Succession planning is a process in an organization where it ensures
that employees are recruited and developed to fill each key role within
Succession planning made your organization to identify talented employees
and provide proper education to develop them for future higher level and
Succession planning model
Succession planning is to understand development needs
2. Succession planning is to identifying the possible successor with in
3. Succession planning develop and train successor for future
4. It Promote and compensate employees
5. Successors are ready for dynamic situations
Major cons of Succession Planning:
• A regular supply of well trained, experienced and motivated people
who are ready and able to handle the key positions as needed.
• A basic unit of desirable candidates who are integrated into the company
with positive goals established for them individually.
• This is a regular flow of capable people through various departments
with the goals of educating them into the culture of the company.
• Appropriation of the future needs of a company with the availability
of appropriate human resources with in the company.
• Positive goals for key persons, which will help them in the company
and will help assure the regular supply of capable persons for each and
every important positions included in the succession plan.
• Defined goals, which will help the company recruitment and retaining
HOW TO DEVELOP A SUCCESSION PLAN ?
Planning is required to continue a business beyond one generation leaders.
Succession planning smoothes the path for continuing business success
which may be done through whether transferring of private shares to senior
manager or leadership to family members.
Succession planning looks too far in to the future. Once you are not in
the day-to-day role, who will own and operate the company, is a critical
path decision that has a direct impact on long-term business profitability.
For this purpose in succession planning formal plan for this decision
Succession planning is not an exact science. There is not any fixed single
approach for every situation. But the subsequent five steps are followed
by many business owners.
Selection of Successor
To choose a successor for your own job is a difficult task.you doesn’t
worry knowing that a particular manager or family member will be appropriate
to picking up where you leave off. To a certain extent, this is the time
when all the employees are examined about who potentially have skill and
ability to steer the company. If you have difficulty while selecting a
successor you may seek the advice of board of directors. It is estimated
by the experts that succession planning should begin at 15 years before
you intend to retire. By this approach you can look at the successor how
he or she is handling the job and showing his or her skills.
Development of Formal Training Plan
For the development of formal training plan for your successor first you
should analyze the critical functions of the company and then let the
successor to work in each of these areas of business. Plunge your successor
in the business of your company so he or she sees both the deepness and
wideness of the operation. But this process may take some time because
this needs to teach your successor to learn, grow and making mistakes.
Create a schedule
A training schedule as well as schedule for shifting of control of company
should be established. As fayol propounded in his principles that there
must be unity of command and unity of directions, thus to make succession
successful you, your management need to know that who is in charge of
what and when. If you change your decisions routinely your successor can’t
be succeeded. Schedule is a source of motivation to move through his or
her training program quickly and successfully, with a clear understanding
of what the coming roles and responsibilities are going to be when you
move out of day-to-day operations.
Get started for retirement
Now it’s a time to outline a plan for your transition from officer and
manager for the company. This retirement plan may take in amusement, journey,
community service or another business venture—whatever is right for you.
Now your successor is responsible and you should plan for the task you
will do after retirement to energize you
Install Your Successor
It is beneficial for you and your company to install your successor in
your lifetime. Once that's installed, you need to be worry and let your
successor carry out the role for which he or she has been trained. Eventually,
your successor's success or failure is up to him or her. You can set the
base, provide the training and prepare a background for your company.
After you, the senior management and board of directors are both the support
system and checks and balances for the company.
As succession planning is challenging task but it will prove as reward
when you watch your company growing profitabily due to the efforts you
have done in providing the company a proficient successor. while preparing
succession plan you should take advice from accountant, insurance agent
etc because external environment has vast impact on succession planning.
Succession Planning: What Is It and Why we need it?
