Succession Planning

Over the last few decades succession planning has involved identifying and analysing key positions, assessing candidates against job and personal requirements and creating individual development plans for potential successors.

Human Resources specialists involved in succession planning have created backup charts, employee profiles and timetables for the promotions. And much more.

The problem with all this activity is that it is slightly outdated. It reflects an approach that does not bear close scrutiny when considering the nature of organisational life today. And it is out-of-date when compared with the practices required to keep businesses viable and staff members motivated.

The traditional approach stems from a top down philosophy. It shows scant regard to the danger that if you do not find out the real, rather than the assumed, career expectations of staff, you may not have a reliable succession plan.

And how do you know about career expectations unless you ask the people themselves? And ask them again at regular intervals? Just as organisations change, employees also change as they journey through their working lives.

Much more narrow attempts at succession planning are seen where an incumbent in a top position identifies the individual who is, in his or her view, best qualified to move into the position in the medium to longer term. In such a case, the incumbent may also identify the development needs of the chosen individual.

Sometimes the organisation decides that such a succession plan is a strictly confidential document. The only people who are aware of the succession plan are those who develop it. Even when there is some awareness that a succession plan exists, frequently the people on it, are not told, unless the company decides to create "fast track" programs for these people.

In truth, effective succession planning is about ensuring leadership continuity and building talent by implementing strategies to identify and develop high-potential staff within an organisation.

Succession planning works best where there is a genuine commitment to:

• The development of the existing workforce; and
• Ensuring that staff members have the skills, experience and knowledge to meet changing work requirements.

The benefits of succession planning include the creation of a diverse talent pool, retention of valued staff, a saving in the cost and time of external personnel searches, an improvement in staff morale and reduced effects of restructuring.

The philosophy of succession planning aims to foster communication throughout an organisation, to exchange expertise and innovative techniques and to provide a vehicle for the development of the skills of staff.

Some of the modern workforce management strategies that can lay the foundation for a succession plan that works, include:

• Staff interchanges where individuals are moved to different locations, different roles and different levels of added responsibility;
• Formal or informal mentoring arrangements that can begin as soon as new recruits come onboard;
• Appropriate coaching of staff;
• Providing suitable professional development activities for high performing and aspirant staff; and
• Supporting staff members to take increased responsibility in the context of work unit tasks.

There are lots of organisations where succession planning is neglected, but in particular, family businesses are guilty of leaving it in the ‘too hard basket.’

A 2005 study by KPMG and Deakin University that looked at Australian Family Business Needs, stressed that the matter requires attention right now. The study found that 34% of family businesses surveyed had no formal succession plan and 27% of owners were undecided about their exit strategy.  Clearly, if businesses are to thrive for the future generation, there is an urgent need for effective succession planning sooner rather than later.