Unveiling CHRO Effectiveness Model: Redefining the Future of HR Leadership in SEA
In today’s rapidly transforming business landscape, the Chief Human Resources Officers (CHRO)—stands at the epicentre of organisational transformation. A recent People Matters webinar marked the unveiling of a landmark research study,
The CHRO Effectiveness in Southeast Asia 2025 Research captured insights from over 220 CHROs, CEOs, founders, and C-suite leaders and helped shed light on evolving expectations from HR leadership and the strategic pivots required for sustained impact.
Joined by Narelle Burke, CHRO, Karntar the webinar discussion delved into the multifaceted demand from CHROs today and provided insights and strategies into how they, with other key stakeholders, can evolve to meet business demands
A role in flux: From HR strategy to enterprise leadership
CHROs are no longer confined to managing HR functions—they are increasingly expected to steer business transformation and lead from the front. According to the research, 78% of CEOs and founders across Southeast Asia now expect CHROs to champion future readiness and organisational change. These expectations reflect a broader shift in leadership dynamics, driven by technological disruption, shifting workforce demographics, and volatile business environments.
Narell Burke highlighted this shift by sharing that at her organisation, the CPO leads the digital transformation workstream. “It’s not just about implementing technology,” she emphasised. “It’s about fundamentally rethinking how we work and shifting employee mindsets. This is as much a cultural transformation as a digital one.”
Rethinking the CHRO Scorecard
Despite rising expectations, CHRO scorecards remain largely rooted in traditional HR metrics—primarily focusing on current people strategies and business-as-usual outcomes. However, Narell pointed out that this outdated approach fails to reflect where CPOs truly add value today. “It’s time to rethink the CPO scorecard. We should be measuring what really matters—organisational and workforce planning, leadership effectiveness, cultural transformation, and digital adoption.”
The report reveals a major focus of current KPIs and metrics for CHROs are still around business-as-usual factors, missing out on strategic and long-term impact that CHROs are expected to deliver. Aspects like supporting C-suite development and lead future transformation are key misses in the CHRO scorecard.
She stressed the need for metrics that reflect both short-term optimisation and long-term capability building. For instance, organisations must assess whether their culture supports or hinders progress, measure how quickly digital tools are being adopted, and evaluate how effectively HR is driving change across business functions.
Technology: From a support tool to strategic lever
Despite the widespread availability of HR tech solutions, the research revealed a concerning trend: CHROs are underutilizing technology in critical areas such as future transformation, HR team capability development, and enabling executive team success. More than half of the CHROs surveyed provide only partial or no technological support in these domains.
At Kantar, however, Narell shared forward-looking use cases of AI and automation in the HR function. From a team member who independently built a 7,000-word prompt to accelerate global projects, to AI-powered chatbots handling policy inquiries and performance reviews, technology is not a back-office tool—it’s embedded in daily operations. “Every conversation with my global CPO includes how we are using AI to better our function,” she said.
This proactive experimentation with technology must become the norm, not the exception. The future of HR demands digital fluency and innovation-driven leadership.
The blind spot: succession planning and executive enablement
One of the more surprising findings from the research was the limited focus on C-suite succession planning and executive compensation. Only 6% of business leaders expect CHROs to focus on CEO succession, and just 20% on executive compensation—areas traditionally seen as core responsibilities of senior HR leaders.
Narell reflected on this with concern: “This gap is not only surprising—it’s risky. Succession planning is critical to business continuity and must align with organisational priorities.” She hypothesised that this could be due to stable leadership teams, immediate operational demands taking precedence, or a simple disconnect in expectations between CHROs and business leaders.
To bridge this gap, she recommended that CHROs proactively initiate conversations with CEOs and boards to clarify expectations. “This is our domain expertise,” she asserted. “And we must get it right.”
Futureproofing CHRO effectiveness
The report clearly indicates that CHROs are at a turning point. To succeed in this new era, they must:
- Redefine Metrics of Success– Move beyond traditional scorecards to measure impact in areas like digital enablement, leadership adaptability, and cultural evolution.
- Lead Technological Integration – Embrace and experiment with technology not just for efficiency but for enterprise transformation and innovation.
- Own Succession Planning– Take charge of executive succession and compensation strategy as a critical risk and value creation area.
- Develop the HR Function– Invest in upskilling HR teams to align with future demands and role model digital adoption within their own function.
As Southeast Asia’s business environment becomes more complex and unpredictable, CHROs must step fully into their role as transformation architects and strategic co-pilots. The path to future readiness lies in reframing their mandate, embracing digital fluency, and holding themselves accountable for business outcomes—not just HR metrics.
As Narell concluded, “We’re not just preparing for the future—we’re shaping it.” The time to act is now.
To know more about the latest CHRO Effectiveness Model, unpack growth trajectories and align capabilities that will strengthen the future of HR leadership in Southeast Asia, download the report here.