Future Leaders or Replacement Leaders?

Future leader or replacement leader? This is an important concept I've come to realize most organizations (aka company owners/leaders) don't get.

Remember: our bottom line is succession planning. We want ready, capable leaders in the pipeline so that when succession occurs naturally (or unnaturally, maybe someone has an accident or an illness,) you will not panic because you know that you have someone in the pipeline (preferably more than one someone) who can step up to the challenge.

When you are preparing future leaders, you need to have an eye towards the future of your business. You don't want replacement leaders; you want future leaders. Think of it like this: Let's say your dishwasher spews water all over your kitchen floor, requiring it to be replaced. You think to yourself, Now is a great time to upgrade my cracked ceramic to luxury vinyl plank, right? Wrong. The insurance company dictates that your home will be fixed to the condition it was in at the time of the leak. In other words - you are stuck in time. Similarly, when you are talking about the future success of your organization, you don't want a replica of what you already have. You want leaders who will ensure your company adapts to the future.

Here are three practices to help you identify the future and the employees that will get you there.

The first is to look to your industry association. They spend millions of dollars a year to have their finger on the pulse of what is happening in your industry, and they should have identified where the industry as a whole is going. For instance, if the construction industry is moving to 3D-printed homes - what skills will be required to seize that future when it arrives? Who should you recruit now so that you have future leaders with the right skills? Given the speed at which business moves these days, you will not have time to catch up.

Secondly, look at the job descriptions of key roles in your organization. Have they been updated recently? Most job descriptions I look at, inside companies that we work with, are not up to date. The first thing I do is give the job description back to the person currently doing the job and ask them to bring it up to date. If someone is in a job long enough, say three years or five years, the job grows, people adapt and take on new skills and new responsibilities, but nobody thinks to go back and look at the job description!  While they are updating the job description, also ask the incumbent to identify what future skills will be needed. It's probable that you won't find these skills today, but you will be able to interview for someone who is thinking ahead, will experiment, and who would rather learn something new than do the same job over and over again.

The third tip for securing future leaders is: In interviews, ask potential future leaders, How do you see this role evolving in three years? Ask this question whether you are hiring from outside your organization or you're looking to promote someone who is already in your company.  If they have future-leader potential, they have thought it through. They should have their thumb on the pulse of the industry and know what the role should be focusing on. So ask people, what is the future of this role? What should we be looking at as an organization? How would you help us get there? What tools or resources would you need to help us to get there?

Succession planning is a forward-thinking process that ensures you have a pipeline of ready and capable leaders. These three practices can help to ensure you are preparing your company with future leaders, not replacement leaders.

Centralized or Decentralized Succession Planning?

One of the important strategic decisions you'll have to make when determining how to approach your succession planning is whether you want the execution of it to be centralized or decentralized.

Centralized

If you choose the centralized route, HR will be the hub of the succession planning. They will know who is in the pipeline, they will oversee or even prescribe the professional development that those people will need in order to be prepared, they will sign people up for classes, send them to conferences, hire them coaches, and make sure that they are progressing along a career path and/or a learning path.

Decentralized

In the decentralized approach, all of those responsibilities just listed will be taken on by every department head, whatever title you want to give that (manager, director, VP, etc.).  In the decentralized approach, each individual department will plan their own succession pipeline and keep HR in the loop. HR will not have individual sightlines into each department’s or each individual’s succession plan. Instead, HR will be kept apprised of the plan and act as a consultant to the department head.

The role of HR is very different in the centralized versus decentralized approach. In the decentralized approach HR is more of an advisor to each individual department, as opposed to owning the process and making sure that the company, as a whole, has succession planning in place.

Example

If a department head says “I want my folks to have more industry knowledge,” HR would say, “OK, give me a week and I'll come back with a couple of options that might fit your goals.” What HR won't do is assess where people stand now, what development they need, or be involved in the development process in any way other than an advisory role.

HR’s Responsibility

The responsibility that HR has when the process is decentralized is that HR has to make sure that all department heads know what they're doing.

·        Do they know how to plan a career trajectory?

·        Do they know how to delegate?

