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White Paper 3:
Who’s Next? Succession Planning
I. What is Succession Planning?
Succession Planning is a dynamic, on going process of systematically
identifying, assessing and developing leadership talent for future
assignments and tasks. Said another way, Succession Planning
provides bench strength, a cadre of talented and ambitious people who
are ready to assume more senior responsibilities. This is embodied in a
Succession Plan, a document that contains an inventory of projected
openings and other opportunities (special assignments, or important
collateral duties), position criteria and a list of potential candidates in
rank order for each opening or opportunity. The process of Succession
Planning involves management at all levels and sends a message to the
organization about the importance of skill development. In a way,
Succession Planning helps make learning, achievement and
effectiveness important cultural values throughout the organization.
Note that Succession Planning has also been called “Talent
Management.”
Consider life in a small organization without a succession plan. There is
a vague uncertainty about what will happen if key people leave. Yet,
statistics on employee turnover show that people will, in fact, move on
eventually, either for new positions or changes in lifestyle. Whenever
there is a change in key personnel, there is a period of vulnerability.
Knowledge and history are lost; perspectives on goals and priorities
change; continuity of effort is interrupted. Morale and motivation can be
affected. In a worst-case scenario, people are promoted to new
positions solely because they’ve been around. Without Succession
Planning, the momentum towards goals, improvement and strategic
initiatives can be slowed.
What does Succession Planning provide for an organization?
* First, the process is motivational and can lead to greater retention of
key staff. Employees feel they are involved in pursuing opportunities.
Development and learning are positive aspects of organizational life,
and, in the case of Succession Planning, these become frequent and
visible. In addition, a policy of promoting from within signals how the
organization regards its people.
* Second, there is continuity of leadership policies and strategies. The
ongoing strategy does not leave with a departing senior manager. Nor
do established expectations for performance. This is especially
significant in small organizations.
* Third, key individuals, those with potential and ambition, are
developed. In a way, that is the whole point. The process creates bench
strength from within. The awkwardness and latent issues associated
with hiring an outside senior manager over high potential internal
candidates can be avoided.
* Finally, performance appraisal and reward systems can become
aligned with the standards created for performance. Succession
Planning touches all these systems, creating an integrated way to
manage performance and development.
The Succession Planning process itself is relatively simple. Individuals
are measured against a standard that has been defined as reflective of
an effective senior manager. An individual, with the help of his/her
manager, creates a development plan to close the gaps between ideal
and actual. This development plan may involve training, special
assignments and projects, change in role, or other kinds of learning
experiences. At the same time, and depending on the nature of the
development plan, the individual may or may not be identified as a
candidate for a new position. As time unfolds, another measurement is
made, as are new judgments about promotion. Presumably, because the
individual has been at work on targeted skill improvement, their gaps
are fewer or less significant than before. The candidate is more
prepared for new roles. The organization benefits from having more
skilled people in its cadre, an orderly process for filling openings as
well as an overall sense of security about the future.
There are five components to the Succession Planning process:
Employee History, Creation of Standards, Measurement, Development
and the Succession Plan itself. Each of these will be described below.
II. Components of Succession Planning
1. Employee History
An important and fundamental component of the Succession Planning
process is information about the employee. In addition to basic
demographic information, this includes:
a) Interest in advancement. Is the individual interested in more
leadership positions?
b) Past Performance. How has the individual’s past performance
reviews been? Has the individual been a cultural “role model”?
c) Promotion Record. How has the individual progressed? How long has
he/she stayed in different positions?
d) Willingness to Relocate: Has the individual expressed an interest in
changing their residence?
2. Creation of Standards
Standards reflect a desired state, what an ideal or high performing
employee is doing every day in their work. In Succession Planning,
there are three areas where standards can be created.
a) Corporate values. Viewed by some as more important than
competencies, these standards reflect what the corporate culture
values. For example, “Teamwork” is a management competency, to be
sure, but, as a corporate value, it describes an attitude and belief in
working together towards common goals. Another example is “self-
sufficiency”, meaning people in the organization operate in a do-it-
yourself, independent manner. If an organization can define its values
in a sincere and clear manner, these can be useful gauges of an
individual’s potential for leadership.
b) Management Competencies. These behavioral statements reflect
what high performing managers do in an organization. Typically, they
revolve around classic management skills, such as “Managing Teams,”
“Performance Management” and the like. There are situations when
unique organizational requirements will impose additional performance
requirements on managers. For example, a global company may have a
need for managers to be excellent “Multi-cultural Diplomats” practicing
a series of behaviors under that category.
c) Technical Competencies. These are the skills and knowledge that
reflect a proficient and competent performer. Technical areas can
include any skill from specialized areas such as Budgeting and
Forecasting to broad measures such as Professional Certification.
