Of those North American companies that have management succession plans barely half update them on a regular basis, according to a new survey of more than 2,500 senior human resources executives by Novations Group, a global consulting organization based in Boston.
How would you characterize succession planning at your organization?
Our succession planning is regularly updated. 46%
Our succession planning is done in fits and starts. 25%
Our succession planning is in place, but as often as not we recruit from outside when there is a senior-level opening. 22%
Our succession planning hasn’t gotten off the ground. 7%
Succession planning is increasingly recognized as a top corporate responsibility, said Novations Executive Consultant Michelle Knox. “Many companies find themselves in a never-ending cycle of recruiting, which costs a great deal in terms of dollars, engagement and productivity.”
According to Knox, the real issue is succession management, not just planning. “Companies think that because they have a plan they’re all set, but the challenge is broader and needs to fit into a process that supports ongoing talent development, not only the need to quickly fill an empty slot.”
In organizations that do succession management well, Knox said, the entire process is owned by the executive team and executed by HR. “And it’s aligned with corporate strategy and all human capital systems. Instead of a single individual slotted to fill a particular position, talent pools are created and members are given access to the tools and resources to be responsible for their own continuing development.”
Another best practice, that also reflects transparency is allowing individuals to nominate themselves, said Knox. “Their development needs may then be evaluated, a development plan created, and they both give and get feedback on progress made. “Of course, this means senior leaders are checking that progress throughout the year.”
But at the majority of companies succession management hardly reflects best practices, Knox noted. “When the plan is seldom updated it’s a symptom of a more fundamental problem.”
According the survey, about three-quarters of organizations conduct some type of succession planning, a finding consistent with recent studies.
Novations Group is a leading provider of consulting and training services on four continents. For more information, visit www.novations.com
