In an increasingly uncertain and complex world, the roles of the Chief Executive Officer (CEO) and Chief People Officer (CPO) – and the dynamic between them – is now, more than ever, critical for the success of a business.

Like any strong relationship, trust, transparency and respect underpins success, particularly when expectations and remits are fast evolving and lines are blurring. With this in mind, Stuart Mason, Partner in our CEO & Board Practices, and Sarah Scannella, Partner in our Human Resources Practice, invited a number of CEOs and CPOs to explore this topic further.

How has the relationship between CEOs and CPOs evolved in recent years?

Since the pandemic, there have been significant shifts in human behaviour, societal norms and employee expectations; all of which continue to have an impact in the workplace.

In many ways, the pandemic accelerated changing employee attitudes and expectations that were already shifting the employer/ employee relationship, amplifying the importance of the people agenda. Inevitably, this has shone a spotlight on the importance of the CEO and CPO relationship and their ability to drive an aligned agenda in service of positive business outcomes.

“The conversations I’m now having with our CPO are no longer just about people strategy, but are as much about the business itself, our growth, our challenges and our responsibilities to our future”.

These leaders in particular have found their roles expanding far beyond their traditional scope. A CPO is now expected to be a broad commercial business leader, as well as an expert in leading the people experience, wellness and developing organisational capability, amongst many other things.

Similarly, a CEO is now expected to be much more visible, better connected and a progressive people leader, culturally responsible as well as strategically and commercially astute.

“It’s now about how our CPO partners with me and the executive team, coaching and guiding me as a critical adviser, whilst working together to find the right solutions for our business.”

The shifting expectations between CPO and CEO

One of the biggest shifts noted in the expectations of the CPO role was in the contribution they make by being externally attuned. In our discussion, the CEOs highlighted how they look to their CPOs to bring different insight and innovation from outside the organisation; to provoke and evolve thinking and practices that will have greater impact on business strategy.

The CEOs agreed that the competitive edge for their business came from the talented people and capabilities within. Having a strong and trusted partnership with the CPO was critical to the strategy and finding new ways to unlock and harness talent to support organisational effectiveness and engagement with the business. To do that well requires high trust and respect between the CPO and CEO.

The duality of the CPO role was discussed– the need to keep an ear close to the ground to truly understand how the organisation works, as well as it’s sentiment; whilst at the same time, being able to take a bird’s eye view of the business, its market and what else is going on externally that might shape or disrupt it.

The CPOs highlighted the delicate balance they often navigate when leading at an executive level. Not only are they part of the executive team as a peer; but as the conscience of the organisation, they hold others (including the CEO) to account in terms of behaviour, leadership and culture. This brings a complex dynamic to the CEO/ CPO relationship, and one that cannot thrive without deep trust, mutual respect and transparency.

There were shifting expectations for the CEO too. The CPOs shared how it was essential their CEOs embraced the ever-evolving world of work, with more progressive CEOs being fully cognisant of the complexity this brings and how their responsiveness to these changes was critical for the success of the business.

The CPOs highlighted the need for CEOs to invest further in developing their own relationship with their most senior people leader, as well as their wider executive team; recognising that nearly every business decision now has a potential people impact. In an increasingly complex yet visible world, having a culture of psychological safety at the most senior level is imperative for the organisation to thrive.

Intrinsic in this is a CEO who is open to evolving the relationship – enabling the CPO to become their trusted adviser, coach and conscience; the person that provides a very different perspective on the organisation. For this to happen, it was acknowledged that those in the CPO role must continue to demonstrate their own credibility through their increasing commerciality and strategic insight.

What challenges are next for the role of the CEO and CPO?

We are in a new business era that is transforming the world of work at pace. When and where we work, how and what we do, the technology and tools we use and who we work alongside is rapidly shifting.

Both CEOs and CPOs shared the challenges they were already facing with changing and more nuanced expectations of work, career, and life from multi-generations in their organisations. Navigating the evolving workplace attitudes and practices, whilst developing strategies that deliver for each generation (in terms of skills, health, wellbeing, career, work expectations and technology), is complex to achieve.

Future leadership skills are also fast changing. Developing organisational resilience and agility, being open-minded to change, and a willingness to embrace new ideas; were skills that these leaders felt were essential; not only for their own relationships, but for the future of their organisation.

Having an aligned and progressive executive team, delivering clear leadership direction will be crucial to navigating this new era of work. And in turn, this places even greater emphasis on developing a strong and robust relationship between the CEO and CPO, built on mutual trust, respect and integrity.

If you’d like to hear more about this fascinating conversation, or about how we work with our clients, please do not hesitate to give us a call.

Get in touch with Sarah, Partner in our Human Resources Practice

Get in touch with Stuart, Partner in our CEO & Board Practices