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Succession Planning: Paving the Path to Future Success

If you’re part of the leadership of a very large or multi-national corporation, your succession plan may be firmly in-place.

You’re more likely to have a strategic map for what not only your current and short-term leadership looks like, but also how that will change well into the future.

There’s a reason large companies put in place strategic and comprehensive succession plans—they work.

Organizations willing to invest the time into future leadership planning tend to be more profitable and have more overall success.

Unfortunately, if you’re less than a massive corporation with resources allocated to succession planning, succession planning can easily be overlooked.

The question becomes, “how can we possibly look toward the future when we’re struggling to remain focused on day-to-day operations?”

Focus On Long-Term Goals

Despite the limitations of some organizations in terms of the resources they feel like are available to dedicate to succession planning, it’s incredibly important.

When you’re creating an overall talent management strategy, succession planning should always be part of this.

Important considerations include how you want your leadership strategy to align with your corporate goals.

Employers are charged with the task of understanding the true role of leaders within the organization, and then identifying potential talent who can fulfill these roles if it becomes necessary. It’s not just about identification however—it’s also about nurturing these potential leaders and developing them throughout their career so they become poised for success.

Internal vs. External Succession Planning

For companies willing to take on the challenge of succession planning, the question then often becomes whether or not to source talent from within or externally.

Studies, including a 2012 study conducted by a faculty member of the University of Pennsylvania Wharton School of Business, show organizations who focus their succession planning efforts internally are often most successful.

Despite the importance of tapping into internal talent, succession plans should also have flexibility in case this becomes an impossibility and it’s then necessary to identify outside individuals to fulfill leadership roles.

Ultimately, succession planning should be something that’s built into your talent management strategy, but also your corporate culture. As with so many things in the corporate and talent management realms, it’s something that begins at the top, so all of your leaders should be committed to finding and developing the talent of not just the present, but also the future.