The importance of Succession Planning

Succession Planning

An important function of Human Resource Management.
 

Sir Alex Ferguson at Old Trafford, Manchester United

Manchester United vs Manchester City

In the year 2013, Sir Alex Ferguson retired from Manchester United after leading the Club to its 20th Premier League title. The legendary team has been wandering through an equally legendary trophy drought ever since. Emphasis on Wandering and Drought .

The same year, Manchester City sacked  their title winning Manager Roberto Mancini and replaced him with Manuel Pellegrini who led them to a Premier League and League Cup double in his first season. 

In the reign of Pellegrini, Manchester City Board of Directors identified Pep Guardiola, who had successful stints in Spain and Germany managing Barcelona and Bayern Munich respectively. Pep went to join Manchester City in 2016, and has since then led the club to 3 Premier League titles, a Champions League final, a number of FA and Community shield wins. Manchester City is on the verge of winning another Premier League and,  getting extremely close to winning the Champions League title. 

Man UTD. Vs Man CITY. illustrates the importance of Succession Planning.

The above example gives an insight into what succession planning could do for a company. It can  make or break the efficacy of Senior Leadership roles. Oddly enough, most leaders do not want to plan for their exit, yet, it is inevitable. Organizations need to know that planning for Succession, transition, and continuity requires thought and time, same as most functions of Human Resources Management.

An Integral Component of Corporate Planning Strategies

Planning is among the fundamental factors of corporate success. It propels them from one stage, activity, strategy, or approach to another. Numerous sections within an organization may undertake different planning activities under the general umbrella of strategizing. Planning is especially important for the use of human resources. Succession planning is one of the most basic and integral forms as it ensures steady transition between old and new staff, transmission of objectives, data management tools, and other essentials in an organization. It is the foundation of an effective strategic management of  human resources.

The book Succession Planning in the Library, by Singer and Griffiths, clearly defines succession planning. It is a systemic effort to ensure continuity in key positions, retaining and developing intellectual and knowledge capital for future development of a particular aspect undertaken by the organization. Thus, since succession planning focuses on smooth transfer from current to future goals, it is essential to undertake a holistic examination of current and future goals to ensure a harmonious merger. 

This examination ensures and carefully considers the fundamental drivers and factors necessary for undertaking a project or activity. This aids in reducing if not eliminating obstacles to a particular approach. With this in mind, it is clear that succession planning is vital for identifying and reviewing critical posts, establishing the competencies and skills needed, and examining the areas of focus for corporate growth.

A succession plan can be viewed as a fundamental pivot between current activities, approaches, strategies, and prospects. Due to the centrality of succession planning, it is important to examine it critically, like other important aspects of management. This can be done through phasing. Here succession planning activities can be divided into assessment, evaluation, development, and execution phases. Ideally, phasing will be essential for ensuring the consideration of all factors, eradicating the chances of overlooking certain areas.

Globally, organizations continue to learn on the dos and don'ts for succession planning. There is a need, currently, to be more conscious of an organization’s continuity in the event of either expected or unexpected exit of key leaders. When Steve Ballmer announced his stepping down from Microsoft as CEO, they were unable to identify potential candidates internal or external who would be ready to step in. The company went ahead to interview almost 100 candidates for the role but still were not successful and 6 months later, they had to promote an insider, who turned out to be a great fit for the role. Imagine if the company had thought of succession planning, they would have saved on cost and time. 

An essential management issue

In summary, succession planning is an essential management issue. It braces the business for change by creating conditions that prevent severe (negative) inefficiencies and maximizing the new approaches to gain a competitive advantage.

Planning is the best weapon in a leader’s arsenal when fighting the battles of competition. A general, like a Football coach, or a Chief human Resources Officer (Human Resource Planning) must plan their actions to the smallest of details to ensure victory. The actions of each of the member of the team must be accurately choreographed for cohesion and multiple contingencies be put in place to be ready for any future issues.

Succession planning ensures an organization’s continuity. It is important to differentiate manpower planning from succession planning. Succession Planning deals with growing current and new talent into leadership positions to ensure continuity. Manpower planning combines  understanding of long term goals and strategic shifts to hire the right talent at the right time. 

 Do you have rising stars in your team? Are you planning for them? What can you do to make them fit for your role? Think continuity, think of Succession Planning.