The CPO of 2030: From people leader to value architect

The role of the Chief People Officer has shifted. They are becoming commercially and technologically minded, and more strategically embedded than ever before – with a clear focus on value creation, according to speakers at the latest Inflexion People Leaders’ Exchange. 

The CPO role has expanded and deepened in the last six years since COVID. From remuneration committee (RemCo) to spreadsheets full of people analytics, the position is so much more than pure hiring and firing. 

The role is demanding – at times lonely – and also increasingly influential, according to Rachel Farley, Partner at Heidrick & Struggles, a leadership consultancy and executive search firm. “The most effective CPOs have become central to value creation, rather than adjacent to it,” said Rachel, whose presentation drew on a report from her firm.

The shift is being driven by a more demanding operating environment. According to a recent Bain & Company report, “12 is the new five” – profits of private equity-backed companies now need to grow substantially faster than a decade ago. “As organisations face faster growth expectations, technological disruption and shifting workforce dynamics, the ability to align people strategy with business outcomes becomes a source of competitive advantage,” Rachel noted.

Execution will remain the differentiator – but it has become more complex, shaped by regulatory expansion, AI and automation, geopolitical tension, inflation, and structural shifts in labour markets. 

From support function to value driver

Rachel explained that today’s CPO is judged across three dimensions. First, their ability to influence business outcomes alongside the executive team. Second, how effectively they translate the organisation’s “people assets” into strategies that drive growth, transformation or cost efficiency. Third, their leadership of the HR function itself – and whether it can operationalise those strategies to deliver outcomes.

They are also increasingly expected to demonstrate that link – clearly showing meaningful EBITDA impact from organisational design, leadership changes or culture programmes.

This is particularly the case in private equity-backed businesses, where ambitious value creation plans guide growth. Here the CPO role is to help shape an executive team that operates as a single enterprise unit rather than a collection of functions, and they are expected to bring speed, focus and alignment.

Transformation through AI

If the past six years expanded the CPO remit, AI is accelerating it. Despite this, uncertainty persists, according to Rachel. “Even within technology businesses, many leaders admit to a degree of ‘FOMO’ – a sense they should be doing more, without a clear roadmap of what “good” looks like.”

The last two months in particular have seen a shift, with CEOs now explicitly testing CPO candidates on AI: how it will reshape the workforce, how it integrates into products and services, and how it transforms the HR function itself. Just six months ago these questions were rare; now she notes they are central and a test of how candidates are thinking and adapting. 

Interestingly, the thinking around AI is evolving. Whereas previously people considered it “AI transformation”, it is now increasingly viewed as business transformation enabled by AI. “The distinction is subtle, but significant, placing the emphasis on outcomes rather than tools, and positions the CPO as a driver of enterprise-wide change rather than a functional adopter of new technology,” Rachel pointed out. 

This is clearly important, with “a capability gap already emerging between organisations that are embedding AI into workflows and those that are not” according to Rachel. Leading CPOs are responding in practical ways: building their own fluency, identifying use cases that reduce process burden, and aligning leadership teams around governance, ethics and adoption. Many are also re-architecting team structures, with automation reducing administrative load while increasing demand for higher-value, judgement-led roles.

People remain core 

Leadership assurance – selecting, developing and aligning the right individuals – will remain a core value driver. This includes ensuring that executive teams operate cohesively, and extends to the board: relationships with Chairs and investors are becoming an essential part of the role, with CPOs increasingly expected to act as a strategic voice at that level.

“Effective transformation requires mindset change across the organisation, something that cannot be delivered through technology alone. CPOs who embed it as a people-led change programme are more likely to succeed,” Rachel advised.

As AI takes on more routine tasks, the judgement, resilience and decision-making of humans become differentiators. Developing these capabilities will be a priority for the CPO of 2030. Simple practices – such as structured feedback loops or disciplined performance reviews – can play a role, but the broader challenge is creating environments where learning, accountability and adaptability are part of the culture.

“Technology alone does not create advantage; it is how people use it that matters,” Rachel said.