Shannon Sullivan

The role of the CHRO has never been more complex or more critical. At the Gartner CHRO Inner Circle in New York this week, my colleague Catie Brand and I had the privilege of spending time with over 75 CHROs. The conversations were candid, and the patterns were hard to miss. Here’s some highlights that surfaced again and again: - AI’s real opportunity is long-term The focus should be on unlocking AI’s long-term potential. Coaching and recruitment stood out as the areas where AI can have the biggest impact, scaling access and insight, but only if it remains human-led and tech-enabled. - Change fatigue is hitting harder than ever LHH research shows 56% of leaders are burned out, and 75% want more support. I heard similar observations from the CHROs at this event: nonstop transformation is draining trust and energy. At LHH we see that the organizations that get change right prioritize investing in their leaders. They give them the development support to build the hard and human skills to manage change with confidence. And they create a coaching culture within the organization that makes it safe to talk honestly, learn quickly, and keep energy through disruption. - Reinvention is the new normal We spoke about how forces like AI, economic shifts, and demographics are reshaping careers, not just jobs. LHH research shows 58% of people in transition moved into completely new occupations in the last year. What we see making a big difference in talent management is companies adopting skills-based hiring, investing in upskilling on the job, and providing mobility or outplacement programs that help people spot transferable skills and step into new careers with confidence. The conversations at Gartner confirmed what our data shows daily: the future of work won’t be solved by one-off fixes. It will be built by CHROs who design systems that are adaptable by design and where talent strategies turn disruption into opportunity. A sincere thank you to the CHROs I met during this session. Your candor and insight were invaluable and a reminder of the depth of expertise driving this profession forward.   #FutureOfWork #CHRO #Leadership #AI

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We’ve optimized our workforce into obsolescence. I was talking to a friend of mine who worked in Exec Search years ago. She was telling me how all the mandates used to be either about a CEO, CMO, CHRO or a P&L leader. Today Search Firms hire for CXOs galore and every year a new one pops up depending on the flavor of the season. Chief AI Officer anyone? Earlier we could hire someone who understood the entire customer journey and the value chain. Today, we interview specialists who know everything about their area of expertise but dont know how it plugs into the ecosystem. We broke work into pieces so small that nobody sees the whole anymore. Everyone's focused on the throughput, very few are focused on the outcome The race for cost-per-FTE efficiency turned us into an army of execution specialists. We celebrated hyper-specialization as progress while systematically destroying the very thing that makes humans irreplaceable: holistic thinking. Our MBA programs now produce experts in supply chain optimization who've never seen a factory floor. Our computer science graduates can build microservices but can't architect systems. Our digital marketing specialists can optimize CTRs but have no idea what happens after the click. In our obsession with efficiency, we created the perfect workforce for AI to replace. The irony is brutal. When you train someone to execute one small piece of a value chain with precision, you're essentially training them to be a very expensive algorithm. When you remove their visibility into upstream and downstream processes, you eliminate their ability to add contextual judgment. AI doesn't need to understand the whole workflow to replace these roles, it just needs to execute the fragment better. I'm watching this play out in real time. Our workforce is trained for depth in silos, not breadth across systems. The new roles emerging from AI transformation aren't hyper-specialized, they're hyper-integrated. They require people who can operate across multiple functions, understand end-to-end workflows, and synthesize disparate information into strategic decisions.     While everyone else is figuring out which AI tools to buy, the real question is: do you have anyone left who understands your business holistically enough to know where AI should fit?   When your execution specialists become redundant, who in your organization can actually design the systems that orchestrate both human and artificial intelligence?   The future doesn't belong to the deepest experts.   It belongs to the wisest orchestrators who to quote pop culture understand how The Matrix works! #AISkills #FutureOfWork #HumanAICollaboration #TechTalent2025 #TheFutureIsHuman

