Leadership Continuity:  A Key to Survival
by Linda Gravett, Ph.D., SPHR

The projection for the coming year is that the U.S. economy will continue its upswing.  More companies will be hiring, so there will be increased competition for quality employees.  Members of the Baby Boomer generation are reaching retirement age in significant numbers.  There are fewer members in the next generation, Generation X, to take their place.  Finding – or keeping – quality leaders will be a serious challenge for HR professionals for the remainder of this decade.  Is your organization able to sustain leadership continuity and thus its competitive advantage?  If not, the time is now to begin a succession planning initiative.

Successful, meaningful succession plans are designed to support an organization’s strategic objectives.  After the leadership team develops a Mission, Vision, and objectives that will ensure the company survives and thrives, HR should explore what specific leadership competencies are necessary to carry out these objectives.  For example, the companies I’ve worked with have all identified business acumen, interacting with a diverse workforce and customer base, and strategic planning as essential core competencies for leaders.

There are five drivers that will support an effective succession plan:

Top Leadership Involvement – the CEO and executive team must devote time, attention, and leadership to model competencies that will help the organization succeed and to coach individuals who exhibit the same competencies

Design Creativity – the succession plan must be tailored to your company and its unique culture and environment

Defined Success Criteria – development of success measures that serve as a compass is an essential step in the process

Establishment of Leadership Competencies – have a firm idea of the behaviors, skills, and talents that drive organizational effectiveness in your industry

Communication to Stakeholders – employees, Board members, and customers can’t support a succession plan if they’re not aware it exists or don’t understand the objectives

There are some potential pitfalls with any succession planning process.  The mistake I’ve seen most often is failure to differentiate between high potential and high performing employees.  A high performer can successfully carry out his or her responsibilities in their current job but still not be a candidate for higher level positions, for a variety of reasons.  Not everyone has the ability to be analytical, or deal with constant ambiguity, or want to live and work in another country.  High potential candidates are capable in their current positions and want to (and can do) other work within the organization.

Another pitfall is lower morale for employees who aren’t selected as high potential candidates.  If employees look around and see coworkers attending workshops, being mentored, and receiving interesting assignments, they’ll wonder, “what about me?”  These high performing candidates need career development, too.  They’re just on a different track.

A succession plan doesn’t run on auto pilot.  Process checkpoints should be set, at least quarterly.  These checkpoints provide an opportunity to assess accomplishments compared to objectives and success criteria.  If barriers exist, they should be immediately addressed or the initiative will die.

In the planning stages, I recommend that six key questions be addressed to guard against the pitfalls I mentioned:

1. What are the critical positions in this organization for which we need leadership continuity?

2. What are the core competencies required for effectiveness in these positions?

3. Who will create the position profiles (competency-based job descriptions) for targeted positions?

4. What are directed assignments that will build high potential candidates’ skills?

5. Will we tell high potential candidates that they are “hi po’s?”

6. Who will develop and administer the performance feedback process for current and future leaders?

A critical component of the succession planning process is the development and completion of directed assignments.  These are short to medium term projects that meet business imperatives and provide developmental opportunities for high potential candidates.  Examples of directed assignments are:

• Leadership of a business unit that’s outside a person’s current area of expertise

• Overseas assignments

• Facilitation of another division’s strategic planning process

Most organizations with which I work do not tell high potentials of their status, at least not directly.  Their managers make it clear that they’re valued members of the organization, however, and communicate that they will have opportunities for professional growth.  The key is to balance peoples’ need to know where they stand with the company’s need to steer clear of creating expectations that may not be realized.

One final word on sustaining a succession plan.  I recommend that the succession plan be incorporated into senior managers’ goal setting during the performance management process.  In other words, senior managers must be held accountable for their important role in leadership continuity:  staff development.

As an HR professional, there’s groundwork to be laid to prepare for your key role in leadership continuity.  Is your recruitment and selection process tailored to locate people with the core competencies your company needs?  Does the rewards and recognition system compensate people for taking on difficult or unpleasant assignments?  Lastly, is there an HRIS system in place to track individual development plans?  These are the processes that should be in place so you can support succession planning.

If you’d like more information on this topic, please contact me at Linda@gravett.com or call me at (513)753-8870.