Strategic HR Succession planning
What does succession management Plan for the future, not necessarily current leadership needs
Succession management is a live priority for Deloitte this year. The fi rm
wants to be even more agile and able to better anticipate valuecreating
roles essential to future business success. It is also focussing on
enhancing succession planning (for the organisation) and
development planning for its people. This will enable its people to
develop the right skills and experiences to put them in the best possible
place for success in a future role. Closely aligned to its inclusion
agenda, Deloitte wants to ensure the development of a more diverse
pipeline of future leaders. Sounds simple, right? Deloitte’s HR team use
analysis by its own Human Capital Consulting team who specifi cally
look at the future of work. The latest Human Capital Trends Report deals
with the future of the workforce. The insight allows Deloitte to adapt
effi ciently to the forces that are constantly restructuring jobs and work,
the open talent economy and, importantly, leadership.
Deloitte has therefore adopted a “human centred approach” to
succession management i.e. putting its people at the heart in an
approach to retain objectivity and build trust.
“But so often processes are not
managed well and there’s
unnecessary fallout and more
could have been done to manage
this part well. HR can add a
huge amount of value here.”
With the cost of recruiting
top executives so high, losing
unsuccessful candidates is
often a hidden cost of
poorly-managed CEO
succession planning.
To reduce fallout as much as
possible Tennant prioritises
time with internal potential
future CEOs, and other senior
roles, talking about their
development and where they are
on their path to the top.
While doing this she’s open
about whether the company is
looking externally too, and
through these discussions looks
to make it clear why – should an
external candidate be chosen –
this was the case and what the
internal candidate can learn
from this person if they stay.
This again requires courage
because these conversations can
be tricky. (See box-out with
advice on challenging
conversations from HRDs
on p22).
role in bridging that gap and
having that level of understanding
and knowledge to share,” she says.
More than any other role HR
understands what kind of leader
the company needs in the
months and years to come. One
of the biggest mistakes boards
and CEOs can make when
succession planning is to focus
on the skills necessary in the
present, rather than thinking
about future-proofing the
organisation via its human
resource. HR can be critical here
in creating forward-thinking job
specifications, and translating
what skills are needed for the
next stage of the company’s
strategy into a clear description
for others of the type of person
they need to recruit and why.
Influencing others
The first change, or reeducation,
that Tennant is
making in colleagues’ minds is
away from the idea of succession
planning to one of management.
“It’s much better to think
about succession management.
Planning is a concept that is a
bit theoretical, whereas
management is more active and
in depth. You’re taking control
of the situation rather than
just scenario planning. You’re
not waiting until something
happens,” she says.
You’re also not just filling
roles when they become vacant.
You’re managing individuals so,
even if they stay in a role, they
are constantly developing and
creating value for the business.
To Tennant if an individual is
still doing their job in exactly
the same way after three years
then that is also not effective
succession management. So too
is losing a valued employee
because they have not been
supported after they have gone
for a promotion but not got it.
“There is often some fallout
in these situations,” she says.
Another HRD who has the
ear of his CEO and is recognised
for the value he provides in
succession planning is Eugenio
Pirri, chief people and culture
officer at the Dorchester
Collection and an HR magazine
Most Influential practitioner.
He, like Tennant, believes that
succession planning should
already be central to any HRD’s
strategy, new regulations or not.
“If you’re in HR and you’re
not thinking about succession
planning then bad on you,” he
says. “We have a responsibility
to future-safe the business.”
26 HR February 2020 hrmagazine.co.uk
/hrmagazine.co.uk