Why Most CEOs Waste Their HR Function—And How to Fix It

How HR Professionals Can Drive Strategic Priorities Beyond “Personnel” Matters

I’ve always believed that people make the difference in business—whether for good or bad. The right people in the right roles can drive extraordinary outcomes, while the wrong dynamics can bring even the best-laid plans to a grinding halt. Yet, I’ve also observed how many businesses squander the potential of a strong, operationally oriented HR professional.

Too often, HR is relegated to the rear echelons, focused on policies, compliance, and firefighting. But HR shouldn’t be confined to personnel matters—it should be forward deployed at the sharp end of the business, directly supporting strategic goals and operational needs. If businesses want a personnel manager, they should hire one and save the expense of a Chief People Officer or HR Director. But if they’re going to invest in a senior HR professional, they need to fully utilise the range of skills they bring to the table.

The challenge is that many CEOs and MDs simply don’t know how to use professional HR effectively. HR leaders often find themselves underutilised, operating reactively rather than proactively. CEOs need to ask themselves whether they are equipping their HR function to drive the business forward—or keeping them in a “personnel” box that limits their potential.

Here’s how CEOs can get HR out of the personnel shadow and forward deploy them as critical players in achieving strategic goals.


Integrate HR into Strategic Planning

The first step is to stop treating HR as an afterthought in strategic discussions. Too often, HR is brought in to “make it happen” once the plan has already been written. Instead, involve HR from the outset, giving them a seat at the table when strategy is being shaped.

  • Share the strategic priorities with your HR leader and ask for their input on how people and culture can support those goals.
  • Encourage HR to challenge assumptions about talent, structure, and resourcing that could undermine the plan.
  • Ensure HR understands the commercial realities of the business, so their recommendations are grounded in operational needs.

When HR is part of strategic planning, they can align their initiatives with the broader goals of the business, ensuring that people-related efforts are fully integrated into the roadmap.


Define HR’s Strategic Role in the Business

Many CEOs expect HR to focus on compliance, recruitment, and employee relations—important, yes, but hardly strategic. To unlock their potential, CEOs must clearly define the role they want HR to play in achieving the company’s goals.

  • Position HR as a driver of organisational performance, not just a function for “keeping the wheels turning.”
  • Align HR’s priorities with measurable business outcomes, such as revenue growth, market expansion, or operational efficiency.
  • Hold HR accountable for delivering strategic impact, not just ticking boxes.

By framing HR as a performance enabler, CEOs can push the function to rise above transactional work and deliver meaningful results.


Demand a Talent Strategy, Not Just Hiring Plans

If talent is the lifeblood of any business, HR should be the architect of how that talent is acquired, developed, and retained. CEOs must expect HR to take a proactive approach to workforce planning that directly supports the business’s strategic goals.

  • Insist on a workforce plan that anticipates future needs, not just current vacancies.
  • Ask HR to identify critical skills gaps and provide solutions to close them, whether through hiring, upskilling, or restructuring.
  • Ensure HR is building leadership pipelines to secure the future of the business.

A professional HR leader should be able to articulate how their talent strategy is enabling the business to hit its targets—and adjust that strategy as the business evolves.


Use HR to Build a Culture That Drives Results

Culture can make or break a business. Yet many CEOs leave it to chance, assuming it will take care of itself. HR is uniquely positioned to shape and embed a culture that supports the organisation’s strategic objectives.

  • Work with HR to define the cultural attributes that will drive success, such as innovation, accountability, or collaboration.
  • Ask HR to measure and manage cultural alignment across the organisation.
  • Use culture as a tool for differentiation—both to attract top talent and to retain the people who thrive in your business.

By tasking HR with owning and shaping culture, CEOs can ensure it becomes a competitive advantage, not a stumbling block.


Insist on Data-Driven Insights

CEOs rely on data to make decisions—but often, HR is left out of the equation. Modern HR should be as data-savvy as any other function, providing insights that inform strategy and demonstrate impact.

  • Ask HR for data on key metrics like retention, engagement, and workforce productivity.
  • Expect HR to use predictive analytics to anticipate challenges, such as skills shortages or attrition risks.
  • Require HR to quantify the ROI of their initiatives, showing how they contribute to the bottom line.

