SUCCESSION PLANNING

Succession planning is a process in an organization where it ensures that employees are recruited and developed to fill each key role within the company.
Succession planning made your organization to identify talented employees and provide proper education to develop them for future higher level and broader.

Succession planning model

1. Succession planning is to understand development needs
2. Succession planning is to identifying the possible successor with in organisation
3. Succession planning develop and train successor for future
4. It Promote and compensate employees
5. Successors are ready for dynamic situations

Major cons of Succession Planning:

• A regular supply of well trained, experienced and motivated people who are ready and able to handle the key positions as needed.
• A basic unit of desirable candidates who are integrated into the company with positive goals established for them individually.
• This is a regular flow of capable people through various departments with the goals of educating them into the culture of the company.
• Appropriation of the future needs of a company with the availability of appropriate human resources with in the company.
• Positive goals for key persons, which will help them in the company and will help assure the regular supply of capable persons for each and every important positions included in the succession plan.
• Defined goals, which will help the company recruitment and retaining better people.

HOW TO DEVELOP A SUCCESSION PLAN ?

Planning is required to continue a business beyond one generation leaders. Succession planning smoothes the path for continuing business success which may be done through whether transferring of private shares to senior manager or leadership to family members.
Succession planning looks too far in to the future. Once you are not in the day-to-day role, who will own and operate the company, is a critical path decision that has a direct impact on long-term business profitability. For this purpose in succession planning formal plan for this decision is devised.
Succession planning is not an exact science. There is not any fixed single approach for every situation. But the subsequent five steps are followed by many business owners.

Selection of Successor

To choose a successor for your own job is a difficult task.you doesn’t worry knowing that a particular manager or family member will be appropriate to picking up where you leave off. To a certain extent, this is the time when all the employees are examined about who potentially have skill and ability to steer the company. If you have difficulty while selecting a successor you may seek the advice of board of directors. It is estimated by the experts that succession planning should begin at 15 years before you intend to retire. By this approach you can look at the successor how he or she is handling the job and showing his or her skills.

Development of Formal Training Plan

For the development of formal training plan for your successor first you should analyze the critical functions of the company and then let the successor to work in each of these areas of business. Plunge your successor in the business of your company so he or she sees both the deepness and wideness of the operation. But this process may take some time because this needs to teach your successor to learn, grow and making mistakes.

Create a schedule

A training schedule as well as schedule for shifting of control of company should be established. As fayol propounded in his principles that there must be unity of command and unity of directions, thus to make succession successful you, your management need to know that who is in charge of what and when. If you change your decisions routinely your successor can’t be succeeded. Schedule is a source of motivation to move through his or her training program quickly and successfully, with a clear understanding of what the coming roles and responsibilities are going to be when you move out of day-to-day operations.

Get started for retirement

Now it’s a time to outline a plan for your transition from officer and manager for the company. This retirement plan may take in amusement, journey, community service or another business venture—whatever is right for you. Now your successor is responsible and you should plan for the task you will do after retirement to energize you

Install Your Successor

It is beneficial for you and your company to install your successor in your lifetime. Once that's installed, you need to be worry and let your successor carry out the role for which he or she has been trained. Eventually, your successor's success or failure is up to him or her. You can set the base, provide the training and prepare a background for your company. After you, the senior management and board of directors are both the support system and checks and balances for the company.

As succession planning is challenging task but it will prove as reward when you watch your company growing profitabily due to the efforts you have done in providing the company a proficient successor. while preparing succession plan you should take advice from accountant, insurance agent etc because external environment has vast impact on succession planning.

Succession Planning: What Is It and Why we need it?

