January 2010

 

Organizations face a quiet crisis of talent succession. As the economic crisis shifts, high-potential employees’ options for movement begin to emerge. Combined with an aged workforce that has been impatiently waiting for their retirement accounts to stabilize, organizations may be faced with losing experienced workers, potentially in masses. What is the potential impact on succession thoughts or plans? To prepare, organizations realize now is the time to take a second look at their SUCCESSion philosophy, strategy and plans to remain relevant and responsive. The following may assist in optimizing a succession planning investment.

Fit. Succession planning is a process for making a long-term culture change, which should align with core values, available resources and emerging business needs. It can be a major shift in an organization that is accustomed to filling one vacancy at a time. More established and mature organizations tend to favor competency-based succession models that involve 360-feedback with a foundation of coaching activities. Rapid-growth organizations blend more project-based experiences that surface superior talent while addressing real-time objectives.

Advance. Succession planning is about investment, growth and advancement of people. Proactive, strategic succession activities analyze the impact of talent movement, provide objectivity to evaluate high-potential employees and avoid biased estimations of potential. It identifies talent based on performance and competency profiles instead of simplistic skills checklists or job progression ladders.

Protect. The competitive nature of many leaders, combined with marketplace options, can foster impatience in the individual desiring advancement opportunity. The challenge—protect the talent pool. High-potentials must see opportunity for timely promotion, since promises longer than 18 months may have limited retention value. Additionally, the ability to maintain talent engagement and loyalty becomes a serious concern when few, if any, promotional opportunities exist. Active strategic succession planning takes these issues into account aligning employee career paths, development plans and activities reconciling the aspirations of key people with the opportunities available.

Track. There exists both a perceived and real cost to the activities of strategic succession execution. A critical component is being able to track and report the results of all succession-related activities. The dashboard should be able to tell decision makers if the succession activities are positively impacting tenure promotion trends, bench strength, and how promoted leaders have significantly contributed to the results of the organization.

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Retaining the right kind of leadership is a competitive advantage. Succession planning, when done strategically, can play a vital role in long-term organizational sustainability and results. Without it organizations will face unprecedented market pressures against their talent pool. A systematic and long-term plan will ensure continuity of leadership with the adequate intellectual capital to compete in today’s fast-paced world.

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