The Power of Influence: How CHROs Can Lead Strategic Transformation

With over 24 years of experience in Human Resources, Patricia Goodwin-Peters, CHRO at Atlas Air, has observed firsthand the behaviors and characteristics of management teams that either enable or constrain HR’s strategic potential. These insights have become the foundation of her doctoral research, which explores the organizational factors that influence HR integration. In the following article, Patricia focuses on how CHROs can supercharge their influence and drive meaningful transformation in an enabled environment.

The strategic integration of HR has never been more critical. Empirical data has consistently demonstrated a strong relationship between HR’s strategic alignment and measurable financial outcomes – organizations that prioritize talent, leadership, and culture consistently outperform their peers. Despite this evidence, the CHRO’s role is still underleveraged in many organizations, leading to significant trapped value as the function remains confined to operational support rather than elevated as the architect of organizational success.

To fully elevate HR’s strategic role, two critical elements must be present: the support and alignment of the CEO and the executive leadership team, and the CHRO’s ability to influence. Strategic integration of HR cannot happen in isolation – it requires a partnership where leadership prioritizes the people strategy as a key driver of business success, while the CHRO actively earns influence through intentional action, relationship building, and delivering measurable results.

With these conditions in place, CHROs can take deliberate steps to enhance their influence and elevate their role to the strategic heights it deserves. Below are seven steps CHROs can take to strengthen their impact and position themselves as indispensable leaders in driving organizational success.
 

1. Build a Trust-Based Relationship with the CEO and Executive Team

For the CHRO, the executive leadership team (ELT) is the First Team, a concept defined by Patrick Lencioni as the leadership group to which an executive owes their primary loyalty and focus. The CHRO’s success begins with prioritizing alignment and trust within this team, particularly with the CEO. Without trust, mutual respect, and clear alignment with the CEO, driving a strategic HR agenda will be next to impossible.

The First Team framework reinforces that the CHRO must see themselves not solely as the advocate for HR, but as an integral member of the ELT focused on the organization’s overall success. When the CHRO builds trust with the CEO and fosters a collaborative partnership with peers across the leadership team, they can elevate HR from a functional role to one that shapes organizational strategy, culture, and performance.
 

1. Build Credibility with the Board

The Board of Directors has a fiduciary responsibility to ensure strong talent management processes, robust succession planning, and oversight of leadership performance. Leading succession planning and talent assessments is among the most critical responsibilities for the CHRO. Boards rely on the CHRO to proactively evaluate the organization’s bench strength, identify high-potential leaders, and address skill gaps that could hinder performance. Regular updates on succession plans and talent strategies demonstrate HR’s ability to align leadership development with the company’s strategic objectives, ensuring leadership continuity and long-term success.

Equally important is the CHRO’s command of executive compensation. Aligning compensation with performance is critical for both private and public companies, as it directly impacts leadership accountability and shareholder value. For public companies, this includes a working knowledge of Securities Exchange Commission (SEC) disclosure requirements related to human capital, such as Proxy Statements and Human Capital Disclosures. These documents provide transparency to investors and stakeholders, making deep expertise in this area essential for building trust and credibility with the Board. CHROs should never outsource this responsibility to another function – commanding the details of executive compensation reinforces the CHRO’s strategic value and influence.

A CHRO who can speak fluently about business strategy, financial outcomes, and governance will naturally command influence, reinforcing their position as a trusted advisor to both the Board and the CEO. By leading on these priorities – succession planning, talent strategy, and executive compensation – the CHRO establishes HR as a key driver of governance, leadership continuity, and organizational success.
 

1. Assemble a High-Performing, Strategic HR Team

No CHRO can lead transformation alone. Building a capable and high-performing HR team that drives a strategic agenda is non-negotiable. This requires assembling a team with the right mix of skills, vision, and discipline to execute initiatives that align people strategy with business outcomes.

Equally important is fostering a shared understanding of the organization’s mission and objectives within the HR team. Every team member must be aligned on delivering value to the business through innovative, scalable solutions that anticipate challenges and capitalize on opportunities. The CHRO’s ability to build, empower, and retain a strong HR team is the foundation of a successful transformation.
 

1. Champion HR as Organizational Strategy

To fully elevate HR’s influence, CHROs must shift the narrative: HR is not just a function – it is Organizational Strategy. The CHRO’s role is to ensure that talent, culture, leadership development, and workforce planning are seamlessly integrated with business strategy. As the bridge between strategic objectives and the people who will achieve them, HR connects the organization’s goals to the workforce’s capabilities, ensuring alignment at every level.

CHROs must position themselves as the architects of organizational design, influencing how the business is structured to unlock performance, innovation, and long-term success. By embedding HR into the core of strategic decision-making, HR moves beyond supporting business outcomes to actively leading them.
 

1. Take Control of the HR Story: Market the Employee Value Proposition

The story of HR is often lost within broader organizational communications, particularly in Town Halls or leadership forums. In a vacuum, employees can easily attribute blame or incompetence to HR, reinforcing outdated stereotypes or lingering misconceptions. Despite how far HR has come in elevating the function, former perceptions persist, and HR often becomes the scapegoat when challenges arise.

To counter this, HR must actively own its narrative and market the employee value proposition as often and clearly as possible. CHROs and their teams should create accessible, dedicated communication channels – such as an HR Town Square, newsletters, or employee-focused platforms – that highlight the ongoing employee value proposition, organizational updates, and cultural priorities. These channels allow HR to reinforce its role as a strategic leader while remaining connected and visible to employees.
 

1. Build Organizational Credibility by Holding Leaders Accountable

Building trust and credibility across the organization begins with the CHRO fostering accountability at every level. From earning trust within the executive leadership team (ELT) to ensuring HR operates as a strong and capable team, the CHRO must establish HR as a fair and transparent actor – one that serves a purpose greater than simply protecting the company.

Holding leaders accountable for their actions, behaviors, and decisions is critical to this credibility. At the same time, HR must model transparency, communicating openly about how decisions are made and why they matter. This commitment to fairness and consistency builds trust and reinforces HR’s role as a partner in driving ethical leadership and organizational success.
 

1. Deliver Operational Excellence to Build Strategic Credibility

Strategic influence cannot exist without operational excellence. Much like Maslow’s hierarchy of needs, HR must consistently meet foundational expectations – such as delivering on service level agreements – to gain the credibility needed to lead strategically.

Operational excellence creates a foundation of trust, ensuring HR is seen as both capable and essential. Without this baseline, efforts to position HR as a strategic partner will lack the traction needed to succeed.
 

Closing Thought

The CHRO’s influence begins with trust, accountability, and results – but it doesn’t stop there. By aligning HR strategy with organizational success and redefining HR as Organizational Strategy, CHROs have the power to transform businesses, influence financial outcomes, and position themselves as indispensable leaders in the C-suite.

Patricia Goodwin-Peters is the CHRO at Atlas Air and a Governing Body Member of the New York CHRO Community.

To connect with like-minded HR leaders on your mission critical priorities, such as organizational strategy, join your local Evanta Community today. If you are already a member of an Evanta community, check out MyEvanta to view upcoming opportunities to collaborate in-person and virtually with your CHRO peers.