Hbc leverages the power of succession during change
| DOI | https://doi.org/10.1108/14754390810847513 |
| Date | 17 December 2007 |
| Pages | 16-21 |
| Published date | 17 December 2007 |
| Author | Sandra Murray‐Leduc |
| Subject Matter | HR & organizational behaviour |
Hbc leverages the power of succession
during change
Sandra Murray-Leduc
Abstract
Purpose – The purpose of this paper is to demonstrate how Hudson’s Bay Company (Hbc) developed
an integrated talent management strategy and anchored succession planning as a key strategic lever to
build and retain top talent.
Design/methodology/approach – The paper provides a description of Hbc’s experience of building
and developing a talent management strategy, the motivation and need behind it and how succession
was used as a strategic tool in mitigating risk through external labor market pressures as well as a
takeover.
Findings – The paper established a modeltalent management strategyand its different aspects,mainly
successionplanning. It also articulatedthe thinking behind it,the processes around it andbenefits from it.
Originality/value – This paper offers organizations a view into the benefits of developing a sound talent
management and succession strategy and leveraging its power to engage top talent.
Keywords Management succession, Succession planning
Paper type Case study
Introduction
Building leadership capacity promotes a healthy organizational culture that can sustain
market influences, competitive business pressures and major structural changes such as
takeovers. In 2005, Hudson’s Bay Company (Hbc) – Canada’s oldest retailer – faced a
period of uncertainty during which its established succession planning program brought
stability, retention and, ultimately, growth. Sandra Murray-Leduc, national succession and
performance manager, explains how.
You have all heard the story. A company gets bought out, merges or is acquired by another
and the first order for business is typically to ‘‘clean house’’ – bring in the new players and
appoint a new leadership team. This often leads to a staff exodus and the company faces a
retention nightmare. The situation at Hbc, following its acquisition in 2005, was very different.
The top team that was selected to report directly to the new owner was made up completely
of internal Hbc executives. We were able to promote a number of people from within
because of the soundness and rigor of our talent management disciplines. We understood
our talent – we knew who our ‘‘A’’ players were and what motivated them and therefore were
able to retain them.
We developed an integrated talent management strategy in response to the war for talent
that started to really heat up around 2003 and anchored succession planning as a key
strategic lever to identify, build and retain top talent at Hbc. Because of this, we were much
better prepared to navigate smoothly during a change in ownership. By adopting a build
versus buy strategy we have committed to investing in our people resources and recognize
the competitive advantage they offer for growth.
PAGE 16
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STRATEGIC HR REVIEW
j
VOL. 7 NO. 1 2008, pp. 16-21, QEmerald Group Publishing Limited, ISSN 1475-4398 DOI 10.1108/14754390810847513
Sandra Murray-Leduc is
based at Hudson’s Bay
Company, Toronto,
Canada.
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