Succession Planning: Best Practices for Creating Business Resilience
Three Things We Know About Succession Planning
It is a critical strategic process that ensures an organization can sustain its operations and achieve its goals as key personnel change over time.
It's about preparing for the future by identifying and developing potential leaders within the company who can fill key positions when they become available.
Effective succession planning helps organizations maintain stability, retain valuable knowledge, and foster a culture of continuous growth and leadership development.
If succession planning is so critical, why do many organizations ignore it? Well, if you’ve ever developed and executed a fulsome succession planning program, you know how much thought, work, and commitment goes into making it deliver these promises.
We’ve identified the most important steps and best practices to create a highly effective succession planning program.
Key Steps
Executive Sponsorship
The success of any succession planning initiative starts at the top. Executive sponsorship is crucial because it ensures that the plan is aligned with the organization’s strategic objectives and receives the necessary resources and attention. Senior leaders must champion the process, demonstrating its importance and committing to its execution.
Defining Critical Roles
Not all positions within an organization are equal when it comes to succession planning. Identifying critical roles - essential to the company's operation and strategic goals - will keep you focused. Typically included are key leadership positions, roles requiring specialized skills, and positions that significantly impact the company’s performance (think about which roles have the highest negative impact when an incumbent leaves).
Exploring Evaluation Criteria
Once critical roles are identified, the organization needs to determine criteria for evaluating potential successors. This includes assessing the skills, experiences, and attributes essential for success in these roles. Organizations often develop competency models that outline the behaviours, skills, and knowledge required.
Holding Leadership Discussions
Regular discussions about leadership and talent development should be integrated into the organization's routine. These discussions help in recognizing potential successors, understanding their career aspirations, and identifying gaps in their development. Regular discussions ensure that succession planning is a dynamic, ongoing process rather than a one-time event.
Using the Right Tools
The 9-box matrix is a widely used tool in succession planning. It helps organizations plot employees based on their performance and potential. The matrix is divided into nine sections, where one axis represents performance (low, medium, high) and the other represents potential (low, medium, high). This visual representation helps identify top performers ready for leadership roles and those who may need further development.
Best Practices in Succession Planning
While implementing the steps outlined above will set you on the right track to making succession planning an effective tool in your organization, keep in mind the following best practices, which will yield the best possible results.
Plan for the Long Term
Succession planning should not be a reactionary process. Start as early as possible and plan for the long term to ensure a robust pipeline of talent. Regularly update succession plans to reflect changes in the organization and the market.
Involve Multiple Stakeholders
Engage a diverse group of stakeholders in the succession planning process, including senior leaders, HR professionals, and even external advisors. A broad range of perspectives ensures a more comprehensive and unbiased approach.
Focus on Development
Perhaps one of the biggest misconceptions is that succession planning is only about identifying successors. It’s actually about preparing them. Implement development programs such as mentoring, coaching, job rotations, and leadership training to equip potential leaders with the skills and experiences they need to fulfil the succession plan.
Communicate Transparently
Clear communication is essential for the success of succession planning. Keeping potential successors informed about their development paths and career opportunities builds trust and motivates employees to strive for growth, and it shows that you value their potential and want them to be a key player in the organization; a key retention tool.
Monitor and Adjust
Succession planning is an ongoing process that requires regular monitoring and adjustment. Use metrics and feedback to assess the effectiveness of the plan and make necessary changes. Stay agile and be ready to adapt to new challenges and opportunities.
Need Help?
If your organization’s succession planning program has room for improvement or you’re considering building one from scratch, you’ll be happy to know that Cenera has a team of local experts that will work with you to build all the right steps and best practices into the unique culture and structure of your organization.
