Succession.Planning
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Succession planning is important for organizations as many Baby Boomer leaders plan to leave their positions in the next 7 years. A good succession plan selects a successor with the right personality, passion for the work, knowledge of the company, and loyalty. It should also invest in the successor's professional development. The succession planning process typically involves assessing the current situation, defining leadership roles, reviewing candidate skills, selecting candidates, setting a timeline, and making a commitment to carry out the plan.
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Succession.Planning
- 1. Succession Planning How to take your organization to the next level Bob Lilly President Connect Consulting
- 2. Succession Planning In the last ten years, from 2006 to 2012, the number of people between the ages of 55 and 64 in the US in- creased by 64%. A national leadership study completed by the Annie E. Casey Foundation in 2006 confirmed that Baby Boomers account for nearly 73% of the key leaders, managers and supervisors in US companies. These Baby Boomers are going to leave the sector in two waves: the first by 2012 and the second by 2020. A 3. Wanting to move too quickly. Dont make little over half of the Boomers (57%) in leadership posi- decisions hastily just to get done. tions are planning on leaving by 2012. Nearly 85% plan 4. Having just one person make all the decisions. to leave during the next 7 years. There are many different definitions for succession Succession Planning Process planning. For our purposes we are limiting this topic to The process does not have to be overly complicated. leadership transition. However it is always best to follow some form or process to ensure that the succession plan is suc- Keys to Success cessful. This would be true for family owned and non family owned businesses as well. All too often family Many of todays business failures are due to lack of owned businesses merely pass the succession on to thoughtful succession planning. As your company be- the next family member, only to discover that the gins to think about the leadership transition process, person lacks the skills, interest or passion to contin- the following key points will help you stay on track: ue the business. 1. Select a person who has the personality and style Typical Succession Planning Process to have a positive influence on the morale of the staff. 2. Choose a person with a great passion for the work, staff and clients. 3. Make certain that the person has a good working knowledge of the company and industry. 4. Seek a person with a high level of loyalty to the organization. 5. The organization should be prepared to invest substantial resources in professional development. 6. Select a person who understands the vision and culture of the firm and is committed to both. Leadership transition can work without these guidelines, but you will have a much higher level of success with these criteria included in the process. Challenges to Succession Planning As you work through the succession planning process you will encounter some of the following issues: 1. Finding the most qualified person who also aligns with your vision and who can get along with staff. 2. Finding the time it takes to develop a successor.
- 3. Succession Planning Assess Current Circumstances Set Schedule & Timeline The first step is to spend some time analyzing the The timing of your succession plan depends on your current state of the firm. If there are major changes firms decision making requirements. The longer time to be made, it may be better to do this before any you need to make decisions the l0nger you will need to succession takes place. In most cases you want to work through the process. To effectively manage this have a structure and governance in place. The excep- process, most firms need 12-18 months. This is especial- tion to this is if you are distressed and need some- ly true if you hire from the outside. one short term to clean house. In these cases leader- ship will be short term. Determine Costs Define Leadership Roles & Responsibilities There may be little cost associated with your succes- sion plan, however firms have invested in some of the Spend time determining what kind of leadership following: your company needs in order to thrive. What Travel for outside candidate specific responsibilities will this person have? Search and selection process Are you going to modify management structure? Training If so, will this change the management roles? Outside consultants to help you Candidate personality evaluations Confirm Leadership Skills Needed Life insurance Non compete agreements You will need to identify the skills necessary to ac- Introduction event for selected individual complish the leadership function. Some basic traits that all leaders need have been identified here, but Make Commitment you may have others that relate to your industry or firm. You might also want to write out a specific job The last thing you need to do is to carry out your plan. description and method of evaluation. Always con- Dont be surprised if you have to modify the plan as sider personal attributes and people skills. It is also a you go. This is a fluid process. It is never too soon to good idea to undertake a personality assessment of begin succession planning, even if it is only a blue print the candidate. These are inexpensive and can give for the future, as you never know when your business you valuable information. will require it. Review Candidates Bob Lilly is the president of Connect Consulting located in Gresham Now you are able to review internal and external Oregon. He can be contacted at bob@connectconsultingfirm.com candidates. There are pros and cons to consider with either one. Often a more family oriented business www.connectconsultingfirm.com does better in the long term with internal candi- dates. As the firm gets larger it is easier to bring in external people and still have an effective succes- sion.