Through these conversations, one theme emerges time and again: PE-backed businesses are looking for people leaders who can operate commercially, translating talent and people strategy into measurable business outcomes. Equally, we repeatedly hear the same question from HR leaders themselves: how do they develop and demonstrate this commercial capability? The demand for HR leaders who can bridge the gap between people and performance has never been greater, yet the path to building this skill set remains a common challenge.
To help facilitate a meaningful dialogue around this topic, we hosted a roundtable for our network of CPOs of PE-backed organisations. The session was facilitated by Jane Kennedy, Operating Partner at Vitruvian. Jane brings a wealth of expertise, having taken an organisation through a listing whilst also operating as a NED and Chair to various businesses. We focused on the practical steps that Chief People Officers can take to ensure they operate as true commercial leaders within a private equity environment. What quickly became apparent was that these practical steps were applicable to all businesses, regardless of maturity, size, or whether they were privately owned, listed or otherwise.
We were able to distil seven key talking points from the session, as well as three immediate steps which HR leaders can take to begin their journey to becoming a true commercial operator.
A central theme was the need for CPOs to think like commercial leaders first, and functional experts second.
Jane emphasised that many people strategies are built in isolation from the business strategy. The most effective CPOs start in the opposite place – developing a deep understanding of the organisation’s investment thesis or strategic plan, then shaping the people agenda to directly enable it.
This requires:
Ultimately, the role of the CPO is to anticipate what’s coming next – identifying future challenges and opportunities before they emerge and ensuring the organisation is ready to respond. The most effective CPOs operate several steps ahead of the CEO and leadership team, providing the foresight and strategic direction needed to drive sustained performance.
A consistent gap in organisations is how people data is framed and communicated.
While most businesses track metrics such as attrition and engagement, these are often presented in isolation. The expectation, particularly from boards and investors, is that CPOs translate these into commercial impact.
For example:
The shift is not necessarily about new data but about forming a narrative around it. High-performing CPOs tell a clear, commercially grounded story that links people dynamics directly to financial outcomes.
One of the strongest messages was the importance of making difficult decisions early.
Whether at the start of an investment cycle or following a strategy reset:
Delaying these decisions compounds risk and makes it harder to recover lost ground. Leading organisations maintain constant visibility on:
The focus is on creating an ‘A-player environment’, where individuals are supported to perform at their best, but where standards remain consistently high.
Jane outlined three distinct phases in a typical PE lifecycle, each requiring a different focus from the CPO:
Entry (First 12–18 months)
This phase requires pace and clarity; carrying out a ‘listening tour’ alone is not enough and means you will lose critical time at an important point in the investment cycle.
Value Creation (Hold Period)
If the value creation plan (VCP) is aligned, this is the period in which growth and value is created.
Pre-Exit (Final 18–24 months)
Communication becomes critical, particularly to maintain focus and stability during periods of uncertainty.
Several recurring challenges were highlighted during sale or exit processes:
Best-in-class organisations:
From a people perspective, investors consistently focus on:
Above all, they look for a coherent narrative: how the people strategy has enabled value creation and how it will continue to do so.
AI was positioned as a major emerging priority for CPOs.
While many organisations are experimenting with tools, few have fully embedded AI into how work gets done. The key insight is that AI is fundamentally a people and organisational challenge, not just a technology one.
Key implications:
CPOs should take ownership of the workforce impact, working in partnership with technology teams, but leading the cultural and capability transformation.
Jane closed with three actions for CPOs:
What is becoming increasingly clear is that, regardless of ownership structure, the expectations placed on HR leaders have never been greater. Today’s Chief People Officers are expected to drive tangible business outcomes through people-led solutions, leverage data and analytics to influence strategic decision-making, and play a leading role in helping organisations embrace emerging technologies such as AI.
The challenge is many of these priorities are unfolding in environments that are new to everyone. As a result, the most successful CPOs will be those who can navigate ambiguity, adapt quickly to changing circumstances, and think creatively in the face of uncertainty. Crucially, they must position themselves as true business leaders: speaking the language of the board and investors, shaping enterprise-wide strategy, and ensuring people decisions directly support business performance. Those who can bridge the gap between people, technology and commercial outcomes will be best placed to thrive.
Download the PDF version of the full article here
To discuss any of the above further, please reach out to me directly at steven.hayes@catalystpartners.com
