In today's rapidly evolving business landscape, the role of Chief Human Resources Officer (CHRO) has never been more critical. As organisations navigate complex challenges such as digital transformation, changing workforce demographics, and evolving employee expectations, having a strong HR leader at the helm is essential. But what happens when your current CHRO decides to move on or retire? This is where succession planning for HR leadership becomes crucial, as Adam Cragg explores in our latest article.
The Evolving Role of the CHRO
Before diving into succession planning, it's important to understand how the CHRO role has evolved in recent years. Today's CHROs are expected to be strategic business partners, not just functional heads. They need to:
Drive organisational transformation
Leverage data analytics for workforce planning
Navigate complex regulatory environments
Cultivate a strong employer brand
Develop strategies for managing multi-generational workforces
Lead diversity, equity, and inclusion initiatives
This evolution makes succession planning even more critical, as the next generation of CHROs will need a broader skill set than their predecessors.
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The Importance of HR Succession Planning
Succession planning is often discussed for CEO and other C-suite positions, but it's equally important for the CHRO role. Here's why:
Continuity of HR Strategy
A well-planned succession ensures that your organisation's HR initiatives and long-term people strategy don't lose momentum during leadership transitions. This is particularly important in today's fast-paced business environment, where a gap in HR leadership could lead to significant setbacks in critical areas like talent acquisition, employee engagement, and organisational development.
Retention of Top Talent
When high-potential HR professionals see a clear path to leadership, they're more likely to stay with your organisation. This not only helps in retaining your best HR talent but also creates a positive ripple effect throughout the organisation, as employees see tangible examples of career progression.
Preservation of Organisational Knowledge
A carefully groomed successor can retain valuable institutional knowledge and relationships built over years. This institutional memory is crucial for maintaining consistency in HR policies and practices, understanding the nuances of company culture, and navigating complex stakeholder relationships.
Reduced Disruption
A smooth transition minimises disruption to ongoing HR initiatives and maintains employee confidence. This is particularly important in times of organisational change or industry disruption, where stable HR leadership can be a key factor in maintaining employee morale and productivity.
Competitive Advantage
Organisations with robust succession plans for key roles like CHRO are better positioned to adapt to market changes and seize new opportunities. They can move quickly when needed, without being held back by leadership gaps.
Key Steps in CHRO Succession Planning
1. Identify Potential Successors
Look within your organisation for high-potential HR professionals who demonstrate leadership qualities. Consider both traditional and non-traditional candidates – sometimes the best CHRO comes from outside the HR function. This could include leaders from operations, finance, or marketing who have demonstrated strong people management skills and strategic thinking.
Create a diverse pool of candidates that reflects your organisation's commitment to inclusion. This diversity should encompass not just demographic factors, but also diversity of thought, experience, and background.
2. Assess Skills and Competencies
Evaluate potential successors against the competencies required for future CHROs. These might include:
Strategic thinking and business acumen: The ability to align HR strategy with overall business objectives
Change management expertise: Experience in leading organissational transformations
Digital literacy and data analysis skills: Proficiency in leveraging HR technologies and analytics for decision-making
Strong communication and influencing abilities: The capability to effectively communicate with and influence C-suite peers, board members, and employees at all levels
Experience with board-level interactions: Comfort in presenting to and engaging with the board of directors
Global mindset: Understanding of international HR practices and ability to lead diverse, global teams
Innovation and adaptability: The ability to anticipate future trends and adapt HR strategies accordingly
Consider using assessment tools such as 360-degree feedback, psychometric tests, and simulation exercises to get a comprehensive view of each candidate's strengths and development areas.
3. Create Development Plans
Design tailored development plans for each potential successor. This is not a one-size-fits-all process; each plan should be customized based on the individual's current skills and the gaps identified in their assessment. Development plans might include:
Stretch assignments in different HR functions: This could involve rotations through various HR specialties such as talent acquisition, compensation and benefits, employee relations, and organisational development.
Cross-functional projects: Involve potential successors in strategic initiatives that span multiple departments. This broadens their understanding of the business and helps them develop crucial relationships across the organisation.
