Succession Planning Helps Secure Organizations’ Futures

Succession planning is what ensures your organization will be able to continue functioning and thriving in the event it loses one or more key leaders. Without a plan for who will take over if someone retires, accepts a new job, takes an unexpected leave or passes away, your company could be left with a team or the entire organization scrambling to keep things moving. But when you have a plan in place and are actively working to develop the next generation of leaders, you will be prepared to keep going and make a smooth transition when key employees depart.This week, I’ve been reading about succession planning — why it’s important and how to get it right. I think you’ll find these recent blog posts and articles useful.  Tips For Successful Succession Planning. JD Supra: “Numerous studies have confirmed, however, that while most business owners agree succession planning is critical to their company’s success, most businesses lack a clear plan. According to a December 2010 survey of 1,300 companies from leadership development firm Korn/Ferry, 98 percent of companies regarded CEO succession planning as an important part of their corporate governance, but only 35 percent of respondents acknowledged having a succession plan in place. Likewise, Forbes has reported that at the 1,000 largest American companies (by revenue) in 2008, of the 80 new CEOs appointed only 44 of them were promoted from within, suggesting that far too many succession plans are not working.”How to Apply the Principles of Succession Planning. Planning Resource Center: “Succession planning is much more than selection: development is vital. Successor candidates can expect either to have their own individual career and personal-development programs or to be involved with colleagues with perceived similar development needs. In both cases, candidates must accept responsibility for their contributions to such programs. Identified successor candidates can expect to have access to coaching and a senior person prepared to act as a mentor. Succession can generally be expected to come from a strong talent pool of successor candidates. As pool members develop and take on more active roles in your organization, individual's' leadership skills will increase. As these candidates develop, they will become members of a leadership team, and act as role models for others in your organization.”Succession Planning: The Core Issue of Leadership Failings. RecruitingBlogs: “An organizational succession plan should always have a plan B. It is one of the biggest problems for any business and a core issue for leadership. Succession planning is like an insurance plan for the survival of your business. So it stands to reason then, that if you don’t have a succession plan, you can’t ensure that your business will survive after your resignation. The good news is, it’s never too late to start the development of a succession plan. All you and your team have to do is answer a few questions and write the plan to set it in motion once it’s needed. It’s no easy task however, and as it becomes a higher priority as Baby Boomers enter retirement it’s of growing importance to be able to answer these questions.”Ready to Lead? Succession Planning and Preparing for Future Talent Challenges. The Chronicle Herald: “Succession plans play a critical role in mitigating risk to ensure the continued success of an organization. Given the importance of succession planning one might think it would be a top priority for all organizations, however Human Resource professionals know otherwise. Numerous obstacles have hindered the best of intentions from many HR leaders….Leaders are often fearful of the risk to their own role in identifying their potential successors. Fear of transparency also abounds, as organizations debate how much information employees should receive about their potential opportunities within an organization. Similarly, perception of employee capabilities, interests, motivations and aspirations can derail an effective succession plan.”Succession Planning: The Client P.O.V. Bloomberg BNA: “I once asked a law firm relationship partner who would take care of his most valuable clients if he were hit by a bus. His response? ‘It’s in the red folder in my desk drawer, and my secretary knows where it is.’ While the bus scenario isn’t likely, a strategic succession plan is still essential for a relationship partner. Succession planning from the client’s point of view is about business strategy, not scrambling to react to change. A secret plan that no one knows about is nothing more than an idea in the relationship partner’s head. And it certainly doesn’t take into account the most important consideration: the client’s needs and wants.”Want to learn more about succession planning? Read our white paper, Succession Planning: A Step-by-Step Guide.Success Labs is a leadership development and management consulting firm in Baton Rouge, Louisiana. For more than 25 years, our expert team of consultants has worked with hundreds of companies to explore their business potential and improve their company and cultural performance. Contact us to get proactive about your people strategy.