Succession Planning: Right Person in the Right Place at the Right Time
How is your organization developing and nurturing human capital? How can your organization ensure a continuing sequence of qualified people to move up when the current generation retires or moves on? How does your organization plan for the future with assurance that the key positions will be filled with people to carry on and excel?
What is Succession Planning?
A process for identifying and developing internal talent for future leadership roles as positions are vacated. A plan prepares employees for key opportunities, building a portfolio of skills which satisfy the organization’s identified needs for talent over time. In short, it’s having the right person in the right place at the right time.
Why Succession Planning?
There are many benefits of proactive human capital management which include:
- You’re ready: Well-trained, broadly experienced, well-motivated individuals who possess the specific knowledge, skills and personal qualities needed to assume key positions are prepared and ready.
- Organizational cost-savings: Minimal downtime caused by positions remaining vacant. Significant reduced risk of costly hiring errors. Less organizational disruption.
- Increased employee engagement: By defining career paths, an internal enthusiasm is generated by employees that feel “honored” to be part of the succession plan. This also enhances the organizational reputation by promoting from within.
Succession Planning Considerations:
When developing a succession plan, it is important to consider economic factors, employee mobility, supply of talent, mission, senior staff participation, data and a retirement risk analysis.
Why do Succession Plans fail?
Succession Plans fail when they do not have executive commitment or a strong understanding of how it works and the benefits to the organization. If there is not a formal written plan, or a rigid, inflexible plan. It is also important the plan is not too complex requiring considerable paperwork or reporting mechanisms. Succession Plans also fail when managers are not providing successors guidance on the skills, knowledge and abilities needed for the individuals to be successful.
What challenges does your organization face when developing a succession plan?