How to Choose (and Prepare) the Right People for Your Succession Plan

The time to repair the roof is when the sun is shining.

—John F. Kennedy

 

Just when you think you’ve got the perfect team in place, someone leaves. 

 

(I’ve been in this boat more times than I can count—and I’m sure you’ve been there, too!)

 

The impermanence of the workplace population is one of the big universals of the business world. People leave jobs all the time and for all sorts of reasons. They might switch over to a new role or team in another part of the organization, for example, or even to a completely different company. Or they might leave the workforce entirely (say, through retirement).

 

At best, such departures are annoying and inconvenient. Usually they require shuffling around job responsibilities and reassigning projects until a replacement comes on board. (And in today’s hiring market, attracting and recruiting the right person can take quite some time!)

 

But when the employee is someone in a leadership position, the consequences of their departure can be even more severe. Leaders are the ones who hold teams and departments together. They’re the ones who direct everyone’s efforts. And they’re the ones who chart the path forward for the organization.

 

When a leader leaves and there’s no one ready to step in right away and pick up where they left off, that loss can be catastrophic. That’s why succession plans are not merely important but absolutely critical.

 

Succession Planning: An Overview

 

Planning is bringing the future into the present so that you can do something about it now.

—Alan Lakein

 

Succession planning is the process of identifying the critical positions within your organization and developing action plans for high-performing individuals to be ready to fill those positions. I’ve already made the case generally for good succession planning, but if you still need convincing, here are some of its specific benefits: 

 

• Preserve continuity of leadership
• Reduce turnover (and associated costs)
• Mitigate business risks
• Enhance employee engagement and morale
• Provide growth opportunities to worthy employees
• Improve business longevity
• Meet shareholder/stakeholder expectations
• Achieve long-term organizational goals

 

When you have people already lined up—and prepared—to step into leadership roles that become vacant, employee departures are less painful for the organization (and for the employees who remain). 

 

You can’t just tap anyone to take over open roles, though. First, you need to figure out which positions need this kind of planning. Then you can determine which people are best suited for those roles and come up with a gameplan to prepare them to take on those responsibilities.

 

Defining Critical Leadership Roles

 

By failing to prepare, you are preparing to fail.

—Benjamin Franklin

As its name indicates, a critical role is one that is absolutely essential to the functioning of an organization. It must be filled at all times, which means that as soon as it becomes vacant, you must have someone who can step into it immediately. Because these roles are so important, you absolutely must begin training successors well in advance of when you think you need them. 

 

We’re focusing here on critical leadership roles, as opposed to critical roles that aren’t necessarily leadership positions (such as the person who maintains the company’s intranet, for example). Be careful not to conflate “critical” with “leadership,” though. It’s true that an organization’s leaders often occupy essential roles, but that isn’t always the case. 

 

Critical leadership roles and noncritical leadership roles differ from each other in several key areas.

• Critical roles have a direct impact on the organization’s long-term strategic goals and core operations. (Noncritical roles support critical functions but do not have a direct impact on strategic decision making.)

 

• Critical roles rely on unique skills, expertise, or industry-specific knowledge that is challenging to replace or replicate. (Noncritical roles draw on more transferable skills and knowledge that can be acquired through training and development.)

 

• Because critical roles are essential for business continuity, disruptions in them can have a significant negative impact on operations and stakeholder confidence. (Disruptions in noncritical roles can often be managed with temporary solutions and usually don’t carry severe consequences.)

 

• Critical roles are responsible for ensuring compliance with industry regulations and legal requirements (thus minimizing the organization’s legal risks). (Noncritical roles have minimal involvement in regulatory compliance or legal matters.)

 

• Critical roles are vital for driving innovation, growth, and competitive advantage in the market. (Noncritical roles focus on day-to-day operations and maintenance rather than drive innovation.)

 

• Critical roles influence the organizational culture and values. (Noncritical roles have less influence on organizational culture and values.)

 

• Critical roles contribute to the longevity and adaptability of the business. (Noncritical roles focus on short-term objectives and tasks.

 

Identifying Talent

 

If you don’t know where you are going, you’ll end up someplace else.

—Yogi Berra

 

Once you know which critical leadership roles need to be filled, it’s time to figure out who are the best people to fill them. These roles are too important to leave up to “I have a good feeling about this person” or “This person seems pretty smart.” A hardcore assessment of an individual’s abilities and potential can help you determine whether they have what it takes to move into a critical leadership role one day. For this purpose, I’m a big fan of the nine-box grid, a three-by-three layout that measures employees in two categories (growth potential and current performance), each of which has three levels (low, moderate high). 

 

First, categorize each employee by their performance level.

