Succession planning, along with workforce performance management in general, is increasingly regarded as a significant influence in determining the success of an organization. If it is undertaken effectively, you can ensure that your organization has capable and trained managers to guide its growth.
So what are the benefits of an effective succession planning process?
- A study of more than 100 companies found that organizations that routinely use a formal succession planning process to help workers advance, are also consistently high-performing firms, as measured by total shareholder return. (Source: Hewitt Associates, November 2003)
Unfortunately, many people think of succession planning too narrowly, as if it were something done only to plan for CEO transitions, emergency contingencies, etc.
- Succession planning is a part of the process of preparing for the future of your company.
- Succession planning is a learning process.
- A succession plan is also a documented road map.
- Succession planning is about sustaining your firm throughout constant change.
Kramer Enterprises is an example of a company in transition. They've adopted the Six Disciplines program to help them with the challenges of succession planning. Read about them here in this Wall Street Journal article.