Strategic HR Succession planning
How can HR facilitate the
succession process?
Ensure boards get more exposure to and objective information on candidates
and provide robust frameworks to assess talent and personality
Have their own clear view of candidates and their strengths/weaknesses,
independent of what the CEO says
Have confi dential conversations with the current CEO to create processes and
development plans for potential successors
Recognise that emotions often run high in this area and act as a
sounding board to all involved
Be honest and transparent about the process
Be visible at board meetings to gain the board’s trust and credibility by
showing they understand the business, key trends and risk i.e. show
knowledge is not just HR related
Show the board, in particular, that they are fi nancially literate
Take responsibility and accountability for succession planning by
putting performance measures in place
Educate the board about the importance of a diverse succession
talent pool
People are
always an
afterthought.
Only when
there is a
problem with
people does
the board
look at it
The HRD can also
demonstrate courage in
succession planning by
calling companies and boards
out on their hypocrisy when
it comes to people issues.
While many a CEO loves a
soundbite for the press on how
‘people are at the heart of our
business’ or ‘our most important
resource is human’, this
commitment often isn’t
followed through.
As Shah says, there is a
“disconnect” between what
organisations generally say
about their people being
important and the minimal time
they spend at board meetings
considering people-related
issues. The new Code could be
HR’s chance to pull the board
up on this.
“People are always an
afterthought. Only when there is
a problem with people does the
board look at it,” says Shah.
“Take a look at the board
agenda. Do people, career
development and succession
planning feature at all? Often
they either don’t feature, or it
is a once-a-year small item on
the agenda.”
something as simple as a
“corridor conversation”,
explains Pitcher.
“While you’re exchanging
pleasantries with a board
member you can ask them what
is on their agenda at the
moment. Remember, you’re in
the business much more than
the non-executive directors and
they’ll probably be really pleased
you shared your insights with
them. It’s about getting that air
time with them. If you only rock
up once a year to go through a
succession planning exercise you
don’t have licence to play at that
higher level.”
To be taken seriously HRDs
also have to talk to the board
in their language. Not in
‘HR speak’.
The most effective way to
raise credibility as an HRD is to
impress them with commercial
insight. If you lack confidence
in, for instance, reading a P&L
account then Pitcher advises
sitting down with the CFO and
addressing this insecurity head
on. Ideally you want to be able
to look at a balance sheet and
P&L and quickly identify key
insights into the health of
the business. What you’re
aiming to do is confound any
negative expectations about
the HR profession.
Have courage
Another characteristic that
came up repeatedly in The
Center for Executive
Succession’s research as a way
to raise HR credibility in the
board’s eyes is courage.
A number of board members
interviewed for the research
acknowledged how difficult
it can be, but how valuable,
for an HR specialist to air
a view on succession that
differs from the CEO. Board
members recognised, and
welcomed, the courage
necessary to express this
independent opinion.
As one said: “The CHRO can
give feedback to the successor
and the board from a different
courageous point of view,
independent of the CEO.”
This avoids the notuncommon
scenario where
the CEO has a fixed idea of
who should replace him/her,
which may be based on an
unconscious bias.
24 HR February 2020 hrmagazine.co.uk
/hrmagazine.co.uk