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Succession management vs. succession planning: which should you do?

Organizations understand the importance of identifying and preparing successors for key positions, but as PI Worldwide research shows, about 40% are not prepared for the sudden departure of a key leader within the organization. So what should companies do? E-mail signup

The saying goes: failure to plan is a plan to fail. Today, forward looking organizations are turning toward data driven succession management which takes a broader, collaborative view towards nurturing existing and future leaders and is characterized by transparency and insights gleaned through analytics.

While succession planning centers on identifying and grooming select individuals for specific roles, succession management is focused on building a robust leadership map and developing talent benches for key positions. It is also characterized by identifying high potentials early and engaging them in an ongoing conversation to assess their motivating needs, skills, cultural fit and career interests. Through an expanded, metric driven approach toward succession, organizations improve their ability to predict success and prepare for leadership changes down the road.

By combining behavioral assessment data, skill data and company metrics, you can leverage workforce analytics to drive evidence-based succession management. Here are 10 points to consider when building a data-driven succession program:

  1. Business structure: How is the business structured today? Are there plans to change that in the future?
  2. Business performance: How is the business faring the global marketplace today? How could a new leaders potentially affect this business performance?
  3. Owner or majority stockholder investment: What is the business owner’s stake in the next generation of leadership? How will the owner want to be involved in the succession process?
  4. Board or family governance: How is the board set up? What kind of processes and procedures does it already have in place for managing succession?
  5. Board or family dynamics: How is the board organized? Is there a person whose job it is to spearhead succession management?
  6. Strategic planning: What kinds of additional plans are in place for the future? How is the succession planning integrated into this overall forward-looking framework?
  7. Financial planning: How does the next generation of leaders match with the company’s future financial goals?
  8. Leadership continuity: How can the company ensure that the next generation of leaders possesses the same type of leadership skills as its predecessor? Is sharing leadership skills important from one generation to the next?
  9. Successor identification and development: Does the company look internally or externally for the next generation of leaders?
  10. Management synergy: How is the company’s management connected? Is there a general sense of camaraderie? How can that change with the next generation of leaders?

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Post by PI Worldwide.

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