40% of business leaders call for better C-Suite alignment as strategic friction slows people transformation

• Four in five CEOs see their CPO as a pivotal change-maker, but not all of the C-Suite agree
• Only 36% of CFOs and 32% of COOs say CPOs are leading transformation
• 30% of CFOs want better collaboration with HR
• One in three CTOs see the HR functions as siloed
• Research based on insights from 450 business and C-Suite leaders

New research reveals a critical misalignment between HR and members of the C-Suite that is hindering business transformation efforts. The findings from the ‘From implementer to influencer: Redefining HR’s role in business transformation’ report* suggest that while Chief People Officers (CPOs) are increasingly recognised as key players in business transformation, their influence is often limited by sporadic integration with their C-Suite peers, with 40% of senior business leaders calling for stronger strategic alignment.

The study, based on insights from 450 C-Suite leaders, shows that two-thirds of CPOs (66%) believe they are leading the transformation agenda, and 82% of CEOs agree that their CPOs are as influential as other senior executives. However, this view is not shared across the board – for example, only 36% of CFOs and 32% of COOs agree, pointing to a disconnect between perception and partnership.

The findings further reveal that CFOs and COOs often see HR as underfunded, reactive or lacking a clear link to business outcomes. Thirty percent of CFOs want better collaboration with HR, and one in three CTOs believe HR remains too siloed to drive transformation effectively. While the vast majority of CEOs and CPOs report strong alignment between people strategy and business goals, that alignment often fails to translate into practice due to resourcing challenges, prioritisation gaps and poor connectivity between functions.

Aaron Alburey, Founder at LACE Partners, said: “From our work, and now substantiated by research, we know that HR is taking a greater strategic role in shaping business change.  However, in many companies, HR leaders are still brought into transformation projects at the planning or execution stage, well after key decisions have been made.

Whilst there’s a growing appetite for people-driven transformations to increase ROI, without genuine cross-functional collaboration, many initiatives will stall even before the implementation stage.”

The report also highlights that mid/large organisations, typically those with 10,000 to 50,000 employees, have a unique opportunity to amplify HR’s impact. These companies tend to enjoy stronger internal alignment and more agile operations, but many are still expected to deliver large-scale transformation without the necessary tools, capacity or analytical skills to take a truly strategic role.

Adding a CEO’s perspective on HR’s role in business transformation, Simon Walsh, CEO of OneAdvanced, explained: “If the CEO treats HR as an administrative function, then HR probably doesn’t get to play a role in transformation. However, any transformation, whether its systems and tools, market segments or geographic entry, is entirely predicated on the people that deliver it. You can make systems and process changes, but they mean nothing if people are stuck in old ways of working. You can enter a new market, but it won’t deliver if people aren’t skilled, equipped and metriced to serve the new agenda.

“The CEO, the CPO and the CFO are a triumvirate. We do a daily stand-up (a key actions today meeting) to explore and understand any change we are undertaking. The CPO is like a sparring partner to ascertain the magnitude of the people change in any transformation, although they aren’t the sole voice on the people’s perspective. We believe that the CPO is an absolute equal in every single aspect of the business”.

*Lace Partners