Succesion Planning

Introduction

Steve Gates is one of the major executives at a billion dollar corporation in which countries around the nation rely on to get there products. Suddenly one of his executive co-workers accepts a job without informing the organization he will be leaving. Steve is now have no idea what to do and how your going to get the products being manufactured to third world countries with the executive gone. You explore your options and realize that hiring someone and training them will take to long and the company will loose millions of dollars within this time. At this time your unprepared and have no idea what to do. This is an example of succession planning gone wrong. If Steve would have worked with his executives and created an effective succession plan this problem could have been avoided.

What is Succession Planning?
  
A succession plan, is a component of human resources planning and management. Succession planning acknowledges that members within the organization will not be employed indefinitely and it provides a plan and process to be put into effect if a member was to leave. (HR Planning, 2013). The proper planing and management within Steve's organization would have prevented a loss when the executive member decided to leave. When it comes to succession planning if the size of the organization its best to have employees trained within the organization. These employees will be familiar with the way the organization works already and contain the skills, knowledge, qualities, experience, and the motivation to move up and fill a position. (HR Planning, 2013).


Who?

You may ask yourself who is going to be in charge of succession planning? Typically, the board of executives and the executive director will have a role in succession planning.  "The board is also responsible for succession planning for the executive director position. The board hires the executive director to ensure it has a skilled manager at the helm to implement the organization's mission and vision. It is therefore very important for boards to spend some time reflecting on what they would do if, or when, the executive director leaves." (HR Planning, 2013). The HR manager may also be involved in determining planning and will also be in charge of implementing the system and evaluating employees.


Succession Planning Process

Succession planning requires going through a process in order to ensure that the proper employees are trained correctly for the next step in leadership. This process requires going through steps and analyzing the workforce.

Step 1: Link Strategic and Workforce Planning Traditions

• Identifying long-term goals
• Analyzing requirements for products and services in the future
• Using previously collected data
• Connecting succession planning to the values of the organization
• Connecting succession planning to interest of executives

 Step 2: Analyze Gaps

• Identify core competencies and technical competency requirements
• Determine supply and demand within the organization
• Determine the talent workforce needed long term
• Identify real continuity issues
• Develop a  business plan for long term needs

Step 3: Identify Talent Pools

• Analyze candidates vs. development of positions
• Identify talent within multiple levels
• Asses competency and skills of current workforce
• Use 360 degree feedback
• Analyze External Talent

Step 4: Develop Succession Strategies

• Develop Recruitment Strategies
• Develop Retention Strategies
• Develop Strategies for Learning

Step 5: Implement Succession Strategies

• Implement strategies from Step 4
• Plan Communication
• Apply measures of success
• Link succession planning to HR process
• Implement strategies for maintaining executive commitment

Final Step: Monitor and Evaluate

• Track selections from talent pools
• Listen to feedback about new hires and internal employees
• Analyze surveys from customers, employees, stakeholders
• Asses response to changing requirements

(Succession Planning Process, 2005)

Benefits of Succession Planning

One of the major benefits to a succession plan or the key idea of is being prepared. If Steve would have prepared with his board of executives they could have appointed an individual from within the organization without creating any stress within the environment.  Succession planning also creates a pool of motivated people who are prepared to take over when current senior staff and other key employees leave the organization. This keeps employees motivated for success in that they could be taking over the position in the future. Another benefit is the connection between human resources and the organization when hiring new employees. The vision is understood and these new employees can contribute to the success of the organization in the correct way. When hiring these new employees they see internal employees moving up within the organization and this creates an external reputation which helps people want to work for the organization. (HR Planning, 2013)


Challenges of Succession Planning

When creating a succession plan there will be challenges that will be faced. Companies must be careful not to make mistakes and effect the reputation of the organization in a negative manner. Here are some of the challenges that a organization may face with and how to prevent them:

1. Using the past to plan for the future: Choose leaders whose skills align with future goals. This can be avoided by creating succession plans that align with the long-term strategic vision of the organization.
2. Stopping at the CEO: The best succession planning programs should start at the bottom and make there way to the CEO. "Succession planning is a multi-person event," Schooley says. "If one person moves up, it creates a new hole and that can ripple through the organization."
3. Not getting the Board on-board:  Make sure that everyone is involved in determining the success plan. Sometimes, CEOs and HR often think they have a succession plan in place only to discover the board disagrees. Include the board of directors in planning and keep them up-to-date on development efforts to ensure everyone is on the same page.
4. Allowing human capital roadblocks to take root: Create new positions, talented people top out in leadership roles and they can prevent the next generation from moving up. To avoid these create new positions, collaboration opportunities and stretch assignments so future leaders have room to grow and allow the next generation to grow.
5. Succession isn't part of the culture. Allow incentives for executives to help mentor people who are currently seeking a higher position.  Schneider says. "Best-of-breed companies encourage executives to identify and develop talented young leaders and align their compensation with these efforts. "It should be considered a badge of honor to have your people selected for promotion."
6. The wrong people making decisions. Use the HR to make decisions regarding the next best successor for the company. CEOs aren't in the best position to choose their successor, because they are focused on the future on the company and don't always have time to look over all the employees. 

    (Succession Planning Roadmap, 2013)

 Citations

Crumpacker, Martha, and Jill M. Crumpacker. "Succession planning and generational stereotypes:
should HR consider age-based values and attitudes a relevant factor or a passing fad?." Public Personnel Management 36.4 (2007): 349-369.

 

Goldsmith, Marshall. "HBR Blog Network." Harvard Business Review. Harvard Business Review, 12 May 2009. Web. 10 Dec. 2013.

 

"HR Planning." Succession Planning. Human Resource Council California, n.d. Web. 10 Dec. 2013.

 

Miles, Stephan. "Succession Planning: How To Do It Right." Forbes. Forbes Magazine, 31 July 2009. Web. 10 Dec. 2013.

 

"Succession Planning Process." Succession Planning Process. OPM.Gov, 2005. Web. 10 Dec. 2013.

 

"Succession Planning with Your Board ." Succession Planning with Your Board. N.p., n.d. Web. 10 Dec. 2013.

 

 "Succession Planning Roadmap." Succession Planning Roadmap. Workforce, 11 Mar. 2013. Web. 09 Dec. 2013.