Succession planning can sometimes seem overwhelming. With so many moving parts, it can be difficult to know if you’re on the right track. Below, we outline 10 common succession planning mistakes that organizations make. Building in plans and checks to avoid these pitfalls will help to ensure the success of your succession planning process.
Succession Planning Pitfalls for Businesses
1 Focusing exclusively on the executive level
Given the time and resources required for effective succession planning, many organizations tend to focus their efforts solely on executive level positions. This approach can lead to detrimental gaps in important
2 Using a one-size-fits-all competency framework
A common succession planning mistake is adopting an existing or dated competency framework on which to evaluate succession candidates. This may save organizations a great deal of time. However, any off-the-shelf framework is unlikely to adequately capture the complexity and uniqueness of your organization. Don’t let the convenience of ready-to-use competency models lead you to overlook characteristics that are important to your organization.
3 Describing an idealized version of the role
When identifying which competencies are needed for a given role, there can be a tendency to describe those qualities you’d like to see of the individual in the focal role, rather than the actual requirements. Remember to focus on what is essential to success in that position.
4 Underestimating the changing nature of work
An important part of succession planning is anticipating future needs. Part of this means taking time to reflect on the future of the focal role. Consider how changes in technology, your organization, or the broader industry might impact the responsibilities associated with the position
5 Keeping the succession plan a secret
Succession planning is an important strategic process and there can sometimes be the feeling amongst leadership that the plan should not be communicated throughout the organization. However, a lack of transparency might lead some high-potential employees to leave the organization if they do not perceive the availability of strong advancement opportunities. Communicating to employees that these opportunities exist is likely to have a positive impact on their motivation to pursue developmental goals, and to remain with the organization long-term.
6 Relying on only one successor per role
When asked about their succession plan, some companies feel they are on the right path because they have identified a successor for key roles. However, this can be a problem if your one succession candidate decides to leave the organization or accept a position in a different department. Taking a more narrow focus can also make it difficult to fill the inevitable vacancy left in middle-level leadership roles when an employee steps up into a senior leadership role. Having a talented pool of candidates gives you options when it comes to filling a focal role, and ensures you’ve developed sufficient talent to fill vacancies as they arise.
7 Assuming that success in one position will extend to success in a higher position
A common mistake made in succession planning is the assumption that high performing individuals at one level will continue to perform well in a higher-level position. Continued success is not a guarantee, which is why it is so important that you carefully identify the competencies needed for success in the focal role. Evaluate all succession candidates against
8 Delegating full succession planning responsibility to HR
Succession planning should always be a company-wide initiative. Depending on your organization’s structure, it might make sense for your HR department to spearhead the process, but placing all the responsibility on HR is typically not effective. The most common reason that succession planning fails is a lack of management support. In order to achieve success, all parties need to be held accountable.
9 Failing to update the succession plan regularly
Some organization go through the work of developing thorough succession plans but then become stalled in the implementation phase. This is a common succession planning mistake. You should never
10 Inadequately documenting the succession planning process
As outlined in SIGMA’s six-step succession planning
Overcoming Common Succession Planning Mistakes
Now that we have explored some of the pitfalls companies experience when building a succession plan, we would like to focus on common errors organizations make when putting their succession plans into action. Following this review we offer recommendations based on best practices to overcome these common succession planning mistakes.
We include missteps in the succession process related to:
- Deciding who to involve in succession
- Outlining the criteria on which decisions are made
- Being clear about the process
- Managing perceptions
- Communicating with employees
Why Does a Company Need a Succession Plan?
Think of your businesses and consider for a moment the effects of a valuable member of your management team, such as your CEO, CFO, Controller or Executive Director, leaving the organization. What kind of challenges would this have on your company structure, processes and operations? Often, the impact of staff and leadership changes has a ripple effect that is eventually felt by all company departments in some capacity.
If the above notion is cause for concern, it may be time to consider a strategically developed succession plan for your organization. Businesses inevitably face change and that is particularly true for organizational leadership roles.
The best way for companies to prepare for the future is by engaging in a succession planning process that allows you to proactively prepare for staffing changes by leveraging the talents and company experience of existing staff and team members. Succession planning for businesses assesses potential gaps in staffing that may come down the line. It allows businesses to develop a plan of action by establishing key skills and requirements for the role and developing a pool of proficient and experienced team members that would seamlessly transition into the role.
To avoid unnecessary complications and company-wide challenges, it’s best for companies to be armed with a succession plan targeted for each key role of the management team. This begins with thorough succession planning aimed at developing a unique strategy to suit the individual needs of your business and leadership team members.
Reasons Why Succession Plans Fail
For succession planning to be truly effective, it requires the commitment and buy-in from a company’s leadership team. From there, the importance of succession planning can truly be understood and implemented company-wide and will lead to long-term succession planning success.
Unfortunately, it is not uncommon to encounter succession planning pitfalls, and these can occur for a number of reasons depending on company structures and priorities. Some examples include:
- A lack of urgency to invest the time, resources, and funds to actively maintain a businesses’ succession plan.
- Companies aren’t looking ahead. Unfortunately, management often looks to the past to fully understand the future needs of management teams, when in reality they should be looking ahead at company and technological advances.
- No formal internal assessment plan or document has been created. A formal document or internal succession plan should be created to account for new and future hires so that the succession plan can properly factor in the skills and talents of future staff and evolve as the company grows and expands.
- Potential successors can leave the organization. Whatever the reason may be, whether personal or professional, it’s important that companies establish a pool of potential candidates as well as focus on the retention of this valuable pool of candidates.
- Existing leadership members, who stay on far past their expected departure time, can pose a serious problem for established succession plans.
- Some leadership teams believe that succession planning falls solely on the shoulders of the HR department. This can lead to succession planning failures, as succession planning should ideally start from the top, with buy-in and involvement from the leadership team.
Need Help Getting Started?
Avoid common succession planning mistakes and let us help develop a strategic succession plan for your business. At SIGMA, we have a variety of resources available to help with succession planning. Start by reviewing our Sample Succession Planning Process for strategies on how to avoid each of the pitfalls we’ve discussed here. Contact us to learn how we deliver a full year Succession Plan for each member of your leadership team in just two half-day workshops.