Companies that involve their human resources department in their strategic plans will usually have a succession plan/strategy in place. This ensures that the business continues to function as seamlessly as possible in the event of a planned or unplanned departure of key employees in the organization. Although larger corporations usually have succession plans, at times they only focus on high level jobs, such as a CEO, and ignore the mid-level and other positions that are key to the successful operation of the company. A successful plan is not just for leadership and should be in place for all critical roles that an organization depends on, regardless of its size.
Smaller companies with less resources tend to work on a day-to-day basis and a “hope for the best” approach if and when a key player leaves the company. An example is the IT person, who has all your server passwords, logons to all your accounts, etc. How would you handle an abrupt departure of that individual?
Understandably, it’s more of a struggle for small businesses to tackle this problem as individuals sometimes already juggle multiple roles. However, the lack of a succession plan can cripple your business when the unexpected happens. Businesses often find themselves making a desperate hire, who most likely is not a good fit, and this hire process could potentially start over and over again until you hit the “jackpot”.
Here are some simple ways to put a succession plan in place:
- Ensure you have detailed job descriptions for all your roles. This is important as far too often we really don’t have a true picture of all the minute details that employees perform in their daily duties.
- Identify the key and critical roles that will require succession planning.
- Conduct employee skill assessments and explore the interests and aspirations of your employees. This will help you to identify areas of the company where you may be able to use their skills.
- Identify individuals who would be good as a “next in line” for key positions, and create development plans for those persons. Involve the employee(s) in your development plans and make sure to stay on track and monitor the progress.
- Consider initiating a robust cross-training action plan. This can help in two areas: 1. You may be able to transition a cross-trained employee into the open position, and 2. If you have a new hire and the individual they are replacing is already gone, it will give you the opportunity to offer efficient training and a good onboarding experience.
Keep in mind that while you are taking these great steps towards a good succession plan for your company, this is not a one-time document that you can lay to rest once completed. Instead the plan must be very fluid. As new talent joins the company, strategic plans may change and you will constantly adjust your plan according the needs of the organization.