To my readers: Lately, I’ve been split between writing about either training or healthcare. This blog currently switches between topics until I build a second website. Thank you for your viewership during the transition.
I used the term “succession planning” a few weeks ago when I wrote about preserving the knowledge of the baby boomers who are retiring.
A colleague said he found my use of the term “succession planning” confusing. He said I was talking about “generational knowledge transfer”, not “succession planning.” That led me to get more specific about describing the role knowledge management and generational knowledge transfer play in an organization’s survival.
When we think of succession planning, what jumps to our minds first? People! Specifically, who will replace the current leadership? Who will replace all the valuable people who keep the place running smoothly and deliver value to the customers? Those are the people for whom you need to find acceptable replacements, and those positions need to be in your succession plan.
However, the emphasis in the blogs has not been about the people but rather the content of what constitutes success in those positions – whether it is the knowledge, skills or attitudes of the current successful occupants of those roles. Specifically, we’ve been discussing what needs to be preserved, not who needs to be prepared, and therein lies the difference.
So I did a little (emphasis on little) reading on Succession Planning.
Dr. Marshall Goldsmith is one of the leading lights in this field. In an article in Harvard Business Review in 2009, “4 Tips for Efficient Succession Planning”, Dr. Goldsmith discusses work he has done with the former CLO of three major companies. They say, on average, “executives give their succession planning a grade of C+ and they give their execution of succession plans a grade of D.” The reason? Plans don’t develop anyone.
Defining Terms
Let’s see if we can find some acceptable definitions of succession planning. I am feeling lazy, so I will turn to Wikipedia for a definition.
Succession Planning: A process for identifying and developing internal people with the potential to fill key business leadership positions in the company. Succession planning increases the availability of experienced and capable employees that are prepared to assume these roles as they become available.
As I dig down into this Wikipedia entry, I find the golden egg. Here it is: Over the years, organizations have changed their approach to succession planning. What used to be a rigid, confidential process of hand-picking executives to be company successors is now becoming a more fluid, transparent practice that identifies high-potential leaders and incorporates development programs preparing them for top positions.
The entry goes on to say today’s succession planning is part of a holistic strategy called “talent management”.
It’s the talent management where the knowledge transfer takes place.
Holistic Strategy
In its actual definition, succession planning is a term used to describe identifying and preparing people to fill critical positions in an organization. Who’s ready? Now? Later?
…which, of course (!), brings me to a joke that someone told me recently.
Stuffing the Three Envelopes
A new CEO was put in place. Upon the transfer of responsibility, the new CEO asked his retiring predecessor, “What do I do if things become difficult? Where do I turn?”
The old CEO confidently told the new one, “Hey, don’t worry about anything. I have placed three envelopes in your top desk drawer numbered one, two and three. If you run into trouble, open the first envelope and it has clear instructions for what to do. If you run into trouble a second time, open the second, and so on.”
Whew. The new guy felt pretty confident knowing the answers were in his desk.
So, after about six months, the new guy ran into his first intractable problem. After sweating it out and doing all the logical things he knew to do to steer the company out of trouble, he decided to open his top desk drawer and seek wisdom. He opened the first envelope. It simply said, “Blame your predecessor.”
The new CEO enumerated his predecessor’s shortcoming to his staff, employees and the board of directors.
Worked like a charm.
Another year goes by…second intractable problem…same route of traditional problem solving to no avail. He goes for the second envelope. It says, ‘Blame the economy.”
He creates a slide show that describes in painful detail the sad state of the global economy and particularly how it has impacted their industry. He presents his data to the board.
Works like a charm again.
Third intractable problem…falls back on everything he learned in B-school…can’t solve the problem. Goes for the third envelope. It says, “Make three envelopes.”
Ba-dum-bum.
In the holistic world of talent management, I am suggesting that great succession planning stuffs the envelopes.