Overview of Succession Planning
Michael Beitler, Ph.D.
www.mikebeitler.com
Succession planning has become a major concern for many of my
clients who now see aging baby boomers considering retirement.
Many of these boomers built their professional careers in a very
competitive environment; they see "what they know" as a
competitive asset that must be carefully guarded.
An effective succession plan (SP) is based upon senior
management's work on the following:
1. aligning the SP with the strategic plan
2. identifying key positions
3. identifying candidates for key positions
4. utilizing real-time learning for candidate development
5. assuring line ownership of the SP
6. integrating the SP with other developmental programs
Aligning With the Strategic Plan
Throughout my books and articles I stress the importance of
aligning everything with the strategic plan. Succession planning
is no exception.
The succession planning process should not begin with
discussions about people for specific positions. The SP process
must begin with discussions about the organization's strategic
plan and the future needs of the organization. The
organization's strategic plan is the guidepost for the entire SP
process.
Organizations, and their strategic plans, are not static. They
are dynamic; they are continuing evolving. The succession plan
must be aligned with the evolving organization's needs.
Changes in the strategic plan should automatically mandate a
review of the succession plan. Several authors (Buckner &
Slavenski, 1994; Clark & Lyness, 1991; Hall & Seibert, 1991;
Rothwell, 2000) discuss the need for a succession plan that
responds to changes in the strategic plan.
The critical nature of this link between the succession plan and
the strategic plan calls for a thorough review of the current
strategic plan. Leibman and Bruer (1994) believe the same
executives who are involved in the strategic planning process
should also be involved in the periodic succession planning and
management development reviews.
Allison (1993) lamented that SP in most organizations was not
linked with long-term planning or strategic planning. In many
organizations this is still true.
A succession plan should have its own mission statement or
statement of purpose. This should clearly articulate how the SP
is linked to the strategic plan. Rothwell (2000, p.103) offers a
list of issues to be addressed in this statement.
The succession plan must be tailored to the needs of the
specific organization. The organization's size, structure,
growth rate, culture, and values must be considered. Gratton and
Syrett (1990) describe four different but successful SPs.
Identifying Key Positions
Once the strategic plan has been reviewed, the next step is to
identify the key positions needed to implement the plan.
Positions in the organization are "key," if the loss of the
person in the position would lead to great loss or disruption.
Once the key positions are identified, the required competencies
must be clearly defined. Two lists are required here; one for
current and one for projected competencies. The position's
required competencies will be dynamic, as are the company's
product/services and customer preferences. Buckner and Slavenski
(1994) recommend a shift in focus from specific to more general
competencies in dynamic organizations.
Rothwell (2000) recommends merging both generic management
leadership competencies with organization-specific competencies
to create what he calls an "executive success profile."
Organization-specific competencies must consider organizational
culture, values, market position, and customer base.
Identifying Candidates
Senior managers tend to support and recommend successors similar
to themselves. This is not bad, unless it is the only criterion.
Subjective and anecdotal assessments must be balanced by
objective, job-relevant assessments.
Performance appraisals must be part of the process of
identifying candidates. Many well-liked candidates simply do not
get the job done. Bossidy and Charan (2002) discuss this
situation in their popular book, entitled "Execution." An
objective evaluation of results is critical. Performance
appraisals must be of the 360-degree nature; supervisor-only
appraisals will not suffice.
Psychological assessments (discussion later) and independent
assessment centers are valuable contributors to candidate
profiles. These assessments along with performance appraisals
provide the raw material needed to construct the individual's
developmental plan.
In the identifying candidates step, it is important to hear from
the candidates themselves. What are the aspirations of the
candidate? Interests? Willingness to relocate? Sometimes senior
managers are surprised to learn that a "candidate" does not
share their aspirations and dreams. Buckner and Slavenski (1994)
offer a simple solution. They believe a career-interest form can
gather the needed information on career goals and life/work
preferences. Clearly, this is important information to add to
the other data.
Real-Time Learning
The development of candidates must emphasize "real-time"
learning. While I am a big believer in the generic knowledge and
skills provided by MBA programs, the company-specific and
position-specific competencies come through real-time learning.
Real-time learning includes job assignments, mentoring, and
participation in communities of practice. Real-time learning
activities can be planned and monitored by organizational
leaders.
Real-time learning activities should be part of each candidate's
learning agreement. (We discussed the collaborative creation of
learning agreements in Chapter 4.) The learning agreement should
align the needs and aspirations of the candidate with the needs
and goals of the organization.
There is convincing evidence that managers learn best through
challenging assignments (e.g., job rotation, task force
membership, turnarounds). See Baldwin and Padgett (1993),
Buckner and Slavenski (1994), Hinrichs and Hollenbeck (1990),
and McCauley et al. (1995). Lateral moves are particularly
valuable in today's flatter organizations.
Clark and Lyness (1991) report that Citicorp uses stretch
assignments. Citicorp places high-potential candidates into
positions in which they are no more than 60 to 70% qualified.
As we discussed in the chapter on "Expatriate Training,"
international companies must include foreign assignments in the
candidate's real-time learning.
Line Ownership
While I agree with Rothwell (2000) who warns, "if top managers
are unwilling to support a systematic approach to succession
planning, it cannot succeed" (p.49), the organization must be
clear about "ownership" of the process.
Obviously, once the succession plan is established it must be
delegated to someone. A common mistake is to turn over ownership
to the HR department. It must be clear to everyone that HR is a
staff department serving as an internal consultant. While staff
departments can facilitate processes, line managers must take
responsibility for results.
Line managers must be held responsible for identifying and
developing candidates for succession. The HR professionals can
serve in a valuable support role, but there should be no
confusion about line management ownership. Kramer's (1990) work
is a good source for suggestions on how to encourage line
ownership.
Integrating With Other Activities
Just as everything in the organization must be driven by the
strategic plan, everything in the organization must be
integrated into everything.
The organization's succession plan should be integrated with
selection, compensation, career planning, management
development, performance appraisal, assessment, and coaching. Rothwell (2000) suggests quarterly individual development plan
reviews. I would suggest adding a cross-functional aspect to
this quarterly review process by having senior management
meeting to discuss candidates from various areas in the
organization. It is very helpful for senior managers to be aware
of talent throughout the organization.
Conclusion
Succession planning has become an important topic of discussion
at organizations where baby boomers are talking about
retirement. Creating succession plans and aligning them with the
strategic plan is essential. I hope the ideas in this article
will help you begin building successful, strategic succession
plans.
About the Author
Mike Beitler is an author, keynote speaker, and workshop leader.
For more information on succession planning and other management
development topics check out chapter 6 of Mike's book,
"Strategic Organizational Learning" at
www.strategicorganizationallearning.com
Feel free to contact Mike at mike@mikebeitler.com
References for this article
Allison, W. (1993). The next generation of leaders. Human Resource Professional, Fall, pp.30-32.
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Bossidy, L. & Charan, R. (2002). Execution: The discipline of getting things done. New York: Crown Business.
Buckner, M. & Slavenski, L. (1994). Succession planning. In W.R. Tracey (Ed.), Human resources management and development handbook (2nd ed.). New York: AMACOM.
Clark, L. & Lyness, K. (1991). Succession planning as a
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