The new power struggle in the C-suite: When people and transformation collide.
Transformation is now a permanent operating condition. As organisations move from episodic change to continuous reinvention, the boundaries between the Chief People Officer and the Chief Transformation Officer are blurring. Both roles shape the future of work. One leans into culture, capability and leadership. The other steers structure, operating model and pace.
But when mandates overlap without clear redesign, execution slows, trust erodes and energy leaks from the system. The opportunity for the CPO is to own the human engine of transformation and turn shared turf into shared advantage.
Transformations fail more often than leaders expect. Recent research from Oxford Saïd and EY shows that putting humans at the centre can improve success odds by more than two and a half times, yet the base rate of failure remains stubbornly high. The study traces derailment to gaps in alignment, communication and adoption rather than technology alone. In other words, the people journey makes or breaks the programme.
The execution risk increases when senior roles overlap and decision rights are unclear. McKinsey’s analysis is blunt. Where transformations did not engage line managers or frontline employees, only 3% of organisations reported success. Engagement at every level is not a soft extra, it is a gating factor.
The Convergence of People and Transformation Leadership
The CPO’s advantage is coherence. No other executive sits at the intersection of strategy, culture, leadership and people analytics. The most effective CPOs translate the strategic case for change into behaviour, capability and incentives that teams can act on.
They create a single truth source on the human side of the plan, link it to business metrics and remove friction that slows progress. They also insist on communications that are timely, plain and consistent, because ambiguity is the breeding ground of resistance.
These moves align with evidence that culture work and human centred design are the critical differentiators between underperforming and outperforming transformations.
The Consequences of Overlap: Tension, Confusion and Cultural Fallout
To navigate the overlap between people and transformation, CPOs should start with precision about roles and outcomes. Define decision rights before you define tasks. Agree the principles that will govern trade-offs, such as speed, simplicity and customer impact. Then lock in shared success measures.
Joint metrics and shared incentives convert cooperation from a slogan into a management system. When leaders present a single story to the organisation, they compress uncertainty and accelerate action.
Next, operationalise the human journey with the same rigour applied to the financial case. McKinsey’s guidance on culture shifts points to five practical moves that raise performance and stickiness when done together.
They include setting a compelling reason to believe, building skills, reinforcing through formal mechanisms and visible role modelling. CPOs can convene their peers to make these moves tangible in performance systems, leadership routines and day to day decision making.
Creating the CPO Advantage: Owning the Human Side of Transformation
CPOs should build the people data backbone that lets the executive team see adoption and impact in real time. The strongest cases for people analytics show measurable value in retention, performance and well-being when analytics are wired to decisions, not dashboards.
Use analytics to identify critical roles, heat maps of influence, skill gaps and change adoption by cohort. Then close the loop by tying these signals to transformation milestones and financial outcomes.
Increase leadership readiness before pressure peaks. Most leaders are not fully equipped to carry people through sustained uncertainty. The 2024 Global Culture Report found that only 27% of leaders feel strongly prepared to help their people navigate change. That capability gap amplifies the cost of role ambiguity and slows execution.
A CPO led programme that builds change sponsorship skills, message discipline and coaching capacity across the executive bench pays for itself quickly in speed and confidence.
Treat change management as a core project discipline, not a parallel track. Digital transformation failures can often be traced to the same root causes year after year. Lack of clear vision, resistance, inadequate change management and underestimating organisational impact consistently derail progress.
A structured approach that embeds stakeholders early, clarifies the why, and equips managers to lead change reduces those risks materially.
Practical Strategies for CPOs to Navigate Shared Space
From here, the playbook for CPOs in a shared space with transformation is as follows.
First, align the top team on destination, milestones and non-negotiables. Create a single, accessible plan that integrates the people roadmap with the value case. Use weekly leadership dialogues to resolve conflicts quickly and keep communications clean. Anchor messages to a consistent storyline so employees do not need to decode shifting narratives.
Second, set up a lightweight governance model that brings HR, finance, operations and technology together around one cadence. Make joint reviews the place where numbers and narratives meet. Use them to track adoption, unblock resourcing and decide if the next step is to scale, adapt or stop.
Third, make culture explicit and measurable. Define the behaviours that will power the future operating model and bake them into performance goals. Align recognition and reward to those behaviours to build momentum. Reinforce by design, not by slogans.
Fourth, modernise HR processes to match the speed of transformation. Streamline performance management during the programme, simplify decision paths and remove administrative drag that competes with delivery. Equip managers with enough toolkits and just in time support so they can coach and act with confidence.
Finally, guard your span of control. The overlap can pull HR into every problem and turn the CPO into a de facto programme manager. Keep focus on the levers only HR can pull at scale. Capability, leadership, culture, communications and people data are those levers. Partner deeply on programme design, but do not trade them away.
Guardrails: Avoiding Role Dilution
The future shape of the CPO role is already visible. Continuous transformation is the new normal. AI and digitisation will keep blurring boundaries between business, technology and people. The CPO who sees themselves as a business leader through the lens of people will thrive.
By owning the human system of change, setting the standards for clarity and trust, and tying people outcomes to value, the CPO turns an organisational ambiguity into an executive advantage.
The Future of the Role: The CPO as Enterprise Transformer
Success will still depend on disciplined delivery. The research is clear on what tips the odds. Human centred design improves transformation outcomes. Broad engagement multiplies success rates. Clear roles, strong sponsorship and structured change management reduce failure modes that persist across industries.
CPOs are best placed to bring those ingredients together. If they do, the overlap stops being a battleground and becomes the route to a faster, healthier and more resilient organisation.