Many experts feel that even though every company is different,
it is important for each to develop a succession plan that includes hiring from within, conducting a developmental opportunity or audition, providing a defined plan with time lines for anyone to assume a leadership responsibility, and disclosing the process or succession plan to the shareholders.
Most succession plans do not take into consideration that different environments require different leadership competencies or skills. So, if we narrow our development process than we may never have the right person ready to assume the leadership role in any company.
Companies need to consider what most professional sports teams do as a major component for success and that is a strong bench. Most championship teams, whether it be in basketball, baseball, or even football have a great bench or understudy for their key positions.
Companies, like professional sports teams, must have a strong bench of candidates who can lead or “step up to the plate” under a variety of scenarios.
Many companies use different forms of people development processes. Some companies call them Leadership Academies or Institutes, and/or High Potential Candidate Schools. Despite the different names, the end result is the same: development of people toward a higher level. As a business owner, you need to provide a constant flow of internal talent but you also must be aware that when people don’t get the higher position, they do have a tendency to leave the organization so the funnel better continue to be adequately filled at all times.
It is also important for companies to deliver some kind of transparency to their shareholders, customers, and internal personnel. The ideal succession plan should minimize uncertainty, which is not a bad thing in this economic climate, and continue to promote the “real” culture of the company. The depth of the company’s disclosure should be predicated by the need at the time and situational circumstances.
Also, many experts believe that the succession plan must take into consideration the corporate culture to the extent that every company should have a corporate culture that transcends the exit of any leader or person. Most companies do not really know what they smell, taste, and feel like to their internal and external customers. The best way to determine the current culture and the culture employees want is to conduct an Organizational Needs Inventory (ONI) assessment but most companies don’t do them.
So, succession planning is just a more formalized name that can be defined as a process to help companies develop their people to meet their future needs.It certainly sounds like it is time for a Leadership Program! Let's get started!