As we all know that succession planning is very much imp in an organization where people in leadership positions eventually capable enough to fulfill that key role. Succession planning can be done for a variety of reasons such as:
1. To gain promotion within or outside the organization
2. To move part-time arrangements for better work-life balance in the organization
3. To voluntary departure from the organization to pursue a career elsewhere
4. To involuntary departure from the organization
5. For retirement in organization
6. For serious illness of any employee of the organization
7. Sudden death of any employee

Organizations that failed to plan for the timely and effective filling of such a leadership roles that can be back off with the continuous disruption by a normal business activities and the loss of market share. Succession planning is the perceptive process of identifying significant leadership positions that could put the organization at risk if left vacant targeting current employees of organization that could move into such roles and grooming them for succession. Managing leadership succession is effectively requires a structured approach that is agreed and understood and followed by everyone involved in the planning process.

The Succession Planning Process

Succession planning requires steps to obtain leadership guidance collect relevant information make key decisions execute succession and development actions. If undertaking this activity for the first time, you should consider creating a process that is "separate" from other, related activities such as performance management and development planning. Later after when you have executed your process a couple times you may take down the special elements and start to integrate it with these other activities. The steps below outline such a stand-alone process.

Define purpose, goals, and scope

The top leader of the organization outlines the purpose, goals and scope of the succession planning activity.

Assemble an oversight committee

The committee role is to establish a succession planning process that can fulfill the purpose, goals and scope outlined by the top leader and to govern over the process until most of the major questions and issues have been resolved.

Set policy

The oversight committee creates policy around such issues as data security, assessment, succession nominations, communication and development.

Define operational parameters

Again this is the preview of the oversight committee. Operational parameters include: positions for which successors will be nominated the scope of the pool of succession nominees and the rating scales used for assessing contribution and the potential.

Develop and conduct the assessment

The assessment is essential for comparing succession candidates and slotting them against specific succession positions. The assessment data generally provided by direct managers of the succession pool should be reviewed for equity in the ratings and for consensus in the nominations.

Compile and organize the data

The voluminous data that is collected must be compiled into the kind of information needed by leaders to make key decisions. Some of the compilations include: coded organization charts, a “contribution-potential matrix,” reports of any “at risk” positions or individuals, and profiles for all individuals and positions. A spreadsheet or dedicated tool for organizing and displaying such information is recommended.

Conduct organizational reviews

Starting with business unit/functional heads, the succession plan and reports compiled are reviewed and key decisions made. These decisions could range from developmental opportunities for future leaders to actual leadership appointments. The business unit/functional level reviews are followed by reviews at the highest level – with correspondingly higher level decisions.

Implement development plans

While succession decisions may be executed immediately after the reviews, the developmental opportunities must be pursued over the following weeks and months. For future leaders to realize their potential and be better positioned to “step up” when the time comes, these development opportunities must not be allowed to languish once the spotlight is off the succession planning process.

Assess process effectiveness

Like any other business process, your succession planning process will need to be improved, streamlined, integrated with other human resources processes and possibly expanded to accommodate additional participants. While the experience is fresh, take a moment to gather feedback and assess process effectiveness – then set and achieve the most critical improvement objectives

Succession Planner can help you when you are:
• experiencing difficulty meeting in the career expectations of your future leaders
• seeing consistently low scores for career development and advancement on your employee surveys
• losing key talent due to a continuous lack of opportunities
• suffering from lack of internal candidates who are ready to move into leadership roles as they become available
• sensing that your leadership development efforts are not truly satisfied with the needs of your organization

Who uses Succession Planning?
• Is used by Human Resource Managers
• It is also used by Human Resource Consultants
• It is used by Small Business Owners
• It is used by SME Business Owners
• Directors of the company

By using Succession Planner you will:
• By using succession planning save on purchasing and installing valuable system
• By utilize an application you are already familiar with the current system – Microsoft Excel
• It avoid many hours of work doing in developing purpose-built spreadsheets
• It demonstrate to your future leaders that you are serious about their careers
• It retain key talent of the personnel through establishing clear paths to the development and advancement

Uses of Succession Planner:
• rate future leaders and assign them against specific future roles
• rate current and future leaders for contribution, leadership and potential work
• view succession snapshot of your entire leadership team
• analyze the overall strength of future leaders
• identify key risks among the leadership positions and individuals

