Developing a succession plan is an important step for any type of business. There are some key steps to follow whether you are designing a succession plan for a small family business, an educational institution, major corporation, large non-profit, government organization or another type of business.
Determining the Plan Type
Consider the concerns that have led you to developing a succession plan. Are you worried about more competitive offers elsewhere, or unexpected departures from the business due to ill health? Perhaps you have several key members of your business who are due to retire soon, or maybe you are planning a new strategic direction for your business that will require different competencies for people holding key positions. Being sure of your reasons for developing a succession plan will enable you to ensure that the plan you put together is designed to meet your needs.
Choose the Right Team
You will likely need a team of people from your organization to get involved in the process of succession planning. Choose a team of people who are good communicators, have a high level of knowledge about job competencies and competency development, and are process-oriented. Together, work to identify the main influencing factors for your plan. For example, there may be dramatic changes in the workplace in the near future that will lead to a more diverse workforce in terms of generation and culture that will require a different way of developing talent internally. These factors may also need to be considered in a valuation of your business.
Link the Plan to Your Strategic Plan
Your business’s strategic plan tells both customers and employees what your business is all about, where it is going, and how you plan to get it there. Your successful plan needs to be linked and in sync with your overall strategic plan in order for it to succeed. Using your strategic plan along with the factors that you have identified that are likely to have the biggest impact on your plan, you will be able to identify all the key positions that will need to be covered.
Develop Potential Successor Candidate Pools
Once you have identified the key positions that will be included in the succession plan, it is important to identify potential sources for successor candidates. You will need to make the skills, talents, knowledge and other competencies required for each position very clear in order to do this successfully. Once you have determined which competencies are required, you are ready to determine where the right individuals can be found. Most of the time they will come from both internal and external sources. Many people who are already a part of your organization might meet the requirements or may be able to develop them. Aside from looking internally, consider using job boards, employment agencies and professional association websites to find suitable candidates externally.
By itself, a succession plan does not have much use. For it to succeed, it must be turned into concrete plans of action with specific, measurable goals.
