Organizations that fail to identify and prepare current and future leaders place themselves at high risk, according to recent research from Tampa, Fla.-based training and consulting firm AchieveGlobal.
"In the absence of a strategic succession plan, opportunities of all kinds will be missed or fall disappointingly short of expectations," said Sharon Daniels, the company's CEO, in a press statement.
Several external factors have made succession planning a critical strategy for today's organizations, and with the amount of merger and acquisition activity in the aftermarket, it is something that should be top of mind.
Many baby boomers in the aftermarket are reaching retirement age, and their departure will affect the industry's labor supply. Meanwhile, downsized middle management ranks, renewed economic growth, new business opportunities and competition for top talent have made strategic succession planning that much more important.
While a majority of organizations are now pursuing some form of succession planning and management, Daniels notes that the formation of best practices remains in the early stages. However, based on a recent survey of business leaders, previous leadership development research and practical experience, AchieveGlobal offers the following guidelines:
1. Create a compelling case for the purpose, importance and expected impact of a succession planning and management process that fits the current and future needs of your company.
2. Involve senior leaders. Solidify roles and responsibilities for everyone involved. Confirm the intent to use this process for all openings.
3. Set an overarching strategy for building leadership bench strength: right people, right place, right time.
4. Define a comprehensive, strategically aligned, fair and equitable succession planning and management process that provides opportunities to everyone.
5. Create a detailed communications plan to accurately portray the full intent of what to expect — and what not to expect.
6. Identify a "talent portfolio" — a list of leadership competencies (skills, knowledge, abilities and motivations) — that will produce superior performance in likely future scenarios of the organization.
7. Identify linchpin positions that can propel or inhibit strategic initiatives or opportunities.
8. Assess the current talent pool. Identify high-potential candidates and create pinpointed developmental plans.
9. Reinforce what the employees will get out of the succession plan — why a promising leader will want to remain with this organization. Incorporate appropriate messaging in recruitment strategies.
10. Create a set of training and developmental experiences that connect directly to building skill in the leadership competencies.
11. Tie the process to the organization's performance management, promotion, reward and recognition and related human resources systems, processes and policies.
12. Engage in at least annual reviews with the process and all candidates. When there are triggering strategic circumstances, conduct an immediate review.
13. Look first to leadership bench strength inventory for promotional opportunities.
14. Periodically measure and evaluate the integrity and progress of the process, regulatory compliance, the movement of high-potential candidates, turnover and retention strategies, impact of developmental activities and other metrics that tie to strategic fulfillment. Communicate and celebrate results.
15. Include the board of directors, shareholders or other key stakeholders in critical communications.
Concludes Daniels, "With careful succession planning and management, organizations will develop a broad and deep leadership bench that can capitalize upon spontaneous opportunities, realize strategic targets and rise to the toughest challenges."
For more information, visit www.achieveglobal.com.
