Avoiding Future Shock - Choose Tomorrow's Leaders Today

Here in Boston and throughout Red Sox nation,This approach includes a formalized tracking
much nervous talk is focused on the Yankeessystem that guarantees process consistency and
making a run on our first-place team. Since thereduces subjectivity. This system creates a
All-Star break in July, the Yankees have beenframework that combines the succession plan
coming on strong (don't they always?), while theconcept with a more focused need for succession
Red Sox, some might say, could be loosing theirdevelopment.
grip (don't they always?)Various issues should be considered when creating
To become a balanced, high performancean effective succession plan.
professional sports team like the Red Sox or theYou should have a clear vision for the future of
Yankees, you have to rely not only on smartyour organization. It's critical to have a solid grasp
trading and drafting (i.e., recruiting), but also onof your existing workforce. Identification of
talent development and "succession planning" (i.e.,current employees who are already positioned to
retention, future growth).move up in the system is essential, as is
Do you ever compare your business to aidentifying individuals in need of development.
balanced, high performance sports team? WithConsider individuals not currently at the top of the
top management in the front office and on thelist but who show promise.
field? And with talented, productive players whoPart of the succession planning process includes
get along--and know where your stars of thethe development of these individuals who, after
future are going to come from.the appropriate training, will be well prepared when
If you think succession planning means handingneeded to step in and take charge of the
the business over to the kids or waiting for thetargeted positions. This will involve a
best private equity deal, you're partly right. Butwell-conceived training and development program.
there's more to it than that. What is it, and is itDetermine most efficient, cost effective method
something that your company should consider?to develop future workforce.
Succession planning is a component of a companyThis may include in-house training, coursework
business plan.from outside sources or special projects
It is often a formalized, systematic strategyspecifically designed for the employee. Whichever
designed to identify talent for future leadershipplans are chosen, the training should be aligned
roles in the organization. For a company towith the succession plan and the overall business
maintain its competitive advantage, a solidstrategy to be successful.
succession plan is necessary.Stay focused on the future needs of key
Succession plans focus on positions most criticalpositions.
to your future needs.While concentrating on particular employees is
Therefore, current management employees areimportant, you should maintain focus on the
often identified. Non-management employeesfuture needs of key positions. Since targeted
should also be considered, since their roles mayindividuals could leave you before the succession
become more critical to the company as theyplan is implemented, various options should be in
move into leadership positions.place to adjust to a changing workforce.
Traditional succession planning is often a secretDon't underestimate the talent you already have.
process.Your people's soft skills are often overlooked.
Top-level executives identify those individuals whoDon't concentrate only on hard technical skills. The
would be appropriate replacements for them assuccess of your team members, and
well as for other top-level employees. Your peopleconsequently of the organization, is often
are generally unaware of the process.determined by your people's ability to master the
The traditional method does not usually include thesoft skills along with hard skills.
use of performance appraisal results, and individualConsider the importance of a well-designed and
or team development is de-emphasized. Thisimplemented succession plan.
approach could be a problem since these veryIntegrate the plan into your organization's
people may move on to better outsidestrategic plan. Not being prepared when it's time
opportunities without knowing about the futureto replace those in key positions could severely
opportunity your company had planned for them.impact the future success of your business.
You may choose to use a hybrid method.