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Succession Planning

5 Keys For Building A Solid Succession Plan

Succession planning is good for the health of your organization. It ensures you are prepared to fill vital roles in your organization should people leave unexpectedly or otherwise, and it engages and helps retain your best employees.

Succession planning is good for the health of your organization. It ensures you are prepared to fill vital roles in your organization should people leave unexpectedly or otherwise, and it engages and helps retain your best employees.

Succession planning should be done openly and honestly. Keep channels of communication open to those involved so they understand the process and why it’s important to them and the organization. Use it as an incentive to engage your best employees and earn their loyalty.

1. DO A SUCCESSION AUDIT

During a succession audit you’ll need to take stock of a few different things. Look at the management positions you have, the vital roles in your organization that need to be filled for you to function successfully, how many of those positions have successor already inside the organization? For each role, consider which employees are ready to step into that spot if the current person left and which would be ready with some training or mentorship.

This isn’t just a brainstorming activity; put it in writing. 

2. COLLABORATE WITH YOUR LEADERSHIP TEAM

This audit shouldn’t be done in a vacuum; collaborate with your leadership team, the people in those vital roles who would need to be replaced. Those employees currently in the roles will have a good perspective on what will be necessary to replace them as well as who in their departments shows leadership potential. Collaboration with the team will also lead to a stronger understanding of what is needed, who is needed and how to carry out the succession plan through career development.

3. COMMUNICATE YOUR SUCCESSION PLANS TO INVOLVED EMPLOYEES

The best way for your employees to find out you value them and want to see them grow with your organization is to tell them. Make it clear that they have a place to grow and challenge them along the way while training them for their move. Send them to leadership programs, assign them mentors, allow them to job shadow, expose them to others who can help or coach them, give them opportunities to let you know what they want to learn. 

Knowing you have an active and healthy succession plan will motivate all your employees who want to be a part of it. This will resonate especially well with Millennials. Communicating your plans to give them increased responsibility will make them feel appreciated. Programs to help them grow will keep them engaged, and communicating openly with Gen Y shows them that you practice transparency, something they value.

4. KNOW WHERE ELSE TO LOOK

Not all vacancies can be filled with internal candidates. It’s important to bring in new employees outside of your organization who have different ideas and a new perspective. Know who you can trust to help you recruit new talent before the need arises. Use social media sites like LinkedIn to keep track of prospective employees.

5. REVIEW YOUR SUCCESSION PLAN REGULARLY

Let’s face it, things change. Your business evolves and your organization’s needs shift. It’s important to make sure your succession plan evolves and shifts with your organization and the right employees are receiving the proper development. Regular review will give you an opportunity to make sure your plan is realistic and working.  How often you review the plan depends on how quickly things change, but at least twice a year is a good goal.

Planning ahead and giving your future leaders the training they need now will strengthen your organization in the future, not only because you’ll have the best employees, but also because you’ve developed a relevant strategy to keep pushing your company forward with strong leaders.

Zs came of age in an era of disruption

In many ways, it’s symbolic that Generation Z is named after the last letter in the alphabet because their arrival marks the end of clearly defined roles, traditions, and experiences. After all, Gen Z is coming of age on the heels of what has been referred to as the most disruptive decade of the last century. America has become an increasingly changing and complex place.

For example:

  • ‍Zs were born into a “modern family era” in which highly involved dads help out at home, and the nuclear family model (two parents, married, with children) represent only 46% of American households.
  • ‍Zs are the first generation to be born into a world where everything physical, from people to places to pennies, has a digital equivalent.
  • From the time they were infants, Zs had access to mobile technology. As a result, their brains have been trained to absorb large amounts of information, and Zs are especially adept at shifting between skills and subject matter.
  • Zs tend to have crystal-clear memories of sitting up for the first time at six months old because they can easily and quickly reference the photos and videos their parents shared on social media or saved in the “cloud”. 