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The CHRO is no longer a support role. It's a co-pilot seat. During a powerful conversation last week at the Human Resources Policy Institute between Hubert Joly (former CEO of Best Buy) and Peter Fasolo, Ph.D. (Former CHRO of Johnson & Johnson), one truth kept rising to the top: The CEO and Board now expect CHROs to lead on the business, not just the people agenda. Not in theory. In practice. Hubert shared how his CHROs shaped strategy, drove cultural transformation, and even sparked his own personal evolution as a leader. From sending him to work a week in-store to shifting his view on perfectionism and vulnerability. Some takeaways that stuck with me: 1. Start every leadership meeting with people and org... not finance. It changes everything. 2. Co-create culture like a gardener tends to soil. Your job is not to micromanage the flower, but to make sure the environment helps it grow. 3. The frontline isn’t an abstraction. If the board doesn’t know what’s happening at the front lines, it’s flying blind. 4. We track ROI on tech. Why not on people? If we say talent is our top asset, we should hold ourselves to the same investment rigor. 5. It’s time to redefine what boardroom-ready CHROs look like. Not just strategic partners but actually growth partners. Would love to hear from other HR leaders: How are you helping your CEO and board see the connection between people investment and business outcomes?

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What Happens After the Restructure After a restructuring, one company lost more than just headcount. Their remaining leaders were going through change—uncertain about immediate next steps, unclear on how to lead through their transition. The org chart had been updated. Roles were reassigned. The math was done. And there was little alignment on how the leadership team would operate moving forward. A few weeks later, their CEO said it plainly: “We are operating like strategy and people are separate. Our people are core to accomplishing our strategy.” That’s when they paused and asked three essential questions: 1. Are we as a leadership team actually aligned on the full strategy — Not just in theory, and in practice? 2. Have we clearly communicated that strategy to our people who are expected to carry it forward? 3. Have we redefined what success looks like for our go-forward leaders? They realized the answer to all three was "no." So, they invested in three core next steps: 1. A series of both in-person and virtual high-impact off-sites over the next year, 2. Focused leadership assimilation sessions for newly restructured teams, and 3. Arrive. Leadership Academies for rising and emerging leaders. These weren’t status updates or project reviews. They were opportunities to reestablish culture, realign around business priorities, and reset leadership expectations. The result? Leaders stopped spinning. Collaboration picked up. Decisions got clearer. And the people still inside the org stopped looking backward and started building forward. Across the year, these investments represent under 3% of every contributing individual’s time. What it accomplished was alignment, common language, and empowerment. A 3% investment to get the 97% right! Because when restructuring is over, the real leadership work begins. __________ 1 Framework The Post-Restructure Rebuild This isn’t just one company’s challenge. It’s a common leadership blind spot we see after change. When teams skip the reset, clarity suffers. 1. Align the Leadership Team Are senior leaders aligned on what the strategy actually is now—and how they’ll lead it together? 2. Communicate the Strategy Have you clarified the new direction and shared what’s changing (and what’s not) across the company? 3. Redefine Success for the Go-forward Team Do the leaders still here have clear roles, expectations, and priorities—or are they still operating off a map that no longer exists? Restructuring ends with paperwork. Realignment starts with people. __________ 1 Question This isn’t just about managing change. It’s about rebuilding how your people lead together. 👉 How have you changed how your leaders work together? **Please share. And subscribe to our weekly newsletter #arrivedrivethrive #HR #Leadership Saterman Connect