·        Do they know how to identify special projects or stretch assignments?

·        Do they know how to coach?

·        Do they know how to teach their people how to coach?

·        Are they willing to let people go from their department in order to advance their career and make a more well-rounded contributor to the organization?

The centralized versus decentralized decision depends on how your organization prefers to manage the process and how much time and dedication you think your individual department heads will give to the process. Also, consider if a department head leaves, will the next leader be on board with this responsibility?

Warning: There is one glaring problem when succession planning is decentralized, and that is: if a particular department just drops the ball. HR may not be apprised of the fact that there may be a big gap in the succession pipeline of a particular department. In the centralized scenario, HR will make sure that every spoke in your company hub has a succession plan in place, and people are progressing through that plan.

What Defines a Leader?

This article is NOT about our usual – Succession Planning - but rather it’s about one of the things you really have to think about before your company starts succession planning.

And that is: How do you define “leader” in your organization?

When I speak, I always start my presentations with the question: What does a leader look like? I flip-chart the responses, then ask my audience to “step back” and look at the list.

I ask them: Can you give this list a label? Is there a theme?

I see lightbulbs go off over people’s heads: Oh, these are behaviors or characteristics.

I point out that we talk about “leadership skills” and the need to teach people leadership skills… but the lists almost never contain skills!

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Let’s look at the leadership “skill” of ethics.

We expect our leaders to behave ethically, don’t we? But when do we ever teach ethical behavior? It’s kind of a hard thing to teach, right? “Ethics” is more like an internal motivation or mindset. As a society, we are shocked when a “leader” behaves unethically, but we never teach ethics as a skill, do we? (Yes, some executive leadership programs include this topic, but rarely does typical schooling or training address it because it’s hard to teach a behavior!)

Another interesting wrinkle is this: the concept of ethics could be different for every company. If you run a manufacturing firm, ethical behavior can be very different from, say, a hospital and what ethics means in that setting. In a manufacturing firm, you don’t have to deal with the concept of ethics too often. But in a healthcare environment, ethical behavior can come down to every individual patient, every day.

When it comes to defining leadership, we can’t say “these are the behaviors we expect of our leaders,” without further defining what those behaviors actually look like in practice.

And every company needs to define that for themselves.

Why?

Because you can’t “raise up” leaders internally or hire them externally if you don’t know what you’re looking for.

So here is a starter list of leadership behaviors.

These have been collected from presentations that I’ve given in just the last year.

It’s amazing how long the list is! It confirms that “leadership” is wide-ranging.

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When I ask clients, Tell me what a leader in your organization looks like, tell me how they are defined, so that we can create more of them, or find more of them, they are generally dumbfounded. They just haven’t thought about it before. While the list I’ve offered is a good start, you have to be more definitive about what these words mean for your organization.

Generally, leadership teams are not united on the definitions of “leader” because no one has ever asked them to have this discussion.  Here’s a great analogy: Ask three people to describe the same color. One will say “teal,” another “aqua” and the third “blue-green.”  They all know what that term means in their own heads… but they aren’t in agreement, are they?

I’m prompting you to have this discussion with your senior leadership team.

Conduct a “brainstorm-like” meeting and ask: What does a leader look like in this organization? How do they behave? How do we know they are behaving in a leader-like manner? What do we see?

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Let’s circle back to how this relates to succession planning.

To conduct succession planning without this definition is futile. In order to develop employees into future leaders, you need to know what that means for your organization. In order to hire from outside your organization for a leadership role, you want to be confident they will be a fit with your culture and values.

To conduct succession planning without this definition is futile.

If that means leaders in this organization behave ethically, describe it:

·        Don’t lie

·        Don’t take bribes

·        Don’t operate behind other’s backs

·        Act without bias

·        Act without malice

·        Put the good of the company before one’s own needs or ambitions

So, start with the list I’ve supplied. Have your senior leaders work with it, discuss, and narrow it down to  5 - 6 leader behaviors from the list (or add your own), and then add 6 – 8 descriptions to define what each looks like in action. You don’t want more than 5 or 6 behaviors because it becomes too cumbersome; pick those that are most important for your organization to function repeatedly in the way that you want it to function.

