Authors: Randall Lucius, Liz Roling
Succession planning is commonly thought of as a systematic process to ensure that there are replacements readily available to fill key leadership positions, so that turnover will not impact overall organizational performance (Berke, 2005). Most commonly it is associated with the position of Chief Executive Officer, but more and more it is considered for other executive level roles, hard-to-fill positions, and “critical roles” that have a large impact upon the performance of the organization (e.g., National Account Manager, Director of HR Technology).
The importance of succession planning cannot be overemphasized. Demographic trends show a potential leadership “vacuum” on the horizon as many baby-boomers prepare to retire (Kareveli & Hall, 2003). Though this trend may have slowed due to recent changes in the economy, there is always a market for good talent, and succession management is as much about investing in your top employees today, to keep them engaged, as it is in preparing for your future talent needs. Finally, the overall impact leadership has on both a company’s performance and the economy at large has been made all too apparent with the current recession. Leadership is needed now more than ever, and succession planning ensures a continuity of leadership for the future.
Several reviews of practices in succession planning (e.g., Berke, 2005, Kareveli & Hall, 2003, Groves, 2006) reveal important trends that are shaping the process in positive ways, including:
- Increased emphasis on assessments (e.g., 360, performance appraisal results)
- Development of talent pools rather than specific position replacements
- Use of well-developed competencies
- Greater emphasis on development, including the use of projects and other “action learning” assignments
These trends are exciting and bring much value to succession planning, but the exact process for integrating them all is a bit unclear and somewhat daunting. Furthermore, because succession planning involves a combination of elements related to both development and selection/promotion, there are important considerations to ensure that decisions resulting from the process are fair, job related and defensible.
Next week’s post will share a process for succession planning that successfully “walks the tightrope” between development and selection that has been used successfully by the authors with other organizations.
References
Berke, D. (2005). Succession Planning and management: A guide to organizational systems and practices. Greensboro, NC: Center for Creative Leadership.
Groves, K. S. (2006). Integrating leadership development and succession planning best practices. Journal of Management Development, 26(3), 239 – 260.
Karaevli, A. & Hall, D. T. (2003). Growing leaders for turbulent times: Is succession planning up to the challenge? Organizational Dynamics, 1, 62-79.
