The world of business is in constant change. New companies are born, and old ones die. People move forward in their careers, but the need to replace the retiring boss remains necessary. Many professionals, CEOs, and boards on succession planning consider it as a straightforward, calculable method in which candidates are evaluated and chosen for predetermined roles. While it may be true in some cases, in most, it is not.
Succession planning is a continuously evolving effort in which leaders take steps to identify and build the capability within an organization for their successors to succeed. The process involves many decisions and actions that all must be considered in order to ensure that the successors will be successful in their roles.
The succession planning process is increasingly becoming the preferred method of developing and implementing succession planning policies and practices.
However, when this process is managed inadequately, it can be a waste of time and other inestimable organizational resources. It is crucial to beware of succession planning issues.
Here are a few pitfalls of succession planning;
Overly Complex Practices
One of the challenges of succession planning is that it can be overly complex. While most people see it as a tool to plan the next generation of leaders, it is really more of a tool to manage the current leaders. Moreover, overly complex succession planning processes and practices only serve to diminish the credibility and engagement of HR professionals and drive away executives.
Generic Competency Models
As a generalization, there are two competing schools of thought when it comes to competency models. The first camp argues that there is no use in formulating any firm competencies since it would be better to tailor individual competencies to each job. This camp believes that competencies are too subjective since they are often connected to experience/education or other subjective factors. The second camp argues that companies need to develop competencies that will guide their hiring process. These models are useful because they define what professionals need to know to succeed in the role.
Focusing Only On The Executive Level
There are many challenges when selecting the right executive to fill an executive role. Succession planning should extend beyond the top executive level to all tiers of the organization. There are many causes of failure when executive transitions are not well-planned.
Delegating Responsibility To HR
Delegating full responsibility for the talent pipeline to management is one of the biggest mistakes that organizations make. Senior management must be involved and engaged all the way down the line to ensure that the talent pipeline is effectively managed.
Not Updating Plans Regularly
The world of entrepreneurship and business is unique: there’s no “off-season” in the startup world, and companies constantly change and evolve. So, while plans can seem solid and reliable at first glance, don’t be so quick to assume they’ll stay the same forever. And if your company’s plans do change, don’t miss the opportunity to update them regularly, so you can build a plan that will stick.
Final Words
It’s important to develop a deep understanding of a particular industry, a unique set of core competencies, and a strategic vision for the future of the company. If you can build a team around you that shares your vision, then you’re one step closer to success.
The main purpose of succession plans is to ensure that your company is not left without management talent when you are not around anymore. Attend the Compliance Prime webinar to learn more about succession planning.
