Succession planning is the strategic process where current employees are identified and developed with the expectation that they will one day replace a current leader who might be leaving the business, retiring, or is unable to continue their work. Succession planning can and should be applied to any important role of an organization, regardless of level, and at any size of business, whether it is a multi-billion dollar corporation or a small family-run business.
Succession planning is all about being proactive and having the right people in the right roles at the right time. This type of planning ensures you are never left scrambling to fill a very critical role for your company. A lack of succession plan could lead to a stall in your company's growth.
Benefits of Succession Planning
Having a succession plan in place and communicating this plan to those involved can have additional benefits like retention of top performing employees, reduction in recruiting costs, and gaining a reputation as an employer that promotes career growth. A culture that includes succession planning will lead to higher employee satisfaction and more instances of knowledge transfer and mentorship.
A Shortage of Succession Plans
With all of this in mind, it can come as a surprise to know that many businesses do not have a succession plan in place. Reasons why many forgo succession planning have included leaders being fearful that they will be replaced early, short-term thinking, reliance on an assumption of who the replacement will be and a lack of designated responsibility - no one knows who's job it is to put the plan in place. Many of these obstacles can be removed simply with the presence of clear communication between all parties involved.
The 5 Steps of Succession Planning
1. Understanding the needs of the business
Identify the company's vision, goals and future needs (not just current). Define the key roles of the business and how they help the business reach its goals.
2. Assess current staff
Through surveys and manager assessments, uncover the skills of your current employees as well as important qualities such as motivation, adaptability, and desire to grow and learn.
3. Talk to current staff
Not all staff members will be interested in leadership roles. Have a conversation with current staff about their career goals and future life plans.
4. Apply the data
Using the collected data, evaluate current employees for future potential and make a plan.
5. Communicate the plan
Share the plan with the select employees who are affected by the succession plan. This will generate retention and buy-in from those involved.
After the Plan is in Place
Your work is not over. Once the plan is in place, more action is required in terms of getting this person "ready" for their next role through knowledge transfer, hands-on experience, and further education and exposure. Once the succession has actually occurred, the results and the process that brought those results should be evaluated for future succession planning.
Even once a successor has made their way to their new role, the succession planning always continues. Succession planning is a constantly evolving process much like the staff of a company are constantly evolving.
