Succession Planning is done for upper-level management positions and it requires senior

managers to identify employees who should be developed to replace them. Information

generated during succession planning may not be communicated to the employee. If potential
evaluations are made known to the employee and his superiors, this information can be used to
create a self-fulfilling prophecy. That is, if managers believe the employee has a high potential
for advancement, they may be more likely to evaluate the person favorably and promote him or
her more quickly than actual performance warrants. If succession plans are not communicated to
the employee, the organization runs the risk of a mismatch between employees career plans and
its plans for the employee. Making this information available to the employee can ensure that he
or she develops realistic career plans and reduces the chances that the person will refuse the
position.

One of the main properties of succession management is viewing the goal of the process as one
of creating a cadre of individuals who have the competencies needed to work on a senior
management team. Future competencies, in the form of a leadership template, are used as the
criteria toward which groups of individuals should be developed. The role of senior management
is not to identify specific individuals to replace them, but to identify developmental
opportunities, create challenging assignments that are central to the business and create a
team/network orientation, and mentor and serve as role models for those who are being
developed. (Human Resource Development, Desimone et.al.)

Succession Planning: How To Do It Right

Step 1: Fully engage your stakeholders. There are many stakeholders in succession planning,
and it is important that each be brought into the process in a timely manner.
Instead of the chief executive officer and head of human resources presenting their succession
plan to the board once a year, It is suggested that the process start by engaging the board in the
development of a forward-looking skills-and-experience profile for the CEO. The profile should
be a living document refreshed as necessary to take changes in strategy or market conditions into
consideration. It should also go beyond the traditional position description and delve deeply into
both the competencies and experiences required for the next leader. It can then be translated into
a dashboard for grading succession candidates in an objective manner.
By engaging the board first in setting the criteria and then in refreshing them each year, you
create buy-in and alignment in the eyes of the jury who will select the next leader. You force that

decision-making body to think long and hard about what the requirements are for the companys
next leader; often they are different from those for the incumbent. You need a fresh look at the
company by a board that is engaged and leading the process year in and year out, not just when a
crisis requires it to spring into action.
Step 2: Assess your internal candidates. Once your criteria are established, you should get a
baseline assessment of your internal candidates. I recommend that the board look wide and deep.
The entire top team should go through the executive assessment process firstideally by an
outside firmso that you dont single out favorites and start a destructive horse race. The next
layer of management should also be assessedor, in very large companies, a pool of high
potentials from that next layer down, where a dark-horse candidate can often emerge. Looking at
these different layers also exposes the board to its C+2 and maybe even C+3 executives. In some
instances this helps boards realize how shallow or deep the talent bench is and provides the
impetus to respond accordingly.
Step 3: Conduct a stress test and simulation. As in much in life, practice makes perfect when it
comes to executing succession plans. Once the criteria for the next CEO have been developed, it
is important that you measure your internal candidates against them across two time frames: a
short-term emergency time frame and a more planned succession in the medium or long term.
Here are the kinds of questions you must have answers for: First, is there an emergency
candidate who can take the reins for a time if the CEO were to leave tomorrow? This is often the
CFO, COO or a board member. Second, whom do we have to invest in today so that he or she
will be prepared tomorrow? Third, has the company developed a team strong enough to ease the
transition to a new CEO? And finally, is there in place a seasoned chairman or lead director who
is willing to coach and mentor a new CEO?
In some cases, it may become apparent there are no internal candidates about whom the
stakeholders are optimistic. Then the task becomes quite different. Now there is obviously real
risk to the company, and a plan for recruitment and development needs to quickly be put in
place. Boards faced with this dilemma are advised to go out and recruit new bench strength
below the CEO level. Bringing in a potential new CEO at a lower level allows the board to view
him or her at work for a period of time. Should such an individual prove capable as a successor,
his or her tenure in the company reduces the riskiness of the transition.
Step 4: On-board the successor. The most neglected step when it comes to succession planning
is preparing for what happens after the successor is named. Making succession a sink-or-swim

shock is simply too risky to endure. As I wrote in my previous article, Succession Planning:
How Everyone Does It Wrong, there is no such thing as a ready now candidate. Anyone
named as a successor has learning to do and mistakes to recover from. Part of the successionplanning process must be to take advantage of the time between the announcement and the
acceptance of the top job so that the leadership can address as many needs as possible. Crucial
support must be provideda good team, wise and accessible mentors, executive coaching and a
feedback-rich environmentto create a setting in which the new CEO can be the most effective.
Boards canand really mustplay an important role in succession planning. Directors must be
aggressive and unwavering in their efforts to make the process as real as possible. Honest
external evaluation of current talent and a system to develop a rich talent pipeline are just two of
the areas where diligent board involvement can make a big difference. In this effort, directors
have to remember that the search for a ready now candidate is a fools errand.
Similarly, what is most critical is creating and continually refocusing succession on the moving
target of the knowledge, skills and abilities the next CEO will need in order to effectively lead.
Finally, directors need to design their succession planning not just to choose the new executive
but also to provide support as he or she finds his or her legs in the new role.
(Source: Stephen A. Miles http://www.forbes.com/2009/07/31/succession-planning-rightleadership-governance-ceos.html)
Succession Planning - A 5 Step Process
Step 1: Identify critical positions
Critical positions are the focus of succession planning efforts. Without these roles, the
department or agency would be unable to effectively meet its business objectives. Workforce
projection data or demographic analysis is essential in identifying risk areas. A risk assessment
may also be conducted and compared to current and future vacancies to identify critical positions
within your organization.
Step 2: Identify competencies
A clear understanding of capabilities needed for successful performance in key areas and critical
positions is essential for guiding learning and development plans, setting clear performance
expectations, and for assessing performance. By completing the process of competency or
position profiling within your organization, current and future employees gain an understanding
of the key responsibilities of the position including the qualifications and behavioural and
technical competencies required to perform them successfully.

Step 3: Identify succession management strategies

Now that critical positions have been identified and have been profiled for competencies, the
next step is to choose from a menu of several human resource strategies, including developing
internal talent pools, onboarding and recruitment to address succession planning.
Step 4: Document and implement succession plans
Once strategies have been identified, the next step is to document the strategies in an action
plan. The Succession Planning: Action Plan provides a mechanism for clearly defining timelines
and roles and responsibilities.
Step 5: Evaluate Effectiveness
To ensure that the department or agencys succession planning efforts are successful, it is
important to systematically monitor workforce data, evaluate activities and make necessary
adjustments.

(Source: