HR Professional Career Progression to CEO Role: Insights and Challenges

Hi,

Can we know if it is possible for an HR person to become the CEO or CFO of a company? Are there any possibilities for a person who has completed an MBA in HR to become a CEO or CFO?

The straightforward answer is: there is no bar or restrictions on such appointments. Moreover, it's not preferred that a CEO comes from an HR background. HR cannot be a CEO/CFO, but CFO/CEO do exercise their authority in HR matters. 😁

BADLU

Well, I disagree with all the above. It's possible and it's evident in several organizations as well. There are a number of examples where individuals with an HR qualification have reached the highest positions in the organization. Competency matters, dear. If you have the potential to reach the top position, you can. Cheers! Surabhi

Dear Surbhi,

Your statement is desirable imagination that competent HR professionals deserve such helm of affair positions. Let me tell you frankly, only public sector companies, due to their seniority in promotion, have people from HR backgrounds who get Chairman and Managing Director positions. Other than this, only family-owned businesses, due to shareholding in company stocks, may find themselves placed in such helms of affairs and not due to HR backgrounds.

For your kind information, people who have occupied such positions as mentioned above are less than 0.1% in the entire India. You are requested to quote such people if you have any knowledge of HR professionals being appointed in CEO/CFO positions in public limited companies listed on stock exchanges to support your statement.

Regards,
Badlu

Yes, the HR people could become CEO/CFO if you have adequate knowledge in the proper area. Now, this trend has already started in India also. One year back, there was news in the TOI Ascent about how HR professionals have started to be appointed as CEOs. In the USA, 3/4 CEOs come from an HR background. Nobody knows about the future; even after 5 to 6 years, we may see more CEOs from HR backgrounds in India. The CEO position is not small; anyone could aspire to it. One needs experience in Marketing, Sales, Finance, and HR.

Regards,

Gyana Das

My response to this would be... "Certainly...and why not?"

Let us look at the challenges of a Business Leader (or a CEO):

- Achieving and sustaining profitability
- Developing leaders and delegating responsibility
- Engaging employees in the company's vision
- Managing risk and volatility
- Managing expectations
- Containing costs
- Raising capital
- High-quality employees
- Right timing in the Marketplace
- Sound business strategy
- Strong leadership
- Exceptional or unique products
- Proprietary technology
- Internationalization of markets and resources
- and many more...

Most of these challenges pertain to Human Capital.

As a CEO, I need Engaged employees, Aligned teams, Transparent organization, thereby making the organization have a Winning Culture and improved talent retention. This would result in Better returns to the Shareholders.

Traditionally, this post was given to the best salesperson in the organization as profit was the only reference for CEO performance. I need a sustained competitive advantage in the market space to remain in profits. This competitive advantage lies in the kind of Talent pool I have and how engaged they are to organization objectives.

Thus, a CEO has to be the best HR guy around.

So, an HR professional can become a CEO.

HR people can also become CEOs. The CEO position is not limited to finance or marketing persons only. In fact, for becoming a CEO, knowledge of only one field is insufficient; it solely depends on your capabilities.

Hi,

To become a CFO, you need to have an accounts and finance background, preferably as a chartered accountant. However, to become a CEO, you need to be a good team leader, a good administrator, preferably with an MBA, and marketing expertise.

Regards,
RJ Nair

Hi,

In my previous company, the CEO was an HR professional with around 10 years of experience in HR before advancing to the role of CEO. This is a real-life example that corresponds to your question.

Team,

I support Saurabh Kalra's points. To prove him right, I am the COO of a Pvt. Ltd. Company in Chennai with 100 employees and have a HR background for the past 10 years. Besides, I have a marketing background in the first 15 years of my career.

Hence, HR is the right person to undertake the challenges of the company to suit today's market needs.

Raman

Dear Raman,

It's great that we are talking to the COO of the company, but could you please tell me about your qualifications? You mentioned that you have a background in marketing...

Dear All,

Let me focus on what Mr. CEO and Mr. CFO or Mr. COO do as responsible individuals in any organization, whether it be from the service sector, product sector, or a publicly listed organization.

Human Resources has every right to become a CEO or COO, but not a CFO. The reason behind this is that to become a CFO, one should have a fair knowledge of finance, accounts, banking-related issues, STPI work, etc. While HR can gain knowledge in these areas, they may not be able to perform as a CFO. However, HR has a 100% chance of becoming a CEO/COO.

Little bit focus about CEO Profile:

Communicates a compelling vision and sense of core purpose, enlisting staff and others, and inspiring their allegiance to its fulfillment. Espouses an appropriate set of core values and beliefs during both good and adverse times, and acts consistently in line with those values. Practices what he preaches. Creates a climate conducive to an attitude of integrity, trust, and professionalism, irrespective of job role, such that everybody wants to do his/her best. Motivates staff to perceive their jobs as an avocation, much as they feel about pastimes, and to find ways for them to experience the same kinds of satisfaction. Communicates with, motivates, and coordinates the efforts of a large and influential force of member-volunteers supplemental staff, ensuring that they participate in development and effective implementation of programs that are needed and wanted by members. Helps others to rise above self-limiting mindsets and constraints to make full use of their capabilities. Encourages an attitude of lifelong learning to develop new skills that enable continued personal and career growth. Builds team spirit, effectively blends people into teams when needed, and develops an appreciation for the value of the diversity that is generated by team cooperation.

Little bit focus about COO Profile:

Primarily responsible for overseeing the everyday operations and functions of a company. Monitors the daily activities or work program of the organization and reports them directly to the company's Chief Executive Officer (CEO). Responsible for designing, improving, and implementing the systems the company uses to produce or deliver its products or services. The COO monitors and resolves issues regarding various aspects of the company's operations like sales, marketing, production, and human resources. He/she assures the system-wide implementation of company policies and procedures and finds ways to improve them.

I hope after reading this, no one can say that HR cannot handle this task. In my view, all experienced HR professionals have the expertise and experience to handle the CEO/COO position in any organization.

Hope this clears your doubts. If not, feel free to get in touch with the below-mentioned contact numbers, whether handphone or webmail contact address.

In one of the articles in the paper "Mint," it was mentioned how CEOs are exhibiting the skills of HR in such an economy. They are communicating to employees through emails to gather their views on cost-cutting and using communication tools most effectively. It's a must-read as it includes examples from Pepsi and other established companies. Thanks :)

Dear HR friends,

It was really a good discussion which all our HR members had. Can HR be a CEO/COO? Well, I am fully in agreement with my HR friends Mr. Saurabh, Mr. Raman, & Mr. Penu. Yes, an HR professional can become a CEO/COO of any organization, irrespective of whether it is LTD, Pvt Ltd, etc. But, keeping in mind that one must have all those qualities which are the basic requirements for this crucial position. These qualities include good leadership skills, resource management skills, a positive and strong attitude, being a good motivator, communicator, and listener, team-building skills, and good coordination with inter-departments (Finance, Operation, Sales, Marketing, etc.). There can be more.

Personally, I don't think there would be any obstacle for an HR professional to become a CEO/COO of any organization. It just requires moving forward with a positive attitude.

"If you have the ability and you want to be, then definitely you can."

Sacchin
Dubai - UAE. :)

There are many standing examples of an HR professional becoming a successful CEO. Anyone who can manage the company to bring it to new heights can be a CEO.