This article first appeared in the March, 2005 edition of the Jacksonville Business Journal
Larger companies often go through a complex succession planning exercise. Managers at multiple levels identify their potential successors by writing names on a chart with such indications as "promotable now" or "promotable within a year." Then the company files the data and declares the succession plan completed.
Smaller companies often to do it a bit differently. They identify a key person and then prepare that person for the job by fulfilling a role one or two steps below the level for which they are being prepared. They assume, for example, that experience as a vice president is adequate preparation to assume the presidency.
The problem is that neither of these techniques really work. Both approaches ignore several realities of the current work environment. The first reality is that organizations are not stable. Within three months after the larger company has completed its succession charts they will be out of date. The organization will have changed and people will be in different roles. A model built on the assumption of a stable organization will not work.
The second reality is that competence at one level of an organization does not guarantee the ability to be competent at the next level. Every leadership level in an organization requires a different set of skills that do not necessarily follow a continuous progression.
For example, an outstanding technical individual contributor may fail miserably as a supervisor. The ability to supervise others requires interpersonal skills and the ability to work with and motivate others. Excellent technical skills do not automatically transfer to excellent interpersonal skills.
A high performing first level manager may fail when promoted to the next level as a manager of managers. First level management is typically a hands-on job. Managing managers requires hands-off coaching. Great hands-on managers do not necessarily become great coaches.
Leadership at senior levels requires collaborative cross-functional behavior. Hard-driving functional managers with a competitive orientation do not always make the transition to a broader cross-functional role based on collaboration rather than competition. These examples reveal how career progression in an organization represents a step-change shift at each level. High performance at one level does not guarantee the ability to perform equally well at the next level.
Building a succession plan first requires identifying the actual competencies required for each level. The next step is an honest assessment of potential successors regarding their ability to develop the skills required at the next level. Since future performance at the next level cannot be predicted, the best approach is to develop "bench strength" of several individuals at each level who might fulfill roles at the next level. Bench strength creates greater flexibility for both the individuals and the organization.
Once the individuals have been identified, this talent pool needs to be developed. Leadership development requires three ingredients. The first is formal development or training. If an organization is large enough, custom-designed internal programs are most effective. If the organization does not have enough people to warrant an internal program, a number of excellent external options are available.
Formal development is necessary.but not sufficient. Developing leaders also need internal coaches - or mentors. Mentors and protégés should select each other voluntarily. Once established, specific goals are set and a defined process is put in place. It is essential that the mentor and protégé have a real work relationship for their connection. For coaching to be effective it is has to relevant, job-related, specific and frequent.
The third essential part of the equation consists of special real-work assignments. The development pool needs real work assignments - often in teams - that requires work at the level for which they are being developed. This has three benefits. First, the participants receive development by performing actual work at the next level. Second, the organization has an opportunity to assess their work and see whether they have the competence and potential for these responsibilities. Third, real work is being done and the organization gets the benefit of these work products.
Succession planning is an increasingly important part of the equation in the competitive war for talent. The best companies systematically and consistently groom their leadership from within. But the ability to develop internal talent requires careful selection, honest assessment, a commitment to building a rich talent pool and integrated development that combines learning and real work applications. Developing your leadership for today and tomorrow is what succession planning is really all about.
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