Executive education programs: Partner with top business schools to provide specialized training in areas such as strategic HR management, organisational behavior, and business finance.
Mentoring relationships: Pair candidates with current C-suite members, including the current CHRO. This provides invaluable insights into the challenges and expectations of executive-level roles.
External exposure: Encourage participation in industry conferences, speaking engagements, and professional associations to broaden their perspective and enhance their visibility in the HR community.
4. Provide Exposure
Give potential successors exposure to board meetings, investor relations, and other C-suite level interactions. This helps them understand the broader context in which CHROs operate. Consider the following:
Board meeting participation: Allow candidates to present HR updates or strategic initiatives to the board, under the guidance of the current CHRO.
Investor relations involvement: Include succession candidates in preparing HR-related content for investor presentations or annual reports.
Executive committee shadowing: Let potential successors observe executive committee meetings to understand C-suite dynamics and decision-making processes.
Key stakeholder management: Provide opportunities for candidates to manage relationships with important external partners, such as major vendors or consultants.
5. Regular Review and Adjustment
Regularly review your succession plan and adjust as needed. The skills required of a CHRO are evolving rapidly, so your plan should be flexible. Consider:
Annual review of succession plans: Align this with your organisation's strategic planning cycle.
Quarterly check-ins with candidates: Monitor their progress and adjust development plans as needed.
Scenario planning: Regularly update your emergency succession plan in case of unexpected departures.
External market scans: Stay informed about external talent and industry trends that might impact your succession strategy.
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Challenges in HR Succession Planning
Rapidly Changing Skill Requirements
The CHRO role is evolving quickly. Ensure your succession plan accounts for future skill needs, not just current ones. This might involve regularly consulting with industry experts, attending forward-thinking HR conferences, and staying abreast of technological advancements that could impact the HR function.
Limited Pool of Candidates
If your organisation is smaller, you may have a limited internal talent pool. Partnering with executive search firms such as Lincoln Cornhill will help you to identify external candidates as part of your succession strategy. However, be mindful of maintaining a balance between developing internal talent and bringing in fresh perspectives from outside.
Balancing Transparency and Confidentiality
While you want to motivate high-potential employees, be cautious about creating expectations or anxiety among your HR team. Communicate openly about the existence of a succession plan, but be discreet about specific candidates. This requires careful communication planning and execution.
Overcoming Unconscious Bias
Be aware of potential biases in your succession planning process. These could include affinity bias (favoring candidates similar to current leadership) or availability bias (favoring more visible candidates). Implement structured assessment processes and involve diverse perspectives in succession decisions to mitigate these biases.
Preparing for Different Scenarios
Your succession plan needs to be adaptable to various scenarios, such as:
Planned retirements
Unexpected departures
Internal promotions to other roles
Organisational restructuring
Develop contingency plans for each of these scenarios to ensure you're prepared for any eventuality.
Best Practices in CHRO Succession Planning
Start Early
Don't wait until your current CHRO announces their departure to start planning. Succession planning should be an ongoing process, ideally starting as soon as a new CHRO is appointed.
Involve the Current CHRO
Your current CHRO should play an active role in succession planning. They can provide valuable insights into the role's challenges and help mentor potential successors.
Align with Organisational Strategy
Ensure that your CHRO succession plan aligns with your organisation's long-term strategy. The skills and experiences you prioritize in potential successors should reflect where your company is headed, not just where it is today.
Consider External Benchmarking
Regularly benchmark your internal candidates against external talent to ensure you're developing world-class HR leaders. This can also help identify any critical skills gaps in your succession pool.
Foster a Culture of Leadership Development
Succession planning shouldn't be limited to the CHRO role. Foster a culture of leadership development throughout your HR function to create a strong pipeline of future leaders.
Leverage Technology
Use succession planning software to track candidate progress, store development plans, and analyse your talent pipeline. This can help make your succession planning process more data-driven and efficient.
