Talent Management
Q: I hear a lot about succession planning. What is it, and is it something that my company should consider?
A: Succession planning is a component of a company business plan and 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 that are the most critical to the future needs of the organization; therefore, current management employees are often identified. Non-management employees may 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 in which top-level executives identify those employees who would be appropriate replacements for them as well as for other top-level employees. Employees 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 could be problematic since these employees may move on to better outside opportunities without knowing about the future opportunity the company had planned for them.
Employers may choose to use a hybrid method, one that includes a formalized tracking system ensuring process consistency and reduction of 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. The employer should have a clear vision for the future of the organization. It is imperative to have a good grasp of the existing workforce. Identification of current employees who are already positioned to move up in the system is essential, as is identifying employees in need of development.
Employers may wish to consider employees who are not currently at the top of the list but who show promise. Part of the succession planning process includes the development of these employees 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.
An employer should determine the most efficient and cost effective method to develop employees for the future. 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.
While concentrating on particular employees is important, employers should maintain focus on the future needs of key positions. The targeted employees could leave the organization before the succession plan is implemented; therefore, various employee options should be in place to adjust to a changing workforce.
Employers sometimes underestimate the talent already housed in the organization. Often employers overlook their employees' soft skills and concentrate only on hard technical skills. The success of employees, and consequently of the organization, is often determined by the employees' ability to master the soft skills along with hard skills.
Organizations should consider the importance of a well-designed and implemented succession plan. Integrate the plan into the organization's strategic plan. Not being prepared when it is time to replace those in key positions could heavily impact the success of the organization.
Article by Bill Schaefer, SPHR, is an HR knowledge advisor in SHRM's HR Knowledge Center from http://www.shrm.org/kc/solutions/articles/archives/CMS_022285.asp#P-8_0