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Succession Planning Whats the Latest

Written by: Jennifer Loftus

Article Overview: Staying ahead of the curve is one way to help prevent problems, and will give you ample time to deal with problems should they arise. Be prepared for the foreshadowed leadership shortage coming up in the next few years.

Succession Planning Whats the Latest

The Center for Workforce Preparation (CWP), a not-for-profit affiliate of the U.S. Chamber of Commerce, has reported that "by 2010, the labor force will fall short of meeting the demands of an estimated 58 million job openings by more than 4.8 million workers." These numbers include significant percentages of people in leadership roles. It is also clear that there will be fierce competition for highly skilled leaders ready to serve in key roles.

AchieveGlobal conducted a survey of 307 United States business and government leaders, 65% of whom were in senior executive roles. The findings reveal a number of important insights into the current trends and practices in succession planning and management, also known as building leadership bench strength. Succession planning and management is used by 71% of the survey respondents. Fifty-five percent have used the process for at least 3 years. Between 70% and 78% of those respondents focus their succession planning and management activities on middle manager and senior executive positions.

A majority of the respondent organizations reported the use of six types of succession planning and management activities, as shown in the following data:

1. CEO as strategic owner and champion of succession planning strategy - 50%
2. Identifying competencies that are necessary for current and future needs of organization - 62%
3. Training and development - 65%
4. Conducting talent inventories - 65%
5. Identifying critical positions - 71%
6. Identifying high potential employees - 76%

1. Possession of global perspective - 43%
2. Emotional maturity - 44%
3. Desire to develop others - 44%
4. Cognitive ability - 52%
5. Problem identification and resolution skills - 59%
6. Potential to be successful in another function/department - 63%
7. Analytical skills - 63%
8. Drive for results - 66%
9. Degree to which current performance exceeds expectations - 74%
10. Decision-making skills - 74%

In addition to these findings, the survey identified the following 13 activities as critical to a successful succession plan:

1. Create a compelling case for the purpose, importance, and expected impact of a succession planning and management process that fits the explicit current and future needs of your own organization. Ground the case with data from thorough business and organizational assessment.

2. Secure a high level of conviction and active involvement in the process by all senior leaders, led by the CEO. Crystallize roles and responsibilities for all players. Confirm the intent to use this process for all openings.

3. Set an overarching strategy for building leadership bench strength: right people, right place, and right time.

4. Define a meticulous, comprehensive, strategically aligned, fair, and equitable succession planning and management process that provides opportunities to everyone.

5. Create a detailed communications plan to accurately portray the full intent of what to expect -and what not to expect.

6. Identify an accurate list of leadership competencies (skills, knowledge, abilities, and motivations) - a talent portfolio - that will produce superior performance in likely future scenarios of the organization.

7. Identify key linchpin positions that can propel or inhibit strategic initiatives or opportunities.

8. Use the competencies to assess the current talent pool. Analyze the results to identify high potential candidates and create pinpointed developmental plans.

9. Align the succession planning and management process with the employee value proposition -why a promising leader will want to grow, develop, and contribute with this organization over the long term. Incorporate appropriate messaging in recruitment strategies.

10. Create a set of training and developmental experiences that are directly connected to building skill in the leadership competencies.

11. Link the process to the organization's performance management, promotion, reward and recognition, and related human resources systems, processes, and policies.

12. Engage in at least annual reviews with the process and all candidates. When there are triggering strategic circumstances, conduct an immediate review.

13. Periodically measure and evaluate the integrity and progress of the process, regulatory compliance, and the movement of high potential candidates, turnover and retention strategies, impact of developmental activities, and other metrics that tie to strategic fulfillment. Communicate and celebrate results.

Effective succession planning does not happen overnight. It takes time and effort to build a program that develops talent and receives the appropriate organizational buy in. If your organization doesn’t have a succession plan in place, now is the time to develop one. If you’re concerned about being overwhelmed, start small, focusing on key management positions or difficult, hard to fill roles requiring specialized knowledge. If you have a succession plan already in place, review the program to make sure you’re getting the right results. Make updates as needed. With the upcoming Baby Boomer retirements, low US unemployment, and the high cost of turnover, now is the time to make sure your succession plan is in place. Don’t wait to make a change until something happens and you have to rely on a less helpful replacement plan.

Related Articles
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  Succession Planning - Vital For Your Business At All Levels
  “Do You Know Where Your Succession Plan Is? And Do You Know What To Do If You Can’t Find It?”
  Succession planning myths and realities
  Succession Planning - Your Route To Sustainable Business Success

Article Tags: analytical skills, bench strength, cognitive ability, critical positions, current trends, emotional maturity, executive positions, executive roles, global perspective, government leaders, job openings, leadership roles, management activities, profit affiliate, resolution skills, skilled leaders, succession planning, survey respondents, types of succession, workforce preparation



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