![]() ![]() For the board, that involves a delicate balancing act because executing this is the role of management but it is the board’s role to ensure governance. Now, many companies realize that human capital is incredibly strategic, and that attracting, developing, retaining, and deploying that talent is a real source of competitive advantage. Even with that narrow focus, many board members were unhappy with the quality of the debate and outcomes. Historically, boards did not spend much time on talent and culture, and when they did, it was very narrowly focused on CEO compensation and succession. Mary Meaney: I agree that we are seeing a shift. That was an example where talent was on the front line of a strategic decision. At one time at Rio Tinto, we discussed investing in a particular industry and let go of one of those potential investments because we were not sure if we could get the right talent in place. It links with capital investment as well. Traditionally, the role of the board was indeed looking at succession planning, but now it has expanded to questions such as, if we make these strategic shifts, do we have access to the critical skills needed for those shifts? What is the health of the leadership pipeline, and not only in terms of robust succession plans for the top team but for other critical roles? When I was at Rio Tinto, and now on the board at JLL, I have seen a huge shift. Are boards now extending that lens to other talent? Do we have the right talent to fulfill that strategy? While years ago, financial capital was the dominant aspect of board discussions, that is now balanced with these other topics.įrithjof Lund: One of the board’s key roles is overseeing CEO succession. Hugo Bague: All the technological changes, market changes, and changes in the employment market have led to discussions at the board table because, of course, they link with strategy. Hugo, how do you see that play out in boardroom discussions? For more conversations on the strategy issues that matter, subscribe to the series on Apple Podcasts or Google Podcasts.įrithjof Lund: The importance of maintaining a strong culture and talent pipeline has arguably grown during the pandemic. ![]() This is an edited transcript of the discussion. Mary Meaney is a globally recognized leader on change management and organizational transformations who until recently co-led McKinsey’s Global Organization Practice and served on the global governance board. Hugo Bague, a former group executive at Rio Tinto, is a non-executive director on the board of Jones Lang LaSalle (JLL), a global real estate services firm, where he chairs the compensation committee. To explore this topic, Frithjof Lund, the global leader of McKinsey’s board services work, speaks with two experts on governance and organization. In this episode of the Inside the Strategy Room podcast, we continue our series on board perspectives by looking at the board’s role in helping organizations develop the right talent and culture. Board members are increasingly challenging management to ensure the organization’s talent pipeline can meet the needs of the strategy. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |