Whether it is a partner, the owner or a key manager, businesses need to come out of their shadow if they intend to grow. A partner can decide to quit, the owner may be incapacitated, or the key management personnel may decide to leave for greener pastures. In any of these cases, the business is at stake.
Therefore, succession planning needs to be innate to company policies. While deciding about the successor, you need to be clear about the Objectives of Succession Planning.
Objectives of Succession Planning
Objectives of Succession Planning include:
Identifying Successors for Key Positions
Employees or family members may be fit for niche positions. You need to identify which role fits which member or employee. This is one of the primary Objectives of Succession Planning.
Leadership Development Opportunity is for Everybody
You need to identify successors, but that does not mean that only the identified employees or family members would be imparted with leadership development opportunities. Every member or employee stands to gain from leadership development opportunities. Leadership begets accountability. An employee or family member can mature in a business position only when he or she is given a leadership opportunity.
Identifying Successors is the Responsibility of Entire Executive Team
If you make one executive responsible for identifying employees for each functional area, you are diluting the aspect of leadership. You need to employ the whole executive team for identifying personnel for each key position. This will help in bringing a concurrence of opinions, skills and experience that will help to select the best one.
Executives are Key Talents of Your Company
When it comes to selecting successors, you need to focus on your executive team. They are the key talents of your company. Since one of the Objectives of Succession Planning is to select key position for departmental heads, you need to focus on your executives. They are the ones who are involved with day to day operations of different departments.
Identified Successors Exhibit High Potential
The identified successor/successors must exhibit high potential, be it in growth of business, cost savings, or mastery of operations. Objectives of Succession Planning must revolve around people with high potential.
Retention of Identified Personnel
Once you have identified a set of personnel who can be groomed into future leaders, you need to retain them. If you cannot retain them, there is no point in grooming them to be future leaders. They may hone their talents and leave for greener pastures. So, retaining identified talent is one of the objectives of succession planning.
Groom Identified Candidates Within 1-3 Years
Creating a Succession plan is not an indefinite process. It must be ascertained within a defined time period. You need to identify personnel and groom them to be leaders of tomorrow within a period of one to three years.
Individual Development Plan
Each identified successor may have an individualized development plan in accordance with the grooming needs of the person. The committee which is tasked with selecting successor may tailor individual development plan for each of them so that each of them get ready to shoulder additional responsibility within a span of 3 years.
Above are some objectives that help you to create a succession plan for your organization. There are many benefits of succession planning in the organization.This will also help you effectively replace the existing leaders to the new potential hires.