Succession planning is a critical process that often gets overlooked in the day-to-day operations within organisations. However, its importance cannot be overstated. In a world where leadership transitions are inevitable due to retirements, resignations, or unforeseen circumstances, having a solid succession plan in place is essential for maintaining organisational stability and continuity. So, why is succession planning not prioritised in business? It all starts with a lack of understanding for what succession planning really is.
What Every Organisation Needs to Know About Succession Planning
What is Succession Planning?
It sounds relatively self-explanatory, but there is some confusion over exactly what succession planning is. So, let’s start by highlighting what succession planning IS NOT:
- It’s not just about finding a person to fill a specific job, as and when it arises.
- It’s not just a list of names in a box.
- Succession planning is not a one time event, rather it should be continuously adapted and updated.
- Succession planning shouldn’t take a hierarchical top-down approach which excludes a number of potential successors due to preconceived bias’ by those in positions of leadership.
Let’s ask again, what is succession planning?
Succession planning should be part of the overarching business strategy for developing talent and performance management. This will eliminate any potential for inequality, as it’s geared towards developing the team as a whole, before identifying potential successors. By taking a proactive approach to preparing employees for future positions, organisations can mitigate risks associated with sudden departures and maintain operational effectiveness.
Succession planning involves identifying high-potential employees, assessing their skills and competencies, providing targeted development opportunities, and monitoring their progress over time.
Succession Planning and Performance Management
Performance management is designed to identify areas for employee development and improvement based on performance evaluations and feedback. These insights inform tailored development plans created with the aim to enhance employees’ skills and competencies. This is why performance management is key to an effective succession planning strategy. The integration of these development initiatives allow all team members to achieve their full potential within their roles, thus highlighting high-potential employees that could step into a leadership/managerial role.
Nurture your talent.
Many argue for hiring externally for leadership positions, as it offers the space to bring in fresh ideas and perspectives, all of which can be great! However, there’s undeniable value in nurturing internal talent, particularly in roles where specialised organisational and industry knowledge are needed. This is where performance management influences succession planning, so rather than recruiting externally, Individuals developed from within an organisation will have undergone bespoke leadership development initiatives outsourced by the company. Therefore, succession planning emerges as an opportunity to retain and advance talented individuals already working within the company.
Identifying Successors for Roles not Jobs
A common mistake made in the process of succession planning is preparing people for specific jobs rather than roles that can be applied to a number of job posts. Identifying successors for roles, is a strategic approach that focuses on developing individuals who possess the skills, competencies, and potential to assume a variety of leadership positions within the organization. This approach acknowledges that job roles may evolve or change rapidly in response to market shifts, technological advancements, and organisational needs.
Instead of narrowly focusing on developing individuals for predefined job titles or positions, succession planning for roles emphasises the development of a diverse talent pool capable of adapting to various leadership challenges and opportunities. This broader perspective allows organisations to build resilience and flexibility into their leadership pipeline, ensuring they have the right people in place to drive success across different functions, departments, or shifts.
Development Centres Uncovering Potential
So, you’ve aligned your succession planning and performance management strategies, in doing so a number of high-potential individuals have been identified among the organisations ranks. Now, it’s time to put their competencies to the test. This is where Development Centres can show you how each individual will perform against a set of your organisations chosen competencies, whether that’s communication effectiveness, the ability to demonstrate integrity, or delivering result. Development Centres allow organisations to objectively see how selected individuals work in a challenging environment.
Here at DCo we trust the process behind our Development Centres. Something we like to express is that Development Centres aren’t about passing or failing, rather they’re about developing talent. They’re ideal for refining development plans, so that your organisation really knows where each individual needs to be developed, that also aligns with your succession strategy.
We’re committed to helping you and your organisation develop a succession plan that is fully integrated with performance management. Succession planning is not just a task to check off the list—it’s a strategic imperative for organisations looking to thrive in an increasingly competitive landscape. By investing in succession planning, organisations can ensure continuity of leadership, employee engagement and retention, and position themselves for long-term success. With the right development strategies, training and commitment, every organisation can develop a robust succession plan that prepares their leaders and successors for whatever the future may hold for the company.