Corporate Succession Planning: What You Need To Know

A recent study released by The Institute of Executive Development (IED) shows corporations are in trouble when it comes to succession planning and the C-suite. Only 25% of those surveyed had a pool of candidates that could succeed the current CEO. The study also found that succession plans in general are not transparent and less systematic than one might expect. The study found that only 46% of respondents have a formal process for developing successors for key positions. These survey results are alarming.

A recent study released by The Institute of Executive Development (IED) shows corporations are in trouble when it comes to succession planning and the C-suite. Only 25% of those surveyed had a pool of candidates that could succeed the current CEO. The study also found that succession plans in general are not transparent and less systematic than one might expect. The study found that only 46% of respondents have a formal process for developing successors for key positions. These survey results are alarming.

Here’s what you need to know:

THERE’S A WORKFORCE CRISIS COMING

We’re heading into a workforce crisis. Baby Boomers are retiring at an average of 10,000 per day. Successful succession planning is more important than ever. Finding new leaders to move into key roles when talent retires or moves on affects a corporation’s ability to remain globally competitive and economically stable.

The situation is urgent. Succession plans take time and if you’re among the 54% who don’t have a formal process in place, the clock is ticking. It’s time to ensure you’ll have the talent, expertise and leadership you need for the future.

SUCCESSION PLANNING NEEDS STRUCTURE

The IED study showed that even in companies where the value and strategy behind succession planning was understood, in many cases, no clear plan existed. A successful plan involves the board of directors, senior management, support staff and HR. Each of those departments needs to have structured actionable duties specifically geared towards succession planning for it to be successful. You need to assign ownership and responsibility for your succession plan.

It needs to be clear to employees how they can get ahead, if they are potential leaders and what they are working towards. Gen Y employees especially are constantly looking for ways to move forward. If they don’t feel like they are being taken seriously and have a way to move up, you might lose your best talent and future leaders.

YOUR FUTURE LEADERS MIGHT LOOK DIFFERENT

The workplace and the workforce is changing. What’s right for your corporation now might not be what it will need in 10 or 20 years. Succession planning requires understanding what leadership skills you will need for the future and identifying where those leaders are today.

THE TIME IS NOW

Succession planning is an ongoing process. If your organization isn’t doing enough to prepare for future leadership, the time to update that process and put a viable succession plan into practice is now. There’s no time like the present to focus on the future.