Elements of a Succession Plan Policy
• Statement of commitment to prepare for the inadequate leadership change.
• Statement of commitment to assess the leadership needs before beginning a search.
• Plan to appoint interior leadership to ensure smooth operations and to compliance with contractual obligations.
• Outline of the succession procedures including:
- internal management succession to the internal position
- time frame for making the internal appointment
- time frame for appointing a board transition committee
- Roles of the transition committee and communication with stakeholders and identifying a transition management or consultant conducting an organizational assessment and designing the search plan.

Sample of Executive Succession Plan Policy

A change in the executive leadership is inevitable for all organizations and can be a very challenging time. Therefore it is the policy of the organization to be prepared for an eventual permanent change in the leadership either planned or unplanned and to insure the stability and accountability of the organization until such time as new permanent leadership is identified. The board of directors shall be responsible for implementing this policy and its related procedures.
It is also the policy of board to assess the permanent leadership needs of the organization to help insure the selection of qualified and capable leader who is representative of the community a good fit for the organization mission vision values goals and objectives and who has the necessary skills for the organization. To insure the organization’s operations are not interrupted while the board of directors assesses the leadership needs and recruit a permanent executive officer, the board will appoint internal executive leadership as described below. The internal chief executive officer shall ensure that the organization continues to operate without disruption and that all organizational commitments previously made are adequately executed including but not limited to loans approved reports due contracts licenses certifications memberships, obligations to lenders or investors of the organization and others.
It is also the policy of the organization to develop a diverse pool of candidates and consider at least three finalist candidates for its permanent CEO position. The organization shall implement an external recruitment and selection process while at the same time encouraging the professional development and advancement of current employees. The internal CEO and any other interested internal candidates are encouraged to submit their qualifications for review and consideration by the transition committee according to the guidelines established for the search and recruitment process of the organization.

How succession planning is implemented

For a temporary change in executive leadership for example illness or leave of absence refers to the organization’s Personnel Guidebook. In the event the chief executive officer of the organization is no longer able to serve in this position such as they leaves the position permanently or the executive committee of the board of directors shall do the following:
1. Within 5 business days appoint an internal CEO according to the following line of succession:
a. chief operating officer (COO) of organization
b. senior vice president of the parent affiliate of the organization
c. external consultant (with experience as an internal executive director)
2. Within 15 business days appoint an executive transition committee in the event that a permanent change in the leadership is required. This committee shall be comprised of at least one member of the executive committee and two members of the board of directors. It shall be the responsibility of this committee to implement the following preliminary transition plan:
a. Communicate with key stakeholders regarding actions taken by the board in naming an internal successor appointing a transition committee, and implementing the succession policy. The organization shall maintain a current list of key stakeholders who must be contacted, such as lenders and investors of the organization foundations, government agencies, and other.
b. Consider the need for consulting assistance (i.e., transition management or executive search consultant) based on the circumstances of the transition.
c. Review the organization’s business plan and conduct a brief assessment of organizational strengths, weaknesses, opportunities and threats to identify priority issues that may need to be addressed during the transition process and to identify attributes and characteristics that are important to consider in the selection of the next permanent leader.
d. Establish a time frame and plan for the recruitment and selection process.
e. Refer to the CEO Hiring Policy and Procedures in the Personnel Guidebook for additional procedures.
The board should use similar procedures in case of an executive transition that simultaneously involves the chief executive officer and other key management. In such instance, the board may also consider temporarily subcontracting some of the organizational functions from trained consultant or other organizations.

CONCLUSION:

All together we came to know that succession planning very much needed in the organization so as to tackle the dynamic situations of the business. This will also improve the key prospective of the employees and turned them to be ready for the situations that are difficult for them in future.

REFERENCE:

WWW. BUSINESSPERFORM.COM
WWW.TRANSITIONGUIDES.COM
WWW.COF.ORG

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