• Low performance. The employee does not fulfill their job requirements and fails to achieve their targets and goals. They demonstrate a lack of motivation and alignment with the organization’s vision.
• Moderate performance. The employee partially fulfills their job requirements and individual targets and goals.
• High performance. The employee totally fulfills their job requirements and individual targets and shows consistent performance in all tasks.

 

Next, categorize each employee by their potential level.

• Low potential. The employee has either reached their maximum capacity or lacks the motivation to grow further. 
• Moderate potential.  The employee has the potential to further develop in their current role in terms of performance or expertise. 
• High potential. The employee performs beyond the expectations of their position and responsibilities. They naturally and enthusiastically take on leadership opportunities and are always prepared for new challenges.  

 

Finally, merge the two results and see where the employee lands on the nine-box grid: 

 

LOW PERFORMER, HIGH POTENTIAL   Often a new employee Learns quickly and is eager to grow Operates in the best interest of the company	MODERATE PERFORMER, HIGH POTENTIAL   Performs well at current job Might thrive in more challenging roles Needs new tasks and guidance to prepare for next level	HIGH PERFORMER, HIGH POTENTIAL   Future leader Ready and willing to move up and accept new responsibilities
LOW PERFORMER, MODERATE POTENTIAL   Inconsistent performer Has potential to grow with the right training and discipline	MODERATE PERFORMER, MODERATE POTENTIAL   Reliable performer Might be able to take on more challenging roles Requires training and development to move up	HIGH PERFORMER, MODERATE POTENTIAL   Consistent performer with room for growth Thrives on engagement and opportunity
LOW PERFORMER, LOW POTENTIAL   Also called a “bad hire” May be a candidate for reassignment, demotion, or exit from the company	MODERATE PERFORMER, LOW POTENTIAL   Decent performer Investing money in training will not pay off Requires a personal improvement plan to move up	HIGH PERFORMER, LOW POTENTIAL   Has a strong particular skill set but fails to demonstrate much ability to develop new skills Not a good candidate for succession

 

Leadership Development

 

One of the things we often miss in succession planning is that it should be gradual and thoughtful, with lots of sharing of information and knowledge and perspective, so that it’s almost a non-event when it happens.

—Anne M. Mulcahy

 

Once you’ve figured out who your top candidates are for your succession plan, it’s time to give them the training they need to assume critical leadership roles when the time comes. First, though, you need to know exactly what you’re training them for. 

 

Start by defining the strategic initiatives for each role (this includes outlining how they tie into the organization’s overall strategy and objectives).

• Create detailed plans for each strategic initiative, including timelines, resources, and milestones.
• Assign responsibilities and accountabilities for each aspect of the plan.

• Identify potential obstacles that may affect the execution of the initiatives. (These could include external factors, such as market shifts and resource constraints.) Then come up with strategies for mitigating these obstacles.

 

Next, identify connections between each initiative and the employee’s leadership strengths. When you see a good fit between someone’s skills and potential and a particular critical leadership role, outline the developmental resources that will help them be prepared to take on that role. These should include some of the following:

• Leadership development programs
• Other skills development plans
• Mentoring programs
• Cross-training and job rotations
• Technology and innovation training
• Stretch assignments

 

For employee development to succeed, though, you can’t just “set it and forget it.” You need to check in, assess, and (if needed) recalibrate to make sure the employee develops as desired.  

• Define and regularly report on quantifiable performance metrics to assess future successors’ growth.
• Hold regular one-on-one meetings with successors to review their progress and address roadblocks.
• Establish a feedback loop with HR and selected advocates (key stakeholders or mentors who can be trusted and are motivated to provide ongoing feedback and suggestions for change).
• Stay attuned to external factors that may affect your plan (such as market shifts, technological advancements, and industry trends).

 

Best Practices

 

Don’t underestimate the importance of development, even when you’re working with an exceptionally talented employee who has huge potential. (After all, there’s always room for growth, even among the best and the brightest!) Development is the linchpin that holds everything together. It’s no exaggeration to say that good development can make your succession plan—and inadequate development can break it. 

 

It’s not enough to select someone to be a successor simply by saying “tag, you’re it” and then throwing them into a bunch of training and mentoring. You want the person who steps into a critical leadership role to be someone who actually wants to be in that position, not just for salary reasons but because they care about the organization’s future and want to achieve their own full potential. Therefore, when you approach someone about being a successor, give them all the information they need to make a decision about it—and don’t put them on the development train until you have their full buy-in. 

 

Succession planning can make all the difference between a great company that goes into decline (or fails completely) and a great company that continues to grow and prosper. Every effective leader you have today might be a former employee tomorrow, so take steps now to be sure you aren’t caught flat-footed when they leave. If you don’t have a good succession plan in place yet, start drawing one up ASAP!

 

Have you found any succession planning strategies to be especially effective? Please share them in the comments!