In the following discussion, the succession planning manager of a $30 billion global equipment manufacturer describes how his organization identified significant shortcomings in its succession planning process and how Authoria Succession helped resolve them. With some 70,000 employees worldwide, the company was already doing a better job of succession planning than most, but discovered several key opportunities for improvement.

How had succession planning traditionally been done at your company?

Our approach to the process was like that of many companies. We had a fairly robust approach to succession planning for each major functional area, including accounting, engineering, marketing, operations, and so on. But the process for each area was isolated. Effectively, this was a significant barrier to cross-functional development and promotions. Also, promotions and career development opportunities depended, to some extent, on the "old boy network" that exists in every organization, so advancement opportunities weren't as objective as they might have been.

What approach did you take to identify opportunities for improvement?

We used the Six Sigma methodology to conduct a comprehensive assessment our approach to succession planning as a global enterprise. The process revealed multiple opportunities for improvement, many of them substantial.

What were some of the more significant problems?

We are a globally diverse organization with tens of thousands of employees and, as mentioned, our succession planning was isolated by functional area—something that was often a hindrance to cross-functional development and advancement. So, we saw a real need to integrate these disparate processes into a single unified approach that would span the entire enterprise.

Another problem was the out-dated HR technology we were using. Under the former system, employees manually updated their respective HR information and forwarded to a central location for data entry. Many were unhappy with the results that sometimes showed omissions the employees believed were particularly pertinent to their advancement. Although it got us by, it was an archaic process. Without access, employees could not easily verify and update their information, and management consequently was left to make decisions based on imperfect or incomplete information.

Our succession planning, like that of many companies, had also been done behind closed doors. But this, we discovered, prevented us from enjoying the significant benefits a more open approach provides. A succession planning environment that is more open and in which information is shared on some level instills greater confidence in employees and investors. Both feel better knowing the organization's senior leadership is addressing such issues as bench strength and the talent "pipeline" at 10, 15, and 20 years from now.

Information and systems inconsistencies are also a problem many organizations face. Was this
true as well?

Without any question. Systems, processes, and approaches inevitably evolve over time. So, to the degree there are multiple systems, the inconsistencies multiply. This makes it difficult to compare individuals from different parts of the organization and to fairly evaluate promotability without regard to location. As a result, the organization occasionally might not be able to identify who is really the best candidate for a certain position.

What other needs were you able you identify?

The process confirmed that, while our succession planning was quite good at higher levels of the organization, we weren't giving enough focus to developing our younger pool of talent. This is important not only to motivating and retaining talented individuals, but also to providing the time and specific learning experiences many positions and our organization require.

As an adjunct to this, we also needed a better process for creating career development plans to fit individual employee needs and goals along with a way to track their progress. This would help ensure we provide development experiences that are appropriate to both individual and organizational needs.

Also, because our greatest potential for growth is currently in the international arena, being able to consider qualified candidates from anyplace within our worldwide organization when a position needs to be filled is extremely important. In the past, this was extremely difficult to do.

How is technology helping you address these issues?

Once we had clearly defined our needs and reached consensus on the direction we should pursue, we evaluated the currently available HR solutions and found Authoria Performance and Authoria Succession offered the best fit for our organization. Together, these not only address all of our performance needs remarkably well, but we've also been able to extensively customize their look and content. So, they not do what we need them to, but employees are comfortable and confident in using them because they look and feel like part of our company.

Has the succession planning process really changed, and if so, how?

Yes and no. We already had the basics of a good succession planning process in place, so the fundamentals didn't change significantly. But we did substantially expand the process and raise it to a much higher level— something new technology enabled us to do with much less effort than we'd expected.

Now, for example, the process begins with employees who have access to the system and are trained in its use. They periodically review their own data files and provide information about where they've been, what they've done, and where they want to go. It's a sort of internal resume that helps us gain a better appreciation of who they are and who they'd like to become. This information is then reviewed and validated by their supervisors who then add their management perspective about the employees' potential, career path options, and readiness for advancement. This information is subsequently reviewed at higher levels and to generate candidate lists for key positions throughout the organization. Supervisors also use the information to assist employees in career planning and management development.

From the senior management perspective, the technology also has several major advantages. Most importantly, we have much better insight regarding the present status of succession planning everywhere and at every level in the company so we can address gaps anywhere in the process well before they become problems. And, we can now consider all qualified candidates for a position from anywhere in the organization worldwide. So, Authoria

Succession helps us assess the strength of our management "pipeline" throughout the organization, whether it be mid-level accounting positions in the U.S. or product management position overseas. This helps us identify where to focus internal development and recruiting efforts to maintain bench strength and competitive advantage from the talent management perspective.