A Brief Learning About Succession Management
December 16, 2021
The departure of a leader can cause chaos and great risk to the stability of a company if the organization lacks a concrete plan. Hence, succession management needs to be developed over a long period before succession actually happens. It is thus important to learn about the basic concept of succession management and the method to put it into practice as soon as possible.
Definition of succession management
Succession management is a systematic process involving the identification, selection and development of core staff and new talented employees to take on critical roles in the organization and prepare for the future.
While the world presents more challenging business conditions, the availability of skilled leaders who are prepared to take on the problems is declining. As senior leaders are leaving the businesses, young generations are facing the difficulty of lacking reference framework which makes the role of leadership daunting to many employees. The responsibility for managing succession planning in a business lie in the hands of the board of directors, and the CEOs with ongoing assistance provided by HR. Moreover, it is vital to realize that effective succession management is far more than merely having a succession pipeline full of candidates.
The four-step method to succession management
According to the CHRON, the steps to conduct succession management are as follows:
1. Identification of succession requirements
Succession management demands a continuing assessment of the businesses’ areas that are most likely to lose key individuals. The first step to build succession management is identifying key positions that play a crucial role in the continued success of the business. Obviously, all positions are vital, but some are more important than others, namely senior executives, hard-to-fill roles or new jobs. Depending on the environmental changes or the nature of the company, each company will set the requirements of succession to best suit the long-term development of the organization.
2. Consideration of key competencies and skills
Successful succession management schemes need the organization to take special account of its essential competencies and abilities. Organizations need to examine possible skill gaps that may appear when people leave or retire or new business requirements arise. For example, a company might need to invest more in digital skills as the world is going digital when the COVID-19 pandemic broke out.
3. Reassessment of the internal human resource
Before looking outside for successors, companies should prioritize the talents within their organizations first. Potentials and skillsets of internal talents should be analyzed to see whether their qualities are suitable for the organizations’ succession needs. Companies can also leverage employee surveys, performance reviews, etc. to collect staff insight, specifically their plans of professional development or areas of interest, to consider employees for key positions.
4. Provision of training
Now it’s time to implement the succession plan. The organization may provide training, coaching and educational opportunities to employees who have been identified as having the potential to move into future vacancies. This will meet their growing needs as well as guarantee their adaptability when working in new positions.
Whether your organization flourishes in a culture of succession management or has not addressed the subject yet, a human resources management expert will always be needed to move your organization towards a bright future. Contact Talentnet – an HR consulting firm well-known for “global knowledge – local know-how”, and let us provide you with the most effective way of handling succession management.