Lots of good advice and plenty of lists exist summarising key steps in sensible Succession Planning processes. Here we are just presenting some of the recurrent takeaways. It is an eclectic list of issues that we have found clients return to recurrently in our discussions.
There may well be more. However, we suggest that “keeping these in mind” whatever direction your Succession Planning takes and addressing them in some way that works for your business in practice, will improve the likelihood of a better business outcome.
These client-prompted Succession Planning pointers fall into three broad categories.
Pre-set up and thinking
It most initiatives, thinking things through before embarking on them can, in most cases lead to a better result, no surprises here in this truism.
However, especially in Succession Planning, there is some recurrent evidence to suggest that not handling this phase as effectively as one could, can lead to problems further on.
This is because, Succession Planning is a longer-term game where seemingly straightforward issues in the thinking and set up can come home to roost later. Here are five.
- Avoid the temptation to “promote” (i.e., include on a succession plan) just on technical or profession skills i.e., avoid the classic pitfall of the most successful sales professional becoming the least successful sales manager.
- Start earlier in work lives and lower than focussing exclusively on the execs and senior team. The real need can often be to focus on critical roles that would cause the greatest operational disruption rather than just the higher profile senior people. A key word here is “exclusively.”
- Ensure that some sort of gap analysis process underpins a clear idea of what is needed in the future aligned to strategy. Ideally, this would lead to defining success profiles (i.e., what does good look like in the role in the future). Note the future strategy italics here.
- Map out, even in basic terms, methods for developing a sensible succession plan and related training and development. This is especially important in smaller business with limited resources and development opportunities. Whatever the context, it needs to be practical, proportionate, and meaningful.
- Do not forget to factor in the “desirable turnover” i.e., getting the balance right between stability (enshrined in the succession plan) and the evolution of talent as the business develops.
Managing the process
It is this theme that reflects the widest range of issues (mirroring the typical drivers such as business size, maturity, employment practices, etc.). However, here is a selection of the
recurrent four.
- Working out how to manage what happens to those on the succession planning track. There is a mix here of: those who are the steady “safe bets”, those who change as a result of the “I’m now special” syndrome, those who looked like good future talent but who, for whatever reason, go off the boil and, leavers who were on the succession programme. In fact, there is another category of, arguably more difficult, “threatening leavers” i.e., those who use their inclusion in the succession plan as a bargaining chip signalling “meet my expectations or I go.”
- Perhaps more of an issue in bigger businesses but valid to others, is how to manage multiple successors. In an ideal world a succession plan would have multiple candidates for the roles in scope. The issue here is how to balance the development needed and manage individual motivation and interest. A subset of this is planning for emergencies i.e., what to do in practice, if key person leaves. Again, note the practical emphasis here.
- Ensure that the focus is not on “roles” (i.e., just job titles) but on experience and exposure i.e., while from a practical perspective, “roles” are needed to define and communicate who does what, in reality it is what the occupant did in practice that is the issue not just the job title. Fostering transferable skills is the key here, often developed in the guise of cross-functional exposure. Those with well-established succession planning systems and resource, create tailored development plans.
- Evidence-based evaluation and feedback needs to be set in motion from the onset to ensure that the succession planning keeps up with business strategy and predicted business needs. Typically, too, there is a need to address and update the plans triggered by some of the issues above such as any potential new entrants, potential departures etc. Regular reviewing rather than periodic seems to be the principle here.
Tricky pitfalls
Arguably some of the succession planning management topics above could fall into this category. As we stated above, by its nature, Succession Planning occurs over the longer term and what may have been seen as sensible at one stage, may well turn out to be the opposite at a later date. Here are three that clients tell us have caught them out.
- Not losing sight of what is happening across your sector and in competing businesses can be hard. This is analogous to the principle of being so focussed on one’s own business that you lose sight of what has been happening around you. We included this need to look outwards above in signalling, healthy turnover and bringing in new people (and how this should be handled relative to those on the succession plan). It might well be that future business needs are better met externally where new, appropriate talent is emerging.
- Few lists of tricky issues would be complete without some reference to the “human factor” in all of this. Similar to the irrationality we all have experienced triggered by the classic office move, so too with succession planning, irrationality can raise its head from the least expected quarters (especially by those who find out by informal means that they are not on the programme). Communication is key here and there are many prescriptions for what and how. The lesson we here, however, is to document everything from detailed plans, succession pathways, mapping to business strategy and business needs. to evaluation, refreshes, etc.
- Our last issue is to keep motivational and commitment in mind. It is to address the classic retention problem i.e., investing and developing in people for them to then leave (worst still to a competitor). The lesson here is to avoid assuming that “it will all work out in the end”
And finally…
As the sub-heading of this review implies, Succession Planning is one of those topics that can easily take a back seat when compared with real, “here and now” practical issues in any business. The risk is that it is only when the business is exposed that, too late, leaders realise that action taken earlier could have addressed or at least lessened their problems.
We have some sympathy with them here. There are many well-intentioned HR processes that could be implemented but which just end up too complicated and low down the priority list. Our main point, therefore, is simply to encourage businesses to keep Succession Planning, gap analysis, risk, and evaluation in mind and at least set something in motion.
About The Author
Dr. Steve Sloan is an acknowledged leadership expert and consultant who has over 20 years’ experience advising clients globally.
He can be contacted via email or by calling 07585 548420
