For years, companies have been moving to treat employees as an asset, not an expense. The pandemic and social protests have only intensified this trend, so that human capital management (HCM) is now a front-and-center issue. With long-term success increasingly depending on attracting, retaining and engaging talented people, HCM has become a concern not just for senior executives, but also for the board of directors.
Succession planning was an early area embraced by boards, as they realized the exposure the company faced when it depended on a single CEO or group of executives. Lost time and momentum from poorly planned transitions, and the potential cost and change management required with leaders from outside, led boards to get ahead of succession issues with paths for both emergency and planned events.