Human resources remains on the periphery of many large-scale transformation efforts, according to new research from people consultancy LACE Partners. Despite years of discussion around HR’s strategic role, 53% of C-suite leaders admit their Chief People Officer (CPO) is brought into transformation projects only once implementation begins.
The report, From Implementer to Influencer, surveyed 450 senior executives across FTSE 250 and global organisations. It reveals a persistent disconnect between perception and practice — while many CPOs believe they lead transformation efforts, most are still engaged too late to shape early planning and decision-making.
Over a third of business leaders (36%) do not see HR as central to transformation, the study found, leaving people strategy detached from business outcomes. Among the most cited barriers were lack of capacity within HR teams (33%) and competing operational priorities (31%).
When asked why people-focused workstreams fail, 41% of respondents pointed to underfunding and late HR involvement, while 37% highlighted inadequate change management skills. Although 64% of leaders say HR contributes to transformation discussions, a quarter acknowledge the function is considered but not central to decision-making, and 8% say HR has little influence on final outcomes.
“Transformation fails far more often because of people challenges than technology ones,” said Aaron Alburey, Founder of LACE Partners. “When HR isn’t in the room from the start, decisions are made without the necessary workforce insight to make change sustainable. If HR is asked to deliver a strategy it didn’t help design, the business risks slower progress, wasted investment and employee fatigue.”
The findings suggest that while the role of the CPO has evolved, the function’s integration into business transformation remains inconsistent. Forty-one percent of respondents described HR’s role as reactive, with a similar proportion saying the function brings less measurable value than other departments.
One in three organisations believes its CPO lacks the capacity to influence transformation, while a quarter say they lack the capability, and 22% cite insufficient data and metrics to make a robust business case.
“Until HR is integrated into transformation planning from the outset alongside Finance, Operations and Technology, organisations will continue to face the same barriers of misaligned priorities, resistance to change and weakened delivery,” Alburey added.
The From Implementer to Influencer report is available via LACE Partners.
