If you only know the process of "succession planning" in connection with succession in companies, then you should know that it is not the same as "succession management". In general, we can say that planning is easier, and applied in companies more often than succession management. Just take a look on Google, and you will find that while 715,000 results correspond to "succession planning", "succession management" generates only 216,000 results. The purpose and basic principles of succession management were described recently on the Training Magazine website.
Succession planning is a process to identify key job roles for which it is necessary to have successors. It is used primarily in companies with stable cultures. It is characterized by the development of targeted employees and the effort to align succession planning with performance management and workforce planning.
Succession management is a more sophisticated process which is also more proactive and strategic. The aim is to identify and manage the accelerated development of high-potential leaders in order for a company to have a wide group of highly-skilled talent from which to choose successors for key roles. It should be part of a broader talent management strategy, the purpose of which is to attract and retain the best talent. It consists of the following five steps.
1. Defining strategic business objectives
Succession management should be implemented in the context of the strategic business and talent objectives of the company. It should be the responsibility of the CEO and other top managers and executed by leaders at all levels of the organization. Representatives of HR and talent managers should act as support.
2. Identifying critical roles and segments of the workforce
The segments and roles essential for the current and future success of the company should be identified. Leadership competencies should be defined for each segment and role. These will change in accordance with the changes in business strategy and goals. The aim is to link leadership competency models with the company's business direction and goals.
3. Talent audit and identification of potential successors
The readiness of successors should be evaluated based on the quantitative results of their performance evaluations and their potential to move to higher or different roles. Accelerated development of leadership skills will be provided to employees identified as "high potentials".
4. Implementation of development plans
The next step is the targeted development of high-potential employees, or other employees with high performance, in order to maximize their level of preparedness. It is possible to use various development techniques. It is important, however, to verify whether problems previously identified as potential barriers to an individual employee's success as successors have been fixed.
5. Measuring succession management strategy success
The purpose of measuring the success of this strategy is to evaluate the impact of succession management, to ensure the accountability of leaders at all levels for management succession, and to make possible changes to improve results. The metrics may include:
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percentage of key roles staffed by internal candidates,
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number of successors prepared for key roles,
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turnover of high-potential employees,
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costs of high-potential employees development in comparison with hiring external candidates,
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percentage of high-potential employees who fail in their new roles.
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