3. Measurement
Once standards are created, measurement can begin. Here, the
underlying issue is how to create valid scores when measuring what is
subjective and subject to interpretation. There are several ways to
measure the areas listed above; each has unique characteristics. A
combination of these is often used in Succession Planning processes.
Here is a general description of two popular choices.
a) Survey 360. This is the classic survey of peers, manager, and direct
reports that can give a relatively accurate picture of an individual’s
capabilities. Data is returned in the form of survey scores and can be
compared to other individuals as well as group norms.
Advantage: wide view from a number of perspectives. Disadvantage:
subject to variation from current conditions and events, emotional
reaction to the person being rated, and amount of exposure to the
individual. Variations of this include direct report-only scores or peer-
only scores.
b) Triad consensus. In this method, three members of upper
management rate individuals first by themselves and then in the small
group. Typically, the triad consists of the individual’s manager, a senior
manager who has a broad view of the organization and a long-term,
“neutral” third manager who has a wide view of the organization and its
values. The discussion process creates a highly accurate assessment
of individuals.
Advantage: Valid data.
Disadvantage: Time consuming.
The result of the measurement process, whatever it is, is a database of
individuals and their various ratings. The data is used to create a
Succession Plan and is also valuable in searching for individuals who
possess certain desired characteristics. In addition, the database is a
profile of the organization’s strengths as a whole, providing information
that can direct development activities and inform other kinds of
planning, such as hiring and recruiting. These data provide the basis of
what has been called a “Talent Management Process” where
development of selected individuals can be managed towards specific
ends.
4. Development
The degree of an organization’s commitment to people can be
measured by its investment, in terms of time, effort, creativity and
resources, in development. In the Succession Planning process, every
participant creates a personal Development Plan, based on the ratings
received, which he or she implements with the help, support and
sanction of the organization. This plan is virtually the same as a
Development Plan created during the Performance Appraisal process
except that this plan is informed by measurement data from others
besides the manager. The resulting development, that is, learning,
takes the form of series of activities and opportunities made available
to employees to improve their skills and capabilities. In Succession
Planning, there are number of activities and experiences that can be
employed to fill the needs of employees. These include:
* Training programs sponsored by the organization
* Educational experiences provided by academic institutions,
commercial suppliers as well as industry associations
* Assignments and projects, either for an individual or as part of a group
effort
* Job rotation, moving laterally to a new position
* Mentoring, providing advice and guidance to an individual as well as
opening doors for assignments and projects
* Individual study through assigned personal readings
* Volunteer work with outside agencies
* Action Learning, addressing real issues
A special word has to be offered for the concept of Action Learning, a
formal and structured process that involves individuals in addressing
an organizational issue, resolving it and extracting learning outcomes
from the experience. This is a highly economical and useful process
that can be implemented easily and with little preparation. Not only do
participants contribute to a “stretch” goal, but also Senior Managers
can observe how participants interact with others and think through the
process.
Typically, Development Plans are tied into an organization Performance
Appraisal process. Each half, the employee meets with his/her manager
to review performance as well as progress on their Development Plan.
At that meeting, new activities are identified as well as new objectives.
5. Succession Plan
The actual Succession Plan is a document that embodies three basic
elements:
* An organization chart with projected openings in designated time
periods
* A list of potential candidates for these positions
* Position criteria, that is, of the standards identified for success, what
unique behaviors or attitudes does this position demand for success
In fact, the Succession Plan is resident in a Human Resource
Information System (HRIS) that houses the database and all related
information. There are a number of commercially available programs on
the market for this purpose.
In use, when an opening occurs, the system is accessed to identify the
likely candidates as well as to identify their successors in their current,
soon to be previous, roles. At any point, management can assess the
bench strength of the organization by reviewing a profile of strengths
and weaknesses.
III Summary
Succession Planning is integrated into an organization’s performance
management process, including training, performance appraisal, hiring
and recruiting and, obviously, career development. As such, it should
not be considered an add-on. It is the reason why development
programs exist: To produce capable, motivated individuals who are
ready to make personal contributions to their organization and to
capably assume new responsibilities. Employees understand where
they stand in terms of readiness for openings as well as what areas
need development. The organization has a picture of its onboard talent
and, as such, can manage the pool of candidates appropriately.
Copyright © 2002 Singularity Group, Inc.
