In the age of mobility and high turnover rates, how can an organization consolidate key positions in the long term? Over what time frame does one plan a succession? The ABCs of a proper succession plan and predictive analysis for 2016.
For many young people from Generation Y (1982-2000), life – and work, a natural extension – offers a buffet of choices. They are said to be fickle, superficial and ready to go elsewhere at first opportunity. A real puzzle when trying to integrate them into an organization!
“Yet, when you ask them what they expect from their jobs, they talk of favourable opportunities, interesting challenges and innovation, all the things a good succession management and leadership development program offers” states Philippe Mast, partner at CORTO.REV. According to him, an organization that imposes such an exercise does better at retaining its personnel and gaining stability.
However, it is still necessary that the plan is developed with a clear vision and a set of goals. In other words, it’s important to avoid taking a static picture of the organization and instead create a business plan. “Otherwise, it becomes a human resources program instead of a succession plan,” says the expert.
Another trap to avoid: unnecessarily multiplying critical positions. It is better to properly define ten positions and fully go after them than having forty of them and being scattered. “Too often, key positions are not that. A good trick to remember: If a person in a superior position does not have a major impact on the organization's strategy and is replaceable tomorrow, they are not in a so-called key position,” says Mast.
Large companies, where hierarchy is heavy, tend to give importance to the identification of individuals with high potential. Yet, this is a waste of time and energy. “Ideally, one should devote 20% of its resources to identification and 80% to developing a management succession plan,” he states. Do not hesitate to seek external expertise to assess potential.
Once the proper candidates have been identified, it is still necessary for them to develop! In this regard, it is better to build on experience rather than have them running around being coached, says Mast. “The leaders of tomorrow are shaped when confronted with adversity. It must take place in contexts where they are out of their comfort zone, while providing them with support to ensure that everything goes well,” he says.
This is where a succession development committee operates. Consisting of four or five people, this small group will manage the organization’s ‘talent book’ in order to assess performance. It does so continuously, without defined time frames. “Succession management and leadership development is more a philosophy than a process. Except in retirement cases, it is difficult to establish succession schedules,” concludes Philippe Mast.