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To stay in the game,
companies
are developing
new ways to handle succession
planning.
If you think succession planning means
handing the business over to the kids or
waiting for the best private equity deal,
you may be right. But there's more to it
than that. What is it, and is it something
that your company should consider?
Succession planning is a component of a
company business plan.
It is often a formalized, systematic strategy
designed to identify talent for future
leadership roles in the organization. For a
company to maintain its competitive
advantage, a solid succession plan is necessary.
Succession plans focus on positions
most critical to your future needs.
Therefore, current management employees are
often identified. Non-management employees
should also be considered, since their roles
may become more critical to the company as
they move into leadership positions.
Traditional succession planning is
often a secret process.
Top-level
executives identify those individuals who
would be appropriate replacements for them as
well as for other top-level employees. Your
people are generally unaware of the process.
The traditional method does not usually
include the use of performance appraisal
results, and individual or team development
is de-emphasized. This approach could be a
problem since these very people may move on
to better outside opportunities without
knowing about the future opportunity your
company had planned for them.
You may choose to use a hybrid
method.
This approach includes a
formalized tracking system that guarantees
process consistency and reduces subjectivity.
This system creates a framework that
combines the succession plan concept with a
more focused need for succession development.
Various issues should be considered
when creating an effective succession
plan.
You should have a clear vision
for the future of your organization. It's
critical to have a solid grasp of your
existing workforce. Identification of
current employees who are already positioned
to move up in the system is essential, as is
identifying individuals in need of
development.
Consider individuals not currently at
the top of the list but who show
promise.
Part of the succession
planning process includes the development of
these individuals who, after the appropriate
training, will be well prepared when needed
to step in and take charge of the targeted
positions. This will involve a
well-conceived training and development
program.
Determine the most efficient, cost
effective method to develop future
workforce.
This may include in-house
training, coursework from outside sources or
special projects specifically designed for
the employee. Whichever plans are chosen,
the training should be aligned with the
succession plan and the overall business
strategy to be successful.
Stay focused on the future needs of key
positions.
While concentrating on
particular employees is important, you should
maintain focus on the future needs of key
positions. Since targeted individuals could
leave you before the succession plan is
implemented, various options should be in
place to adjust to a changing workforce.
Don't underestimate the talent you
already have.
Your people's soft
skills are often overlooked. Don't
concentrate only on hard technical skills.
The success of your team members, and
consequently of the organization, is often
determined by your people's ability to master
the soft skills along with hard skills.
Consider the importance of a
well-designed and implemented succession
plan.
Integrate the plan into your
organization's strategic plan. Not being
prepared when it's time to replace those in
key positions could severely impact the
future success of your business.
For a best practices guide on
succession planning, email me at
les@execsearchintl.com
The preceding information based on an
article by Bill Schaefer for The Society of
Human Resource Management. This material is
provided as general information only and does
not constitute and is not a substitute for
legal or other professional advice.
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Executive Search International