What is succession planning?

In a nutshell, succession planning is a process to prepare the business for the future. It means ensuring the staff of the future have the skills and experience they need for their future positions and also means identifying individuals (or groups) for key posts (or groups of similar key posts).

Reasons to do it

• The UK's ageing workforce is predicted to result in an increase in the number of senior post-holders and skilled key employees retiring over the next decade. Organisations will need to identify successors for these roles.
• The trend towards flatter organisational structures means fewer employees are gaining the strategic skills needed for senior positions.
• With good succession planning, employees are ready for new roles as the needs arise, and when someone leaves, a current employee is ready to take over the role with little disruption to the business. Succession planning can also help develop a more diversely skilled workforce.
• Good succession planning can assist in retaining good employees as they feel involved in their own career progression and assist in aligning HR strategies with business strategies.

Developing a Succession Plan

To develop a comprehensive succession plan, business leaders need to recognise that each organisation has to develop a strategy that fits its own specific needs. The basic criteria for success:

• Succession planning is a part of an overall drive to develop employees at all levels.
  
• Successful succession planning needs the ongoing commitment of senior management.
  
• The business plan needs to be agreed regarding expected / anticipated expansions or reductions of the operation.
  
• Evaluate the key role holders to ascertain the likely risk of them leaving that role e.g. retirement dates, health problems, promotion etc.
  
• Clearly define the key behaviours, skills and values that each key role needs in order for them to succeed both now and in the future.
  
• Identify potential successors through a tangible process; this could include appraisal data, assessment centres, tests, and interviews. Ensure that any assessment process complies with anti-discrimination legislation.
  
• Integrate succession planning with recruitment, retention and training strategies.
  
• Identify training, development and mentoring requirements for individuals.
  
• Continually monitor and review progress.

HR Advantage consultants have a wealth of experience to help your organisation develop a succession plan, so why not call Mark on 01743 245564 for a discussion, or email

mark@hradvantage.co.uk for more information.

April 2005