Your Questions Answered: Mastering Talent Reviews and Succession Planning

How do you solve talent management puzzles? David Li (“David”) and Janet Man (“Janet”), Co-chairpersons of the HKIHRM Talent Management Committee, had the answers in their self-organised “Ask Us Anything” webinars. Packed with real-world solutions, they tackled the audience’s most pressing questions on talent reviews and succession planning with immediately actionable strategies for measurable impact.

Succession Planning
 

Q1.  What does a good talent review look like? How do you plan for a good succession planning?

David: A good talent review is structured, consistent and regularly conducted. It focuses on assessing staff capacity and capability while aligning human resources strategies with business needs. Succession planning must address retention, sustainability, and the identification and development of potential talents.

Janet: Talent reviews, or talent planning, identify high-potential staff for future leadership roles, creating a robust talent pipeline. While the best-case scenario is having successors prepared for all key roles, that’s not always feasible. Succession planning must also account for emergency cover to safeguard continuity. 

Talent reviews should align workforce skills with organisational priorities. For instance, with the rise of artificial intelligence, businesses need to ask: Do we have the data literacy and AI expertise required? Talent reviews help pinpoint gaps and guide reskilling to meet future challenges.
 

Q2.  Will someone’s potential change at different stages of career?

David: It’s quite often to equate strong performance with potential, but we must be cautious in distinguishing between “performance” and “potential”. In some cases, potential isn’t reflected in daily work performance but can be revealed through non-routine tasks and opportunities to take on responsibilities beyond an individual’s usual role. 

Janet: Yes, a person’s potential will change as it is influenced by growth, learning, and life circumstances. Two key factors of high potential are agility and aspiration. 

Agility, a key trait of high-potential people, can be developed as they learn to navigate unfamiliar challenges. Aspiration, or career ambition, reflects a person’s desire to lead or achieve more. This can shift over time due to changes in life stages or personal priorities.
In short, potential is not fixed and can evolve with intentional development and changing circumstances.

Q3.  What are the quantifiable measurements in talent review and succession planning?
 

David: Talent Review and Succession Planning can be measured through the availability of potential successors, readiness to take up the next-level assignment, retention of talents and successors, and investment on talent development.

Janet: In addition to these metrics, we evaluate the readiness of high-potential staff – whether they can take the roles immediately or in the near future. The more ready they are, the stronger the talent pipeline. We also track diversity in gender and ethnicity, as well as the age profile of the workforce to address risks like retirements depleting the pipeline.

Performance Management

Q1. How can you ensure the fairness of the performance management exercise?

David: The Performance Management Exercise should be communicated as a management review process where managers and subordinates have the opportunity to review work, align on performance, and identify strengths as well as areas for improvement. It also serves as a platform for acknowledgement and recognition. Both the reviewer and reviewee should receive appropriate consultation and training to familiarise themselves with the process prior to the review.

Janet: This is the million-dollar question – while some subjectivity is inevitable, fairness can be improved by relying on clear, concrete examples of an employee’s contributions and incorporating 360-degree feedback from multiple sources. This ensures a balanced view, rather than relying solely on the line manager’s evaluation. While KPIs are straightforward to measure, assessing leadership behaviours like collaboration, teamwork, and innovation is more nuanced and requires careful consideration.

Q2. What is the most challenging aspect of performance and development conversation?
 

David: A challenging aspect is that the process is often perceived as a “performance interview” by both parties. The conversation should be based on performance, allowing both parties to share their views and reach an agreement in identifying strengths and areas for improvement.
 

Janet: Discussing below-expectations performance is always challenging. We advise people managers on “no surprises”. Lagging employees should not find out about performance shortfalls at the end of one year; we should share feedback throughout the year on all projects. 
 

In my experience, the root of frustration often lies not in the performance rating itself, but in how it impacts compensation. Employees may receive feedback during the year but are often unaware of how it affects their bonus or salary until year-end. This lack of transparency can lead to misunderstandings, so it’s crucial to communicate openly about performance and its implications on rewards.
 

Q3. In the agile era or an agile organisation, is it still meaningful to have an annual performance management exercise?
 

David: In fact, performance management is an ongoing process embedded in daily work. However, the annual review remains relevant as it helps achieve four key goals: identifying strengths and areas for improvement, addressing talent development needs, aligning performance with business strategies, and recognising achievements.
 

Janet: In agile organisations, continuous feedback is critical. It enables employees to adjust and improve in real-time, which aligns with the dynamic nature of business environments where KPI criteria may shift.
 

Performance management systems should help employees understand whether they’re meeting objectives, regardless of the timeframe. For example, in a one-month project, constant feedback is essential to allow for timely correction by setting up objectives and reviewing progress on a weekly basis. 

The Story Behind “Ask Us Anything”

Q1. What inspired the creation of the “Ask Us Anything” webinar series, and how do you envision it benefiting junior to middle-level HR practitioners in their talent management efforts?
 

David: The “Ask Us Anything” series was designed to offer HKIHRM members, especially entry to junior-level HR managers, a platform to connect, exchange insights, and address practical HR challenges. Covering topics like performance management and talent acquisition, the series offers real-life examples from HR experts to align practices with business goals. 
 

Janet: In my organisation, I’ve seen how new managers struggle with unique people-management challenges. There’s no textbook for handling employee pushback or navigating the complexities of leadership. The “Ask Us Anything” webinars provide hands-on advice and shared experiences, supporting our members to overcome these hurdles. We’re also exploring industry-specific groups, such as for retail or utilities, to tackle sector-specific challenges effectively.
 

Q2. In your view, why is it crucial for organisations to prioritise talent management, and what role does the Talent Management Committee (TMC) play in advocating for this function?
 

David: Human assets are a principal resource for any organisation. Our committee advocates for proactive talent management, ensuring businesses have the right people to meet future demands. Beyond webinars, we’re expanding into focus groups and seminars to deepen engagement.
 

Janet: The talent management field has rolled out over the past decade. When I started in HR, there was little focus on succession planning. Today, it’s a strategic imperative – not just for growth, but for risk mitigation. Many companies meticulously assess financial risks yet overlook human-capital risks, like leadership gaps or skill shortages.
 

The TMC’s role is to bridge this gap by helping HR professionals and organisations understand the importance of talent management. It’s not just an administrative function but a critical tool for building resilience, safeguarding continuity, and maintaining a competitive edge.