Actively managing succession is key to achieving strategic viability. Succession planning is much more than a replacement process. Rather it is an opportunity to build overall leadership capabilities, which enhances the value of current staff to your organization. Through the succession planning process, the organization can determine the following:

• Organization fit, given the future context of the company;
• Readiness for advancement; and
• Development needs to ensure a viable pipeline of leadership talent

FIVE KEY STEPS

There are five critical steps in the Succession Planning process.

1. Review and refine the strategic business imperatives required for success and define the key positions.

• To ensure relevancy and “fit,” succession management practices need to support the organization’s vision and strategy while also aligned with the organization’s core values and culture.
• These may be C-suite, Leaders, Managers, and Individual Contributors.

2. Identify Success Metrics.

• What are the skills, behaviors, and experiences needed to be successful in these key roles?
• What capabilities and talents will the organization need these key roles to possess in the future?

3.   Assess Your Current Talent Pool.

• Compare all employees against the success metrics defined in Step 2.
• Use a 9-box grid* to identify High Potentials (HiPos)
• Determine readiness status for all HiPos

4.   Develop HiPos.

• Use targeted and individualized development for all HiPos. This may include leadership development, coaching, and/or lateral assignments.

5.   Monitor the Plan and Adjust Accordingly.

• Align succession needs with changing business priorities
• Continuously reevaluate the performance of HiPos
• Continuously assess bench strength

The 9-Box Grid

A 9-Box Grid is a simple matrix that positions employees in a grid based on performance and potential. Each employee’s performance is rated as one of the following:

• Low: does not perform as expected, fails to meet key objectives, requires frequent supervision.
• Medium: performs at an acceptable level with some supervision and generally meets basic objectives with occasional lapses.
• High: consistently meets all requirements and performance standards and requires little supervision.

Then, you evaluate each employee’s potential as follows:

• Low: shows little motivation or initiative and lacks the capacity for further development beyond the current role.
• Medium: shows average motivation or initiative and lacks the capacity for further development beyond the current role.
• High: highly motivated and frequently takes the initiative, pursues opportunities for development and growth.

Once you have rated each employee, you then place them within the grid. Employees with high performance and high potential are placed in the upper right corner of the grid. Employees with low performance and low potential are placed in the lower left corner of the grid. So forth and so on.

Once completed, this grid provides a visual chart of your HiPos, LoPos, and those in the middle. Using this information, you can determine where developmental resources should be focused. It also helps you determine who needs additional support in their current roles and maybe even those who should be exited from the company.

Summary

Success planning has long been a key part of business success. Unfortunately, most companies take a reactive approach and give succession planning little or no thought. The result? Companies are scrambling to find replacements for key positions, often left in a high-risk situation. Succession planning helps you answer the questions:

• Are there immediate, viable replacements for key roles?
• What are the talent gaps for each key role?
• Are there significant retention risks for incumbents in key roles?
• Who are the HiPos that can be developed into these key roles?
• Do we have clear developmental pathways?

Answering these questions and planning accordingly before key roles are vacated is imperative to the organization's continued success.

Succession Planning is indeed a lengthy process, typically taking about 12 to 36 months of preparation. It is an investment, and it is a commitment. However, it produces outstanding results and sets your organization up for long-term success. The good news is that you don’t have to do it alone.

Hi-Wire HR can support you through this process, providing as much engagement as you want or need to get your Succession Planning up and running. Contact us today.