Succession Planning? Start Here.

Many organizations are facing an impending loss ofleadership as the last of the Boomers are getting ready to leave the workforce.With the start of a new decade upon us, now is the time to plan for the next generationof leaders. But where to start? If your company does not have a leadershipdevelopment program in place, or if you haven’t really given much thought to howyour company will make an orderly transfer of leadership responsibility, 2020is the year to focus on this critical planning.

Below, I’ve outlined the first three steps in successionplanning. So as not to get overwhelmed, address them slowly over the next sixto twelve months and your organization will be ready to smoothly transfer thereins of leadership as the Boomers in your company begin to retire.

Step 1 - Consider who is next in line for leadership 

The outcome of this step is to determine where you want toconcentrate your leadership development efforts in order to achieve the most ROI.Do you want to concentrate your efforts on those who have been with yourorganization the longest and therefore understand its inner workings andculture? Or do you want to concentrate on younger generations who are lookingfor professional development as a primaryperk of employment and who may be with your organization longer, as aresult?

To gain better insight, take a look at who you presently employand what generational cohort they belong to. Currently there are fourgenerations in the workforce, the Boomers, Gen X, the Millennials and Gen Z whoare just entering the workforce. It is logical to assume that Gen X, being thenext generation after the Boomers, would be next in line to lead in yourorganization, but there aren’tenough of them. In addition, in a recent study conducted by TheConference Board, of data collected from over 25,000 leaders acrossindustries, it was determined that Gen X have been stymied from moving up thecorporate ladder by Boomers who have stayed on the job longer than previousgenerations. What this means is that there are a number of generations in yourworkforce who have not been indoctrinated into leadership development orleadership roles.

Determining where to apply development efforts is a criticalfirst step in determining your company’s leadership pipeline.

Step 2 - Determine What Skills Your Future Leaders Need

Once you determine who you’ll want to develop (as anaside, I advocate developing everyone as if they were going to be afuture leader; a rising tide lifts all boats, after all) you’ll need to identifywhat skills they will need to support your organization in the future.

To accomplish this, there are three sources of data you’llwant to collect and consider:

 1 Look at the jobdescriptions of each of your current leadership roles to determine what skills areidentified as necessary in today’s environment. This is just a baseline, as weknow that today’s business environment is accelerating and changing at a pacenever experienced before and what your organization needs today may not be whatit needs tomorrow. Be sure to identify leadership skills and behaviors, such asmanaging a team of five or fiscal responsibility, and not job tasks such asmonthly reporting. If possible, “read between the lines.” For instance the taskof “standardize procedures to improve efficiency” really means having theleadership abilities of analyzing, forecasting, and planning.

2 Pay attention to what industry experts and yourprofessional association are doing in the realm of the “future of work” andwhat is predicted for your industry. Some of the current concerns includeartificial intelligence and robotics, consumer pressures (suchas related to the environment), and changing buying habits – all of whichwill require your company to adapt. What do you need to start training yourfuture leaders for, today?

3 Hold one-on-one interviews and ask your current leaderswhat prepared them for the role they hold today. Most often you’ll learn thatformal development is not credited as much as mentorship, on the job learning,and a wide array of experiences.  Theseinsights will help you to decide the best course of leadership development, foryour organization, going forward. For example, you could put four future-leaders through an off-site leadership development program or you might chooseto institute a job rotation program for everyone at your company. The twooptions might cost the same amount, but will return vastly different results.  You’ll want to thoughtfully consider howpeople truly learn leadership in your organization.

Note: Be very concerned if the majority of responsesare, “I learned it at my previous job,” because that means you are doingnothing to develop leaders in your organization and are instead relying onother companies to develop them and hoping you can then hire them away. That“strategy” puts your company in a very precarious position; the topic ofanother article entirely.

Step 3 – Consider How You Will Develop Leadership Skills

Once you have identified the skills that should be developedin your future leaders, you’ll need to determine how to get them those skills.  Creating a formalized leadership developmentprogram is a time consuming and arduous process – which is why most companiesforego it and instead cross their fingers and hope their future leaders will“appear” when needed.

Sending people out for leadership development can be cost-prohibitive and because of that, the number of individuals that get developed is generally far fewer than is needed by any organization. A smart option for most companies is to mete leadership development out to everyone, through easy-to-implement activities such as reading groups or lunch-and-learns, and on-the-job projects such as a multi-discipline initiative. Over time, small and consistent development opportunities will build the leadership skills your organization needs and alleviate succession planning concerns.

Once you have considered and acted upon these first three steps in succession planning, you’ll be well on your way to ensuring that your company has a leadership pipeline capable of continuing excellent work despite a rapidly changing business environment.

Note: This article was first published by Training Industry Magazine.