Succession planning is a topic that often gets overlooked. However, savvy organizations connect succession planning with leadership development planning, do it on an annual basis, and are well-positioned when the inevitable happens—a key person in the organization leaves.
In my consulting practice, I occasionally work with clients who have built a deep bench of talent and can effectively promote from within. That said, many clients have not yet considered developing their key people with an intentional eye toward future transition.
Thus, it’s important to set aside time and think about each of your leadership team members.
Ask yourself the following:
- Who would fill this role if this leader were to leave?
- What skills and abilities are needed?
- Is there a clear plan to develop the potential replacements?
Here are my top tips to create a succession planning strategy that will help you build a pipeline of leadership talent and give you flexibility.
- Understand - At least annually, check in with everyone to find out where they want to be five years from now, and then figure out how to get them there. These conversations help you align on the potential future, even if it is a pathway outside of the organization.
- Assess your team - Review your organization top to bottom. A common tool is a “Nine Box Grid,” where you plot out performance and potential. This helps you focus on developing people with high potential and high performance. For employees who have low potential and are low performers, this might be a time to counsel them out of the organization. For people with high potential but who are low performers, maybe the job fit isn’t optimal, and there is a better seat for them? Low-potential and high-performing employees provide stability; thus, you don’t want to lose them. Be sure to understand what they are looking for and offer it to them if possible. Examples could be flexibility, ability to mentor, etc.
- Assess each position - Look at each position in the organization, including the leader. If the incumbent won the lottery, who would step in? How would you manage? Ideally, leadership roles have 2 or 3 possible replacements within an organization. When I worked at Ford Motor Company, a very large organization, there were dozens of people who could fill a role over time. By comparison, many of my startup clients don’t have any bench, whatsoever. Thus, what makes sense for each organization will vary.
- Develop - Ensure each employee has a documented individual development plan. Include specific visions of what they want to accomplish in the short term (1-2 years) and long term (3-5 years). This could be something like, “I would like to have the skills to manage people in two years.” Then, you could work with the employee to understand potential development areas like communication, conflict management, or delegating. You could identify specific training for each skill, such as watching a video on delegating, shadowing a leader who is a great communicator, and taking a course on conflict management. Then, two years from now, if a position as a supervisor opens, they will be ready to take it.
- Support - Keep development front and center. Make sure it is part of the annual goal-setting process, and that you reward and recognize people investing in themselves.
Follow these steps, and you will position your organization for long-term, sustainable growth and success. Your people will feel the investment and reward you with higher retention and engagement, too!
---
Don’t leave succession planning on the back burner!
If you need help addressing (or kick-starting!) your organization’s leadership pipeline and future transition plan, please contact Yeo & Yeo HR Advisory Solutions.
Also, connect with us this fall at the MISHRM annual conference, where our very own Sonja Parkinson, VP of HR Consulting Services, will speak on succession planning.
