Effective succession management
Effective succession management: Top tips by international consultancy DDI.
A DDI survey of more than 1,000 executives and HR professionals found that in most cases, organisations prefer to fill more than two-thirds of senior leadership positions from within the company. Over the years, working with 19,000 organisations worldwide, DDI has identified the most important drivers that provide effective succession management. Here are the top 10:
Have an up-to-date succession management system
Individuals need to be developed at an organisational level rather than for specific positions, and then matched to the most appropriate positions as vacancies arise. Meaningful, measurable goals associated with tangible succession management outcomes, should be set in place.
Know all the high potential people within a company
CEOs should be encouraged to look throughout their entire organisation for candidates suitable for accelerated development instead of solely relying on their personal knowledge. Again, systems must be in place to find these people, particularly those who don't typically interact with senior executives. But CEOs should get to know the high-potential people within their organisations as well as possible.
Have common standards across your organisation
Effective organisations have set up systems to identify exceptionally talented individuals throughout their organisations, especially those working internationally. The criteria which constitutes high potential needs to be agreed upon to create transparency and help line managers and divisional HR people to spot talent. It is important to attach similar recognition to previously unknown leaders from newly-acquired segments of the firm.
The best people are not always the ones who get the most meaningful early assignments
Not all potential leaders have equal access to the best job and development assignments, or the opportunity to take on significant responsibility early in their careers. To level the playing field for all of an organisation's prospective leaders, the evaluation of individuals with high potential should be based on core, basic skills enhanced by well-crafted evaluation.
Treat candidates as individuals
Once individuals are identified as having high potential, their development needs must be diagnosed so that they can be given the experience and training necessary to prepare them for success at senior levels.
Ensure that development plans are implemented
Ideally, a development-planning discussion would be combined with setting job objectives at the start of each new assignment. Once given their tasks, a deadline, and told of the support they can expect, those high potential individuals will be able to determine which of their development needs can be met.
Never assume short-term issues are more important
The best companies act on the belief that their future depends on the people they develop. And many make time for succession management activities because they believe that both their boards and the stock market are increasingly concerned about the depth of talent in a company.
Understand that diversity can't be left to chance
Once a succession management system is in place, diversity goals must be set and aggressively re-inforced through the CEO's behaviour. Leaders must communicate the need for corporate diversity, but being involved in planning and championing the development of those with high potential sends out a stronger message.
Let people learn from their mistakes
When an individual makes a wrong decision, it must be considered as an opportunity to learn from their mistakes. Fostering an atmosphere where people can make mistakes and learn from the experience is an important part of a successful management programme.
Remain patient
Remember: just as it takes time to build a client base or penetrate new markets, people - even the brightest and most talented - need time to grow and develop.
