Do you have a plan in place to ensure a seamless transition if a C-suite member of your company suddenly resigns? Is there someone who could fill their boots with minimal disruption?
When a high-ranking executive steps down from their role, a succession plan ensures a smooth transition of power with as minimal an operational impact as possible. A failure to plan for this inevitable event could lead to a series of issues, at the exact time when you most need your business to run smoothly; An external hire made too hastily could turn out to be a bad fit. It could become apparent an internal successor isn’t right for the role after they take it on, or the departing executive takes important relationships and knowledge with them, leaving your business in the dark.
So, what does an appropriate succession plan look like? Successful organisations nurture leadership qualities in employees throughout the organisation so that the entire company is well-prepared should they face unexpected personnel changes.
Here are five ways to effectively succession plan:
1. Identify key roles
To ensure you can effectively move forward with a succession plan, you first need to identify the roles within the company that are critical to its success. Who is it that keeps the cogs turning? What are the main leadership roles?
These positions might be difficult to fill because they require a specific skill set or specialist knowledge. Take a look at each role and identify the particular skills and strengths each individual incumbent currently brings to the table. Those are the key fundamentals you should be looking for in a replacement candidate.
2. Assess potential candidates
Consider your current talent pool to evaluate if you have anyone who could fill these key roles. Is there someone with the skills, knowledge, and expertise necessary to step up? Remember to also consider their leadership qualities and work ethic, and not just their technical skills.
To evaluate the potential candidates, you could use a framework such as the 9-box grid. This assessment tool helps you to gain clarity on an individual’s current and potential contribution to the team.
3. Develop a training plan
Once you have identified potential candidates, you need to ensure their skill gaps are filled so that they have the knowledge necessary to take over key roles further down the line.
This is where you will want to consider available training opportunities, such as courses and qualifications to provide the identified individuals with the resources they need to sharpen their skills. You could also consider pairing them with a mentor so that they can learn directly from someone with experience. To track their progress, remember to regularly assess their skills and provide performance reviews. This will help to ensure your succession plan doesn’t veer off track.
4. Consider external hiring
Sometimes, you simply don’t have appropriate candidates in your team to fulfil high-ranking roles. If that’s the case for you, you’ll need to hire externally. By planning ahead for external hiring, you can significantly shorten hiring cycles and mitigate the risks associated with a lack of preparation.
5. Frequently revisit your plan
As you grow and develop as an organisation, so too should your succession plan. A succession plan requires constant attention to ensure it remains relevant to your evolving business practices, so make sure to regularly update it. If a succession does occur, this is the perfect time to evaluate how effective your plan is and adjust it accordingly.
