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Effectiveness of Succession Planning
Transcript of Effectiveness of Succession Planning
Various definitions for succession planning are given by various authors. Kimball (2005) defined Succession planning as “a dynamic, on-going process of systematically identifying, assessing, and developing leadership talent; and assessing, developing and recognizing key contributors to meet future organizational strategic and operational needs”.
Tends in succession planning (external factors)
demographic trends clearly point to the need for developing and retaining talent.
and related trend is that younger workers have different values and attitudes toward their jobs and their employers than their predecessors.
issue concerns the retention and transfer of knowledge as more and more of an organization’s competitive advantage shifts to employee know-how.
issue involves increasing globalization, which requires a greater supply of global leaders who have common organizational values.
and final trend concerns the accelerating rate and degree of change in markets, technologies, and customer preferences.
Steps in succession planning
According to Davis and Barnett (2008) the succession planning process has five steps:
Preparing for succession planning and talent review
The talent review meeting
Providing feedback and facilitating developmental action planning
• First is the need to communicate and initiate development planning and
delivering feedback to participants discussed in the talent review meeting.
• Second, HR needs to begin to prepare these individuals for conducting a succession planning process and nominating participants for a the next level of succession planning.
Theories of succession planning
The field of succession planning is an on-going field of research that is attracting new trained researchers and consequently is gaining quality. However, only a few authors are attempting to use a solid theoretical base to construct their studies. For this research, the following theories are thought to be of great importance: Trait theory, System theory, and Leadership emergence theory.
This theory proposes that the greatest predictors of effectiveness and success of leaders are the traits with which these individuals are endowed at birth or develop early in life. The most important traits are identified as drive, motivation integrity, self-confidence, intelligence and knowledge.
Trait Theory is based on the concept of identifying desirable traits for leaders. This is key in the succession planning process. As talent is developed, there must be identifiable traits that these employees possess
Bertalanffy (1968) is generally regarded as the founder of "systems theory" and the broad sweep of its applications for almost all disciplines, the natural as well as the social sciences. The systems theory has had a significant effect on management science and understanding organizations.
A system is a collection of part unified to accomplish an overall goal. If one part of the system is removed, the nature of the system is changed as well.
Leadership Emergence Theory
Leadership emergence theory (Clinton, 1988) is a theory of leadership development that is based on the experience of Christian ministry leaders over a lifetime. Recent research (Stadler, 2008) has shown that leadership emergence theory is applicable to the development of leaders who work in the corporate environment.
Leadership emergence theory can guide succession planning strategies to ensure that the next role identified for a leader will be in line with his or her next developmental phase and individual strengths. It can be used to steer high-potential leaders to roles that will maximize their development and avoid unfruitful assignments that could actually hinder or slow their development. It can provide a framework for leadership development discussions with senior leaders at the highest levels of the organization. The theory provides senior leaders, who often see themselves as no longer needing development, with a perspective from which to embrace continued development as a way to define and achieve a meaningful legacy (Stadler, 2009).
Effectiveness of Succession Planning
Contrary to popular belief, succession planning is not a new phenomenon. Companies have been wrestling with ways to identify, develop, and retain their talent for decades. Current research suggests that many organizations will experience a leadership transition crisis in the absence of the implementation of a well-designed, functional succession plan for the future.
This chapter will cover some aspects regarding Succession Planning; beginning with defining the term of Succession Planning, then trends of Succession planning, steps in succession planning, Benefits and Barriers, most related factors, finally Strategies of succession planning.
Career Development and Training
Organizations must provide opportunities for training and skill development that let employees improve their employability within the organization.
Implementing a successful succession planning system, there is a need for a lot of support from the managers.
Clarifying the career path and creating a positive vision
When an organization clarifies the career path, it would help employees to better understand the career objectives and also would help them towards a better implementation of succession planning.
Strong Organizational Culture
Having a strong organizational culture which provides values, beliefs, standards and paradigms for all employees also affect the effective succession planning.
Effective Succession Planning
is a proactive way to deal with the shrinking pool of qualified senior management candidates by having well trained, motivated, and development of middle managers to take over and fill critical or key positions.
Aligning strategic goals and human resources to enable the
“The right number of people. With the right knowledge, skills, and abilities in the right position”to achieve desired business results.
Reducing the randomness in organization’s processes by having readiness of appropriate resources within the company to adjust with the future needs of the organization.
Defining career paths, which will help the company recruit and retain better people.
Benefits of Succession Planning
Challenges of Succession Planning
Inability to consistently identify and develop pivotal talent
Managers devote up to 20% of their time on coaching but many times are ineffective: over half of their coaches feel they are ineffective at driving performance
Processes that are disconnected
• Failure to see succession planning as a living, ongoing business process that embraces market imperatives and integrates the identification, assessment and development of talent with long range strategic planning.
• Failure to align individual and organizational objectives to address the company strategy: only 41% of CEOs believe that their people understand the strategy sufficiently to inform decision-making.
Succession Planning Strategies
Linking the Succession Management System to HR department:
link it to Recruitment-Selection process and consider it during assessment and hiring process to ensure qualified candidates, therefore, selecting people who have the potential to develop important skills ensures the organization will have internal candidates qualified to step into leadership positions.
Preparing candidates for future organizational demands by providing appropriate training and developmental opportunities is a critical component of succession management.
Management commitment like any other organizational–wide program is critical for successful implementation of Succession Planning.
A study by Mehrabani & Mohamad (2011) “Identifying the Important Factors Influencing the Implementation of Succession Planning: the Case of Iran’s Private Banks”:
There are many factors influencing the implementation of an effective succession planning system in organizations.
The main purpose of this qualitative study is to find the most important ones in Iran’s private Banks.
The result of interviews with five key executives in five private banks in Esfahan – the second largest city in Iran- which all have the succession planning system in their organizations, indicate the factors as: training, management supports, clarifying the career path, creating a positive vision, strong organizational culture, technology advancement, flat structure and the financial conditions. While the lack of considering these factors is a threat to the system, the result of this study may help other organizations to consider implementing the succession planning system for better outcomes.
Another study by Nassor (2013) Sucession “Planning Among Commercial Banks in Kenya”
The aim of this study is to determine the nature of succession planning in commercial banks in Kenya. The banking industry is a volatile industry with cut throat competition for best talents and brains so as to gain competitive advantages. Furthermore, the study aimed at establishing the factors that influence succession planning in these banks.
A descriptive survey, a questionnaire was developed and sent to all the 43 commercial banks in Kenya for their respective employees to respond.
It is imperative for commercial banks in Kenya to take succession planning seriously and make it a continuous process that will ensure a pool of talent is available at any particular time for selection whenever a vacancy opens up.