Chief human resource officers often play a more critical role than chief executive officers in CEO succession planning, particularly when defining the process, shaping criteria and objectively evaluating candidates, according to a June 20 report from the HR Policy Association and University of South Carolina’s Center for Executive Succession.
In fact, stronger CHRO involvement correlated with stronger outcomes, the report found. Boards with solid succession practices also reported significantly higher CHRO engagement.
“Our research confirms what experienced directors already know: while the board ultimately owns CEO succession, the CHRO plays a pivotal role in shaping a strong, future-ready, successful process,” according to the report.
However, trust is vital. CHROs can lead a successful process only when trusted by the board, CEO and executive team, the report found. Without it, succession planning can become vulnerable to missteps, misalignment or reputational damage.
To head off challenges, CHROs must exhibit several characteristics — business fluency, objectivity and discretion — and be able to handle power dynamics, high-pressure timelines and emotionally-charged conversations, the report found.
CHROs can build stability and reduce pressure by integrating succession planning into regular board-level talent reviews, reframing succession as a strategic process for long-term value creation and aligning internal development plans with business strategy.
CHROs are becoming integral advisors to corporate boards and business strategy, according to a report from The Conference Board. Most leaders said CHRO engagement with the board has increased during the past three years, and economic shifts have required CHROs to become more fully embedded in the C-suite and boardroom, the report found.