Once you have these defined, you can start identifying and grooming future leaders who will continue to fit the culture of your organization.

This article was originally posted on LinkedIn.

The Importance of Clarifying Leadership Competencies and Skills

• Are you a great communicator? 

• Do your employees trust you? 

• Are you able to inspire people to do more than they themselves thought they could? 

These are all behaviors of a leader - yet most interviews for senior leaders never screen for these qualities. 

In this issue of Succession Planning Tips we are going to focus on the critical differences between behavioral competencies and skills - because without understanding the difference, you cannot hire leaders who gel with your organization.

Why is it important to define the competencies and skills of a leader? 
Differentiating between competencies and skills is important because a lot of organizations are finding themselves having to hire senior leaders from outside their organizations. The current senior leaders have been on the job for decades and companies have not had the foresight to prepare younger generations to step into senior roles. If you are looking to fill senior leadership (aka C-suite roles) roles you need to know what you're looking for in terms of cultural fit with the organization and its values - and 99% of that fit has nothing to do with what the potential new leader knows but rather with how they behave. 

What’s the difference between competency and skills? 
A competency encompasses various skills; skills that put a finer point on defining a leader. 

For instance, one of the competencies you might want your senior leaders to possess is “excellent communication skills.” Who among us has not seen that on a job posting, right? But what does that look like in terms of actual behavior? Is “excellent communicator” one thing or many things? It might mean:

• “In this organization, we speak respectfully to one another.” 

• “We welcome feedback and we act on it.” 

• “It's okay to speak truth to power in this organization.”

Here's a different way of looking at it: Say you have a child who needs a bit of behavior modification.  Saying, “You need to be a good boy,” isn't very specific is it? But breaking down what “good boy” means in terms of skills or behaviors is something you can identify, he or she can comprehend, and you can recognize and reward in practice.

Back to the world of work:
A good rule of thumb is to identify 6-8 competencies and beneath them, 5 to 6 skills/behaviors that further define what that competency looks like in practice. So you might have potential competencies such as:

• critical thinker

•  excellent communicator

•  thinks strategically

•  works collaboratively

•  team-first attitude

•  ethical

Then you’ll need to define the skills/behaviors that demonstrate those competencies - as the “excellent communicator” example does, above. 

When you are interviewing for senior leadership roles your questions should be more about how the person fits within your definition of your company’s critical competencies and not about what they’ve accomplished in their previous roles (we can presume that if they made it to a senior executive interview they have conquered the requisite performance). Rather, ask clarifying and probing questions to determine if someone will be a fit with your organization and continue to promote the values and goals your company and your people work toward. 

Get help crafting questions that get at behaviors and fit. 

Defining competencies and the skills that make up those competencies puts a finer point on what you expect of a senior leader in your organization - both those who are already with you and those you are inviting to join the organization. 

This article was originally published on LinkedIn

The Importance of Breadth and Depth in Your Succession Plan

Succession planning 𝗶𝘀𝗻'𝘁 𝗮𝗯𝗼𝘂𝘁 𝗳𝗶𝗻𝗱𝗶𝗻𝗴 𝗿𝗲𝗽𝗹𝗮𝗰𝗲𝗺𝗲𝗻𝘁𝘀; it's about creating leaders. 𝗜𝘁'𝘀 𝗮𝗯𝗼𝘂𝘁 𝗶𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗶𝗻 𝘁𝗵𝗲 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮l within your organization today, to ensure a strong leadership pipeline for tomorrow.

In all the years I helped companies with their leadership development there was always one burning question: Can you really teach leadership? 

The answer is yes – but it’s not easy and it’s not fast.

The same is true of succession planning. 

Although I would say it IS easy – if you have the right plan… but it’s still not a fast process.

Part of the reason it is not fast is the need for breadth and depth in succession planning.

Breadth of Organizational Knowledge/Experience

Breadth in a succession plan refers to the variety and diversity of experiences and expertise that individuals in the succession pipeline possess. It involves having a pool of potential successors who have gained a wide range of experiences across different areas within the organization. These individuals should understand the functioning of the organization as a whole rather than simply being experts in their specific roles or departments – which is what “leadership” looks like in most organizations today.