A professional HR leader who can speak the language of data will quickly earn their place as a trusted advisor to the CEO.


Empower HR to Lead Change Management

Strategic priorities often involve significant change—whether it’s restructuring, entering new markets, or adopting new technologies. HR should be at the forefront of managing these transitions, ensuring they succeed from a people perspective.

  • Involve HR in planning and executing change initiatives, not just communicating them.
  • Encourage HR to develop robust change management strategies that minimise disruption and build buy-in.
  • Hold HR accountable for the success of change efforts, measuring adoption rates and long-term outcomes.

By empowering HR to lead on change, CEOs can ensure that strategic initiatives are not derailed by poor execution or resistance to change.


Expect Strategic Impact from HR

Finally, CEOs must set the expectation that HR will deliver tangible, strategic results. This means moving beyond vague goals like “improving employee satisfaction” and focusing on outcomes that directly support the business.

  • Ask HR to demonstrate how their work is driving business performance, whether through improved productivity, reduced costs, or faster time-to-market.
  • Celebrate HR’s successes and communicate their impact across the organisation.
  • Continuously challenge HR to push boundaries and find new ways to add value.

When CEOs hold HR to high standards of performance and impact, they create the conditions for HR to truly excel.


Final Thoughts

Many businesses underutilise their HR leaders, keeping them stuck in a “personnel” mindset that limits their potential to add strategic value. But HR has the capability to be so much more. When fully utilised, HR can act as a force multiplier for achieving business goals—driving performance, shaping culture, and enabling change.

If you’re a CEO or MD, it’s time to ask yourself: Am I using my HR team to their full potential, or am I keeping them in the shadows of “personnel” work?

Businesses succeed or fail on their people. HR has the potential to tip the scales—but only if they’re given the tools, mandate, and trust to lead from the front.


This guide is part of NorthCo’s Leadership Series—designed to help leaders unlock the full potential of their teams. Subscribe to our newsletter for actionable strategies and insights that keep you one step ahead.

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.

Come On, Mav, Do Some of That Pilot Stuff

Come On, Mav, Do Some of That Pilot Stuff

In the iconic scene from Top Gun: Maverick, Maverick’s co-pilot shouts, “Come on, Mav, do some of that pilot sh**!” It’s a moment that epitomises trust, confidence, and clarity of roles. Maverick, the leader in the cockpit, doesn’t hesitate—he does what he’s there to do, performing at his absolute best.

This principle applies beautifully to leadership, particularly at the top of an organisation. A CEO, like Maverick, needs to focus on doing their “pilot shit”—steering the business, making the critical calls, and driving the company toward its mission. But this is only possible if they’ve built a senior team they can look to, left and right, and trust implicitly to do their job exceptionally well. Unfortunately, for many leaders, that’s not the reality they’re living.


The CEO and the Mediocre Team

I’m currently working with a talented young CEO who finds himself in this very predicament. He’s running a business with incredible potential, yet his senior team isn’t up to par. They’re good, but not great—and in some cases, they’re mediocre. The CEO knows this, but he’s been tolerating it for too long. The consequence? He’s constantly drawn into the weeds, firefighting problems that his team should be solving. Instead of focusing on what he does best, he’s caught up in operational distractions, unable to perform at the level the business demands.

This isn’t uncommon. Many leaders—particularly first-time CEOs—struggle to recognise when their team isn’t cutting it. They rationalise the situation, telling themselves it’s better to stick with familiar faces than disrupt the status quo. But here’s the hard truth: a CEO’s performance is only as strong as the team supporting them. If that team isn’t A-grade, the CEO can’t fly the plane properly.


Why Trust and Excellence Are Non-Negotiable

For a CEO to focus on their role, they need to know that their senior team is rock-solid. This isn’t about micro-managing or second-guessing—it’s about absolute trust. When a CEO has a capable, high-performing team, they can focus on the big picture:

  • Driving strategy: setting direction and ensuring everyone is aligned with the mission.
  • Building relationships: managing key stakeholders, whether investors, clients, or partners.
  • Making critical decisions: taking the calculated risks that move the business forward.
  • Inspiring the organisation: rallying the team around the vision.

When a CEO is forced to micromanage or compensate for weak team members, they lose the bandwidth to excel. Worse, the business stagnates because the leader is operating below their potential.


