More than ever, the chief people officer (CPO) must act as a business leader first, balancing employee well-being with the organisation's strategic goals. Aligning people strategies with business outcomes has become paramount as it directly impacts growth, talent retention and overall company performance.   

 

The Board plays a critical role in shaping the direction of a company and setting the pace for transformation. Given the focus on skills and talent, it’s no surprise to hear that the CPO has a vital role to play in supporting the Board’s strategic ambitions by creating alignment across the whole organisation.  

 

“Leading CPOs focus on transformation and sustainable growth through talent. They use insights and influence to drive proactive decisions. They display stronger skills, especially in systems thinking and strategy, financial and business acumen and their technology and data orientation,” explained Andy Young, Managing Director and Financial Services Talent and Organisation Lead at Accenture, during the keynote address at Criticaleye’s recent CPO Forum. “Practically, this means connecting talent to the business strategy and investment portfolio, especially given the growing impact of AI.” 

 

When there is a disconnect between HR and the wider business strategy, it's not just a missed opportunity; it can also lead to significant lost value.  

 

During the CPO Forum, held in partnership with Accenture and Reward Gateway | Edenred, it was noted how challenging it can be to maintain a balance between advocating for employee well-being and ensuring that HR strategies drive measurable business results.  
 

"I've seen it go wrong in Boardrooms, where the tone from the HRD just isn't quite right," said Brona McKeown, HR Director, General Counsel and Company Secretary at British Land.  “Where it's not balanced enough, particularly if a business is going through tough times, and it feels like it's only about people and well-being. It comes back to rooting it in hard performance data and always combining that with the people side,” she added. 

 

Big Picture Thinking  

 

A data-driven approach certainly ensures credibility for CPOs and reinforces the idea that their strategies are there to support overall business performance.   

 

Jamie Wilson, Managing Director, Group Services at Criticaleye, underscored the pivotal role of HR, stating: "The shift from a tactical HR function to a strategic leadership role reflects a broader understanding that people are the primary drivers of innovation, culture and – ultimately – business performance."  

 

It’s a shift that empowers CPOs, making them integral to the business' success. At the solar developer lightsource bp, Global HR Director Heather Hayes explained that when presenting to the Board, she usually leads “with a RemCo [Remuneration Committee] topic” because it’s useful to initially tie the conversation to financial performance. She continued: "We then feed that into a more extensive people agenda so that at that point, the messaging becomes more about the retention of skills and the culture to attract talent for growth, which will deliver their business results.” 

 

Brona, who is in a unique position as General Counsel and Company Secretary – in addition to her HRD role and seat on the Board at British Land – highlighted who the key people to influence in the Boardroom are from a HR perspective. “The Chair of the Board and the Chairs of RemCo and Audit [are essential]. Audit may be less obvious but that’s where the control failures or the whistleblowing reports come up. And in our organisation, we also have an ESG Board Committee which owns the employee engagement responsibility under the listing rules.    

 

Clearly, the success or failure of a CPO's strategy will be fundamentally linked to the relationships built with the senior leadership team. Andy said: "Leading CPOs have strong backing from their CEO and influence across the C-suite and into the Board. They collaborate and influence significantly more than others."  

 

Heather makes sure to work with her peers, such as the CFO, General Counsel and CEO, to carry consistent messaging about the people strategy in the Boardroom. “We all come at it from different directions, but the messaging is always the same on growth, retention and the skills for the future,” she told the audience. “The rationale behind what we're asking for and what we need to influence is consistent across the different voices that are appearing at the Board.”  

 

Gone are the days when HR was seen primarily as a back-office function focused on compliance, payroll and employee relations. CPOs are pivotal to the wider success of the the C-suite, ensuring that human capital strategies are closely linked to business success. 

 

“Looking ahead, the role of the CPO will only continue to grow in importance,” Jamie said. “As organisations face increasing challenges – from rapid technological change to evolving employee expectations – the CPO will play a crucial role in ensuring that the workforce is adaptable and aligned with the company’s strategic goals.” 

 

By focusing on both people and business performance, CPOs can ensure that the organisation is resilient in the face of challenges and primed for sustainable growth. 

Bridgette Hall, Senior Editor, Criticaleye