Who’s Next? Succession Planning
I. What is Succession Planning?
Succession Planning is a dynamic, on going process of systematically
identifying, assessing and developing leadership talent for future
assignments and tasks. Said another way, Succession Planning
provides bench strength, a cadre of talented and ambitious people who
are ready to assume more senior responsibilities. This is embodied in a
Succession Plan, a document that contains an inventory of projected
openings and other opportunities (special assignments, or important
collateral duties), position criteria and a list of potential candidates in
rank order for each opening or opportunity. The process of Succession
Planning involves management at all levels and sends a message to the
organization about the importance of skill development. In a way,
Succession Planning helps make learning, achievement and
effectiveness important cultural values throughout the organization.
Note that Succession Planning has also been called “Talent
Management.”
Consider life in a small organization without a succession plan. There is
a vague uncertainty about what will happen if key people leave. Yet,
statistics on employee turnover show that people will, in fact, move on
eventually, either for new positions or changes in lifestyle. Whenever
there is a change in key personnel, there is a period of vulnerability.
Knowledge and history are lost; perspectives on goals and priorities
change; continuity of effort is interrupted. Morale and motivation can be
affected. In a worst-case scenario, people are promoted to new
positions solely because they’ve been around. Without Succession
Planning, the momentum towards goals, improvement and strategic
initiatives can be slowed.
What does Succession Planning provide for an organization?
* First, the process is motivational and can lead to greater retention of
key staff. Employees feel they are involved in pursuing opportunities.
Development and learning are positive aspects of organizational life,
and, in the case of Succession Planning, these become frequent and
visible. In addition, a policy of promoting from within signals how the
organization regards its people.
* Second, there is continuity of leadership policies and strategies. The
ongoing strategy does not leave with a departing senior manager. Nor
do established expectations for performance. This is especially
significant in small organizations.
* Third, key individuals, those with potential and ambition, are
developed. In a way, that is the whole point. The process creates bench
strength from within. The awkwardness and latent issues associated
with hiring an outside senior manager over high potential internal
candidates can be avoided.
* Finally, performance appraisal and reward systems can become
aligned with the standards created for performance. Succession
Planning touches all these systems, creating an integrated way to
manage performance and development.
The Succession Planning process itself is relatively simple. Individuals
are measured against a standard that has been defined as reflective of
an effective senior manager. An individual, with the help of his/her
manager, creates a development plan to close the gaps between ideal
and actual. This development plan may involve training, special
assignments and projects, change in role, or other kinds of learning
experiences. At the same time, and depending on the nature of the
development plan, the individual may or may not be identified as a
candidate for a new position. As time unfolds, another measurement is
made, as are new judgments about promotion. Presumably, because the
individual has been at work on targeted skill improvement, their gaps
are fewer or less significant than before. The candidate is more
prepared for new roles. The organization benefits from having more
skilled people in its cadre, an orderly process for filling openings as
well as an overall sense of security about the future.
There are five components to the Succession Planning process:
Employee History, Creation of Standards, Measurement, Development
and the Succession Plan itself. Each of these will be described below.
II. Components of Succession Planning
1. Employee History
An important and fundamental component of the Succession Planning
process is information about the employee. In addition to basic
demographic information, this includes:
a) Interest in advancement. Is the individual interested in more
leadership positions?
b) Past Performance. How has the individual’s past performance
reviews been? Has the individual been a cultural “role model”?
c) Promotion Record. How has the individual progressed? How long has
he/she stayed in different positions?
d) Willingness to Relocate: Has the individual expressed an interest in
changing their residence?
2. Creation of Standards
Standards reflect a desired state, what an ideal or high performing
employee is doing every day in their work. In Succession Planning,
there are three areas where standards can be created.
a) Corporate values. Viewed by some as more important than
competencies, these standards reflect what the corporate culture
values. For example, “Teamwork” is a management competency, to be
sure, but, as a corporate value, it describes an attitude and belief in
working together towards common goals. Another example is “self-
sufficiency”, meaning people in the organization operate in a do-it-
yourself, independent manner. If an organization can define its values
in a sincere and clear manner, these can be useful gauges of an
individual’s potential for leadership.
b) Management Competencies. These behavioral statements reflect
what high performing managers do in an organization. Typically, they
revolve around classic management skills, such as “Managing Teams,”
“Performance Management” and the like. There are situations when
unique organizational requirements will impose additional performance
requirements on managers. For example, a global company may have a
need for managers to be excellent “Multi-cultural Diplomats” practicing
a series of behaviors under that category.
c) Technical Competencies. These are the skills and knowledge that
reflect a proficient and competent performer. Technical areas can
include any skill from specialized areas such as Budgeting and
Forecasting to broad measures such as Professional Certification.
