Employees come and go. Gone are the days when a person would stay at the same job their entire life. Business leaders leave just as other employees do, yet many companies lack a robust succession plan. Approximately 50 percent of companies say they don’t have written guidelines for what to do when the CEO steps down.
Every company must identify and prepare leaders for future roles. They must also know what should not be done when choosing who will take on these positions. Many companies find they benefit from succession planning consulting so they can avoid common pitfalls.
Comprehensive Planning
Many companies only establish a succession plan for emergencies when one or more leaders suddenly step down. However, America’s population is aging. When baby boomers retire, which they are doing rapidly, there will be widespread vacancies. Succession planning needs to take place at all levels of an organization, not just at the top. The company needs a hiring and development strategy aligned with its long-term goals to ensure future leaders have what is required to succeed.
Secure Buy-In From Stakeholders
An HR team cannot create a succession plan without input from stakeholders. If they do so, they may find the board of directors and other stakeholders aren’t satisfied with this plan. Everybody must share their insights and perspectives to ensure the plan aligns with the long-term business objectives.
High-Potential Employees
Companies should always look internally for successors. Doing so is more cost-effective and fosters a culture of growth and development. Employees work harder when they know they have a decent chance of moving up. Every company needs a program in place that helps identify high-potential employees. These employees can be trained and developed to take on leadership roles in the future. Identifying them early allows time for them to grow and learn so they can take on new roles when positions open.
Tailored Plans
A one-size-fits-all approach doesn’t work when it comes to leadership development programs. Every position within an organization is unique, so the training program must consider the specific skills needed. Furthermore, each employee has strengths and weaknesses the program must account for.
Flexible learning options allow more people to participate in development programs. When they do, the company has options if a position opens. They can choose the best person for that position. However, training programs are only part of the solution.
Companies need to provide access to executive coaches during leadership transitions. These coaches help employees alter their mindset to accommodate the duties that come with their promotions. The coach and employee should have similar professional backgrounds and an understanding of the person’s new duties.
Established Timelines
Succession planning needs an established timeline and measurable goals. These goals ensure future leaders are developing the organization’s leadership goals. The company can track relevant metrics to see what is working and where improvements are needed. It can then share this information with stakeholders.
Objectivity
Bias remains an issue in successor selection. Leaders may choose people to promote because they like them or have a similar profile, even if they aren’t the best fit. Objective assessments minimize this bias. They let the organization value individuals based on their skills, knowledge, and readiness to take on a new role.
Transition Support
Every person needs support when taking on a new role. Three-quarters of leaders feel unprepared to take on the challenges associated with this new role. Focused coaching and other support will help them make this transition.
Share the Succession Plan
Succession planning must be transparent. Employees must understand the assessment and selection process and the criteria used in it. Deloitte reports the majority of leaders believe transparency leads to increased trust. Leaders can align personal goals with organizational goals when they have this information.
Succession planning must be an ongoing process. Companies that prioritize leadership development benefit greatly. When employees leave and new ones must step into these roles, the transition will be seamless, thanks to the time and effort put into this plan.
