We know that an organisation’s people will drive its success and, in a competitive market in particular, being able to manage your talent is fundamental. In order to do this, HR practitioners need to have a plan in place to fill critical roles after individuals leave your company. However, there’s often a real struggle to get this right. In fact, at Ochre House, we recently spoke to senior HRD’s from international organisations on this topic. We found that the majority had a succession plan in place, but a worrying 40% didn’t feel it was fit for purpose.
Inadequate succession plans can have a detrimental effect on a business. In order to address this issue and lead the way for successful succession planning, we held a think tank where 20 senior HR professionals drilled down into the key challenges and solutions. So what is it that’s really holding HR teams back?
Before we can look at a solution, it’s important to first be clear on the challenges. The delegates identified a number of barriers to success. Firstly, there’s a problem for many businesses when it comes to defining what a plan actually encompasses. With no clear description of what a succession plan should cover or what roles need to be incorporated, it can be a real struggle.
Another common theme identified was that there was a lack of transparency. It’s often assumed that high potentials are engaged and therefore ready to fill more senior roles after the loss of key talent. However, as was highlighted in the think tank, there are instances when those individuals who are part of the succession plan haven’t actually been consulted.
There’s also a question around where the responsibility for succession planning should lie. All too often it sits with the HR team, with little involvement from the top. But it’s actually the business leaders and line managers who are best placed to define what skills are needed, and without their input it’s near impossible for a succession plan to work.
So what should HR professionals be doing to drive change?
In order to begin to break down these barriers, communication throughout the organisation is key, and a more bottom up approach is fundamental. This level of transparency is something that really works for us at Ochre House, and we’ve recently found success with our ‘Passport’ initiative. Here, each employee has a ‘passport’ identifying where they are at present, their opportunities for growth, as well as how they can progress. Working with their line manager, the individual has their passport stamped as they demonstrate a new skill, making it clear to identify who is ready to move into a role and also look at where any gaps lie.
It’s also important to recognise that succession planning isn’t just about filling roles. In order to be truly strategic, it’s important to be developing individuals into these new positions through talent management, and building on their skills and competencies.
While we still have a long way to go before succession planning is truly strategic, it is possible to drive change by implementing some fairly simple steps. It’s not purely the responsibility of HR professionals, but you do need to recognise the barriers in place and push for changes to be made if you are to attract and retain the best talent.