Individual C-Suite roles exist to drive performance and guide the strategic direction of an organisation in areas such as finance (CFO); operations (COO); marketing (CMO); and information technology (CIO).
As the executive-level leader for an organisation’s talent and HR functions, the Chief People Officer (CPO) plays an equally critical role in its success, with responsibility for:
- Guiding the organisation through people challenges and opportunities
- Developing strategies that engage and empower people to meet performance expectations
- Fostering a culture that meets employee needs and drives performance and accountability
- Designing remuneration and reward strategies to attract and retain the right talent
- Defining an employee value proposition that the organisation can deliver on
- Managing succession planning to develop future leaders and build talent pipelines
- Implementing people practices that meet legal requirements and align with organisational goals.
“People are a critical success factor for all organisations,” says Geoff Curran, Practice Leader for NSW. “Effectively harnessing their skills, behaviours, creativity and leadership will significantly impact the performance of your organisation, shaping your productivity, culture, brand and market reputation.”
“In most organisations the CPO performs an established and well-respected role within the Executive Leadership Team. This demonstrates the people function’s contribution to business growth and the importance of appointing the right type of leader to this role,” Geoff continues.
What are some of the trends and issues that affect people performance?
Many factors shape people performance and the role of the CPO. “Some big themes and issues determine an organisation’s ability to attract, develop and retain talent; as well as influencing the people strategies and practices that guide their performance,” says Geoff. “Organisations rely on the CPO to advise on these issues and steer the people agenda in these areas.”
- Emerging technologies: AI remains a hot topic because of its unprecedented impact on the way that we work. “While AI and other emerging technologies will displace some jobs, it will also fuel the growth of new industries and create opportunities for up-skilling and re-skilling,” says Geoff. “Balancing this transformation and innovation with the people challenges and opportunities that it brings, remains critical to performing the CPO role.”
- Flexibility: Discrepancy between the employee need for flexibility and the business requirement to bring people into a physical workplace, is another example of an issues that creates performance and recruitment pressures. “Navigating this issue is challenging, particularly when the talent market is tight, as it requires balancing what employees want with what the organisation needs to perform effectively and achieve its goals,” says Geoff. “Regardless of the agreed policy, CPOs can enhance performance and support wellbeing by fostering a culture of transparency, trust, inclusion, engagement and equal opportunity.”
- Legislative change: Anti-discrimination laws are being tightened in many jurisdictions to offer greater employee protection and create more tolerant and inclusive workplaces. The right to disconnect is another example of legislative change that continues to inform people strategy and fuel discussion. “As the CPO is responsible for monitoring and adhering to employment laws like these, this individual must be able to align people practices and policies with changing legal requirements and provide the necessary training, resources and insight to ensure compliance across the organisation,” says Geoff.
Aligning people strategies with business goals: A fine balance to strike
Most of the issues that shape people strategy, ebb and flow as social and geopolitical dynamics change. What remains constant, is the need for CPOs to work closely with the Board and Executive to balance these requirements and deliver on both people and organisational strategy. “Whether your organisation is scaling up its operations, entering new markets or exploring M&A, the CPO must focus on how the people strategy supports the business in achieving these goals,” says Geoff.
Despite the importance of this alignment, achieving it is easier in theory than in practice, as not all aspects of people and organisational strategy exist in harmony. “For example, the need to contain people costs must be balanced with paying people fairly and attracting talent in a tight labour market,” Geoff continues. “The CPO must also find ways to drive people performance and efficiency, in an environment that prioritises wellbeing and meets employee needs.”
Essential skills, attributes and experience for the CPO
- Influence: Advocating for employees and meeting their needs is an important deliverable for the CPO, but senior leaders must be able to approach this role as a strategic partner to the organisation. “This means taking the lead on people discussions and striking the right balance on complex issues and decisions,” says Geoff. “The CPO must be a great influencer, capable of building relationships at all levels and guiding the Board and Executive on how to address a wide range of people issues.”
- Difficult conversations: Driving people performance will at times requires some difficult conversations to be had. “The CPO must be confident in their ability to lead these discussions; to manage their body language and emotions; and to treat employees at all levels with empathy and respect,” says Geoff. To avoid stress and burnout during these discussions, senior leaders must also be able to set clear professional boundaries and practice the necessary self-care.
- Conflict: Conflict resolution is another important skill for executive roles. “In managing conflict, the CPO needn’t be overly focused on popularity or likeability,” says Geoff. “Most organisations need leaders in this role that can act decisively and constructively to manage performance issues; make the tough decisions; and manage conflict in a way that is fair and effective.”
- Change and transformation: As the world evolves, there will continue to be strong demand for CPOs that can manage change and transformation as it relates to people performance, in ways that also work for the business.
Do you have what it takes to step up or into a new CPO role?
Looking for an experienced CPO to lead people performance in your organisation? Connect with Geoff or reach out to your local Gerard Daniels team today.
