Rethinking the C-Suite: New Pathways to the Top

SHRM research shows the modern C-suite is expanding and becoming more diverse, but the third and final part of The Evolution of the C-Suite report series uncovers new paths to an organization’s top ranks. The number of C-suite roles is expanding to include a broader range of positions. At the same time, organizations are becoming more cautious, increasingly favoring proven executives for these key positions over first-time leaders.  

This shift signals to aspiring professionals that the road to the C-suite may be broader than before. Still, it demands a new mix of skills, adaptability, and a clear understanding of emerging pathways. 

A Broader, Yet More Competitive C-Suite  

Between 1990 and 2023, the size of the average non-CEO leadership team has expanded by 160%, with more titles emerging to meet the demands of rapidly changing industries. Today’s C-suite encompasses roles that address priorities such as AI, communications, and environmental sustainability, reflecting the priorities of the modern business environment. These emerging titles reveal that the C-suite is becoming increasingly specialized, which creates opportunities for advancement but also requires a greater degree of domain expertise.

These newer C-suite positions can provide a path to the C-suite for nonexecutives. Nearly 9 in 10 new chief environmental officers (CEnvOs), chief communications officers (CCOs), and chief data officers (CDOs) came from outside the C-suite. In contrast, just 73% of CFOs and 74% of CEOs came to their role from a position not in the C-suite. 

Yet, while the variety of roles continues to grow, the path to the top has become highly competitive and selective. According to SHRM’s research, the share of new C-suite hires from outside the executive ranks has dropped from 95% in 1990 to 79% in 2021-2022. This preference for experienced executives highlights the premium placed on a track record of success.

Some C-suite positions are more likely to lead to other C-suite roles than others. While just 14% of CEOs came to the top job from elsewhere in the C-suite, 47% of those transitioning CEOs previously held chief operating officer (COO) positions. Some pairs of positions, such as chief information officers and chief technology officers, or chief marketing officers and chief revenue officers, have a high degree of overlap in their skill sets, allowing executives to move from one to the other at elevated rates. 

Skills Modern Leaders Need to Succeed in the C-Suite

SHRM’s research shows success in the modern C-suite requires more than functional expertise. Executives today are expected to be collaborative, adaptable, and well-rounded leaders capable of navigating cross-functional dynamics. 

One standout finding is the universal importance of initiative and leadership. This skill category ranked among the top three for every C-suite role and underscores the need for executives to take charge and inspire teams effectively. Other crucial skills used by multiple positions include business operations and communication skills.

Navigating Pathways to the C-Suite 

Understanding these trends and pathways is crucial for professionals aiming to attain executive leadership roles. Here’s how you can position yourself for future opportunities:

1. Leverage Emerging Roles: Focus on fields experiencing rapid growth, such as data analytics and sustainability.  

2. Develop Leadership Skills Early: Leadership and initiative remain critical across all roles. Seek opportunities to lead teams and projects, demonstrating your ability to inspire and make strategic decisions.

3. Expand Your Skill Set: While functional expertise is important, rounding out your skills in communication, strategy, and cross-functional collaboration is essential for ascending to the top ranks. 

4. Seek Mentorship from Current Executives: Learning from existing C-suite leaders can provide practical insights into the skills and experiences that drive success.

5. Stay Adaptable to Change: The corporate landscape is evolving rapidly. Professionals who can pivot and innovate in response to new challenges will stand out. 

Preparing for the Future of Leadership

The demands of the C-suite are evolving, but so are the opportunities. Today’s leaders must balance specialized expertise with broad adaptability, embodying the agile mindset that defines modern business success given today’s rapid rate of change. 

For aspiring executives, the lesson is clear: Leadership is no longer confined to a single path or skill set. By staying informed, flexible, and proactive, you can position yourself to succeed in this competitive yet rewarding landscape.

The Road Ahead 

The C-suite has grown significantly in recent years, with more opportunities for specialized professionals to reach C-level roles and transition between them. Baby Boomer retirements could further increase C-suite openings.

Companies demand C-suite leaders with specialized knowledge; strong leadership and communication skills; and the ability to inspire teams. Continuous skill development is essential. Accelerated skill replacement reflects the growing complexity of organizational demands, requiring C-suite leaders to adapt quickly. CEOs and CHROs must prioritize skill audits starting at the C-suite level to build internal talent pipelines and optimize external recruitment strategies. 

Read all three parts of The Evolution of the C-Suite series: Part 1 | Part 2 | Part 3