Planning for a volatile world
Understanding global tensions and dealing with the fallout from conflict – actual or potential – has become an increasingly important responsibility of CHROs. “We have seen and experienced the impact where there has been significant external conflict and worked hard to find ways to support people in those locations,” Connolly notes.
The unpredictability is a primary challenge. “There’s no playbook for these issues,” says Connolly. “I think CHROs need to spend more time, not necessarily trying to predict the future but thinking about what tomorrow might bring, and asking how their organization – certainly the people function – should respond.”
Connolly has started to write that playbook for Baker McKenzie based on his experiences dealing with the repercussions of conflict. He highlights three key points, each indicative of the challenges facing CHROs today.
The first is the need to plan for the unexpected. “One of the things that we’ve done with our teams is to run more scenario-planning exercises.” That should become routine, he says, ensuring that plans remain relevant as external circumstances change – and helping ensure the firm’s readiness isn’t diminished when new people take on leadership roles.
The second area is the need to plan internal communications. “What communications should we send, and when, and to whom?” Because of the very different opinions that emerge across a multinational business, this requires careful calibration. “An organization that has 74 offices right across the globe has different viewpoints and inputs to navigate,” notes Connolly.
A more strategic approach to communications can also help businesses navigate external pressure to take a public stance on political hot topics. Connolly acknowledges this expectation but argues that firms do not need to comment on everything. “I think we have to be measured in terms of what we are communicating,” he says. Often, Connolly suggests, the focus should be on urgent practical questions. “What should we be thinking about here? How do we provide support to people, and for how long?”
The third area is the CHRO’s function as a disseminator of learning around the firm. “As I said, there isn’t always a playbook for every situation. But at least we now have [a template] to refer to,” says Connolly. He believes the guidance will enable managers to make decisions without deferring to HR by default.