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I arrived at the Gartner HR Symposium this week with a question that is keeping me up at night: What is my role as Chief People Officer/CHRO to help my company face the AI revolution? Judging by the 7,000 attendees—including hundreds of CHROs—I wasn’t alone. The opening keynote was insightful: HR’s focus must shift from “the workforce” to “the work.” In other words, it’s not just about preparing people, but about reimagining what work needs to be done, and how. AI is changing work in three fundamental ways: 1. Augment: Helping people work better and smarter. 2. Reengineer: Redesigning workflows and even entire functions. 3. Invent: Creating entirely new, AI-driven ways of working. What does this mean for HR? 1. Augment – Be More Directive. Most employees are open to using AI, but don’t know where it adds value. We hand out powerful tools like Copilot, but often forget the playbook. The result? Limited returns. HR must guide AI adoption—tying it directly to business challenges, partnering closely with IT, and making it a priority to work hand-in-hand with the CIO. We need to shift employees from AI users to AI value creators. 2. Reengineer – Anticipate Ripple Effects. Some organizations are redesigning work without HR at the table, leading to empty talent pipelines, skills atrophy, and fractured career paths. The CHRO must be the master of ripple effects—asking not just “Can AI do this?” but “What are the implications if it does in the short and long term?” We must define principles for redesign ahead of time (e.g., keeping humans in the loop at key points), prioritize the biggest ripple effects, and plan the work—not just the workforce. 3. Invent – Sense the Timing. AI will eventually automate more decisions, but the hype is currently outpacing reality. Our role is to reset expectations, sense when AI will truly impact roles, and pave the path to new growth opportunities—through career pivots with upskilling. Gartner predicts that by 2032, 30% of top economies will require certified human quotas. It means we need to think of the importance of people even for these new ways of working including agentic AI that will do tasks autonomously. My key takeaways: • The CHRO and CIO will be instrumental in building the future of work together. Jean-Francois Gamache CIO and Emmanuel Levitte CTO we will get even closer :-) • HR must move from experimentation to intentionality—guiding, prioritizing, and orchestrating change. And for that, HR must elevate its own maturity, its own digital dexterity to be true business partners. We must plan for the work, not just the workforce, to mitigate talent risks and unlock AI’s true value. • HR will need to be the mastermind of ripple effects to ensure we anticipate and mitigate risks and debate them in the C-suite. We need to agree on principles ahead of time. I’m energized by the challenge ahead! #GartnerHRSymposium #FutureOfWork #AI #HRLeadership #CHRO #DigitalTransformation

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Last Friday, I was presenting to a group of CHROs and business leaders and shared a stat recently published by a large search firm: Only 22% of CEOs believe their CHRO is operating at an enterprise level. I asked the room for reactions. One CHRO immediately (and cheekily) shot back: “Would the reverse poll show a similar number if CHROs rated their CEOs?” I laughed. Because… fair question. But let’s stay with that 22% for a moment. If I could interview the CEOs who voted in that poll, my questions would be: - What was the mandate when you hired your CHRO? - Did you hire a proven enterprise-level leader, or a strong #2 and hope they’d grow into it? - Did you sell the role as sleeves-rolled-up execution or true enterprise influence? - Have you empowered them with the budget to operate at that level? - Have you clearly told them where expectations aren’t being met? And here’s an uncomfortable one (asked lovingly): Who ultimately selected the HR Executive for hire after extensive vetting? Now, who knows how extensive that poll was. Who was surveyed, how many, how it was framed. But the idea is worth poking at. So if I were an HR leader and read that stat, I’d sit down with my CEO and ask: Are you satisfied with my overall performance, and where am I missing the mark? What would materially move the business forward in 2026 that HR has not done yet? ... And if an anonymous poll landed on your desk, how would you rank me? Progress doesn’t come from polls. It comes from clear mandates and honest conversations that include real feedback. That’s how the collective gets better, one leader at a time. #CHRO #HRLeadership #ExecutiveLeadership #LeadershipDevelopment #EnterpriseLeadership

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About Last Night: and the Board's statement about the CHRO and CEO caught in an 'awkward moment': They wrote: "Astronomer is committed to the values and culture that have guided us since our founding. Our leaders are expected to set the standard in both conduct and accountability. The Board of Directors has initiated a formal investigation into this matter and we will have additional details to share very shortly." When organizations face trouble, leadership often rushes to remind us of the company values. We've seen it time and time again, especially now. The CEO in question is on that Board of Directors. But here's the truth: If your values led you into this mess, maybe it’s time to take a hard look at the real environment in which everyday people work. Values aren't just words on a wall, they're lived or they're not. At some point, employees stop listening and its not because they don’t care, it's because they’ve seen the gap between what’s said and what’s done. Take accountability seriously. Don’t just reference values, demonstrate them. Don’t just announce investigations, change the culture that made them necessary. The trust of your people is earned every day. And right now, they’re watching more closely than ever. I'm not here to shame these two as they will have enough problems of their own. I want to highlight a more serious problem that happens to everyday employees. The disconnect is growing louder. Boards take notice: your employees don't believe your leadership no matter what they tell you at the corporate retreat. And for good reason. Do you have any independent sources of true qualitative measures to alert you to the smoke before the fire? Maybe it's time you did. #Leadership #Accountability #CultureMatters #Transparency #EmployeeExperience

