Succession Planning !!!

The show must go on. Handing over the baton at the right time to the right person is a tightrope walk. India Inc. understands the importance of running the show without interruptions; hence companies like Tata Sons, HCL, Godrej group and RPG enterprises have succession plans in place and are in the process of working out names of successors who will take over the respective companies once the currents chiefs retire.

Succession Planning is essentially a process for identifying and developing internal people with the potential to fill key leadership positions in the company. Planning a replacement for a key role in an organization is the crux of succession planning. Needless to say then that the entire process requires that employees be recruited keeping a long term plan in mind and also adequate training provided for the future handling of responsibilities.

Besides providing a platform for the smooth running of the business, succession planning has some other advantages as well. They are as follows:

• It helps employees understand the long term goals and objectives of the organization
• A plan helps identify the developmental and training needs of future leaders
• It is beneficial for employees too, as it helps them understand what qualities the company is looking for in a person to fill in the leader’s shoes. It gives them an idea of what skills and talents are highly valued and what they need to work on to qualify themselves for future roles.

Succession Planning in family held businesses traditionally targeted only key leadership positions. But with the evolution of business and decentralization of departments in organizations, it has become imperative that top positions in all categories of jobs be considered for succession planning.

It is important to keep the motivation levels high and focus on retention of high-potential employees in an organization; especially so if the company is looking at a succession plan. A well placed retention plan creates a highly motivated workforce and a more productive work environment. This in turn enables the company to put in place a well-thought out succession plan for the future.

There are a few steps to creating an effective succession plan. Since this kind of strategy has to be thought out well in advance, it is important that the organization has a loyal workforce and can stem attrition, at least from the middle level up.

Identification of leadership qualities is the most important factor in a succession plan. Certain skills and managerial qualities need to be identified in employees to determine the competencies required for success at key positions.

An organization also needs to identify whether or not it has a pool of competent and qualified candidates ready to assume leadership positions when the need arises. Managers play a big role at this stage of a succession plan. They might have to identify top-performers on their teams, who can pick up the reins when required.

Training is important, as it enables employees to learn more and handle additional responsibilities which prepare them for future roles as leaders. Retention and hiring of high potential employees is also important in the etching of a succession plan.

The overall business plan of the organization needs to be kept in mind while designing a succession plan. A strong development program needs to be put in place that will ensure that the right people with the right qualifications are able to take up responsibilities at the right time.