Growing business and workforce complexity across Southeast Asian markets has brought the role of CHROs into focus. In 2025, the role is no longer limited to just being a steward of people processes — it has morphed into a strategic architect of business outcomes. The evolution is unmistakable. But with these changes also come growing challenges and a need to assess CHRO effectiveness across Southeast Asia to future-proof HR leadership.

From talent custodian to leading business readiness

Once primarily focused on operational HR tasks, today’s CHRO is increasingly seen as a core member of the executive team, tasked with aligning talent strategy to business goals. The People Matters CHRO Effectiveness in Southeast Asia 2025 Report identifies advising the CEO, Board, and C-suite on strategic transformation and future readiness as the top expectation from CHROs in the region.

Over 78% of CEOs highlighted this as a key strategic role that CHROs are expected to play in 2025. Reflecting the fast-evolving external environment, advising on transformation and future readiness trumps other major concerns like developing a talent strategy that aligns with business objectives (59%) and managing C-suite collaboration and development (51%). The role of CHROs in ensuring future transformation and preparedness will be one of the biggest opportunities for HR to contribute to a business’s long-term success in 2025.

Enabling C-suite success: A crack in the CHRO armour

Across four key dimensions that the report used to assess CHRO effectiveness in 2025, enabling C-suite success stood out as a missed opportunity. Comparing effectiveness ratings by both CHROs and CEOs, different aspects of C-suite success — like preparing for CEO succession and addressing executive compensation — fell below the rest. This, combined with the low tech usage across these initiatives and a lack of time allocated by CHROs, is of critical importance to address in 2025.

Executive compensation, while remaining one of the most visible responsibilities of the modern CHRO, mandates more attention. Looking at overall time allocated to it, over 92% of CHROs say they spend just 0-10% of their time on it.

What’s more worrying is the low focus highlighted by the report on preparing for CEO succession. Similar to executive compensation, around 92% of CHROs say they spend just 0-10% of their time on it. Additionally, over 57% say that they have no to moderate support from tech solutions for preparing CEO succession.

With CEO tenures shortening and business models evolving, CHROs need to maintain a pipeline of future-ready leaders — one that requires both predicting the competencies needed for tomorrow’s leadership roles and integrating data-driven assessments, leadership development programmes, and real-time performance insights to mitigate succession risk.

The role of CEO in today’s world critical for the sustenance and success of business, the lack of focus on preparing future leaders — combined with other challenges like low tech usage in empowering the C-suite — will require time and focus from CHROs in the coming year.

A case for a new CHRO Scorecard

The CHRO scorecard enumerates the critical KPIs and priorities of CHROs. Looking at the rise in its strategic role, it’s time CHROs updated their scorecards to reflect present and future needs better. While we have discussed how future preparedness, transformation, C-suite success, etc., have all become vital areas within the CHRO’s ambit, a look at the scorecard suggests leaders are still in the business-as-usual (BAU) phase.

Missing key business expectations and limiting KPIs to BAU hinders CHRO impact and is a detriment to its growing relevance. Updating the scorecard to reflect other key dimensions of CHRO work — like enabling C-suite success, enhancing business future preparedness, and building HR team capabilities — will prove essential in future-proofing HR leadership in Southeast Asia.

Capabilities and the CHRO career horizon

For CHROs themselves, the career map is shifting. This stems from the capabilities many are developing today. The most sought-after CHROs will embody a rare mix of strategic foresight, data literacy, and cultural and collaborative leadership. Looking at 2025, the report finds that the majority of CHROs aim to develop business acumen, while most business leaders want them to develop digital readiness and C-suite relationships.

Focusing on building these capabilities puts many CHROs as natural contenders for CEO or C-suite roles — a trend already visible among progressive firms. In fact, the report identifies that in Southeast Asia, around 5 in 10 leaders aspire to be either a CEO or take up another C-suite role post their CHRO stint. This ambition mirrors how CHROs today are ingrained in the strategic operations of the company, no longer being defined by their sole role of managing talent. But the path ahead will require CHROs to focus closely on building further business acumen, strengthening relationships and being more adaptable.

Imperatives to future-proofing HR leadership

Despite their expanded role, many CHROs remain tethered to scorecards that prioritise business-as-usual (BAU) metrics — often at the expense of longer-term strategic imperatives. CEOs increasingly view CHROs as orchestrators of future readiness, yet the performance measures in place still reflect a transactional focus. This misalignment stifles the CHRO’s ability to lead transformational change.

To address this, CEOs must redefine CHRO scorecards to include long-term, value-driven metrics that promote accountability beyond operational tasks. Future-focused scorecards will empower CHROs to prioritise critical areas like succession planning, leadership pipeline development, and executive compensation — ensuring alignment with evolving business strategies.

Moreover, CHROs must proactively invest in C-suite succession and executive compensation strategies. Beyond simply filling leadership roles, they must shape the leadership bench with the right mix of skills, experiences, and perspectives to future-proof the organisation. Strengthening their influence with boards — traditionally dominated by finance and operations — is a key step in ensuring HR remains central to long-term strategy.

Finally, CEOs must embrace a more progressive view of the CHRO role itself — including its place in succession planning. The tendency to downplay CHROs' business acumen as a critical capability limits their career trajectory and diminishes HR’s credibility as a strategic function. Aligning on a clearer vision for the CHRO’s evolving responsibilities will not only unlock leadership potential within HR but also strengthen the organisation’s leadership pipeline for years to come.

To know more about how organisations can future-proof HR leadership across Southeast Asia and unpack the new CHRO Effectiveness Model, download the report here.