Outlier CHROs: What Differentiates HR Executives Who Consistently Outperform Their Peers?

In today’s rapidly evolving business landscape, the role of the Chief Human Resources Officer (CHRO) has transformed from being a back-office support function to becoming a key strategic partner in driving organizational success. Companies are recognizing the immense value that a high-performing CHRO brings, from shaping the talent agenda to steering culture, enhancing employee engagement, and ensuring that the workforce is agile and aligned with the company’s goals. But what sets apart the CHROs who consistently outperform their peers and rise as outliers?

In this article, we will explore what differentiates these exceptional HR leaders, drawing on global perspectives and examples from CHROs who have become stars in their respective companies.

1. Strategic Business Acumen

The most successful CHROs possess deep strategic business acumen, understanding that HR is not an isolated function but an integral part of the business ecosystem. They engage in business decisions as true partners, providing insight on workforce implications while also contributing to broader business strategies. This shift from an administrative HR focus to a more strategic, data-driven approach has elevated the role of the CHRO in organizations. 

Take Leena Nair, the former CHRO of Unilever and now CEO of Chanel. At Unilever, Nair played a pivotal role in shaping the company’s diversity and inclusion agenda, talent strategy, and digital transformation, aligning HR practices directly with business growth objectives. Her deep understanding of the business’s broader goals allowed her to implement a global talent strategy that increased agility, innovation, and workforce engagement across Unilever’s global operations. 

2. Data-Driven Decision Making

Outlier CHROs recognize that data is a goldmine for making informed decisions about talent acquisition, retention, employee engagement, and workforce development. They harness the power of HR analytics and use real-time data to inform their decisions, predict workforce trends, and measure the impact of HR initiatives on business outcomes.

CHROs who consistently outperform are able to translate HR data into insights that the business understands, which helps justify HR decisions at the highest levels. These leaders create predictive models that can forecast turnover risks, employee engagement, and even team dynamics, allowing them to take proactive steps to mitigate potential challenges.

Tracy Keogh, the CHRO at HP, has been a strong advocate of data-driven HR. She led HP through its transition from one of the largest tech conglomerates into two separate entities: HP Inc. and Hewlett-Packard Enterprise. Keogh utilized data to understand the needs of the employees, manage transitions smoothly, and maintain a strong employer brand while reducing turnover and ensuring consistent workforce engagement. 

3. A Focus on Employee Experience

Today’s workforce expects more than just competitive salaries and benefits. The employee experience — encompassing the entire employee lifecycle, from onboarding to career development and offboarding — has become critical to attracting and retaining top talent. CHROs who stand out are those who prioritize creating a seamless, engaging, and enriching employee experience.

Outlier CHROs are experts in crafting a culture of belonging and innovation, ensuring that employees feel valued and that their contributions matter. They are aware that talent has choices, and as such, they focus on creating an environment where employees want to stay, grow, and excel.

Kathleen Hogan, Microsoft’s Chief People Officer, has been instrumental in creating a culture at Microsoft that emphasizes diversity, inclusion, and employee empowerment. Hogan focuses on the holistic employee experience, fostering an environment where employees can bring their authentic selves to work. Her efforts have not only enhanced employee engagement but also strengthened Microsoft’s employer brand, positioning it as a leader in talent management.

4. Resilience and Agility

In a volatile, uncertain, complex, and ambiguous (VUCA) world, businesses need HR leaders who are both resilient and agile. Outlier CHROs are those who can quickly adapt to changes, whether it's a shift in market conditions, new regulatory requirements, or unforeseen global events such as the COVID-19 pandemic. They are able to pivot HR strategies on a dime and build resilient workforces that can weather disruptions.

These CHROs are forward-thinkers who plan for the future workforce while managing the challenges of the present. Their ability to respond to crises, maintain employee morale, and drive strategic talent initiatives during challenging times differentiates them from their peers. 

Fiona Cicconi, CHRO at Google, demonstrated exceptional resilience during the pandemic by ensuring that Google’s employees transitioned to remote work smoothly while maintaining productivity and morale. Her leadership in implementing mental health initiatives, ensuring employee well-being, and fostering an inclusive culture during this challenging time has been widely praised.

5. Visionary Leadership in Diversity, Equity, and Inclusion (DEI)

Inclusion is no longer just a buzzword; it’s a business imperative. Outlier CHROs have a visionary approach to DEI, understanding that a diverse workforce brings fresh perspectives, fosters innovation, and enhances decision-making. They move beyond compliance to embedding diversity, equity, and inclusion into the core of the company’s culture and values.

These HR leaders are proactive in establishing DEI strategies, promoting diverse leadership, and creating equitable opportunities for all employees. Outlier CHROs also hold their leadership teams accountable for diversity goals, ensuring that DEI is not just an HR initiative but a company-wide priority.

For instance Lisa Buckingham, the former CHRO at Lincoln Financial Group, was recognized for her leadership in advancing DEI within the company. She introduced several initiatives aimed at building a more diverse talent pipeline and fostering an inclusive workplace. Under her leadership, Lincoln Financial Group saw significant progress in the representation of women and minorities in
leadership roles, reflecting the impact of her visionary DEI strategy. 

6. Transformative Digital Leadership

Digital transformation is reshaping the business landscape, and outlier CHROs are those who champion and lead the digitalization of HR. From leveraging HR technologies to streamline recruitment and onboarding processes to using AI and machine learning for talent analytics, these CHROs understand the potential of digital tools to enhance HR efficiencies and employee experiences.

They are not afraid to experiment with cutting-edge technologies to create a future-ready workforce and drive a culture of innovation. Their ability to integrate technology into HR functions not only improves operational efficiency but also positions the organization as a modern, forward-thinking employer.

Diane Gherson, the former CHRO of IBM, spearheaded a digital transformation initiative within the company’s HR function. She was instrumental in implementing AI-powered tools for talent management and employee engagement, transforming IBM’s workforce strategy and setting a benchmark for digital HR leadership in the industry.

7. Building a Strong Employer Brand

Outlier CHROs understand the importance of a strong employer brand in attracting and retaining top talent. They actively work on shaping the company’s employer brand to reflect its values, culture, and vision, making it an appealing destination for prospective employees. These CHROs collaborate with marketing and communications teams to craft compelling employer branding strategies that resonate with today’s talent.

Peter Fasolo, the CHRO of Johnson & Johnson, has been instrumental in building a powerful employer brand that highlights the company’s commitment to employee well-being, professional development, and social responsibility. Fasolo’s work in employer branding has helped Johnson & Johnson consistently rank as one of the best companies to work for globally.

The Future of HR Leadership

The CHROs who consistently outperform their peers are those who break away from traditional HR molds and embrace a more strategic, data-driven, and visionary approach. These outlier CHROs are proactive in fostering inclusion, driving digital transformation, and creating an exceptional employee experience. Their ability to align HR practices with business objectives and navigate the complexities of a changing workforce landscape makes them invaluable leaders in today’s global marketplace.

As the role of the CHRO continues to evolve, these HR leaders will play a critical role in shaping the future of work, ensuring that their organizations not only survive but thrive in an increasingly competitive environment.