Executive Summary: Leading experts estimate that 85 percent of companies either do inadequate succession planning or fail to do it entirely.
Consequently, they leave themselves vulnerable to the unexpected loss of vital managerial talent, critical proprietary knowledge, and scarce technical expertise. The reasons suggested are many, but most stem from the enormity and scope of the succession planning task that eventually leads many organizations to abandon the effort or limit it to select roles or individuals. These gaps in succession planning practice will couple with demographic changes as experienced employees near retirement over the next decade to present organizations with a troubling scenario.
Leading experts estimate that 85 percent of companies either do inadequate succession planning or fail to do it entirely.
This paper discusses the key aspects of succession planning, including why it is essential to long-term success, the inherent value of adopting a proactive approach to talent management, and the major challenges comprehensive succession planning presents. It also explores the critical link between succession planning and management development. Ultimately, the best succession efforts will be of little value unless they also identify promising talent and establish methods to grow those individuals to support organization needs. A plan is also flawed if it does not include steps to prevent talent from leaving the organization.
Because succession planning and management development initiatives must extend deeply into the core of an organization to be fully effective, it is generally essential to include a substantial number of employees. To support an effort of such broad scope, significant quantities of sensitive, continually changing employee information must be carefully managed—a frequently daunting challenge. Today, however, new HR technologies can largely eliminate this burden while adding significant benefits in many related areas. The paper also presents important criteria to consider in seeking a solution that will fit an organization's unique needs.
The conclusion presents an executive discussion that reveals the firsthand experience of an industry-leading company in developing and implementing comprehensive succession and management development plans that are widely viewed as exemplary.
