Technology solutions provider Technossus explores succession planning and how organisations can effectively do it when those in as impactful a role as a chief information officer is set to leave.
Staff turnover in businesses is an inevitability. Employees come and go, and even with robust retention, everyone eventually reaches the age of retirement. It is therefore necessary to prepare for the future of the business through succession planning, which means filling the roles vacated by those departing becomes a smoother process.
Although this challenge is associated with all C-suite roles, it is particularly complicated for the role of the chief information officer [CIO].
Why is this? When a CIO retires, there is a sudden loss of expertise and knowledge in a role that in recent years has vastly changed. CIOs have dealt with the older digital systems and technology platforms that are no longer used, and it is something a successor might not have.
Firms must therefore realise that they can avoid this possible crisis by taking care of this change while the existing CIO still holds the position.
What is succession planning?
Succession planning is a business strategy that organisations use to pass leadership responsibilities to another employee or multiple employees. It ensures that the organisation continues to function smoothly when a prominent person moves out of it. It gives them time to transfer knowledge and ensures that organisations are prepared by advancing or promoting employees at not only the executive or marketing levels.
This plan is not a one-time event, and, therefore, should be updated or re-evaluated every year as changes take place within the organisation. When an internal replacement takes place, organisations can train their employees to take control as things change.
Generally, the board of directors looks after succession planning in a bigger organisation. They train mid-level employees to occupy these positions. In a family-owned or a small business, succession planning means training the next generation to overtake the role.
What is the best way to approach succession planning?
Some useful techniques are included below:
- Incentivise and recognise leaders that develop others: Although this is a vital step, companies generally take a manager’s ability to develop others for granted. It should be seen differently, and a company should let a manager train people for different roles across different streams. It links directly with the succession planning readiness results.
- Engage all stakeholders who will be affected in the succession planning process: The HR [Human Resource] team should not own the process, but leaders from the business team should drive this method. HR should be there to facilitate the process and allocate useful tools required by the management team. Engaging stakeholders, especially those among senior leadership, is also necessary. They should conduct interviews, take surveys, and attend focus groups.
- Conduct talent assessments at least once a year: This process should not be considered as a static event but a process that constantly changes and evolves. The plan becomes outdated as soon as it is created, so you must review talent consistently. Companies should consider using validated assessment tools like competency-based tools that assess skill, interests, and abilities, 360-degree feedback, and review past performance evaluation data. It will help you understand an individual’s strength in a better way, and you can know their potential, career desires, and development needs.
- Use technology: All companies must consider investing in the software solutions space to automate the talent management process. Some solutions allow you to buy only their succession planning module, while others might want you to purchase the entire Human Resources Information System [HRIS] with a succession planning plugin.
These kinds of software will help you efficiently update, collect the data and share it with people across the globe. It will allow you to ease the complete process of constantly changing and evolving the plan.
How can succession planning fail?
Succession planning can sometimes become devastating. It has so many moving parts that it is sometimes difficult to analyse if everything is moving in the right direction.
Here are some of the most common reasons why it can fail:
- Fixed mindset cripples future success: A person’s potential illustrates their ability to succeed in a senior role. But what matters is the ability of the person to embrace challenges, grow, and overcome setbacks. When a person is promoted or hired for a role, the successor should know how to tackle setbacks, challenges, or ambiguity. Breakthroughs in psychology, cognitive development, and neurosciences suggest that the growth mindset is a more reliable indicator of future success than past performance. It means that the successor should focus on dealing with complexity, ambiguity, and volatility.
- The incumbent does not leave: This is one of the vital problems growing continuously. People are not leaving their positions. Few keep working to execute their retirement plans, while others do not want to stop working. Some are encouraged to stay to navigate their organisations through complex situations. Irrespective of the reasons, people who stick around for a longer duration of time do disrupt succession plans.
- Successors leave: Regardless of an organisation’s effort in identifying the successor, the successor quit because of personal decisions or new opportunities. Therefore, once you find the successor, leadership retention and development is vital. In today’s world, where there is a shortage of high-potential leaders, the opportunity to move ahead on the ladder might not be enough to keep successors on-board.
Conclusion
It is not difficult to fill leadership positions competently and securely for the long term. The only way, however, to ensure long term, forward-looking planning and the gradual familiarisation of the new employee is by planning early. Through this early succession planning, you can counteract the demographic development and the shortage of skilled workers. It leads to saving money, ensuring a positive image of your organisation, and satisfaction among the existing employees.
Photo by Fotis Fotopoulos on Unsplash
