What is Succession planning
Definition: Succession planning is a process by which individuals are scanned to pass on the leadership role within a company. The process ensures that business continues to operate efficiently without the presence of people who were holding key positions as they must have retired, resigned, etc.
Description: Succession Planning, specifically termed as Management Succession Planning, involves coaching and development of prospective successors or people within a firm or from outside to take up key positions in an organisation through an organized process of assessment and training.
It ensures a smooth transition of power in key leadership roles. If the successor is chosen within the organisation, it will help motivate the employees, and also save on cost and extra time which the management would have spent in scanning candidates from other firms.
There are four main stages in the succession planning process, which involve transition (movement of new role), initiation, selection, and education.
Let¡¯s look at each phase. In the first phase of ¡®initiations¡¯, potential candidates for the job learn about the business, more importantly about its value system, guidelines, values, vision, etc. Here the CEO or any top leader of the organisation talks about these key things to the candidates.
The second phase or ¡®selection¡¯ is a complex task, where a specific candidate is chosen to be a successor among other candidates who were running for the same job. In the third phase of ¡®training¡¯ involves an exhaustive training scheduled for the successor so that he can meet the goals of the organisation as well as returns for the shareholders.
In the fourth and the last phase of ¡®transition,¡¯ the business owner or the CEO retires or moves out of the organisation, and the chosen successor formally takes up the responsibility as his/her new leadership role.
Description: Succession Planning, specifically termed as Management Succession Planning, involves coaching and development of prospective successors or people within a firm or from outside to take up key positions in an organisation through an organized process of assessment and training.
It ensures a smooth transition of power in key leadership roles. If the successor is chosen within the organisation, it will help motivate the employees, and also save on cost and extra time which the management would have spent in scanning candidates from other firms.
There are four main stages in the succession planning process, which involve transition (movement of new role), initiation, selection, and education.
Let¡¯s look at each phase. In the first phase of ¡®initiations¡¯, potential candidates for the job learn about the business, more importantly about its value system, guidelines, values, vision, etc. Here the CEO or any top leader of the organisation talks about these key things to the candidates.
The second phase or ¡®selection¡¯ is a complex task, where a specific candidate is chosen to be a successor among other candidates who were running for the same job. In the third phase of ¡®training¡¯ involves an exhaustive training scheduled for the successor so that he can meet the goals of the organisation as well as returns for the shareholders.
In the fourth and the last phase of ¡®transition,¡¯ the business owner or the CEO retires or moves out of the organisation, and the chosen successor formally takes up the responsibility as his/her new leadership role.
