In today’s rapidly evolving business environment, the role of the Chief People Officer (CPO) has transcended its traditional boundaries. No longer confined to managing HR operations, CPOs are increasingly seen as essential contributors to company growth, particularly when working in tandem with Chief Revenue Officers (CROs). With up to 70% of a company’s financial resources invested in its people, there is untapped potential for CPOs to actively drive revenue. By partnering with CROs to create a unified, growth-focused strategy, CPOs can make a measurable impact on a company’s bottom line.
Breaking Down Silos for Strategic GrowthHistorically, the CPO and CRO roles have existed in silos: the CPO was responsible for overseeing workforce management and engagement, while the CRO concentrated on revenue generation. This compartmentalized approach, however, can miss valuable opportunities to leverage the People function to fuel business growth. A stronger partnership between CPOs and CROs allows them to align goals, creating a collaborative powerhouse that serves both people and revenue objectives.
When these two leaders join forces, they have the potential to transform how talent and revenue objectives reinforce one another. For example, they can co-own key performance indicators (KPIs), such as “Revenue per Employee.” This shared accountability enables the CPO to support the CRO’s objectives directly, optimizing organizational design and workforce planning to supply key skills where they’re needed most. Through this integrated strategy, employee performance and customer retention become mutually reinforcing, paving the way for sustainable business growth.
Creating a Customer-Centric Employee ExperienceThere is a well-documented relationship between employee experience and customer experience. Organizations that prioritize employee engagement and development see higher customer satisfaction and retention. According to research by Bain & Company, companies with highly engaged employees see a 10% increase in customer ratings and a 20% increase in sales. A strong partnership between CPOs and CROs enables them to cultivate an employee experience that mirrors the company’s customer-centric values, ultimately contributing to business growth.
When CPOs embed customer empathy and understanding in their employee development programs, everyone benefits. One effective strategy is to create opportunities for employees, even those in non-customer-facing roles, to experience customer interactions firsthand. This might include customer-centric workshops, job shadowing, or “day-in-the-life” sessions that provide employees with a better understanding of customer challenges. Developing customer empathy within the workforce builds a more intuitive understanding of client needs and promotes decision-making that aligns with customer success.
Through these initiatives, the CPO and CRO can ensure that every department understands the customer journey, which in turn, drives retention and revenue growth. For example, a sales team with a deeper understanding of customer needs is better equipped to tailor their approach, while a product development team informed by customer pain points can innovate solutions that directly address market demands.
Cultivating a Revenue-Driven Culture Across the OrganizationAnother key responsibility of the CPO in this partnership is to build a company culture that is not only customer-focused but revenue-driven. In collaboration with the CRO, the CPO can help establish a mindset where every employee understands their contribution to revenue growth, linking daily activities to larger business goals.
One way to embed this culture is through a strategically designed onboarding process. By introducing new hires to product and customer insights early on, the CPO ensures that employees understand the company’s offerings and the value these products bring to customers from day one. This early alignment creates a sense of purpose and ownership, motivating employees to contribute meaningfully to the company’s growth objectives.
The CPO can further foster this culture through ongoing training and development initiatives. Employees in HR or finance, for instance, who may not traditionally view their work as impacting revenue, start to see how their roles indirectly support growth. By helping employees understand how their efforts contribute to the bottom line, the CPO cultivates a company-wide culture that prioritizes growth.
HR technology and knowledge sharingAs AI accelerates knowledge-sharing capabilities, CPOs have a unique opportunity to help employees build skills that leverage this new technology and serve growth. New AI tools that enhance customer prospecting, platforms that accelerate sales cycles through bespoke presentation creation using AI and even customer service tools that speed up response times are all driven by employees who have the skills and knowledge to use them to their full potential.
CPOs have a key role in prioritizing skill acquisition and focusing on employee development in areas that will help grow the business. These ultimately help employees build better careers overall and stronger employee retention will follow. Once again, a shared goal between CPOs and CROs of highly skilled employees ultimately serves the business strategy. In this instance, it could manifest in a KPI of “New Skill Development time/dollars per employee.”
Aligning Incentives with Revenue GoalsOne of the most powerful motivators in any organization is a well-designed incentive structure. Traditionally, performance-based compensation has been limited to sales teams. However, CPOs and CROs can work together to expand this model, creating incentive programs for roles across the company that are tied to revenue outcomes. This approach not only boosts motivation but also reinforces a commitment to growth throughout the organization.
For instance, incentive programs for customer support, marketing, and product development roles could be linked to revenue milestones or customer satisfaction scores. The CPO’s role here is to ensure that these incentive structures align with the company’s values and mission, making sure that incentives drive the desired behaviors across teams. Transparent and equitable incentive programs also foster a sense of fairness, which positively impacts employee engagement, productivity, and retention.
In addition, incentives that reward cross-functional collaboration encourage departments to work toward shared revenue objectives. For example, incentivizing customer success teams to collaborate with sales on upsell opportunities promotes a seamless customer experience that enhances revenue, all while boosting employee morale.
To know if the CPO and CRO are on the right track, a KPI measure could be “Net profit per employee.”
A Strategic Partnership as a Growth EngineAs more companies recognize the critical role people play in business growth, the collaboration between the CPO and CRO is becoming increasingly important. When these two leaders work together, they form a partnership that directly contributes to the company’s growth strategy, influencing everything from workforce engagement to revenue generation.
In a business landscape where the majority of resources are invested in people, the potential impact of the CPO on growth cannot be overstated.