Partnering with Lincoln Cornhill Executive for CHRO Succession
While internal succession planning is crucial, partnering with our team of HR specialists can significantly enhance your CHRO succession strategy. Here's how:
Expanding Your Talent Pool
Executive search firms have access to a vast network of HR leaders across various industries. We can help you:
Identify external candidates who might bring fresh perspectives to your organisation
Benchmark your internal candidates against the broader market
Uncover "hidden gem" candidates who might not be actively job seeking
Market Insights and Trends
By specialising in senior HR roles, we stay abreast of the latest trends in the CHRO function and can provide valuable insights on:
Evolving skill sets required for future CHROs
Compensation trends for top HR talent
Emerging challenges and priorities in the HR function across industries
Objective Assessment
An external executive search partner can offer an unbiased perspective on your succession candidates. We can therefore:
Conduct thorough assessments using proven methodologies
Provide objective feedback on candidates' strengths and development areas
Help you avoid internal biases that might influence succession decisions
Talent Pipelining Services
We offer ongoing talent pipelining services, which are particularly valuable for CHRO succession planning. Here's how it works:
Continuous Monitoring: We continuously monitor the market for top HR talent that fits your organisation's specific needs and culture.
Regular Updates: You will receive periodic updates on potential candidates, allowing you to stay informed about available talent without actively recruiting.
Relationship Building: Our team can help you build relationships with potential candidates over time, even if you're not ready to hire immediately.
Quick Activation: When you need to fill the CHRO role, you'll have a pre-vetted pipeline of candidates, significantly speeding up the hiring process.
Competitive Intelligence: Through our talent pipelining services, you gain insights into how other organisations are structuring their HR leadership, which can inform your own succession strategy.
Confidentiality
When exploring external candidates for a CHRO succession plan, confidentiality is crucial. You can be assured that we will:
Approach potential candidates discreetly
Manage confidential conversations about your organisation's future plans
Protect your current CHRO's position while planning for succession
Diverse Candidate Slate
Our team can help ensure your CHRO succession plan includes a diverse slate of candidates, supporting your organisation's DEI goals.
Smoother Transitions
If you decide to bring in an external candidate for the CHRO role, an executive search firm can facilitate a smoother transition by:
Providing detailed onboarding recommendations
Offering transition coaching for the new CHRO
Helping manage communication around the leadership change
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Best Practices for Working with Executive Search Firms
To maximise the benefits of partnering with an executive search firm for CHRO succession planning:
Choose Wisely: Select a firm with deep expertise in HR executive search and a strong track record of successful CHRO placements.
Be Transparent: Share your succession planning goals, timeline, and challenges openly with your search partner.
Involve Key Stakeholders: Ensure your CEO, board members, and current CHRO are aligned on the engagement of an executive search firm.
Integrate Efforts: Coordinate internal succession planning efforts with the executive search firm's work to create a comprehensive strategy.
Long-term Partnership: Consider establishing a long-term relationship with a search firm for ongoing talent pipelining and market insights.
Feedback Loop: Provide and seek regular feedback to continually improve the partnership and outcomes.
Conclusion
While robust internal succession planning is fundamental, partnering with an executive search firm like Lincolrn Cornhill Executive can significantly enhance your CHRO succession strategy. We will provide access to a broader talent pool, offer valuable market insights, and ensure you're prepared for various succession scenarios.
Remember, the goal of CHRO succession planning isn't just to fill a position – it's to ensure your organisation has the right HR leadership to drive business success in an ever-changing landscape. By combining strong internal development with strategic external partnerships, you can create a comprehensive succession plan that positions your organisation for long-term success.
Whether you're just starting your CHRO succession planning journey or looking to enhance an existing plan, consider how an executive search partner could strengthen your strategy. In the critical task of securing top HR leadership talent, having an experienced guide can make all the difference.
Ready to find your next CHRO or to discuss talent pipelining? To explore working with Adam to connect with leaders with the expertise required to drive your organisation forward, or to future-proof your business, email acragg@lincolncornhill.co.uk or schedule a confidential consultation here.
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