The Missing Link in Executive Education and Why It’s Costing Companies Millions

MBA programs teach future executives how to read a P&L, model cash flow, and pitch investors, but not how to leverage HR as a growth engine.

That blind spot has a real price tag.

When leaders don’t understand how to use strategic talent practices, three things happen:

• Businesses lose efficiency and competitive advantage.

• Employees lose opportunities to grow and thrive.

• CHROs lose time re-educating peers instead of accelerating impact.

It’s not a small gap. It’s systemic.

The Blind Spot in Executive Education

Business schools focus on finance, strategy, and operations, but rarely on strategic HR or talent management.

AACSB accreditation doesn’t require it either.

You can graduate from a top business program having never learned how to align talent with strategy.

The Data Is Overwhelming

McKinsey found that companies that develop and deploy human capital well are the most profitable in their industries.

Gallup shows highly engaged workforces deliver 23% higher profitability and major productivity gains.

PwC’s CEO Survey ranks “availability of key skills” as one of the top risks to growth.

And case studies back it up.

McKinsey’s research on high-quality performance systems found that organizations using continuous feedback and clear performance alignment are 4.2 times more likely to outperform peers and experience around 30% higher revenue growth with 5 percentage points lower attrition.

Accenture calls this shift the rise of the High-Res CHRO. Their global CEO survey found 89% of CEOs believe CHROs should play a central role in driving business growth, yet only 45% of organizations actually empower them to do it.

Imagine If Every Executive Already Understood Strategic Talent

Now imagine a world where every MBA graduate already knows how to use talent as strategy.

CEOs would partner with CHROs the way they do with CFOs, working side by side to grow capability, not just headcount.

Workforce planning would be built into annual strategic planning, not added after budgets are set.

Leaders would make talent investment decisions with the same rigor as capital investments, forecasting ROI, risk, and growth impact.

Employees would feel the difference too. More development. Smarter reskilling. Stronger managers. Organizations designed for both humans and performance.

That’s what the future could look like if we taught this upfront.

The Question Every CHRO Should Be Asking

Is that realistic, or just wishful thinking?

Would executive programs that actually teach this move the needle, or is there a deeper root cause we’re all missing?

Join the Conversation

If you want to help rebrand the HR and talent profession, consider joining CHRO Mastermind Groups for Chief HR and People Officers of companies with over 500 employees.

👉 www.chropartners.com 

Sources

[1] McKinsey & Company, Performance Management That Puts People First, 2023.
[2] Accenture, CHRO as Growth Executive: The High-Res CHRO, 2022.