Succession management is a systematic approach to identifying, selecting, and developing key employees and talented new hires to assume critical roles and prepare the organization for the future. This practice ensures that skilled and engaged people fill key leadership roles. As Richard Ghilarducci says, knowing how to engage in succession management can be beneficial in almost any industry, as it can help company leaders choose the best candidates for a job.
Richard Ghilarducci marks the importance of succession management
As business conditions become increasingly challenging and complicated, skilled leaders should be proactive about tackling such challenges and continue to drive the organization forward. However, many younger employees might not have the qualities and skills necessary to perform competently in these leadership positions. Hence, succession management tools and planning have become a core focus for many businesses.
A lot of people think that succession planning and succession management are the same, but they are related but different concepts. The latter focuses on making sure that the key employees are not just identified but also developed to move into future leadership roles. To ensure successful succession management, one must:
- Monitor the top management support
- Identify the required executive competencies on the basis of the future business needs, values and strategies of the company
- Identify high-potential individuals for possible inclusion in a pool.
- Evaluate employees to identify their skill gaps and strengths, so as to determine who will be in the high-potential pool
- Establish an individually tailored development program for each and every high potential individual, which includes job rotation, time, as well as assignments and time with senior executives.
- Select and place people into senior jobs on the basis of their job performance, experience and assessment of their potential for a specific job
There are many reasons that make succession management extremely important, including that it can help a company to competently reach its goals. This usually happens as succession management commonly leads to placing well qualified and trained candidates in leadership positions, ultimately contributing to the improved operations of a company. Succession management allows companies to consider leadership scenarios it may encounter in the near future, and help company leaders prepare for unforeseen situations, such as employee turnover or changes in the market. The process of succession management may even provide companies with the chance to effectively review vital data like employee satisfaction and performance, which can serve as a guide to how to improve its processes.
As Richard Ghilarducci mentions, succession management can contribute to the development of strong leaders who can capably tackle challenges, navigate obstacles, and get ahead of the competition. These business leaders would have specific competencies to identify and respond to the future needs of their company. Investing in and nurturing talent within a company helps in making sure that its leaders have the skills and capabilities required to successfully lead and grow the business. Projects are likely to experience delays in case senior leaders unexpectedly become sick, die or leave the company. Succession management helps make sure that there are employees who can take over the work of these senior leaders and avoid delays.