Having individuals with diverse experiences and backgrounds in the succession pipeline is crucial for several reasons:

1. Holistic Understanding of the Organization:

Employees with diverse experiences throughout the organization have a comprehensive understanding of how different departments and functions operate and intertwine. This knowledge is vital for effective decision-making at higher levels when organizational decisions must be made.

2. Adaptability and Flexibility:

Exposure to various roles and functions fosters adaptability and flexibility in future leaders. They are better equipped to respond to changes, challenges, and opportunities, which is especially important in today's dynamic business environment.

3. Cross-Functional Collaboration:

Individuals with experience in multiple areas can bridge invisible barriers and facilitate collaboration between different parts of the organization. Collaboration fosters teamwork and innovation which in turn enhances overall organizational performance. 

Depth of Generations

When you have depth in your succession plan, you have multiple layers and generations of potential successors. It is important to cultivate talent at different stages of their careers and identify individuals who can step into critical roles as they progress within the organization.

1. Long-Term Talent Development:

Identifying and nurturing talent early in employees’ careers allows for a long runway of development opportunities, which is crucial for learning behaviors. If you expect a future leader to be knowledgeable in the operations of the whole company – that will require many years of experiences to achieve.

2. Employee Engagement and Retention:

Employees are more likely to stay if they know that your company offers a future for them and a path for career growth.

Incorporating both breadth and depth into your succession plan ensures a comprehensive and robust approach. It's about not only having a diverse pool of potential successors but also nurturing them at different stages of their careers for a seamless leadership transition.

Remember, succession planning is about preparing for a sustainable and thriving future.

This article was originally published on LinkedIn

Step One in Your Succession Plan

When I work with clients or even when I am speaking at an event, I always incorporate an activity where I ask people to name things that they think leaders need to possess or demonstrate and ask them, What does a leadership skill look like?

Typical responses are...

* They have emotional intelligence.
* They are open-minded and willing to change.
* They have a growth mindset.
* They are charismatic and have influence.
* They are people focused.
* They are selfless.

Then I ask the audience to take a mental step back and look at that list overall and see if they see a theme or a label that they can give it.

Inevitably, there is an a-ha light bulb that goes off and they say, “These are all characteristics or behaviors.” These are not skills. So why are we always hearing in the popular press, in advertisements, in marketing that you must teach your folks leadership skills when really the ‘skills’ are behaviors?

We know a ‘leader’ because of his or her behavior. One of my favorites to bring up for discussion is “A leader is ethical.” When do we ever teach somebody to be ethical? How do you teach someone to be ethical? Across the board we expect a leader to demonstrate that they have ethics, but we never really define it or teach it to them.

That is step one in your succession planning.

First and foremost, you must define what a leadership characteristic or behavior looks like in your organization. The last part -in your organization- is the important part because every organization has a different style and culture, not to mention different stakeholders with their expectations. Ethics in a healthcare organization is going to have a little different flavor than ethics in a manufacturing organization or in a broadcasting organization.

So step one is to be very purposeful about defining how leaders in your organization behave so that you A) can start teaching it or B) know what you are screening/interviewing for if you must hire people from outside to fill leadership roles. Having a defined set of leadership behaviors (think of it as a leadership avatar) gives you peace of mind in knowing that you are hiring people who will align with the values and the culture of your organization.

Having a defined set of leadership behaviors (think of it as a leadership avatar) gives you peace of mind in knowing that you are hiring people who will align with the values and the culture of your organization.

One last thing to consider: The thing about behaviors is that you really cannot teach them. We develop behaviors based on experiences or belief systems or reflecting on things that have happened to us, that shape us into who we are.

You can see -just looking around you in society- that not everybody demonstrates the same behaviors. So please begin your succession planning by defining what leadership behavior in your organization looks like, so that you can train to or hire it from the outside if you need to.

Does your organization have a clearly defined set of leadership behaviors (most don’t)?

This article was originally published on LinkedIn