Words to the Wise: Bridging the Gap Between CEO Expectations and HR Performance for Business Success

Strategic HR Hawaii (November 2025)

After decades of certification programs and “HR transformation” initiatives, why do CEOs still say HR isn’t strategic?

CEO Expectations vs. HR Performance

Despite decades of transformation initiatives, professional development, and technology investment - complete with certifications, competency models, and countless leadership programs - the gap between what CEOs expect from HR and what most HR functions deliver has barely narrowed.

CEO Priorities vs. HR Outcomes

Research continues to show that CEOs view talent, culture, and leadership as the most critical drivers of business success—yet HR still often struggles to convert those priorities into measurable organizational outcomes.

Barriers to Strategic Impact

The issue is rarely a lack of commitment, effort, or intent. Instead, misalignment, capability gaps, and entrenched mindsets hinder HR's strategic effectiveness.

• HR often focuses on administration rather than strategy, frequently prioritizing operational tasks and compliance over strategic initiatives and execution.

  
  

• Many HR teams still operate without leveraging workforce analytics to drive talent strategy formulation.

  
  

• HR is often seen as a service provider, rather than as a true strategic business partner within the organization.

  
  

• Too few HR leaders are capable—or empowered—to translate workforce insights into tangible business outcomes, limiting their credibility as talent strategy thought leaders in executive settings.

  
  

Characteristics of High-Impact HR Organizations

The most effective HR organizations operate differently. They act as strategic integrators, not service providers - connecting workforce insights directly to business strategy, growth, and performance.  They bring data, insight, and influence to the table, helping to shape business growth and success in the talent marketplace.  Instead of waiting to be invited into strategic conversations, they proactively build and lead talent strategies.

Redefining the HR Value Proposition

To bridge the divide between what CEOs expect and how HR performs, it is essential to rethink HR’s role—from prioritizing operational efficiency to emphasizing strategic impact. Although earning credentials supports professional standards, it does not guarantee credibility, foster thought leadership in HR, or elevate HR to the strategic business function required for organizational success.

Shifting the Objective: From Seat at the Table to Leading Strategy

For decades HR has aimed to secure a “seat at the executive table.” However, the real objective should be to create competitive advantage for the organization by shaping and executing talent strategy. The opportunity at the executive table is not just about presence, but about providing genuine HR thought leadership. If HR leaders are not providing people thought leadership within their organizations, then who will?