Studies show a growing sense of urgency for succession planning. One survey found 92% of respondents felt it was risky not to have a succession plan for key employees but only 25% of companies feel they’ve identified adequate successor candidates and less than half have a process for developing candidates. Other research shows 70% of executives think their organization lacks adequate bench strength while nearly 75% of senior managers will retire by 2020. An HR software study reported that over 90% of millennials say working at a company with a clear succession plan would “improve” their level of engagement. Another report found that promoting internal leaders has a success rate of 70-80% while the rate for external leadership hires drops to 50% — about the same as flipping a coin.
Many organizations recognize the critical need for succession planning. But the way they’re approaching this talent development challenge is with piecemeal programs. Too often internal support specialists such as HR, OD, or Talent Management professionals manage the program. They focus on tools like the 9 box grid, competency models, and organization charts. These tools are highly useful. But they’re severely limited when they’re bolted on the side of the senior leadership team’s crazy-busy agenda.
In high-performing organizations, tools and approaches like succession planning are owned and driven by the senior leadership team. They understand that implementation of their strategies and plans are highly dependent on culture development. Talent and leadership development are a vital strategic issue as vigorously managed as sales, marketing, operations, or finance.
Executives often check out (and start checking their email) when a deck of slides is read to them on succession planning tools, models, and processes. But if the senior leadership team is engaged in rich discussions on what their succession issues are and how to address them, they’ll quickly shift from passive approvers of their support staff’s plans to active leaders and drivers of the process. This becomes even more effective when senior leaders link succession planning to their strategy and culture.
Here are key steps for bringing a senior leadership team into alignment in moving succession planning from bolt-on programs to a built-in strategic process:
- Establish foundational frameworks for leadership/culture development grounded in research. Examples: Excellence/culture models, Performance Balance, or 5 Steps to High-Performance Culture.
- Agree on a shared vision of your desired culture.
- Set/refresh the three or four core values anchoring your desired culture.
- Define the behaviors that model each core value and the negative behaviors that create eye-rolling “yeah, right” reactions to each core value. The clearest signal of an organizations lived (versus espoused) values is who gets promoted for what behaviors.
- Use a safe and anonymous process to identify moose-on-the-table (or elephants in the room) and what must be dealt with to move toward your desired culture.
- Agree on three or four Strategic Imperatives to address your “moose issues” and build an implementation plan for your desired culture. Set up teams for each Strategic Imperative with ownership/accountability, charter/mandate, and timelines.
- Decide on core succession planning tools such as 9 box framework, a competency model for hiring, promoting, and development, high potential programs, software, talent pools, etc.
What’s critical to this approach is managing group dynamics, meeting flow, and discussion process. A skilled, external facilitator with a toolkit of group processes, exercises, and applications has a huge impact on the success of planning sessions like this.
In their Harvard Business Review article, “Developing Your Leadership Pipeline,” Jay Conger and Robert Fulmer report that high-performing organizations marry succession planning with leadership development. “At the foundation of a shift toward succession management is a belief that leadership talent directly affects organizational performance. This belief sets up a mandate for the organization: attracting and retaining talented leaders.”