Finally, Secret to Getting Succession Right
Frustrated with the lack of results from your succession planning process? You’re not alone. While 86 percent of leaders believe leadership succession planning is an “urgent” or “important” priority, only 14 percent believe they do it well. It amazes me how most organizations fail to get this right. Few events carry greater risk to shareholder value than a change of leadership. But still many organizations have ineffective processes for finding and preparing the next generation of leaders. Here’s what you need to do.
Make your CEO process Sponsor and ‘ACCOUNTABLE’ for the business impact of the process. Most often no one owns the succession planning experience. As a result, managers give little priority to talent reviews and/or the execution of individual development plans. The result for the organization is - no result year after year. It’s pretty simple. Get your CEO up at the center stage of succession planning as accountable and lead evangelist.
Make Business Heads ‘RESPONSIBLE’ for the quality of data and execution of the process. As explained above, managers rarely give priority to succession planning. They know it’s something that must be done but don’t like doing it (cumbersome, threatening, etc.), so they spend as little time as possible on preparation, talent reviews, individual development plans, and following up on talent development. Get your Business Heads actively involved in process and outcomes. Managers should build their respective succession plans, not delegate to HR which is usually the case. If they don’t see a connection between succession and their business and own performance, you will never achieve optimal outcomes. The result for the organization will continue to be no result year after year.
Make Head of HR ‘SUPPORTIVE’ for quality of data ensuring qualified staff can support him/her with the process. The Head of HR (not an HR specialist or manager) should be charged with supporting the succession process and its execution. Too often this critical exercise is left to a staff member who is also an HR generalist, or perhaps an HR specialist in another area outside Talent Management and can’t give the process the time or attention it needs to be effectively managed; or, as is commonly the case, has little experience and knowledge about succession planning and how to support the process at a strategic level. Therefore, the result for the organization is often no result year after year.
Develop a simple process and structures, including KPIs, to facilitate quality outcomes. You should have in place a tested succession planning process, procedure, and structures that help managers complete the exercise effectively and efficiently. HR can put the process together but should involve key business stakeholders with the design. Insist on Business Heads and the CEO signing-off and giving their approval. And don’t assume that once you have communicated the new process, procedure and structures you’re set for success. You must train all stakeholders on using the system, developing needed skills, and helping shape a leadership mindset that recognizes and promotes strategic succession and its importance in enabling a sustainable business. Ensure all managers, including the CEO and Business Heads and HR Business Partners are trained in the process, structures, and required skills by a succession EXPERT. Without this knowledge and experience, the result for the organization will continue to be no result year after year. Finally, be prepared to coach managers throughout the process, preferably by a dedicated, qualified HR Business Partner. And use a Head of Talent Management (or equivalent having been trained in talent review facilitation) or external consultant to facilitate your talent review meetings (particularly at Director and above).
Devote a portion (e.g., 15%) of the Business and Function Head annual bonus to succession execution. Position succession planning as a key business enabler by including talent review action plans and their execution as part of the annual bonus; recognizing that, unless you get your leadership pipeline in good stead, your business will always be at risk. Make succession a strategic priority and pay for great results. If not positioned in this way, the result for the organization will be no result year after year.
Remember, driving business results is the responsibility of the line manager. To ensure sustainability, there needs to be a solid succession pipeline to fuel future growth. Without it, future growth is at significant risk. So get the line involved with succession planning as a strategic priority and key factor of their own long-term leadership success. And you’ll be surprised. Once managers truly understand and value succession, they will be motivated to actively develop their talent pipeline; even start competing against their peers to build the strongest pipeline which is a great place to be.
Notes:
ACCOUNTABLE: The person who is ultimately accountable for the process or task, the decision-maker.
RESPONSIBLE: The person(s) who carries out the process or task and is responsible for getting the job done.
SUPPORTIVE: The person(s) is used to weigh in on the task but is not necessarily responsible for doing the work on it.
