Why succession management




















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The key to succession management is to have a solid succession management plan in place and to follow and adjust it along the way. Having an organizational strategy in place will form the foundation of your succession management plan. The most successful HR professionals in today's digital business environment have a T-shaped competency profile.

Take the free assessment now! Consider where the business aims to grow over the next ten years. For example, what is the overall vision for the future? Will you be entering new markets? Who will your competitors be if your strategy or focus changes? What does your current structure look like, and will this be changing in the coming years? It allows you to create processes and policies that support and align with this.

When you know how best to serve and grow your organization, you can then tailor day-to-day activities and policies to this, ultimately leading to an increase in profits. As discussed, HR professionals play a significant role in assisting in and facilitating a succession management strategy.

HR leaders can then align their talent development and management activities with more strategic plans that come from the top. Armed with a clear strategy and the support of key business leaders, the next step is to determine the positions you want to ensure are consistently filled by qualified and capable people in your succession pipeline.

A great benchmark is to get clear on the top 5 to 10 critical positions. Remember, not all leadership roles will be essential to your succession management plan. The best approach is to focus on the employees with the greatest leadership potential.

These may be your high-will, high-skill employees or the stars from your 9 box grid. You can base your decisions on valuable data such as employee performance metrics. Focus on the high potentials who demonstrate foundational skills to succeed in those higher positions.

Any of these scenarios can leave a business uniquely vulnerable. Starting the conversation may be daunting, but the sooner the work on your succession plan begins, the quicker your business is shored up for the long haul.

These crucial steps in succession planning lead to several benefits. First, a thorough look at your org chart helps your leadership better understand potential vulnerabilities, and can bring a sense of urgency to cross-train key employees in certain roles. On the other hand, if there are truly no internal candidates who seem right for leadership positions, then you know to begin an external search early on.

Most importantly, some of the benefits of succession planning is that it lets ambitious, less-experienced internal candidates know their hard work and skills have been noticed and appreciated enough to be considered for advancement. This can be an incredible retention tool and motivator for junior managers and subject matter experts who want to advance their careers into management.

Once your company has identified that Sally, Bob and Bruce are interested in moving into senior positions, you can identify any competency gaps and begin grooming them for their eventual succession. Other positions may even require the candidate to go back to school to get additional education or professional certification.

Once your top prospects are being groomed, your company has a chance to reap perhaps its best tool to grow and thrive. The simple process of explaining the status quo helps reveal weakness in processes and procedures, uncovered sales opportunities and opportunities for positive change. This natural process allows your company to keep an extra set of eyes on its senior roles and encourages questioning of the corporate norms that may have become dated or inefficient.

While all organizations are aware of these factors and their impact on organizational continuity, many still do not have a well-founded succession plan in place for critical leadership positions. Ineffective succession planning or the lack thereof has a cost attached to it. According to the findings, an unsuitable hire for the CEO or other C-suite positions can reduce the market value by USD 1 trillion annually.

While the findings from these surveys highlight the importance of a well-formulated succession plan, here are five reasons why you must absolutely put in place a succession plan for your organization:. The direct reports are also 20 percent more likely to be disengaged or to leave the organization. Either of these scenarios can spell a death sentence for an organization. If it manages to survive as an unsuitable leader, it will still take the company years to find its footing, streamline the business, create a positive work environment, and rebuild market value.

Provides Opportunity to Identify Potential Leaders: A succession plan identifies employees who can be promoted to leadership positions when the requirement arises.

It also provides an opportunity to train the chosen employees on different aspects of the business and allow them the time to build leadership ability. Additionally, the buffer period gives the management the time to assess which person is suited for which role in the future and it provides the employees a chance to understand the role and do a skill-gap analysis and get the required knowledge if they want to pursue the opportunity.

It is especially critical during transitions in senior leadership positions. If the board and shareholders are aware that the organization has a strong succession plan in place for critical positions and it has their approval, it will be easier to get their endorsement for the new hire. This will not only make the job of the incoming leader easier, but it will also ensure important decisions get board approval in time. And the market and brand value of the organization can be impacted negatively.



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