However, surprisingly few companies have plans for filling leadership positions. Chief Executive<\/em> reports<\/a><\/span>\u00a0only around 54% of Fortune 500 companies are actively developing their CEO successor, while 40% don\u2019t have any picks for a successor at all. Among smaller and private companies, these numbers can fall much lower. A <\/span>2022 survey<\/a> of members of the Society for Human Resource Managemen<\/span>t showed that only 21% of their organizations had a formal plan for succession. This can spell trouble when key decision-makers in charge of long-term processes leave the company.<\/span><\/p>\n How does succession planning help? Let\u2019s define succession planning, look at how to create a succession plan, and how to avoid making mistakes when setting one up.\u00a0<\/span><\/p>\n Effective succession planning has two parts. First, it identifies all positions in the company that are critical for success. These positions need to stay filled, and those leaders need to have the relevant experience to carry out associated responsibilities.\u00a0<\/span><\/p>\n The second part is developing a plan to choose a successor for that position, and create a training program for them. That training can take different forms, but it often includes mentorship from the person currently in the position. It also ensures that the successor has all necessary skills needed to excel in that position.\u00a0<\/span><\/p>\n How many positions in an organization need succession planning? That depends. Some only reserve it for the CEO, although this creates risks. In most cases, there are many other key decision-makers beyond those at the very top. Some businesses even choose to have a succession plan for almost every employee. This can depend on the business structure and how many key roles are in the organization.\u00a0<\/span><\/p>\n A quick point of clarification: Sometimes, the terms succession planning and succession management <\/span>are used to mean two different things<\/span><\/a>. In this case, succession planning is used to talk about the direct selection and mentorship of an individual for a specific position. Succession management is a broader strategy about how the company structures its leadership, and attracts leadership talent in ongoing efforts.\u00a0<\/span><\/p>\n Succession planning isn\u2019t just about finding necessary replacements. When implemented effectively, this planning has adjacent benefits for an organization.\u00a0<\/span><\/p>\n These include:\u00a0<\/span><\/p>\n If not managed well, the challenges of succession planning can create serious problems with company strategy and culture. Here are some of the biggest problems to avoid:\u00a0<\/span><\/p>\n Don\u2019t put off succession planning<\/b>: One of the <\/span>most common succession planning mistakes<\/span><\/a> is waiting until a leader announces their intention to retire or leave the company. This is usually much too late to begin a succession plan. Ideally, top-level succession planning should begin when a company leader is <\/span>hired<\/span><\/i>. It can take years to find and develop the right talent for replacement.\u00a0\u00a0<\/span><\/p>\n Don\u2019t promote for the wrong reasons<\/b>. This is one of the more frequent succession planning tips. Many employees may want to be in a leadership role, and may compete for it. There can also be pressure to award particular positions to employees with certain connections, perceived loyalty to the company, and so on. But potential successors should not be chosen based on favoritism or other factors not related to their ability to do the job.<\/span><\/p>\n Don\u2019t feel required to hire the familiar<\/b>. Organizations shouldn\u2019t pick a replacement just because they are similar to the leader they had before. This can lead to overlooking key individuals that could help the company evolve for the future.\u00a0\u00a0<\/span><\/p>\n Don\u2019t let succession plans stifle structural growth<\/b>. Companies change over time. These changes may create new leadership positions, different leadership roles, and older roles may be removed as they become obsolete. This is normal and important for growth. Don\u2019t let a succession plan interfere with important changes like these. A little adaptability can go a long way..<\/span><\/p>\n Don\u2019t make a plan for just one person<\/b>. Planning succession for just one person is risky, and could be bad for the future of the company. It\u2019s common for even talented employees to move on with their own plans for the future. Sometimes problems like nepotism or a desire to \u201ckeep it in the family\u201d can create situations like this, too. It can be difficult for HR to solve these problems, because they don\u2019t usually have the last word here. However, it\u2019s important to emphasize why there should be a talent pool developed for potential successors.\u00a0<\/span><\/p>\n Are you looking for ways to improve an existing succession plan? Clear processes and strong communication can help. Let\u2019s look at some best practices.\u00a0<\/span><\/p>\n Are you looking for more ideas on how to manage a succession plan for your organization? KnowledgeCity\u2019s effective, yet quick-to-complete courses are an amazing place to start!\u00a0<\/span><\/p>\n Our courses can help you reach your goals whether you are planning for successions for the first time, or improving on an existing succession strategy. Our <\/span>Succession Planning<\/span><\/a> course is rich in insights about ways to measure employee potential to aid in decision-making. We also have nearly one-hundred <\/span>leadership courses<\/span><\/a> to aid in training your potential successors. Let KnowledgeCity future-proof your company today!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Effective Succession Planning Can Help Your Organization Thrive for Years to Come What happens to an organization when a key leader leaves? Even those in the…<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":""},"categories":[4001,4003,126,4002],"tags":[158,266,150,367,86,4203,4204,4202,4205],"acf":[],"yoast_head":"\n![\"Professionals](\"https:\/\/www.knowledgecity.com\/blog\/wp-content\/uploads\/2022\/11\/Effective-Succession-Planning-1000x667pix.jpg\")
<\/a><\/p>\nWhat is Succession Planning?<\/b><\/h3>\n
Benefits of Succession Planning<\/b><\/h3>\n
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Succession Planning Pitfalls to Avoid<\/b><\/h3>\n
How to Strengthen Your Succession Plan<\/b><\/h3>\n
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Conclusion<\/b><\/h3>\n