Who's next? Succession planning.

• Author: Maginn, Michael

Succession planning is a dynamic, ongoing process of systematically identifying, assessing and developing leadership talent for future assignments and tasks. (Indeed, succession planning has also been called "talent management.") Said another way, succession planning provides bench strength, a cadre of talented and ambitious people who are ready to assume more senior responsibilities. This is embodied in a succession plan, a document that contains an inventory of projected openings and other opportunities (special assignments, or important collateral duties), position criteria and a list of potential candidates in rank order for each opening or opportunity. The process of succession planning involves management at all levels and sends a message to the organization about the importance of skill development. In a way, succession planning helps make learning, achievement and effectiveness important cultural values throughout the organization.

Consider life in a small organization without a succession plan. There is a vague uncertainty about what will happen if key people leave. Yet, statistics on employee turnover show that people will, in fact, move on eventually, either for new positions or changes in lifestyle. Whenever there is a change in key personnel, there is a period of vulnerability. Knowledge and history are lost; perspectives on goals and priorities change; continuity of effort is interrupted. Morale and motivation can be affected. In a worst-case scenario, people are promoted to new positions solely because they've been around. Without succession planning, the momentum towards goals, improvement and strategic initiatives can be slowed.

What does Succession Planning Provide for an Organization?

* First, the process is motivational and can lead to greater retention of key staff. Employees feel they are involved in pursuing opportunities. Development and learning are positive aspects of organizational life, and, in the case of succession planning, these become frequent and visible. In addition, a policy of promoting from within signals how the organization regards its people.

* Second, there is continuity of leadership policies and strategies. The ongoing strategy does not leave with a departing senior manager. Nor do established expectations for performance. This is especially significant in small organizations.

* Third, key individuals, those with potential and ambition, are developed. In a way, that is the whole point. The process creates bench strength from within. The awkwardness and latent issues associated with hiring an outside senior manager over high potential internal candidates can be avoided.

* Finally, performance appraisal and...