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Here in Boston and throughout Red Sox nation, much nervous talk is focused on the Yankees making a run on our first-place team. Since the All-Star break in July, the Yankees have been coming on strong (don't they always?), while the Red Sox, some might say, could be loosing their grip (don't they always?)
To become a balanced, high performance professional sports team like the Red Sox or the Yankees, you have to rely not only on smart trading and drafting (i.e., recruiting), but also on talent development and "succession planning" (i.e., retention, future growth).
Do you ever compare your business to a balanced, high performance sports team? With top management in the front office and on the field? And with talented, productive players who get along--and know where your stars of the future are going to come from.
If you think succession planning means handing the business over to the kids or waiting for the best private equity deal, you're partly right. But there's more to it than that. What is it, and is it something that your company should consider?
Succession planning is a component of a company business plan.
It is often a formalized, systematic strategy designed to identify talent for future leadership roles in the organization. For a company to maintain its competitive advantage, a solid succession plan is necessary.
Succession plans focus on positions most critical to your future needs.
Therefore, current management employees are often identified. Non-management employees should also be considered, since their roles may become more critical to the company as they move into leadership positions.
Traditional succession planning is often a secret process.
Top-level executives identify those individuals who would be appropriate replacements for them as well as for other top-level employees. Your people are generally unaware of the process.
The traditional method does not usually include the use of performance appraisal results, and individual or team development is de-emphasized. This approach could be a problem since these very people may move on to better outside opportunities without knowing about the future opportunity your company had planned for them.
You may choose to use a hybrid method.
This approach includes a formalized tracking system that guarantees process consistency and reduces subjectivity. This system creates a framework that combines the succession plan concept with a more focused need for succession development.
Various issues should be considered when creating an effective succession plan.
You should have a clear vision for the future of your organization. It's critical to have a solid grasp of your existing workforce. Identification of current employees who are already positioned to move up in the system is essential, as is identifying individuals in need of development.
Consider individuals not currently at the top of the list but who show promise.
Part of the succession planning process includes the development of these individuals who, after the appropriate training, will be well prepared when needed to step in and take charge of the targeted positions. This will involve a well-conceived training and development program.
Determine most efficient, cost effective method to develop future workforce.
This may include in-house training, coursework from outside sources or special projects specifically designed for the employee. Whichever plans are chosen, the training should be aligned with the succession plan and the overall business strategy to be successful.
Stay focused on the future needs of key positions.
While concentrating on particular employees is important, you should maintain focus on the future needs of key positions. Since targeted individuals could leave you before the succession plan is implemented, various options should be in place to adjust to a changing workforce.
Don't underestimate the talent you already have.
Your people's soft skills are often overlooked. Don't concentrate only on hard technical skills. The success of your team members, and consequently of the organization, is often determined by your people's ability to master the soft skills along with hard skills.
Consider the importance of a well-designed and implemented succession plan.
Integrate the plan into your organization's strategic plan. Not being prepared when it's time to replace those in key positions could severely impact the future success of your business.
To become a balanced, high performance professional sports team like the Red Sox or the Yankees, you have to rely not only on smart trading and drafting (i.e., recruiting), but also on talent development and "succession planning" (i.e., retention, future growth).
Do you ever compare your business to a balanced, high performance sports team? With top management in the front office and on the field? And with talented, productive players who get along--and know where your stars of the future are going to come from.
If you think succession planning means handing the business over to the kids or waiting for the best private equity deal, you're partly right. But there's more to it than that. What is it, and is it something that your company should consider?
Succession planning is a component of a company business plan.
It is often a formalized, systematic strategy designed to identify talent for future leadership roles in the organization. For a company to maintain its competitive advantage, a solid succession plan is necessary.
Succession plans focus on positions most critical to your future needs.
Therefore, current management employees are often identified. Non-management employees should also be considered, since their roles may become more critical to the company as they move into leadership positions.
Traditional succession planning is often a secret process.
Top-level executives identify those individuals who would be appropriate replacements for them as well as for other top-level employees. Your people are generally unaware of the process.
The traditional method does not usually include the use of performance appraisal results, and individual or team development is de-emphasized. This approach could be a problem since these very people may move on to better outside opportunities without knowing about the future opportunity your company had planned for them.
You may choose to use a hybrid method.
This approach includes a formalized tracking system that guarantees process consistency and reduces subjectivity. This system creates a framework that combines the succession plan concept with a more focused need for succession development.
Various issues should be considered when creating an effective succession plan.
You should have a clear vision for the future of your organization. It's critical to have a solid grasp of your existing workforce. Identification of current employees who are already positioned to move up in the system is essential, as is identifying individuals in need of development.
Consider individuals not currently at the top of the list but who show promise.
Part of the succession planning process includes the development of these individuals who, after the appropriate training, will be well prepared when needed to step in and take charge of the targeted positions. This will involve a well-conceived training and development program.
Determine most efficient, cost effective method to develop future workforce.
This may include in-house training, coursework from outside sources or special projects specifically designed for the employee. Whichever plans are chosen, the training should be aligned with the succession plan and the overall business strategy to be successful.
Stay focused on the future needs of key positions.
While concentrating on particular employees is important, you should maintain focus on the future needs of key positions. Since targeted individuals could leave you before the succession plan is implemented, various options should be in place to adjust to a changing workforce.
Don't underestimate the talent you already have.
Your people's soft skills are often overlooked. Don't concentrate only on hard technical skills. The success of your team members, and consequently of the organization, is often determined by your people's ability to master the soft skills along with hard skills.
Consider the importance of a well-designed and implemented succession plan.
Integrate the plan into your organization's strategic plan. Not being prepared when it's time to replace those in key positions could severely impact the future success of your business.