce fundamental changes in the way work gets
done in the organization to drive employee
engagement and organizational performance

Adaptive leadership Leading a bold experiment

Ability to quickly and flexibly deploy HR Seizing an opportunity for bold and
resources to manage change and sustain courageous leadership, such as the launch
change momentum when issues arise of an innovation center or incubating a
radically different business inside the
enterprise to evolve talent and support
growth

Motivational leadership Implementing a large-scale change to

Ability to communicate a compelling/inspiring compensation or benefits
vision and clear goals to all employees in Implementing a new compensation
a transparent way so they understand the or benefits strategy that carries significant
complete rationale for change workforce risk, such as shifting from a defined
benefits to a defined contribution plan or
launching a voluntary separation program

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Leading Through Evolving

“
Stakeholder Scenarios The past two years have been incredibly
dynamic, and companies have had to respond
A world-class CHRO must act as a sense-maker,
to external trends like never before. Our role as
advocate and champion for the workforce in
CHRO has been amplified — creating greater
dynamic, evolving stakeholder environments, expectations for driving business results
navigating conflicting interests. More than while anticipating and answering to evolving
ever before, CHROs are expected to help stakeholder interests in meaningful ways.
CEOs and boards respond to internal and At Medtronic, our multiyear CEO succession
external stakeholder pressure. Great CHROs planning process resulted in the promotion
anticipate and respond to external trends, align of our CEO who was appointed at the onset
and link organizational metrics to stakeholder of the pandemic and subsequent social
unrest. During this pivotal time, we began
expectations, and advocate for the workforce
a transformation that included evolving
as a primary stakeholder — balancing how to our strategy, operating model, culture and
best satisfy stakeholder demands while driving incentives, and acquiring new talent and
results and employee engagement. capabilities to win. As CHRO, my focus was
not only on leading enterprise strategic
Anticipate and Respond to External Trends change and driving culture and purpose —
but also on advising our CEO and executive
CHROs serve as convenors of responses to
committee with guidance to respond to
external trends by anticipating when external the rising expectations of our employees,
issues will affect the organization and its customers, communities and shareholders.
workforce, raising them to the board’s attention I share this example to highlight how all the
and recommending the next action to take. pillars of the model are intrinsically linked,
Increasingly, organizations expect their CHRO to with the role of the CHRO leading through
represent the brand with external stakeholders, evolving stakeholder scenarios more important
while diversity and inclusion, social responsibility than ever. In today’s interconnected world,
the ability of an organization — and therefore
and sustainability are front of mind for investors,
its CHRO — to demonstrate value across all
activists and employees. While not the exclusive stakeholders will ultimately determine long-
domain of the CHRO, this is a role that needs term success.”
to be prioritized and visible. Relatedly, if an Carol Surface, EVP and Chief Human
organization’s reputation or brand comes under Resources Officer, Medtronic
threat, world-class CHROs are key partners to
the CEO to guide the response, using the firm’s
purpose and values to guide action. Great
CHROs excel at this by creating a dialogue
with other business leaders and developing
joint plans to capitalize on opportunities and
minimize negative impact.

15 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. CM_GBS_2030203
Align and Link Organizational Metrics to Align and Link Organizational Metrics to
Stakeholder Expectations Stakeholder Expectations
Great CHROs use metrics in a way that World-class CHROs most successfully work to
captures the needs of various stakeholders, understand and incorporate employee voice,
manages expectations and signals progress while effectively balancing business results and
on organizational priorities. In fact, there is competing stakeholder demands. As employees
an increasing need to ensure organizational increasingly look for their interests to be
metrics are responsive to the growing list championed, it becomes ever more vital for
of stakeholder expectations.9 Case in point: CHROs to lead here. In this way, great CHROs
73% of board directors want their CHROs to consider the effects of change on employees,
increasingly help the board leverage human lead with a compelling vision and clear goals, and
capital metrics to support decision making. work with employees to achieve favorable business
A world-class CHRO ensures these metrics results while delivering on the culture promise.
accurately reflect the needs of the business,
prioritizing the most relevant measures, and
communicates decisions and strategy to
internal and external stakeholders.

Competencies and Defining Moments

Competencies Defining Moments

Judgment Managing executives through a sensitive/

Ability to effectively and succinctly crisis situation
frame complex cost-benefit analyses Managing a sensitive, high-risk event that
to advise the board on major human capital jeopardizes the reputation and brand of the
decisions, recommending the best potential organization
course of action

Proactivity/trendspotting Managing impact of digitalization

Ability to anticipate future human capital Managing the organization through
problems the board must address, develop the pressures and demands of evolving
mechanisms to surface and manage the workplace technologies, such as artificial
problems in advance, and monitor for further intelligence, social learning and data
action by the board analytics — and proactively anticipating the
impact on culture and employee effectiveness

Leading a cultural transformation

Designing a long-term initiative to drive a
turnaround of the culture and engagement
across an organization