As we all know that succession planning is very much imp in an organization
where people in leadership positions eventually capable enough to fulfill
that key role. Succession planning can be done for a variety of reasons
1. To gain promotion within or outside the organization
2. To move part-time arrangements for better work-life balance in the
3. To voluntary departure from the organization to pursue a career elsewhere
4. To involuntary departure from the organization
5. For retirement in organization
6. For serious illness of any employee of the organization
7. Sudden death of any employee
Organizations that failed to plan for the timely and effective filling
of such a leadership roles that can be back off with the continuous disruption
by a normal business activities and the loss of market share. Succession
planning is the perceptive process of identifying significant leadership
positions that could put the organization at risk if left vacant targeting
current employees of organization that could move into such roles and
grooming them for succession. Managing leadership succession is effectively
requires a structured approach that is agreed and understood and followed
by everyone involved in the planning process.
The Succession Planning Process
Succession planning requires steps to obtain leadership guidance collect
relevant information make key decisions execute succession and development
actions. If undertaking this activity for the first time, you should consider
creating a process that is "separate" from other, related activities
such as performance management and development planning. Later after when
you have executed your process a couple times you may take down the special
elements and start to integrate it with these other activities. The steps
below outline such a stand-alone process.
Define purpose, goals, and scope
The top leader of the organization outlines the purpose, goals and scope
of the succession planning activity.
Assemble an oversight committee
The committee role is to establish a succession planning process that
can fulfill the purpose, goals and scope outlined by the top leader and
to govern over the process until most of the major questions and issues
have been resolved.
The oversight committee creates policy around such issues as data security,
assessment, succession nominations, communication and development.
Define operational parameters
Again this is the preview of the oversight committee. Operational parameters
include: positions for which successors will be nominated the scope of
the pool of succession nominees and the rating scales used for assessing
contribution and the potential.
Develop and conduct the assessment
The assessment is essential for comparing succession candidates and slotting
them against specific succession positions. The assessment data generally
provided by direct managers of the succession pool should be reviewed
for equity in the ratings and for consensus in the nominations.
Compile and organize the data
The voluminous data that is collected must be compiled into the kind of
information needed by leaders to make key decisions. Some of the compilations
include: coded organization charts, a “contribution-potential matrix,”
reports of any “at risk” positions or individuals, and profiles for all
individuals and positions. A spreadsheet or dedicated tool for organizing
and displaying such information is recommended.
Conduct organizational reviews
Starting with business unit/functional heads, the succession plan and
reports compiled are reviewed and key decisions made. These decisions
could range from developmental opportunities for future leaders to actual
leadership appointments. The business unit/functional level reviews are
followed by reviews at the highest level – with correspondingly higher
Implement development plans
While succession decisions may be executed immediately after the reviews,
the developmental opportunities must be pursued over the following weeks
and months. For future leaders to realize their potential and be better
positioned to “step up” when the time comes, these development opportunities
must not be allowed to languish once the spotlight is off the succession
Assess process effectiveness
Like any other business process, your succession planning process will
need to be improved, streamlined, integrated with other human resources
processes and possibly expanded to accommodate additional participants.
While the experience is fresh, take a moment to gather feedback and assess
process effectiveness – then set and achieve the most critical improvement
Succession Planner can help you when you are:
• experiencing difficulty meeting in the career expectations of your future
• seeing consistently low scores for career development and advancement
on your employee surveys
• losing key talent due to a continuous lack of opportunities
• suffering from lack of internal candidates who are ready to move into
leadership roles as they become available
• sensing that your leadership development efforts are not truly satisfied
with the needs of your organization
Who uses Succession Planning?
• Is used by Human Resource Managers
• It is also used by Human Resource Consultants
• It is used by Small Business Owners
• It is used by SME Business Owners
• Directors of the company
By using Succession Planner you will:
• By using succession planning save on purchasing and installing valuable
• By utilize an application you are already familiar with the current
system – Microsoft Excel
• It avoid many hours of work doing in developing purpose-built spreadsheets
• It demonstrate to your future leaders that you are serious about their
• It retain key talent of the personnel through establishing clear paths
to the development and advancement
Uses of Succession Planner:
• rate future leaders and assign them against specific future roles
• rate current and future leaders for contribution, leadership and potential
• view succession snapshot of your entire leadership team
• analyze the overall strength of future leaders
• identify key risks among the leadership positions and individuals
Elements of a Succession Plan Policy
• Statement of commitment to prepare for the inadequate leadership change.