The Danger of Accepting Mediocrity

Accepting mediocre performance in a senior team isn’t just a small problem; it’s a silent killer. Mediocrity breeds complacency, and complacency is contagious. When a team member consistently underdelivers, it sends a message to the rest of the organisation: “This level of performance is acceptable here.” It erodes standards, diminishes morale, and ultimately hurts the business’s ability to compete.

In the case of the CEO I’m working with, he’s come to realise that tolerating mediocrity is no longer an option. The business is at a pivotal stage, and to achieve its ambitions, he needs a team that matches his drive and ability. It’s time for a restructure.


Building the Right Team: A Playbook for CEOs

If you’re a CEO looking to build—or rebuild—your senior team, here are the key steps to take:

Be Honest About Performance Take a hard look at your team. Are they truly delivering what the business needs? If the answer is no, it’s time to address it. Be clear about your expectations and give people the chance to step up—but don’t be afraid to make changes if they don’t.

Define Roles and Expectations Every member of your senior team should have a crystal-clear understanding of their role and what success looks like. Ambiguity is the enemy of high performance.

Recruit for Excellence When bringing in new team members, aim high. Look for people who not only have the skills and experience but also align with your values and culture. A strong senior hire can elevate the entire team.

Foster Collaboration and Trust A great senior team isn’t just a collection of talented individuals—it’s a cohesive unit that works seamlessly together. Invest time in building trust and ensuring alignment.

Hold People Accountable Once you’ve set expectations, hold your team to them. Accountability drives performance and reinforces a culture of excellence.

Be Willing to Restructure Sometimes, the team you started with isn’t the team you need for the next stage. That’s okay. Leadership is about making tough decisions in the best interest of the business.


    The CEO’s Moment of Truth

    For the young CEO I’m working with, the challenge is clear: he needs to look left and right at his senior team and see a group of people he can trust unequivocally. Only then will he be able to step back and focus on doing his “pilot shit.” It’s a tough journey, but one that will pay dividends—not just for him, but for the entire organisation.

    So, if you’re a CEO struggling to perform at your best, ask yourself this: is your team enabling you to lead, or are they holding you back? If it’s the latter, it’s time to take action. Because at the end of the day, your job is to fly the plane—and you can’t do that if you’re constantly worried about the people in the cockpit with you.

    About the Author

    Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.

    Nothing to See Here

    Spotting The “Best Practice” Facade.

    Challenging “Best Practice”Are You Using It to Signal Authority or Drive Real Value?

    During a recent assignment, I attended a presentation from a CTO who was outlining the company’s technology strategy. Midway through his slides, he mentioned that certain processes were “aligned with Best Practice”—a phrase he seemed confident would solidify his position. However, as the presentation unfolded, it became clear that this endorsement was, at best, a veneer. There was little evidence that he actually understood the “Best Practice” he was referencing, nor could he explain how it applied specifically to our challenges. The phrase had simply been added because it sounded credible, as if invoking “Best Practice” alone would close down debate and validate his decisions.

    It’s a scenario I’ve encountered repeatedly in leadership discussions. While “Best Practice” can be a valuable concept, too often it’s used as a placeholder—a buzzword that fills in for genuine understanding or critical analysis. Leaders invoke it as a signal of authority, but all too often, it becomes a way to avoid difficult questions, diminish curiosity, and stifle innovation. This trend begs the question: does invoking “Best Practice” truly reflect a commitment to excellence, or are we merely following a script?

    To be clear, I’m not advocating against following best practices where they truly apply. When a practice is well-evidenced and genuinely serves your specific needs, it can be invaluable. But there’s a difference between mindful adherence and unthinking obedience. My challenge is for leaders to approach “Best Practice” with curiosity, always asking how it applies to their unique situation rather than accepting it at face value.

    In this article, I want to encourage you, as a leader, to rethink your reliance on “Best Practice” as an unexamined benchmark. Instead of using it as a conversational trump card, let’s foster a culture where each so-called “Best Practice” is scrutinised, questioned, and adapted to meet the unique needs of your business. This means asking uncomfortable but necessary questions when “Best Practice” is cited and encouraging your team to demonstrate real understanding and curiosity.

