TMTR People Solutions
Why Do Organizations Need Succession Planning Today?
Succession Planning is the catchphrase in these times, especially in the corporate sector. Imagine one day to find a company without a CEO in place? Most companies would find themselves in the soup in the face of such a contingency! Yet it is alarming to read the fact that more than 50% of companies with a turnover in excess of 500 million dollars don't seem to regard Succession Planning as somewhat vital to their existence.
So why has Succession Planning assumed so much of importance in today's time?
- Succession planning for perpetuity: Succession planning is what adds to the longevity of a company. It is elaborate planning to ensure that there are no vacant gaps in an organization’s hierarchy at any point in time by taking a broad overview of the various roles, functions and hierarchies present and viewing them against the spectrum of competencies.
- Effective situational judgement: Assessment succession planning tried to answer all the ‘IF’s that are conceivable in an organization’s and employees’ life cycle. At any given point there is always someone being recruited, promoted or fired. With an effective succession plan, the planning department can accurately give a situational judgement analysis greatly aided by technology to actually plot out the employees' transition in all possible directions vertically, laterally, inside and out! This ensures that the right man with the right competencies will always be at the right place and most importantly, at the right time!
- Improves investor confidence: Investor confidence i.e. all the stakeholders in a company can react quite sharply to any situation threatening their interests. Ultimately, a company is always answerable to its shareholders and it does make sense to have a formal succession plan in place, so that its image in the public eye remains untarnished. Many a company has had sudden reversals of fortune from a lack of a concrete CEO Succession plan in place.
- Enables a culture of nurturing: Succession planning makes for a culture that grooms people to fit in to bigger shoes. It pin points talent within the company rather than have to recruit people from outside and actually helps them develop competencies which is a win-win situation for all concerned. For the company it means considerable savings in term of costs and the time involved in finding new resources. For the employees, it can mean development of skill sets and a smooth transition up the pecking order.
For a succession plan to succeed, one mustn't forget the human touch, i.e one must also look beyond mere statistics, grids and matrices and rely on good old human judgement as an indispensable prognostication tool.
Written On : 2017-09-29 17:27:33