CHRO Insights: Driving Successful Digital Transformation

HR digital transformation often lags behind other parts of the organization, and according to Gartner, more than half of HR leaders (55%) report that their current technology solutions fail to meet both current and future business needs. As CEOs prioritize growth and emerging technologies for 2025, Chief Human Resources Officers (CHROs) are keen to accelerate their digital transformation initiatives this year.

Recently, CHROs from the Chicago community gathered for a town hall to discuss HR transformation strategies and common pitfalls. During this interactive program, HR leaders divided into small groups to discuss tactics for aligning their strategies with the organization's digital objectives, fostering a digital-first culture that supports transformation goals, and achieving quantifiable ROI from AI investments.

The session was moderated by Ed Turi, Principal Value Advisor at Dayforce. Diane Hughes, Chief People Officer at Alliant Credit Union served as the Governing Body Host, with Cindy Fleming, SVP, HR at LSC Communications; Christy Harris, CHRO & SVP at CCC Intelligent Solutions; and Stephanie Murray, VP, HR & Chief Diversity, Equity and Inclusion Officer at Radius Recycling leading the discussions.

Here are the key takeaways:

• Building a Business Case for HR Technology: In an era where CHROs are often tasked with achieving more despite flat or reduced budgets, gaining executive support for HR technology investments is crucial. One CHRO emphasized, “Having a strong business case and articulating the value is critical.” HR leaders advised focusing on long-term organizational goals and prioritizing technologies that support talent acquisition, development and upskilling for digital capabilities, as these are more likely to secure executive buy-in. As one CHRO noted, “Start with bite-sized pieces to bring your executives and employees along.”
  

• A Strategic Approach to AI: Many CHROs recognize they are in the early stages of AI adoption and shared their initial strategies for implementation. They agreed that a well-defined strategy is essential for navigating the digital transformation and AI journey. One CHRO remarked, “It’s important to have a strategy because it informs where you spend your time, money, and resources.” 
  They also stressed the importance of aligning AI initiatives with long-term goals and starting with specific business problems and desired outcomes. Rather than adopting “AI for the sake of AI,” HR leaders are prioritizing a solid foundation and clear objectives. One CHRO described forming two internal committees: one focused on mitigating AI risks and the other on exploring its possibilities.

• Change Management and the Impact on Organizational Culture: CHROs are carefully considering the cultural implications of digital transformation and developing change management strategies to ensure successful adoption. They emphasized the importance of fostering a culture of learning, particularly in organizations with tenured employees who may need to adapt to new ways of working.

• Measuring Impact and Success: Understanding the tangible impact of digital transformations is a priority for CHROs. They utilize various metrics, including engagement surveys, assessments of task speed and efficiency, and resource utilization reports, to evaluate the success and impact of their initiatives.

CHROs can continue this discussion with peers at an upcoming in-person community gathering. Members can sign in to find events and register with one click. If you are new to Gartner C-level Communities, apply to join your local CHRO community to connect with peers on your mission critical priorities.
 

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