Abstract
The chapter present a practical guidance based on four simple-to-use models of developing a succession plan. It also highlights current best practices of succession planning based on literature. Succession planning is a critical leadership tool for organizational growth and sustainability; it alleviates substantial gaps in organizational knowledge and leadership through strategic replacement of key personnel. Using succession planning as a developmental tool will allow the organization to determine what and whose knowledge is most important to capture and help them to identify critical positions. It is very important for organizations to grasp the meaning of succession planning before implementing a succession plan as a developmental tool for organizational sustainability. Based on the definitions of succession planning, this chapter defines succession planning as a proactive approach to managing talent, and the development of a leadership pipeline to meet an organization's need-based demand for sustainability.
TopIntroduction
An ongoing challenge for organizations is the development of consistent approaches to ensuring leadership sustainability and reinvestment in their talent pool. As stated by William J. Rothwell (2005). “amid the twofold pressures of pending retirements in senior executive ranks and the increasing value of intellectual capital and knowledge management. It is more necessary than ever for organizations to plan for leadership continuity and employee advancement at all level. Rothwell went further to discuss that small businesses, non-profits, and government agencies too need to give thought to planning for future talent towards sustainability.
For many, the workplace story goes like….Understaffed, underfunded, and overworked. How can we possibly justify allocating human and financial capital towards something that has not yet occurred? We just don’t have the resources! Bakare (2017) asserted that despite this prevailing attitude, which is unapologetically based more on fact than fiction, succession planning can save time, money, and most significantly, the integrity of the position. Therefore, YES, succession planning should be a foremost consideration. Organizations are using succession planning as part of their talent management strategies, a trend supported by literature.
“It is very important for organizations to grasp the meaning of succession planning before implementing a succession plan. Findings from various study shows that a formal succession plan, especially in the areas of developing internal candidates’ competency levels, knowledge transfer, and knowledge preservation will provide an organization with a strong leadership pipeline as they respond to the ongoing trend of mass retirement by Baby Boomers” (Bakare, 2017 pp.42 -43)
Turnover under the current scenario employees seem to be leaving at a faster pace than ever before. To succeed under this workplace reality, it is imperative that organizations have:
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A detail succession plan, so they know not only when key employees are leaving, but also understand the skills and critical knowledge each employee hold to properly find and train new replacement with the necessary qualification and competencies.
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A suitable replacement candidate pool – both entering the organization and moving up into leadership roles.
When long-term veteran employees leave the organization, they take with them both a unique understanding of effective leadership and incredible amount of institutional knowledge, often including undocumented asset information. `
Oranizations are aware of some vacacies or that a position is going to be vacated. However, that awareness rarely transform into action and it formidably loom over them as they wait for “Departure-Day. Then and only then, is filling the position seriously addressed. Through a succession planning process, you recruit superior employees, develop their knowledge, skills, and abilities, and prepare them for advancement or promotion into ever more challenging roles in your organization ensuring that you will never have a key role open for which another employee is not prepared. Rothwell (2005) said “successful succession planning processes are driven by strategic planning” (p. 40), which “is a process by which organizations choose to survive or compete” (p. 21) with “time being the key strategic resource” (p. 42). Technology and global competition are forcing companies to rethink succession planning by going back to their mission and their strategic plans. Those companies, who do not do so, are increasingly being punished by either the market or their competition, or both.
Key Terms in this Chapter
Knowledge Management: Firms doing what is needed to get the most out of knowledge resources, including both explicit and tacit knowledge.
Succession Planning: A proactive attempt to ensure that leadership in an organization will be continuous by identifying how these positions will be filled as both planned and unplanned departures occur.
Succession Management: A proactive and systematic process of identifying those positions considered to be too critical to be left vacant or filled by any but the best-qualified persons—and then creating a strategic plan to fill them with experienced and capable employees.
Knowledge Transfer: A way to access knowledge from an individual or organization and adapt to the constantly changing work environment.
Key Position: This term refers to a position that is critical to a company’s success and has a major influence on the operational activities of the organization based on an organizational chart.
Leadership Development: The expansion of a person’s capacity to be effective in leadership roles and processes for organisational effectiveness.