Back in 2006, Neste made a big decision. After 75 years in oil and gas, the company opted to make the transition to renewable diesel and sustainable aviation fuel, a move that would position it globally as a future leader in the renewable fuel sector.
The shift to renewables wasn’t simply about Neste adopting new technologies or entering new markets. This was a comprehensive strategic shift that required the organization to fundamentally rethink its structure, its culture, and its talent pipeline.
Big questions arose, among them: what capabilities were they going to need to make this transition successfully? How would culture and talent management have to evolve? And did they have the right people in situ to successfully execute the new strategy?
As Executive Vice President of HR, Hannele Jakosuo-Jansson knew she would have a critical role to play in aligning the company’s policies, leadership development, and talent strategy with its new direction.
From the outset, hers was an approach grounded in open communication and unwavering integrity, together with the ability to accurately assess leadership quality and capabilities, while simultaneously managing sensitive interactions and discussions.
When a company undergoes a major transformation or shift in its strategy, it is crucial to bring organizational culture and key people-related issues into close alignment with the evolving strategy. As Jakosuo-Jansson puts it: “Culture and people are the key enablers of transformation.”
The board of directors plays a critical role in this process.
While boards must avoid getting into management’s operational responsibility, they instead have a very important role in promoting a strong and resilient culture, and in facilitating leadership development that maps to the organization’s strategic needs, says Jakosuo-Jansson.
“Boards must define a set of clearly articulated profiles in terms of future leadership, effectively translating the organization’s broader strategy into its new leadership requirements. And this involves regularly reviewing and updating succession plans to reflect evolving business priorities.”
Boards must also oversee talent across the entirety of the organization – and with a broader scope and longer time horizon than management. And this means engaging in detailed discussions around workforce planning, recruitment, and leadership development.
“While boards do not manage talent directly, they must nonetheless ensure that the right systems and processes are put in place to develop and retain the organization’s future leaders,” she adds, “And they must make sure that sufficient time and energy are given to these efforts.”
“CEO succession planning is critical, and it must be an integral element of risk management. ”
CEO succession planning is critical, and it must be an integral element of risk management. Jakosuo-Jansson’s advice? Start as early as possible.
“Planning should begin as soon as a new CEO takes office. It should be part of regular board discussions and not treated as a sensitive topic to be discussed behind closed doors. Open dialogue with the current CEO fosters trust and ensures alignment on leadership needs.”
In times of transformation, leadership pipelines need to have great flexibility.
A dramatic change may require external insights or leadership with new capabilities, prompting boards to look beyond internal succession plans. Sometimes, hiring an external candidate with fresh perspectives is essential for success in a new direction. But it’s critical not to underestimate cultural fit here, says Jakosuo-Jansson.
“Even if the ideal CEO candidate exists, you must also look at their character. I have witnessed executives coming from completely different industries who haven’t focused enough on the company culture and business complexity. That’s why we should not underestimate the importance of cultural fit.”
Ultimately, success lies in being able to identify leaders who have both strategic vision and execution capabilities, but who are also capable of developing a strong performance and organizational culture.
Setting targets and aligning them with shareholder interests during times of disruption is a significant challenge for boards.
Boards frequently face the challenge of balancing immediate pressures with long-term strategic priorities.
During Jakosuo-Jansson’s tenure at Finnair, she has witnessed how external shocks like the COVID-19 pandemic and major geopolitical events have forced the company to pivot from growth to survival.
“Setting targets and aligning them with shareholder interests during times of disruption is a significant challenge for boards. One effective approach involves tailoring strategic goals to evolving circumstances and fostering engagement with investors.”
Within the board of directors, developing interim strategic measures has helped steer the executive team toward set targets. Encouraging creativity and bold decision-making in difficult times is also essential. Then there is the challenge of aligning incentive structures with strategic objectives.
“It falls to boards to revise performance measures to balance short-term accountability and profitability with long-term value generation and sustainability, especially during times of disruption. Traditional metrics, such as relative total shareholder return, often fail to capture meaningful progress. Regularly reassessing target-setting ensures that both short-term and long-term priorities remain aligned with the company’s evolving challenges.”
Jakosuo-Jansson is keen to stress again that in times of strategic transformation, people and culture are fundamental to success. Boards play a crucial role in ensuring that leadership development and talent management are well-calibrated with strategic shifts while overseeing cultural alignment, fostering open discussion, and encouraging flexibility.
As industries face increasing disruption, proactively shaping talent pipelines, and embracing adaptability in succession planning become critical board responsibilities. Balancing short-term resilience with long-term vision requires bold and innovative approaches to performance measurement.
Boards that recognize the interplay between talent, culture, and strategy will not only survive disruption but thrive as industry leaders.
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