    Recognising the Hidden Motives Behind “Best Practice”

    One key issue with “Best Practice” is that it’s often wielded as a tool for control. Some leaders use it to assert authority or shut down debate, making it difficult for alternative perspectives to surface. Rather than fostering a culture of inquiry and adaptability, this approach creates a rigid environment where questioning is subtly (or not so subtly) discouraged.

    As a leader, it’s essential to recognise when “Best Practice” is being used as a tool for avoiding scrutiny or as a quick fix to justify decisions. When left unchecked, this can lead to stagnation and missed opportunities. The true value of “Best Practice” lies not in its mere adoption but in its thoughtful, context-specific application.

    Spotting the “Best Practice” Facade

    Here are some signs that “Best Practice” might be used without genuine understanding:

    1. Lack of Contextual Relevance: When asked to explain how a best practice specifically applies to their project or team, some managers may struggle to articulate its relevance. They might use generic statements like “It’s industry standard” without connecting it to the unique dynamics of their own operation.
    2. Buzzword Overload: If terms like “Best Practice,” “industry-leading,” or “state-of-the-art” are sprinkled into presentations without supporting detail, it’s often a sign that these phrases are being used to impress rather than inform.
    3. Resistance to Challenge: Leaders who cling to “Best Practice” as a defence are often resistant to feedback or challenges, even when alternate approaches might offer a better fit. This can hinder innovation and frustrate team members who want to contribute ideas.

    Equipping Yourself to Question “Best Practice”

    To move beyond surface-level adherence, start by encouraging your managers to ask questions that reveal the depth of understanding behind “Best Practice” claims:

    • “What makes this the best approach for our unique situation?”
    • “How has this practice been adapted by other teams facing similar challenges?”
    • “Are there any limitations to this approach that we should be aware of?”

    These questions prompt presenters to prepare meaningful answers, grounded in specifics rather than generic phrases. Moreover, they signal that “Best Practice” isn’t a substitute for critical thinking or adaptability—it’s a baseline that should always be subject to scrutiny.

    Building a Culture of Curiosity and Customisation

    To move beyond superficial references to “Best Practice,” aim to foster a culture of curiosity. Empower your team to question established norms and to approach challenges with an open mind. When managers are encouraged to develop solutions that fit their specific circumstances, they develop a stronger sense of ownership and a greater capacity for innovation.

    Imagine leading a team that not only follows “Best Practice” but adapts it intelligently to fit its unique goals. Such a team moves beyond imitation and becomes a driver of true best practices within the business, building a legacy that goes beyond adherence to industry norms.

    Conclusion

    The next time “Best Practice” is cited in a presentation or strategy meeting, pause and consider its application. Is it there as a shield, an empty phrase, or is it truly adding value? By fostering a leadership culture that values understanding over signalling, curiosity over complacency, you can move beyond buzzwords and into a realm of genuine, sustainable success.

    About the Author

    Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.

    Sastrugi

    Shifting Mindset in Distressed Business Situations

    Navigating the Winds of Change: Shifting the CEO and Senior Management Mindset in Distressed Situations

    In a previous post, Navigating turbulent waters, , I explored how a CEO coach or interim leader can support management teams through turbulent times by offering structured guidance and fostering a mindset shift. My own experience as a CEO in challenging situations uniquely positions me to empathise with the CEO and management team when I am brought in during times of crisis. I understand the weight of responsibility they carry, having been there myself. While I am no pushover, I pride myself on creating a collaborative, supportive relationship, fostering a team environment that allows the leadership group to work together effectively. My role is to help them move from ‘business as usual’ (BAU) to a mindset equipped to navigate distress, maintaining authority with respect and guiding them through a transition toward a shared, strategic vision for recovery and growth.

    This collaborative approach is especially critical when the business has breached its covenants, and management teams, understandably, may feel defensive or uncertain about next steps. By prioritising empathy and open communication, we can begin to make the shifts necessary to transform entrenched ways of thinking into proactive, resilient strategies.

    Why Changing Mindsets is Crucial in Distressed Situations

    When covenant breaches occur, the immediate reaction from senior management is often defensive. This is understandable – the leadership team has likely invested years into developing and executing strategies they believed were sound. But when those strategies falter, it’s imperative to see this as an opportunity to reset, re-evaluate, and create a new path forward.

