One of the most important planning any organization should invest in is in a Leadership Pipeline. Succession planning is the process where you ensure that you will never have a key role open for which another employee is not prepared. The more Senior the role, the more important succession planning becomes.
In fact, one of the most important objectives of a CEO is to find his successor. They usually will hire succession planning consultants to help with that process.
Although having a solid succession plan makes sense, few organizations have an effective process in place. In the United States alone, large companies that undergo forced CEO succession lose an estimated $12 billion in market value year after year.
Did you know that 40% of new CEOs fail to meet performance goals in the first 18 months of their tenure? The reason why this number is so high is because company’s fail to plan successors for their key roles.
There are several advantages to succession planning for both employers and employees.
Employee advantages:
- 62% of employees are significantly more engaged at work if there is a succession plan in place.
- 90% of younger workers (18-34) say that their engagement levels improve if the company they’re working with has a clear succession plan.
- Knowing that a next role awaits them will be a boost to self-esteem, enhancing efficacy and employee value.
- The employee’s value is shared with the rest of the organization so if an opportunity does come up, this will be widely known, allowing them to be considered for a promotion.
- The ability to work with their manager or supervisor ensures that the employee has a clear career plan.
Employers’ Advantages:
- Access to prepared employees to step into roles as the company grows and expands. A lack of developed employees will hinder any growth plans.
- Knowledge about the most skilled and contributing employees is shared with managers across the organization.
- Building a leadership pipeline allows for quick replacement of the right person when open positions come up instead of just filling the position.
Even if you are onboard with all the advantages, you still need a plan. How do you go about building a solid succession plan?
The following Infographic created by Davitt Corporate Partners helps organizations start building their own succession plan.
David Keane, director of Davitt Corporate Partners works with employees and employers to make them work more effectively. Their clients are based all across Ireland, the UK, Europe, North America, Asia, and Australia. They work closely with Associates in fields such as Learning & Development, Organisational Design, and Management Processes, providing the most comprehensive services to their clients, across all industry sectors.