• Statement of commitment to assess the leadership needs before beginning
• Plan to appoint interior leadership to ensure smooth operations and
to compliance with contractual obligations.
• Outline of the succession procedures including:
- internal management succession to the internal position
- time frame for making the internal appointment
- time frame for appointing a board transition committee
- Roles of the transition committee and communication with stakeholders
and identifying a transition management or consultant conducting an organizational
assessment and designing the search plan.
Sample of Executive Succession Plan Policy
A change in the executive leadership is inevitable for all organizations
and can be a very challenging time. Therefore it is the policy of the
organization to be prepared for an eventual permanent change in the leadership
either planned or unplanned and to insure the stability and accountability
of the organization until such time as new permanent leadership is identified.
The board of directors shall be responsible for implementing this policy
and its related procedures.
It is also the policy of board to assess the permanent leadership needs
of the organization to help insure the selection of qualified and capable
leader who is representative of the community a good fit for the organization
mission vision values goals and objectives and who has the necessary skills
for the organization. To insure the organization’s operations are not
interrupted while the board of directors assesses the leadership needs
and recruit a permanent executive officer, the board will appoint internal
executive leadership as described below. The internal chief executive
officer shall ensure that the organization continues to operate without
disruption and that all organizational commitments previously made are
adequately executed including but not limited to loans approved reports
due contracts licenses certifications memberships, obligations to lenders
or investors of the organization and others.
It is also the policy of the organization to develop a diverse pool of
candidates and consider at least three finalist candidates for its permanent
CEO position. The organization shall implement an external recruitment
and selection process while at the same time encouraging the professional
development and advancement of current employees. The internal CEO and
any other interested internal candidates are encouraged to submit their
qualifications for review and consideration by the transition committee
according to the guidelines established for the search and recruitment
process of the organization.
How succession planning is implemented
For a temporary change in executive leadership for example illness or
leave of absence refers to the organization’s Personnel Guidebook. In
the event the chief executive officer of the organization is no longer
able to serve in this position such as they leaves the position permanently
or the executive committee of the board of directors shall do the following:
1. Within 5 business days appoint an internal CEO according to the following
line of succession:
a. chief operating officer (COO) of organization
b. senior vice president of the parent affiliate of the organization
c. external consultant (with experience as an internal executive director)
2. Within 15 business days appoint an executive transition committee in
the event that a permanent change in the leadership is required. This
committee shall be comprised of at least one member of the executive committee
and two members of the board of directors. It shall be the responsibility
of this committee to implement the following preliminary transition plan:
a. Communicate with key stakeholders regarding actions taken by the board
in naming an internal successor appointing a transition committee, and
implementing the succession policy. The organization shall maintain a
current list of key stakeholders who must be contacted, such as lenders
and investors of the organization foundations, government agencies, and
b. Consider the need for consulting assistance (i.e., transition management
or executive search consultant) based on the circumstances of the transition.
c. Review the organization’s business plan and conduct a brief assessment
of organizational strengths, weaknesses, opportunities and threats to
identify priority issues that may need to be addressed during the transition
process and to identify attributes and characteristics that are important
to consider in the selection of the next permanent leader.
d. Establish a time frame and plan for the recruitment and selection process.
e. Refer to the CEO Hiring Policy and Procedures in the Personnel Guidebook
for additional procedures.
The board should use similar procedures in case of an executive transition
that simultaneously involves the chief executive officer and other key
management. In such instance, the board may also consider temporarily
subcontracting some of the organizational functions from trained consultant
or other organizations.
All together we came to know that succession planning very much needed
in the organization so as to tackle the dynamic situations of the business.
This will also improve the key prospective of the employees and turned
them to be ready for the situations that are difficult for them in future.
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