After seeing invites to a number of previous events, I finally was able to carve out some time yesterday to get to Argyle’s Human Capital Leadership Forum in New York.
I was especially interested in hearing the first main speaker, Orlando Ashford, senior vice president of human resources at Marsh & McLennan Cos., who opened the conference with a talk on “Managing Human Capital Risk.” Considering MMC is in the risk-management business and the allegations of price-fixing that plagued the firm roughly six years ago (an $850 million settlement was eventually reached), Ashford seemed to select a topic that’s near and dear to MMC on at least a couple of fronts. (Ashford joined MMC in 2008, coming there from Coca-Cola.)
Unfortunately, Ashford didn’t have much to say specifically about MMC, but he did a fine job detailing some ways HR leaders can help businesses mitigate human capital risk, which he summarized as the ability (or inability) to “attract, develop and retain key personnel and to create an organization whose employees are optimized to create value for the business.”
Ashford shared several examples of human capital risk, but not surprisingly cited CEO succession as the most critical. (MCC has had three CEOs in the past six year, with its current CEO, Brian Duperreault, taking the helm in 2008.)
Succession is extremely important across the entire enterprise, he said, but has to start with CEO succession. “Most boards agree that one of their most important roles is choosing the next CEO,” he said, “but, on average, boards spend less than two hours per year on CEO succession.”
To be sure, this is a process that’s owned and managed by the board. But as Ashford reminded conference attendees, it’s also one that frequently involves HR, beginning with putting in place processes that enable discussions around succession to happen.