Best Practice: Succession Planning

13 September 2013, Singapore: Another great (and short) secondary research article for my colleagues in the HR Center of Excellence (CoE) for Talent and Workforce Planning.  

Succession planning vs. Replacement planning

• Replacement planning is the process by which organizations identify 1 or 2 potential interim replacements for each executive/leadership position. It is temporary, tactical and does NOT replace a succession plan.

• Succession planning is the strategic process by which organizations identify their high-performing/high-potential employees and develop them to take on progressively greater responsibility and leadership in the organization. 

Succession planning — diving into your talent pools

Why do you need a succession plan?

• To be able to respond effectively to change
• So you can recruit and retain the best talent
• To support organizational growth

According to PricewaterhouseCoopers' 15th Global CEO Survey 2012, developing a leadership and talent pipeline is the top concern of CEOs globally.

Succession planning is fundamentally about development

The focus should be on developing strength (talent pools) in all key areas that deliver a competitive advantage.

• Developing your high-performing/high-potential/high-knowledge employees (in part so you can retain them)
• Developing the strategic competencies the organization needs to thrive and succeed both today and tomorrow — in all key areas
• Developing and maintaining corporate knowledge and a leadership pipeline 

A few succession planning basics

• Allow for multiple career paths — development and progression don't need to be linear
• Make sure no one in the organization is irreplaceable
• Keep a balance — bringing some new blood into the organization is a good thing
• Create talent pools — always have multiple potential employees, at various levels of readiness, prepared to assume greater responsibility 

More succession planning basics

• Develop talent in all key areas of the organization — not just for leadership roles
• Focus on developmental work experiences (up to 90% of the learning we do is on the job)
• Allow talented individuals to develop at their own pace, respecting their life circumstances
• Don't forget the vital importance of knowledge transfer 

Why talent pool-based succession planning?

• Proven to be more effective than traditional organization chart-based programs that focus more on replacement planning
• Establishes and develops a large number of promotable employees for all key areas in the organization
• Increases employee engagement and retention
• Supports your 3–5 year strategic plans, ensuring the organization has the knowledge/skills/competencies/ experience required for continued success