9
2022 Gartner View from the Board of Directors Survey

16 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. CM_GBS_2030203
Trusted Advisor and Coach
To outsiders, making it into the CEO’s inner circle
makes this role perhaps the most glamourous of
the five. There is strong consensus between CEOs
“ Several years ago, we were breaking into a new
business area. There were a lot of moving parts,
and we needed a very niche talent, which we
were able to find and hire. But not long into
and CHROs that this is one of the most critical this person’s tenure we received some conduct
roles a CHRO can play.10 World-class CHROs concerns. We conducted an investigation, and
must build credible trust with the CEO, while also it was a situation we could have dismissed as
ensuring strong partnerships with their peers. a “culture issue” or “misunderstanding.” There
were ten good market reasons for us not to deal
In addition, they provide deep insight into the
with it; what the person did wasn’t unlawful,
dynamics of the leadership team and give helpful
this person was really hard to find and not
feedback but do not become a crutch to the easily replaced, etc. But this person was not
leadership team. They need to be impartial in the transparent or forthcoming in the investigation,
face of high-stakes conversations and situations and we knew we had to move forward quickly.
and be prepared to defend positions that may be So, we decided to sever the relationship. We
took a short-term blow that was painful, but we
controversial. Great CHROs achieve excellence in
grew our credibility in the long term.
three aspects of this role: advise and coach the
CEO, maximize senior team effectiveness and How you execute when the business is under
pressure is one of the most important parts of
coach and develop key enterprise talent.
this job. It’s times like these where you must
be arm-in-arm with your business leaders and
Advise and Coach the CEO
look not just at what the rules are or what the
The CEO-CHRO relationship is unique among all business parameters say, but how your response
executive partnerships. The CHRO is an advisor aligns with your culture. You have to build a
to the CEO on not only human capital issues, relationship of trust, advocacy and mutual
respect on the little things first, so you can be
but everything from business strategy to the
the canary in the cage when it really matters.”
leadership style and effectiveness of the CEO,
Martha Delehanty, Chief People Officer,
acting as a critical sounding board. At the same
Commvault
time, the perceived independence of the CHRO
must be balanced against the reality of their role
as a direct report. World-class CHROs are often
the executives most willing to confront their CEOs
with uncomfortable truths and can advocate the
CEO take a different position on a key issue.

“Helping senior leaders coalesce into a

high-functioning team is what I’m looking
for most in a CHRO.”
CEO, Retail Industry

17 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. CM_GBS_2030203
Maximize Senior Team Effectiveness Coach and Develop Key Enterprise Talent
World-class CHROs ensure an organization Great CHROs use their coaching skills to develop
is getting the most from its leadership team, key leaders across the enterprise, including those
through both individual coaching and a keen on the executive team and promising talent
understanding of how to build effective senior elsewhere in the organization. World-class CHROs
teams. Great CHROs do this by providing scout out the next generation of talent with a keen
balanced, objective and honest counsel to senior eye for rising, high-potential leaders who might
leaders. They are often called upon to hold senior otherwise be overlooked. CHROs personally invest
leaders accountable, while acting as unparalleled in the success of these individuals, providing
listeners, maintaining strict confidentiality and development assistance and helping to connect
unwavering ethics at all times. them with other leaders and opportunities.

Competencies and Defining Moments

Competencies Defining Moments

Emotional intelligence Engaging executives in critical dialogue on

Ability to identify areas of personal strength and leadership needs
weakness in one’s own role and seek out diverse Engaging and influencing senior leaders
feedback and points of view to manage one’s and board members to think about the
own emotions and those of others organization’s future leadership needs,
using data-driven decision making to build
a comprehensive succession plan that is
implemented

Speak objectively Courageously advocating a contrarian

Ability to provide balanced and impartial position with the CEO
counsel to senior leaders while maintaining Recognizing significant business risks of CEO
strict confidentiality and unwavering ethics action or inaction on a human capital issue
within a politicized work environment (e.g., firing a top performer) and respectfully
but firmly advocating for the CEO to take their
course of action

Persuasion
Ability to engage the board, CEO and peers
on important, controversial issues and build a
compelling case to change their minds when
necessary

10
2021 Gartner Board of Directors Talent Survey

18 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. CM_GBS_2030203
A Continuous Evolution: Conclusion
Trend Watchlist The Model of a World-Class CHRO: Chapter
2 builds on the original model, recognizing
As the business landscape evolves, so do the
trends and key changes in the HR function
dynamic trends that impact the CHRO’s role
over the past few years. Designed as an
and the broader HR function. This has never
open-source tool supported by research, the
been more pronounced than in the past several
model aims to build awareness of the potential
years. In response, the CGLB has created a
for CHROs to play a much broader role in their
new component of the Model of a World-Class
organizations to achieve business results.
CHRO: The Trend Watchlist. The presence of
At the same time, in the context of a dynamic
the watchlist builds additional flexibility into
business landscape, there is no single path
the model and will enable CHROs to anticipate
forward for CHROs to become “world class,” as
major trends, access insights and develop
they each face different expectations from their
capabilities in response.
CEOs, boards and executive and HR teams on
how their time is spent. The key for world-class
The Capstone: Driving CHROs is to work within their business contexts
Business Results and with their CEOs to prioritize the model’s
roles based on the needs of the organization.
This aspect of the model remains constant.
When performing each role, a world-class
CHRO always focuses on the ultimate goal:
driving business results. When CEOs judge
the value of their HR leaders, they ask what
the CHRO can do to drive business results,
and just as critically, what work the CHRO can
stop. CHROs who can answer those questions
demonstrate the difference between leaders
who achieve functional excellence and leaders
who drive great business outcomes.

19 © 2022 Gartner, Inc. and/or its affiliates. All rights reserved. CM_GBS_2030203
Actionable, objective insight
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