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Aligning Interests: Executive Compensation Through the Lens of Agency Theory In today’s corporate world, few topics spark as much debate as executive compensation. Are CEOs truly earning their pay, or are they exploiting the system? From an agency theory perspective, executive compensation is not just a reward—it's a strategic tool designed to bridge a crucial gap: the divide between ownership and control. The Principal-Agent Dilemma Agency theory, a foundational concept in corporate governance, centers on the relationship between principals (shareholders) and agents (executives). In an ideal world, both parties would work toward the same goal—maximizing shareholder value. But in practice, divergent interests often emerge. Executives might prioritize short-term gains, personal perks, or empire building. Shareholders, on the other hand, seek sustainable profitability and long-term growth. This misalignment creates what's known as agency costs. Compensation as a Governance Tool To mitigate these costs, organizations use performance-linked compensation structures. Bonuses, stock options, and long-term incentive plans are designed to make executives think like owners. When a CEO's wealth is tied to the company’s stock performance or financial outcomes, they’re more likely to make decisions that benefit shareholders. But this alignment isn't automatic. Designing effective compensation packages requires nuance: Short-term vs. Long-term: Annual bonuses tied to revenue may encourage risky behavior. Conversely, stock options vesting over several years promote a long-term view. Risk Appetite: Shareholders often hold diversified portfolios and can tolerate risk. Executives, whose income and reputation hinge on one firm, may be more risk-averse. Compensation must strike a balance. Transparency and Monitoring: No incentive can replace the need for robust governance. Boards, audits, and independent compensation committees play a critical role in overseeing fairness and performance alignment. The Indian Context In India, executive compensation has come under increasing scrutiny. With SEBI's evolving regulations and growing shareholder activism, companies are under pressure to justify C-suite pay. Agency theory provides a valuable framework for designing compensation strategies that are not only effective but also defensible. Final Thoughts Executive compensation, when rooted in agency theory, becomes more than a paycheck—it becomes a governance mechanism. It ensures that leaders are rewarded not just for showing up, but for delivering sustained value. As professionals and stakeholders, it’s our responsibility to advocate for compensation structures that are transparent, performance-based, and aligned with long-term goals.

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Episode #43 Transformational TA Leadership Begins with Stakeholder Collaboration "Building strong stakeholder relationships with Operations is one of the most effective ways to accelerate recruitment outcomes and lead meaningful change within talent acquisition." - Courtnay Freya Wittmershaus, PHR, SHRM-CP, RACR We had Courtnay Freya Wittmershaus, PHR, SHRM-CP, RACR, the dynamic leader of Sharp Healthcare’s Workforce Planning and Talent Acquisition team, back on the show for a second time on Episode #43. Courtnay shared actionable takeaways on aligning TA strategy with operational excellence, including insights into: ● The role of technology in streamlining any recruitment process. ● The power of a 1% daily improvement mindset. ● Leveraging regional and cultural contexts for tailored workforce strategies. ● The long-term value of investments in automation and continuous data harmonization. Her team's transformational approach offers critical lessons in leadership, including how fostering trust-based relationships and open collaboration can drive exceptional results. #TalentAcquisition #HRLeadership #RecruitmentTrends #WorkforceStrategy #LeadershipDevelopment

