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Effective succession planning ensures that organizations are able to prepare for the loss of individuals from key positions. William Rothwell, Professor of Human Resource Development at Pennsylvania State University College of Education, has been responsible for one of the most comprehensive studies of succession planning in the 1990s.[1]
William Rothwell, in his influential book, Effective Succession Planning, defines succession planning as:
'Proactive steps to plan for future talent needs at all levels…designed to ensure that the right leaders are available for the right jobs in the right places and at the right time.
That is, succession planning ensures that when individuals in key positions leave, whether it is expected or unexpected, there is someone ready to take over.
Although the literature initially concentrated on succession planning for leaders and family businesses, the success of these programs have led to this kind of planning for key positions throughout the organization.
After studying examples of good practice, Rothwell identified four generations of succession planning:
- Provision in the form of a successor to an absent leader. As Rothwell notes, even a discussion about writing a short-list of emergency successors to a general manager or CEO puts organizations ahead of their competitors.
- A plan that allows for the absence of not only the general manager, but those further down the organizational hierarchy. This prepares an organization for the ‘war for talent’ that many will be fighting in the coming years.
- Analysis and identification of the key skills and attributes of individuals in key positions. This represents the first stages of a valuable, continuous process of developing existing employees to fill key positions in the future.
- A plan to identify individuals externally that are suitable for key positions in the case of emergency absences.
Typically, there is no ‘one size fits all’ approach to succession planning. For an organization aspiring to the third generation model, Rothwell advocates a systematic approach involving five key steps:
Clarify Program Roles
Rothwell argues that although many individuals are given job descriptions that clarify what is expected of them, the skill set they are expected to aspire to and their new responsibilities, few provide individuals with a clear description of how they should work and interact with others on a day-to-day basis. Organizations should strive to create explicit job descriptions for key positions so that those moving into the roles can refer to a comprehensive description.
Formulate a Mission Statement
During his research, Rothwell noticed that many organizations did not explain clearly to employees why they were undertaking succession programs. To undertake an effective program, Rothwell suggests that employees should be told why the program exists, the expected outcomes and who will benefit from the program.
Write Policies and Procedures
As well as clarifying program roles, Rothwell suggests clarifying specific policies and procedures. This should include planning for potential crises and problems as well as standard policies and procedures.
Identify Target Groups
The targets for the succession planning program will differ between organizations. For example, some organizations may focus on only the top executives and others may want to target every individual in a supervisory role. Rothwell suggests that a useful starting point is addressing three main areas:
- successors for top management
- front-line supervisory employees
- unique, tough to fill technical or professional positions
Set Priorities For the Program
In this stage, Rothwell suggests that organizations should consider making immediate provision for succession in potentially the most disruptive situations first, like the sudden departure of a CEO or senior executive.
Rothwell describes succession planning as a dynamic, ongoing process of systematically identifying, assessing and developing talent for future roles.
As a development tool, succession planning is essential for any organization wishing to grow dramatically, merge, takeover, or simply compete in the war for talent.
ReferencesSource: William Rothwell, ‘Effective Succession Planning’, (Amacom, 2001).
[1] William Rothwell, ‘Effective Succession Planning’, (Amacom, 2001).
