I think we have all received the annual call from Human Resources - “ it is time to review the Succession plans and we have a tight deadline.” As a former Chief Operating Officer from the Banking industry this was a constant frustration!  I’m sure we all agree that Succession planning should be a sustainable/ dynamic process that plays a key role in any successful company.  So if that is the case why do so many organisations fail to give it the focus it deserves? I will provide an honest assessment of some of the common issues I encountered  during my global career and some of the simple steps that can be taken to rectify them. I am certain they will resonate with many of your own experiences. 

1 - How often do Succession plans actually result in the designated person getting the job?  In my experience less than 25%. How often have we seen a situation where someone is highlighted as a potential successor but when the role becomes available they are not considered suitable. An external candidate is recruited which takes many months, results in a large recruitment fee and typically a higher salary. This places the company at risk with a potential impact on its operations. Most importantly it leaves existing employees feeling under-valued and demotivated.

Solution: Apply real scrutiny to the proposed plan  - don't just put names in boxes. Ensure the definition of critical roles is consistently applied.  Be clear on the competencies required for the role. Solicit sufficient feedback on the proposed successors from across the organisation to confirm their suitability. Ask the simple question “ If the role became available tomorrow is this person really a serious candidate?”

2 - Is the Succession plan aligned with the future strategy of the organisation? Does it include plans for future structural changes such as new businesses or geographies?  Does it consider the planned retirement of key leaders? Will it ensure a smooth transition when these changes take place? 

Solution: The plan should be forward looking and anticipate key changes.  Succession planning should be a key section in any Strategy document. 

3 - How often are development plans actually seen through? Many potential successors have highlighted development needs that will prepare them for the role. In my experience these are not regularly reviewed or even reflected in the individuals IDP.  Guess what? Role becomes available  - candidate is not considered ready.

Solution: Ensure the successor has a consolidated IDP which is regularly reviewed and executed. There is nothing more demoralising for an employee then having an IDP that is never discussed. Give people a real chance to fulfil their ambitions.

4 - Succession plans are often narrowly focused and lack any imagination. They are full of candidates from the same department or people the manager just happens to know. Just imagine the wasted opportunities. Don’t under-estimate people’s capacity to expand their horizons or take the next step.  Some of the most successful appointments I have made were initially considered controversial or too risky.

Solution: Share plans across functions  and develop your people  - don't underestimate them by keeping them fenced in!   Ensure plans focus on future potential not just past roles. Use multiple reference points such as appraisals/talent lists etc.  Don’t be afraid to suggest controversial or unorthodox successors - you might just unearth a star!

5 - How often are Succession plans reviewed? This is not an annual process!  There is no set date for completion.  A lot can change in a year! 

Solution: Succession plans are evolving documents. They should  be under constant review.  I always had my plans close at hand because they contained so much useful information.  Constantly reassess peoples suitability  - are they developing as expected?  Have any new candidates emerged?

6 -  Are Succession plans regularly reviewed by the Board and other senior forums?   This should not be an annual exercise demanded by the Board procedure manual.  How well do Boards know the potential successors?  It is no good if the Directors only get interested when the role becomes vacant.

Solution: Succession plans should be reviewed at every Board meeting to include key changes in material roles.  Board directors should meet key successors - they shouldn’t just be a name on the page. Succession planning is a key Risk management process.   

7 - Are Succession plans ever reconciled to the list of High performers/ Talent pool members?  Why is a High Performer not on a Succession plan? 

Solution: Ensure Appraisals /IDP/Succession plans are part of one seamless process. 

8 - Here is a novel concept. Rather than just updating the plan with new names try and understand what hasn’t worked.  Why did certain successors not succeed?  Why are we not developing the next generation of leaders?   What can we improve? Why are potential successors leaving the organisation?

Solution: Conduct a full 360 degree review of the process.  There is lot to be learnt from what didn’t work - candidates who didn’t make it. Why the organisation is  failing to develop successors in certain businesses. 

9 - HR professionals who participate in succession plans should really understand the businesses they are supporting. Surely that would enhance their contribution to the process.  In my experience they often just act as the scribe.   

Solution: Immerse HR professionals in the business - short term secondments etc.  So many HR professionals are reluctant to do this - always baffles me. 

10 - I have saved my biggest issue and larger frustration to last!!  Is your Succession plan communicated?  Do employees even know they are on a plan or in some cases not on one?    How sure are you that the employees even want to do the role?  Motivate your employees, demonstrate  to them they have a great future. For those not on plans - sit them down - explain why -  give them an opportunity to make themselves a candidate. There is nothing worse than an employee believing they are part of a plan when they are not.  Give employees all the information  they need to make informed decisions. I have heard the various arguments for keeping them confidential such as de-motivating employees who are not on a plan or the information falling into the hands of Headhunters - does anyone seriously believe these have any validity or outweigh the obvious advantages?

Solution: Be a confident organisation  - communicate openly - employees value open honest conversations. Give the employee all the information they require to develop their career - give them clear pathways to get excited about.  In my experience the act of communicating will significantly enhance the quality of the plans - you feel much more accountable!  How can a plan be real if it’s not communicated to those actually on it ?

As I highlighted in the introduction succession plans are an essential tool for any successful sustainable organisation. However, in many cases they are an  annual box filling exercise that gathers dust on the shelf until they are reviewed again 12 months later. Don't let this happen in your organisation.  The solutions are relatively simple if they are lead from the front by the Leadership team (not HR) - make your plans dynamic, socialise with key decision makers, link to other key HR processes, and communicate with confidence.  This article was never  intended to be a guide to building a plan but when you do take these steps and you will be on the way to developing a strong well motivated team that is future proof and a real credit to your organisation.