August 19th 2015

Succession Planning as a Sustainable and Innovative Approach to Organizational Growth

Succession planning is a process that identifies and develops high-potential leaders to fill key business leadership positions within an organization. This process prevents the organization from becoming shorthanded on talent after employee departures, thus ensuring the longevity of the business.
There are Five main objectives of Succession Planning:
1. To increase the availability of experienced and capable employees within the organization;
2. To identify high-potential leaders who are ready to assume greater responsibility and roles within the organization;
3. To provide critical development through personal learning, training, mentorship and practical experience;
4. To build value for employees and the organization as a whole, and;
5. To maintain productivity, avoid uncertainty and provide consistency.

DO YOU HAVE A PLAN IN PLACE?
An organization without a strategy is like a ship without a compass. The ship may float, but without direction it will likely get lost. Valuable businesses have a strong sense of direction and strategy. Well-developed strategies are essential for continuity, service and results; especially when key leaders are planning to, or unexpectedly, leave the organization. There is no use in wanting direction, but never seeking out the compass – wanting to become valuable but never seeking a strategy.
SO WHAT ARE WE GOING TO SOLVE?
I don’t need to tell you that the world is changing – between the diversity of individuals, technology and achievement, the fluctuation is constant. The work that you and your team do is changing in structure, content and process on a daily basis. Work is now more:

Cognitively complex,
Time pressured,
Strategic and competitive, and;
Dependent on skills and competence (social and technological)⁽¹⁾

Within this context, individuals must possess the knowledge, skills and, abilities to perform and achieve personal and organizational goals.
CBC ⁽²⁾ estimated that:

$1.9 trillion in business assets are poised to change hands in five years — the biggest transfer of Canadian business control on record.”
“Given this magnitude, a faulty or badly executed succession planning process could have a ripple effect throughout the Canadian economy via reduced productivity, job losses, and increased bankruptcy rates.”
Baby boomer companies “that will see a change ownership in the next five years currently employ close to two million people.”

This means that within the next 5-7 years, there will be a large shift in assets, human resources included, and a need for strategic Succession Plans to ensure the continuity and stability of the Canadian economy.
Added value is a broad principle – but the reason why it is highlighted as an essential part of Succession Planning is because added value is what fosters motivation, engagement and achievement – in other words, it is what drives success.
Core values assist in the vision, direction and culture of the organization. They are in many ways, the organizations identity. Core values also:

Assist in the decision making process,
Are at the forefront of education and training and,
Are primary recruiting and retention tools ⁽³⁾.

Your organization already has its values integrated into the work place – what you want to do is utilize pre-existing values and build them into the every-day work and performance of your employees.
There are many benefits in developing and integrating a Succession Plan into your organization. As the organization expands, loses key employees, provides promotional opportunities, and increases in revenue – a Succession Plan guarantees that you have employees who are willing and capable. The main challenge that you will face is ensuring everyone is focused on the key priorities and strategy that will drive organizational and employee value. Communication is key. Informing and educating your team about your strategy and Succession Plan is the first step in creating buy-in, receiving feedback and building a collaborative approach.

COMPETENCY-BASED APPROACH
High-performance organizations recognize that their success depends on how capable their employees are. Just because an employee has completed formal education doesn’t necessarily mean that they are well equipped with the appropriate skills to thrive in the workplace.
The solution lies in training staff to meet the specific requirements of your organization. This is where competency-based assessment comes in.
Competency-based training is developed around competency standards that have been identified in relation to a specific role. By defining the role and the competencies required, it becomes easier to correlate these required competencies to individuals within the Succession Plan. This is why competency based assessments are vital to the process – they provide the employer and the employee with insight and intuitive information on the employees personality, motivation, values, attitudes, interests, intellect, potential, behavioural competencies, knowledge and skills. In a competency-based system, both the employer and the employee benefit. The result is an established and transparent blueprint for recruitment, job expectations, performance evaluation, and an advancement path ⁽⁴⁾.
In conclusion, Succession Planning will enable the organization to establish organizational priorities and strategies to ensure sustainability, achievement and desired results.

References:

Heerwagen, J. (2010). The Changing Nature of Organizations, Work and Workplace. Whole Building Design Guide. Retrieved June 05, 2015. <http://www.wbdg.org/resources/chngorgwork.php>
Who Will Buy Boomer Business Representing 15% of Canada’s Economy? (2013). Equi Capita. Retrieved June 05, 2015. <http://www.equicapita.com/who-will-buy-boomer-businesses-representing-15-of-canadas-economy/>
Benefits of Having core values and how to set them in your organization. (2013). <http://7geese.com/benefits-of-having-core-values-and-how-to-set-them-in-your-organization/>
Discover the Benefits of a Competency-Based Approach. (2015). The Competency Group. Retrieved June 07, 2015. <http://www.thecompetencygroup.com/competency-solutions/discover-the-benefits-of-a-competency-based-approach.aspx>

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