What is Succession Planning?

Many business professionals dream of climbing the corporate ladder to C-level executive positions, and understanding the succession planning process could help to make them more successful in their quest for those highly sought after jobs.

All businesses have leaders who are responsible for steering their companies in directions that align with agreed upon missions, visions and strategic plans. Challenges arise when a C-level executive reaches retirement age or no longer has the necessary skill set to lead the company because of organizational or market changes. These scenarios do not become corporate crises for companies that employ forward thinking human resource (HR) managers who can properly conduct succession or continuity planning.

Here are some of the elements of successful continuity planning as prescribed by the Society of Human Resource Management (SHRM) and leading industry experts.

Make the Board of Directors a Part of the Planning Team

The board of directors are elected by shareholders to look out for their interests, and this includes overseeing the hiring of companies’ senior leadership. The position of chief executive officer is usually a direct appointment by the board, but all C-level and senior management roles require a succession plan to make sure that the people with the right skills fill the appropriate roles at the right time. HR managers can generate viable plans by inviting the board to help come up with the selection criteria for the top positions. These criteria should represent all of the skills and competencies that the board and other top corporate leaders deem valuable for those positions. An HR manager who gets input and buy in from the board at the early stages of continuity planning will likely have an easier time identifying and hiring great candidates.

Allow the Planning Process to Be Transparent

It might be tempting for top executives and HR professionals to keep their strategy for hiring future leadership a company secret, but transparency is best for succession plans because it builds trust according to experts at the SHRM. Transparent succession plans offer ambitious business professionals a proven blue print for success. Once they are made aware of the rigorous selection criteria for the top spots, they can tweak their own career strategies and hone the skills that are in demand. When the succession plan gets updated for the position that they desire to fill, they can continue to update their own set of skills to match the succession plan criteria. Even if they do not achieve the top roles at the C-level, these talented professionals become more valuable assets for the company as they fill other positions.

Conduct Internal Talent Search and Test Events

According to the experts, HR managers, current senior leaders and the board maintain relevant succession plans by reevaluating and updating them annually. While HR managers can keep their eyes open for talent outside of the company, they should not ignore the bright internal candidates of which the company has already invested time and money developing. Choosing internal employees also allows them to try out candidates in leadership roles before an official offer is made. A CEO or other C-level position holder can go on vacation, attend an executive training program or be available in an advisory capacity while their proposed successor temporarily takes the reigns of leadership for a real world test event.

Conclusion

Introducing new leadership to a company does not have to be a scary ordeal; it can be seen as a catalyst for fresh change that could lead to greater opportunities for everyone working at the organization. The key to a smooth transition appears to be an effective succession planning strategy.

See also: What is a Typical Day Like for a Human Resources Manager?