The Need for Updating Succession Plans

A survey of more than 2,500 senior HR executives by consulting firm Novations Group has found that succession planning among American firms is not nearly where it needs to be.

Some of their findings:

• More than a fifth said that, even though they had succession planning in place, it was valueless because, as often as not, they ended up recruiting someone externally anyway.
• Another quarter admitted that, while there was work done on succession planning, it was only done in "fits and starts".
• 46% said that they updated their succession plans regularly, an absolutely critical requirement in a fast-changing, fluctuating business environment.
• 7% of firms admitted to having no succession planning in place at all.

BOTTOMLINE: Succession planning must be an integral part of an organization's annual planning process. However, the plan must be reviewed quarterly. When the succession plan is seldom updated, it's a symptom of a more fundamental problem.