Filling the HR pipeline: look internally for the HR executives of tomorrow and start developing them for the top spot—today

HR Magazine, Sept, 2004 by Robert Rodriguez

HR often does it for every department but its own--succession planning. Studies and aneedotal evidence suggest HR executives are not succeeding in developing their staffs to take on top-level HR positions.

Recently, Carlson Companies, Cigna Corp., Gap Inc., Hewlett-Packard Co., McDonald's Corp. and Monsanto Inc., to name just a few, hired externally to fill their top HR position. A study by Capella University, an online university head-quartered in Minneapolis, revealed that since 2000, 10 of the nation's top 40 corporate employers have replaced their top HR executive with an external hire.

Relying on search firms to fill top HR spots isn't the best course of action. John Doyle, co-leader of the human resource practice at Spencer Stuart, a global executive search firm based in Chicago, says the demand for chief HR officers exceeds the supply. "In the past 24 months, we've seen a 39 percent increase in searches for executive human resource positions." He adds, "Executive HR positions are some of the hardest to fill because the pool of qualified talent is so small."

That's why you need to develop HR executives internally. A lack of planning and a shortage of HR talent within a firm diminishes the continued effective performance of the HR function, according to Bill Conaty, senior vice president of corporate human resources at General Electric (GE) in Fairfield, Conn. This can serve as a severe threat to an organization's ability to execute its business strategy. (For more information, see "Warning Signs of a Weak HR Bench," right.)

As they do for other functions, organizations need to plan for their future talent needs in HR--and should focus on developing professionals internally. A review of companies that have successfully developed HR talent identified key elements, including creating a formal program, garnering executive support, ensuring accountability, identifying the right competencies and growing through stretch assignments. The result is a deeper bench at or near the top HR positions, and it ensures that the internal talent pool of a firm is rising.

Develop a Formal Process

Without establishing a formal process to build the pipeline for future HR talent, organizations could end up relying exclusively on traditional development methods, such as on-the-job training and classroom training, which may not provide maximum value in preparing future HR leaders.

By contrast, formal, well-planned succession programs have proven track records, such as the one at Kraft Foods. The Northfield, Ill.-based global food and beverage manufacturer and marketer established Advancement Planning, a deliberate, systematic effort to look at the performance and potential of the company's approximately 570 human resource professionals.

Advancement Planning brings Kraft's HR executives together annually to review the business forecast and organization drivers and, based on conclusions, to discuss the necessary staff changes within HR, according to Thomas Thurman, senior vice president of human resources. The HR executives look at the accomplishments and developmental needs of their direct reports and other high-potential members of the HR team. They discuss the HR professionals' performance records, promotion potential and learning needs. Then executives help to define the next jobs for some of their future leaders to help ensure that they are developing the capabilities necessary to advance to positions of higher responsibilities within Kraft.

The Advancement Planning process at Kraft allows the organization to track the job experiences of its HR organization and ensures that appropriate development plans are in place. Thurman says, "This process allows us to identify who is ready now for a position of higher responsibility, who will be ready in one to three years, and who will be ready in three to five years." The result is a deep pool of internal HR talent.

Such a formal process helps enhance an organizational mind-set in which jobs are viewed as developmental assignments instead of just "work to be done."

Executive Support and Accountability

Effectively developing a strong pool of HR talent requires executive participation and support. At Kraft, having executive HR involvement motivates participation and ensures that other members of the HR organization will devote time and effort to leadership continuity programs, Thurman says.

Thurman adds that executive support is essential because executives make the final decisions about how competence and performance will be assessed for present positions, as well as how to measure potential.

In addition, HR executives must be held accountable for developing the next level of management. Without this accountability, development of the next generation of HR leaders may not occur, according to Melissa Siebert, director of leadership development at Tribune Co., the broadcasting and publishing company based in Chicago.

Siebert says that all HR executives at Tribune are evaluated on their ability to develop a strong HR team. Those who fail to develop future HR talent will receive poor marks on their performance review and will limit their own chances for advancement.