A robust succession plan prepares an organisation for the inevitable future leadership transitions by identifying and developing talented employees. Photo: File.
Dan Schawbel says with the Baby Boomer generation heading into retirement, the need for organisations to create a clear succession plan has never been more important.
Succession planning can no longer be an afterthought, given that increasing numbers of Baby Boomers are reaching retirement age.
At the same time, research has shown that more than 90 per cent of younger workers want their organisation to have a clear succession plan, saying this would improve their levels of engagement.
Organisations must prioritise succession planning to stay ahead of these demographic shifts and preferences.
A well-designed succession plan prepares an organisation for the inevitable future leadership transitions by identifying and developing talented employees who can potentially step into key roles.
Without a clear roadmap for filling critical positions, the organisation runs the risk of leadership gaps, disruptions in operations, and loss of institutional knowledge. Even so, many tend to put off succession planning, to their detriment.
By having strong, capable leaders, you can avoid all these potential issues.
Leadership development is the most critical aspect of succession planning because it equips candidates with the necessary skills, knowledge and experience to step into key roles.
Developing a robust succession plan requires a strategic and proactive approach. It’s a continuing task that should be revisited and updated regularly to account for changes within the workforce.
Here’s a comprehensive guide on how to create an effective succession plan for your organisation.
Identify critical roles: The first step is to determine which positions are most important to the functioning and success of your organisation.
These are typically senior leadership roles, specialised roles that require extensive training or experience, and roles that directly impact operations or strategic direction.
Conduct a thorough analysis to pinpoint these critical roles and prioritise them based on factors such as the potential impact of a vacancy, the difficulty of replacement, and the lead time required to develop a successor.
Assess current talent: Once you’ve identified the key roles, assess your current talent pool to determine whether you have potential successors within your organisation. This involves evaluating employees’ skills, competencies, performance, leadership potential, and career aspirations.
Consider factors such as educational background, work experience, track record of success, and alignment with your organisation’s values and culture.
Develop competency models: For each critical role, create a competency model that outlines the specific knowledge, skills, abilities and personal attributes required. These models serve as a benchmark for assessing potential successors and identifying areas for development.
Involve current role-holders, managers and subject matter experts in defining these competency models to ensure accuracy and relevance.
Identify gaps and potential successors: Compare your current talent pool against the competency models to identify potential successors and any gaps that need to be addressed.
This process may reveal you have ready-now successors, high-potential employees who need further development. Or it may show up a lack of suitable internal candidates for certain roles.
Documenting these gaps and potential successors will inform your development and recruitment strategies.
Create development plans: For those employees identified as potential successors, develop individualised development plans to prepare them for future leadership roles. These plans should address any competency gaps and include a combination of on-the-job training, mentoring, coaching, job rotations, stretch assignments and formal training programs.
Ensure development plans are aligned with the organisation’s strategic goals and provide opportunities for successors to gain relevant experience and exposure.
Implement retention strategies: Retaining your high-potential employees is essential for the success of your succession plan.
Implement strategies to engage and motivate these individuals. Obviously, compensation and benefits matter, but also opportunities for career advancement, fostering a positive work culture, and recognising and rewarding their contributions.
Foster knowledge transfer: Facilitate the transfer of institutional knowledge and expertise from current leaders to potential successors. This can be achieved through mentoring programs, job-shadowing opportunities and knowledge-sharing initiatives.
Encourage open communication and collaboration between current role-holders and their potential successors to ensure a smooth transition.
Communicate and promote transparency: Clearly communicate the process, objectives and criteria for succession planning to your workforce.
Foster an open and supportive environment where employees feel comfortable discussing their career aspirations and potential for advancement.
Monitor and adjust: Succession planning is an ongoing process that requires regular monitoring and adjustment.
Periodically review and update your succession plan to account for changes in your organisation’s strategy, workforce dynamics and business environment.
Align with diversity and inclusion initiatives: Ensure your succession planning efforts align with your organisation’s diversity and inclusion initiatives.
Proactively identify and develop talented individuals from diverse backgrounds, perspectives and experiences.
A diverse leadership pipeline can foster innovation, better decision-making, and a more inclusive organisational culture.
Developing a robust succession plan is a complex undertaking that requires commitment, resources and a long-term perspective, but the effort is well worth it.
It ensures business continuity, preserves institutional knowledge and positions your organisation for sustained success.
Dan Schawbel is a bestselling author and managing partner of Workplace Intelligence, a research and advisory firm helping HR adapt to trends, drive performance and prepare for the future. This article is part of his Workplace Intelligence Weekly series.
