Human Resources and Talent ManagementSuccession Planning

1. Understanding Succession Planning:

   • Point: Succession planning is a strategic process aiming to ensure there are qualified candidates internally ready to fill key organizational roles.
   • Action: Conduct an assessment of current leadership and key positions to identify potential future needs. This involves understanding the current workforce demographics and potential retirement timelines.

2. Establishing the Foundation:

   • Point: Building a strong foundation for succession planning requires the commitment of top management and alignment with the organization’s strategic goals.
   • Action: Gain top management buy-in by presenting data on the risks associated with not having a succession plan. For example, discuss potential productivity losses or the costs of external recruitment.

3. Identifying Critical Positions:

   • Point: Not all positions require the same level of attention. Identifying critical roles that have a significant impact on the organization’s success is paramount.
   • Action: Create a list of positions that are vital to business continuity, considering not only executive roles but also mission-critical technical and operational titles.

4. Competency Models and Job Profiles:

   • Point: Developing competency models and detailed job profiles ensures that there’s clarity about what skills and behaviors are essential for success in key roles.
   • Action: Develop comprehensive job descriptions and competency models for critical positions. Engage current incumbents and high performers to generate these profiles, ensuring they reflect real and current job requirements.

5. Assessment and Development of Internal Candidates:

   • Point: Internal candidates need to be accurately assessed and developed over time to fit into future roles.
   • Action: Implement a robust performance management system that includes 360-degree feedback, self-assessments, and managerial assessments. Ensure regular performance reviews and establish Individual Development Plans (IDPs).

6. Talent Development and Education Programs:

   • Point: A continuous learning environment nurtures talent development and prepares employees for future leadership roles.
   • Action: Introduce formal training programs, mentorship schemes, and cross-functional project opportunities for potential successors. An example Rothwell provides is to rotate high-potential employees through various departments to broaden their experience.

7. Succession Planning Leadership Teams:

   • Point: Succession planning should not be solely an HR responsibility; establishing a cross-functional team can enrich the process.
   • Action: Create a succession planning committee that includes senior leaders, HR representatives, and possibly external consultants. Schedule regular meetings to discuss updates, adjustments, and progress.

8. Internal Versus External Recruitment:

   • Point: While internal succession is ideal, sometimes external recruitment may be necessary for injecting new ideas and innovation.
   • Action: Maintain a balanced approach by developing internal candidates while also having strategies in place for external recruiting when critical talent gaps exist.

9. Evaluating and Updating Succession Plans:

   • Point: Succession plans should be dynamic and regularly reviewed to remain relevant.
   • Action: Conduct annual reviews of the succession plan to account for changes in business strategy or internal personnel shifts. Update the development plans based on performance evaluations and evolving organizational needs.

10. Technology and Succession Planning:

    • Point: Leveraging technology can streamline the process and provide valuable analytics for decision-making.
    • Action: Invest in dedicated succession planning software that can track employee progress, highlight potential gaps, and provide data analytics to help in making informed decisions.

11. Measuring Succession Planning Effectiveness:

    • Point: To ensure the succession process is effective, it’s crucial to establish metrics and regularly measure outcomes.
    • Action: Develop key performance indicators (KPIs) such as the percentage of key positions filled internally, time to fill leadership positions, and retention rates of high-potential employees. Regularly review these metrics to assess the effectiveness of the succession planning program.

1. Case Study – Company A: Company A faced a major crisis when their CEO retired abruptly without a succession plan in place. They had to spend months and large sums of money finding an external replacement. This example Rothwell describes underlines the critical importance of having proactive succession plans.

2. Training Program – Organizational B: Rothwell discusses an organization that implemented a ‘Leadership Academy’ designed to develop mid-level managers for senior leadership roles. The academy provided targeted training, simulated business challenges, and mentorship from senior leaders.

3. Cross-functional Projects – Firm C: A technology firm adopted the practice of engaging high-potential employees in cross-functional projects. This not only prepared them for future leadership roles but also fostered a more integrated organizational culture.

4. Balanced Approach – Enterprise D: An enterprise discovered that while internal promotions were beneficial, certain specialist roles required external hires. They developed a balanced plan, promoting internally where feasible and seeking external candidates for roles demanding different skill sets.

• Talent Pools: Rather than focusing on single replacements, Rothwell promotes developing pools of talent that can potentially fill several different roles. This increases flexibility and provides more options when unexpected vacancies arise.
• Diversity and Inclusion: Emphasized as a critical aspect, ensuring that succession planning is inclusive can lead to more innovative and resilient leadership teams.
• Communication Plans: Articulating a clear communication strategy for succession planning activities ensures transparency and manages expectations among employees, which is vital for maintaining morale and trust.

Human Resources and Talent ManagementSuccession Planning