TOPICS COVERED
Succession Planning
Need for Succession Planning
Advantages of succession planning
Process of Succession Planning
Succession Planning- Meaning
Succession Planning is defined as the systematic process of recognizing and creating future leaders
who are able to take the position of the old ones when they leave the organization due to
retirement, resignation, termination, transfer, promotion or death.
In finer terms, it is a modern technique followed by many companies that concentrates on
identifying the prospects, out of many employees in the organisation, who might be possible
successors, for the key positions.
Succession planning can be defined as a process of selecting and grooming employees for higher
positions within the organization. It enhances the organizational capability by providing experienced
and competent individuals for senior level roles that are critical for the company.
Need for Succession Planning
Succession Planning is a part and parcel of the Human Resource Planning, which acknowledges that
the employees may or may not work with the organization in the future. And so to be at the safer
side, a succession plan is developed to analyse the vacancies which might take place when an
employee leaves the organization, the business areas which might be affected, job requirements and
the skills of the existing incumbent.
Hence, there is a need for strategic planning, to determine where and how viable employees can fill
the vacant positions.
Objectives of succession planning
To create organizational data that can be used for staffing decisions.
To identify employees with high potential so that they can be trained to assume higher
responsibility
To provide assignments and opportunities for high potential employees so that they get
the necessary exposure to groom themselves
To involve senior leaders of the organization in grooming these identified employees
To improve employee loyalty and engagement
To cater to the career development expectations of the workforce and thereby enhance
their commitment to the organization
Advantages of succession planning
It is an effective way to connect the organization’s Vision, Mission and corporate
objectives to the human resource strategy and plan
It is an effective way of ensuring that the organization is prepared in case of any
planned or unplanned exit of employees at senior levels.
It ensures that there is a process to prepare employees for higher roles
It demonstrates the organization’s commitment to career management of its
employees
It helps the organization in choosing the right set of candidates that will fit into not
just current job roles but also from a futuristic perspective
It expresses a sentiment that the organization cares about its employees and about
their careers.
Process of Succession Planning
1. Identifying Key Business Areas and Positions:
First and foremost, the key business areas are identified, 1.e. the areas which are significant with
respect to the operational activities and strategic objectives. After that, those positions are identified
which if vacant can cause difficulty in achieving business objectives.
2. Ascertaining Competencies for Key areas and positions:
Next, you need to determine the required competencies for key business areas and position, in
order to create the selection criteria, establish performance standards and fill the difference
between what the viable successors know and what they need to know, through the training and
development process. It determines the knowledge, skills, ability and experience required to achieve
business goals.
3. Find out the interested and potential candidates and assess them as per the competencies:
After competency is analysed, the next step is to identify among various employees working in the
organization,who are interested as well as they have the capability to fill key business areas and
positions. The Human Resource Manager discusses future career plans and interests with the
candidates and identifies the potential successors who are ready to replace the old ones and can be
trained and developed for future contingencies.
4. Develop and Implement Succession Strategies:
Strategies for learning, training, development, knowledge transfer, experience sharing is developed
and implemented for potential successors.
5. Evaluate Effectiveness:
The last step to the succession planning process is to evaluate the succession planning and
management, to ensure that all the key business areas and positions are covered under the
succession planning. Further, it also ensures that in case of any sudden vacancies in future, key
positions can be filled as soon as possible, and the successors perform effectively when they hold the
position.
Therefore, Succession Planning is all about developing a leadership substitute, for a perpetual
succession of the organization without any kind of disturbance, when there are changes in the top
management.
An ideal Succession Planning is one that involves the participation of the top management, a
thorough review of the plan developed, evaluation of the performance and capability of the
candidates and each candidate is provided with the written development plan.