    Shifting mindset patterns in a management team can sometimes feel like navigating sastrugi—(That’s Sastrugi in the image for thei post BTW) those sharp, wind-carved ridges of snow and ice that reshape themselves with every storm. Just as sastrugi require a careful approach to avoid tripping or losing momentum, entrenched ways of thinking within a team need gradual reshaping. By understanding these ridges as natural but mutable formations, we can begin to work collaboratively to smooth out obstacles, helping leadership teams transition from a defensive posture to one of opportunity.

    My goal as an Interim CEO is to help the team understand that, while this may be an uncomfortable transition, it is also an opportunity to think beyond the old model and explore solutions that can fundamentally reshape the business. This is where the mindset shift becomes critical: to see this not as a breakdown, but as a chance to rebuild with a sharper, more resilient approach.

    Bridging the Gap Between BAU and a Distressed Mindset

    When a business is in distress, there is a need for a clear break from BAU. However, rather than dictating change, my approach is to bring the senior team on a journey of honest self-assessment and collaboration. This journey is crucial to achieving a mindset of adaptability and proactivity in challenging times.

    Setting the Foundation of Trust and Mutual Respect

    • A defensive response, as I saw in the example below, often stems from fear or frustration – both understandable in a high-stakes situation. My role is to balance authority with empathy, allowing the team to feel valued and supported while clearly communicating the need for a change in mindset. Once they understand that their experience is respected, they become more willing to engage in a new direction.

    Creating Space for Constructive Feedback

    • In high-pressure settings, feedback can be tough to hear. But by creating an environment where honest feedback is received as part of a collaborative effort, not an attack, CEOs and management teams become more open to ideas that drive change. Recently, after a mildly tetchy board meeting where one of the funders shared honest but fair feedback, I noticed the CEO reacting defensively. Given the pressures he was under, the comments understandably struck a nerve. Recognising this as a crucial moment, I pulled him aside afterward and had a candid chat about seeing feedback not as an attack but as an opportunity for re-evaluation. An hour later, he called me with an insight I was thrilled to hear: “I want to thank you for the chat, and I want you to know that I’ve taken your advice onboard. I now realise that it’s an opportunity for us to re-imagine the business.”

    Honesty Without Aggression

    • In these situations, transparency is vital, but it doesn’t require confrontation. My approach is to provide unembellished feedback with clarity and respect. By presenting the reality of the business’s financial and operational situation without placing blame, the team can objectively assess the challenges and begin to see ways forward. Leaders begin to re-frame the situation from crisis management to opportunity creation.

    Fostering a Culture of Innovation and Flexibility

    • The greatest transformation occurs when CEOs and senior management teams move from a defensive stance to a proactive one. Rather than clinging to previous successes, they begin to ask, “What’s possible now?” – a question that brings previously unconsidered ideas to light. By shifting the emphasis from “preserving what we have” to “creating what we need,” they start building resilience and agility into the business.

    Driving Alignment Through a Shared Vision

    • Ultimately, the goal is mutual consent to a new strategy, where everyone understands the vision and is committed to it. With the CEO mentioned earlier, the shift from defensiveness to collaboration opened the door to a re-imagined business model, one that embraced rather than resisted change. This creates a foundation of alignment, allowing the team to drive forward with a renewed sense of purpose.

      The Role of the Interim CEO in Shaping a New Mindset

      When I’m brought into these situations, it’s not simply to impose authority but to foster a culture that values adaptability, resilience, and mutual respect. Leaders often resist change not out of stubbornness but from a deep commitment to what they’ve built. By helping them re-frame difficult situations as opportunities rather than crises, I help them harness their expertise and passion to redefine the future of the business.

      Final Thoughts

      The CEO’s mindset is the cornerstone of organisational resilience, especially in distressed situations. Through candid discussions, like the one I had with the CEO after that challenging board meeting, leaders can transition from a mindset of defence to one of opportunity. By fostering an environment where feedback is valued, honesty is prioritised, and collaboration is central, the senior team can align on a re-imagined vision, build strength from challenge, and steer the business toward a dynamic, resilient, and ultimately successful future.

      About the Author

      Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.