Members of this generation have undoubtedly been shaped by crisis and disruption. This generation will largely be responsible for confronting the aftermath of the Great Recession, high youth unemployment, the effects of climate change, terrorism, energy sustainability, and more. These dark events have undoubtedly made this generation more cautious and pragmatic, but they have also provided this generation with the inspiration to change the world – and their grit will likely allow them to do it.

Coming of age during disruption means that most Zs will be comfortable being the disruptors. While Millennials tend to be collaborative and innovative, this generation tends to be sincere, reflective, thick-skinned, and self-directed, and will likely approach work in much the same way.

Zs were raised to be competitive

In the era following World War II, Boomers (1946-1964) were born and eventually became the wealthiest, most prosperous generation in history. Raised to aspire for the American Dream, this very large generation moved into positions of power and influence, and served as the workforce majority for 34 years.

With the American Dream alive and well, Boomers had no reason to teach their children, mostly Millennials, about competition. Instead, they taught them to focus on academic achievement and to be team players because if everyone works hard, everyone can win.

Enter Generation X (1965-1981). In contrast Boomers, Xers came of age during a time when change and economic and political uncertainty began to take root. They have lived through four recessions, struggled with debt and economic decline most of their lives, and watched the best educated and accomplished generation of all time (Millennials) graduate during the Great Recession and become the most debt-ridden generation in history.

Gen Xers can be defined by their independence and anti-status quo approach to life, and they have taught their Gen Z children to be competitive, believing only the best can win. They have encouraged their children to be realists, finding something they are good at and aggressively pursuing it.

Xers have raised their Zs with an intense focus on competitiveness -- in academics, sports, and other activities. This approach to parenting has many implications, but one stands out in terms of business: Gen Z is likely to lead.

Millennials in the workplace created and aggressively advocated for collaborative work environments. In fact, their aversion to leadership has been so strong, some Millennials sought out companies that boasted boss-free or team-managed workplaces.

In contrast, Zs have been raised with an individualistic, realistic, and competitive nature. They have been taught the skills to successfully defy the norm. This means we’re going to see the pendulum shift away from collaborative workplaces towards a widespread demand for, and pursuit of, leadership development.

Zs are career-focused.

While Millennials have been criticized for their “delayed adulthood”, Gen Z is showing signs of “early adulthood”. Educators and parents often describe this generation as being more serious and contemplative about the world. Zs are thinking about their career paths and exposing themselves to career training at an earlier age than Millennials. It’s probable that some of this early onset of adulthood is caused by parents, who are pressuring their children to be competitive and successful and to avoid the debt that plagued both the Gen Xers and Millennials.

The numbers from our global research found 46% of Gen Z said they know what career to pursue and 51% have taken a class at school focused on their career interests. Forty percent joined an extracurricular program (team, club) based on their career interests.

Zs are seeking financial security. 

Zs have been shaped by the aftermath of the Great Recession. They watched Millennials become debt-ridden and are concerned about falling into the same trap. XYZ University’s survey results show 66% of Zs said financial stability is more important than doing work they enjoy, which is the exact opposite of Millennial survey results.  Also, 71% of survey-takers have a paying job.

Zs value leaders who are positive and trustworthy.

When presented a list of leadership traits, Zs ranked positive and trustworthy the highest. While Millennials and Gen Zs both value trust in a leader, Millennials usually cite collaboration and vision as most important. In other words, Millennials focus on the outcomes leaders inspire, whereas Zs are more likely to consider leaders’ attitudes and personalities. To Z, what leaders encourage others to do isn’t as valuable as how they make them feel.

 

Zs want to be challenged.

Both Millennials and Gen Zs place a very high value on feeling challenged and appreciated in the workplace. However, according to our survey results Millennials rank appreciation slightly higher than challenge, whereas Zs rank feeling challenged slightly higher than appreciation.

Time will tell how Zs go down in history, but we know this generation’s influence on history will be unlike any other.

 

Does your organization have what it takes to engage the next generation? Take this quiz to find out.

 

Sarah Sladek is CEO of XYZ University. Our generational intelligence can assist you with engaging and retaining young talent and members.

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