3. Measurement
Once standards are created, measurement can begin. Here, the
underlying issue is how to create valid scores when measuring what is
subjective and subject to interpretation. There are several ways to
measure the areas listed above; each has unique characteristics. A
combination of these is often used in Succession Planning processes.
Here is a general description of two popular choices.
a) Survey 360. This is the classic survey of peers, manager, and direct
reports that can give a relatively accurate picture of an individual’s
capabilities. Data is returned in the form of survey scores and can be
compared to other individuals as well as group norms.
Advantage: wide view from a number of perspectives. Disadvantage:
subject to variation from current conditions and events, emotional
reaction to the person being rated, and amount of exposure to the
individual. Variations of this include direct report-only scores or peer-
only scores.
b) Triad consensus. In this method, three members of upper
management rate individuals first by themselves and then in the small
group. Typically, the triad consists of the individual’s manager, a senior
manager who has a broad view of the organization and a long-term,
“neutral” third manager who has a wide view of the organization and its
values. The discussion process creates a highly accurate assessment
of individuals.
Advantage: Valid data.
Disadvantage: Time consuming.
The result of the measurement process, whatever it is, is a database of
individuals and their various ratings. The data is used to create a
Succession Plan and is also valuable in searching for individuals who
possess certain desired characteristics. In addition, the database is a
profile of the organization’s strengths as a whole, providing information
that can direct development activities and inform other kinds of
planning, such as hiring and recruiting. These data provide the basis of
what has been called a “Talent Management Process” where
development of selected individuals can be managed towards specific
ends.
4. Development
The degree of an organization’s commitment to people can be
measured by its investment, in terms of time, effort, creativity and
resources, in development. In the Succession Planning process, every
participant creates a personal Development Plan, based on the ratings
received, which he or she implements with the help, support and
sanction of the organization. This plan is virtually the same as a
Development Plan created during the Performance Appraisal process
except that this plan is informed by measurement data from others
besides the manager. The resulting development, that is, learning,
takes the form of series of activities and opportunities made available
to employees to improve their skills and capabilities. In Succession
Planning, there are number of activities and experiences that can be
employed to fill the needs of employees. These include:
* Training programs sponsored by the organization
* Educational experiences provided by academic institutions,
commercial suppliers as well as industry associations
* Assignments and projects, either for an individual or as part of a group
effort
* Job rotation, moving laterally to a new position
* Mentoring, providing advice and guidance to an individual as well as
opening doors for assignments and projects
* Individual study through assigned personal readings
* Volunteer work with outside agencies
* Action Learning, addressing real issues
A special word has to be offered for the concept of Action Learning, a
formal and structured process that involves individuals in addressing
an organizational issue, resolving it and extracting learning outcomes
from the experience. This is a highly economical and useful process
that can be implemented easily and with little preparation. Not only do
participants contribute to a “stretch” goal, but also Senior Managers
can observe how participants interact with others and think through the
process.
Typically, Development Plans are tied into an organization Performance
Appraisal process. Each half, the employee meets with his/her manager
to review performance as well as progress on their Development Plan.
At that meeting, new activities are identified as well as new objectives.
5. Succession Plan
The actual Succession Plan is a document that embodies three basic
elements:
* An organization chart with projected openings in designated time
periods
* A list of potential candidates for these positions
* Position criteria, that is, of the standards identified for success, what
unique behaviors or attitudes does this position demand for success
In fact, the Succession Plan is resident in a Human Resource
Information System (HRIS) that houses the database and all related
information. There are a number of commercially available programs on
the market for this purpose.
In use, when an opening occurs, the system is accessed to identify the
likely candidates as well as to identify their successors in their current,
soon to be previous, roles. At any point, management can assess the
bench strength of the organization by reviewing a profile of strengths
and weaknesses.
III Summary
Succession Planning is integrated into an organization’s performance
management process, including training, performance appraisal, hiring
and recruiting and, obviously, career development. As such, it should
not be considered an add-on. It is the reason why development
programs exist: To produce capable, motivated individuals who are
ready to make personal contributions to their organization and to
capably assume new responsibilities. Employees understand where
they stand in terms of readiness for openings as well as what areas
need development. The organization has a picture of its onboard talent
and, as such, can manage the pool of candidates appropriately.
Copyright © 2002 Singularity Group, Inc.
Visit Singularitygroup.com
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