HR still spends 60% of its time on transactional work. That's not a support function. That's a function trapped
McKinsey & Company's research lays out an uncomfortable truth for CEOs: the "people are our biggest asset" mantra remains mostly rhetoric, because HR is rarely set up to prove it in hard numbers
The shift they propose is bold 👇
🔹 Replace the HR Business Partner with a Talent Value Leader (TVL) — someone with real authority over hiring, firing, and talent ROI, held accountable through metrics on skills, engagement, capability gaps, and attrition
🔹 Put people analytics at the core. One healthcare company analysed nursing tenure patterns, redesigned early-career rewards, and unlocked ~$100M in productivity. McKinsey Global Institute estimates a 275 basis point profit margin uplift by 2025 for companies deploying HR analytics at scale
🔹 Fix HR operations. Robotic process automation, cognitive agents, and natural language processing are already cutting onboarding time by two-thirds at global manufacturers. One F&B giant expects a 20% cost reduction while improving service
🔹 Rebuild the structure for agility. A European bank moved to a "flow to the work" model: fewer specialists, stronger shared services, a flexible pool of multi-skilled HR professionals. Result: 25% budget reduction in year one, targeting 40% by year three, with talent initiatives delivered faster than ever
Here's what strikes me as an executive transition coach:
Every C-suite transition I support ultimately depends on the quality of talent decisions around the incoming leader. When HR operates as an administrative service layer, transitions stall 📉
And when HR operates as a strategic partner with analytical firepower, transitions accelerate value creation 📈
The CHRO belongs in the C-suite triumvirate alongside the CEO and CFO. But that seat has to be earned through data, accountability, and business outcomes — not through a job title
The question for every CEO reading this ⤵️
Is your HR function set up to drive enterprise value, or simply to keep the machine running?
📣 But don't take my word for it, take it from a recent CHRO client of mine:
💬 "It just reconfirmed to me that this kind of work is really, really important".
#ExecutiveTransitions #HR #Leadership #TransitionIQ
About Navid Nazemian
Ranked as the world’s #1 Executive Coach by CEO Today for the third year running, I partner with senior leaders to navigate complexity, accelerate performance, and lead through critical transitions. Over the past two decades, I’ve supported hundreds of executives in overcoming unproductive thinking and solving their most complex leadership challenges—helping their organizations build world-class cultures and create lasting value.
If you’d like to reflect on a leadership challenge, an upcoming transition, or how I might support you, you’re very welcome to reply directly to this email.
You can also:
1. Connect with me on LinkedIn for additional leadership insights
2. Explore my international best-selling book "Mastering Executive Transitions: The Definitive Guide" described by Dr. Marshall Goldsmith as “THE ultimate guide to executive transitions to help leaders achieve their highest potential”
3. Enrol in my newly launched e-Learning programme Mastering Leadership Transitions - my transition methodology in a self-paced format for leaders at every level
4. Work with me on a per-session basis via EveryExpert - a flexible alternative to a full coaching engagement, starting with a complimentary 15-minute Chemistry Call
What's Next? More insights on leadership, transitions, and executive effectiveness are coming your way next week. I’d genuinely value your perspective—feel free to share your reflections by replying to this email. I read every response.
Navid