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5 Metrics HR Owns (What the Execs/Board Want to See) Today I'm attending a Board Collective that CREW is hosting for their community, this topic is top of my mind for me. If HR is truly a strategic business partner, then we need to speak in metrics that matter to the business. Not just HR dashboards. Real, business aligned insights that help executive teams and boards make better decisions. Over the years, I’ve learned that while people data can be complex, it gets traction when it connects clearly to performance, risk, and growth. Here are five metrics every HRBP owns and if in the Boardroom, ready to speak on: 1. Quality of Hire It is not just about time to fill or offer acceptance rate. The question is, are we hiring people who succeed here? This means measuring early performance, retention of new hires, and cultural alignment. Josh Bersin emphasizes quality of hire as a leading indicator of talent strategy effectiveness. 2. Voluntary Turnover of High Performers Not all attrition is created equal. Who is leaving and why. Losing top talent has a compounding impact. 3. Internal Mobility Rate A strong signal of a learning culture and succession planning. High-performing organizations create pathways for internal growth. LinkedIn’s Workplace Learning Report consistently ties internal mobility to long-term retention and DEI progress. 4. Manager Effectiveness Score Strong managers drive performance, retention, and culture. This is more than 360 feedback. Great companies measure manager impact through engagement scores and team turnover. 5. Time to Productivity Time to fill is tactical. Time to productivity is strategic. How fast can new hires contribute real value? It signals the health of your onboarding, your clarity of role expectations, and your leadership alignment. These metrics aren’t just HR KPIs. They are business indicators. Executives and Boards don’t just want to hear about people, they want to understand how people drive results.

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I’ve been thinking a lot about what’s in and out for HR and compensation in 2026. After our first Comp and Coffee of the year, here’s my take. What’s in: 💚 Pay transparency & fairness – good-faith ranges, defensible decisions, and using data to pay competitively and equitably. 💚 Skills-based talent management – keeping a pulse on the skills that matter most as roles shift faster than ever. 💚 Real-time, data-driven decisions – AI and HR tech are tools to help you make smarter, faster, more defensible decisions. 💚 Collaboration across functions – HR, comp, finance, and legal working together, not in silos. What’s out: ❌ Manual processes & spreadsheets – if it can be automated, it should be. ❌ Non-defensible pay practices – random ranges and ad hoc decisions are history. ❌ Pay transparency as a recruitment checkbox – it’s about the full employee lifecycle, not just hiring. ❌ Ignoring total comp in pay equity – base salary alone is no longer enough; look at all forms of pay and benefits. My tip for HR leaders in 2026: Be curious. Things are moving fast. The tools, data, and legislation coming at us will help you do your work better, but only if you embrace the change. Compensation is no longer just a cost. It’s an investment in your people and your business. Let’s make 2026 the year we lean into that. Listen to the full conversation with Lulu Seikaly, Sara Hillenmeyer, Lexi Clarke, and Peh Teh: https://bit.ly/49EUxJa

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I had a different post lined up today, but the latest HBR piece stopped me in my tracks. It’s excellent, but it’s missing a key point. The article captures the paradox of senior leadership: the higher you climb, the less support you receive. SVPs, EVPs, and C-suite leaders often step into new roles without onboarding or feedback loops. Too often, they’re set up to fail. The author offered 5 smart strategies to close the gap: • Normalize executive onboarding • Build confidential peer-coaching opportunities • Facilitate reflection early and often • Introduce focused 360s • Formalize upstream mentorship and coaching The problem? All of these strategies focus solely on the leader without addressing how the team adjusts to them – and vice versa. When anyone new joins a group, the dynamic shifts. When that person is the leader, it’s a chance to reset and strengthen the team. That’s why I advocate for “New Leader Integration” - a structured process that accelerates trust, aligns expectations, and removes barriers so both the leader and the team succeed. Unlike “assimilation,” the goal isn’t for the leader to fit into the team; it’s for the leader and team to come together and become a stronger team, faster. 👉 The HBR article raised such an important point that I’m making my own "New Leader Integration" guide available - something I usually keep for client work. It lays out the process, sample emails, and a meeting deck outline I actually use. If you’re a CHRO and want a copy, drop me a note.

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