Posts Tagged ‘Succession Planning’

Create a Succession Plan to Accurately Predict Your Company’s Future

Tuesday, July 2nd, 2013

July Quote Blog 2013

Alan Kay, the father of the personal computer said, “The best way to predict the future is to invent it.”

What does the future of your organization look like? How will your organization proceed in the next five or ten years? If you don’t have the answers, you should get started on inventing your future now. The best way to do that is with a succession plan.

Maintaining business success in the years to come depends on whether your current leadership team creates a plan outlining which of your top-performing employees will step into leadership and newly created roles when the appropriate time comes. The retirement of one of your top managers or a decision of permanent maternity leave from a key specialist are examples of why succession planning is critical for keeping your business running smoothly. Review the advantages of succession planning in more detail here: http://blog.capital.org/4-benefits-of-succession-planning-for-your-workforce/.

Succession planning is hard to complete if you can’t pinpoint key employees who can take over high-profile positions in your company when the time comes. Retaining hardworking employees is essential to foretelling your company’s future.  If you’re having trouble holding on to your company’s stars, you may need to revise your retention strategy. Here are some tips that can help you decrease turnover and increase loyalty among your workforce: http://blog.capital.org/dont-let-your-top-employees-leave-4-tips-to-encourage-employee-loyalty/.

Creating a succession plan is an involved process that should include your senior leadership team and have input from the heads of all of your business departments. The goal of your succession plan is to identify, recruit and prepare your talented employees for important company positions they will eventually lead. Succession plans can vary based on the size and industry of an organization. However, most plans share several basic strategies. Check them out here: http://blog.capital.org/basic-strategies-for-succession-planning/.

For more information and additional tips on succession planning, please contact a member of CAI’s Advice and Counsel Team at 919-878-9222 or 336-668-7746,

**Workplace Insights will take a break for the Independence Day holiday. New posts will return next Tuesday, July 9. Please have a happy and safe holiday!

4 Benefits of Succession Planning for Your Workforce

Thursday, July 19th, 2012

How would your business perform if your top three employees left your organization tomorrow to join a competitor? What if members of your senior management team parted ways to begin their own businesses? If your CEO became terribly ill and couldn’t perform his duties, would your business continue to run smoothly?

Succession planning is essential for keeping your organization moving in the right direction even when several key members of your staff jump ship, retire or move on for other reasons.  As important as succession planning is, many companies forgo strategizing a plan to retain their best people to eventually take over different roles. Succession planning isn’t a rigorous assignment, but because the efforts of the process aren’t often revealed until a team member leaves, many businesses don’t take the time to start planning.

Deciding the key employees who will ultimately step into leadership and senior management roles is imperative for maintaining business success during any economic climate or business situation. Succession planning is also an office morale and engagement booster. Grooming employees for their future roles by giving them more complex tasks and investing in their growth keeps them focused, motivated and loyal to the company.

Here are four additional reasons to start drafting your organization’s succession plan:

Preparedness

Whether your employees leave to start retirement  life or plan to begin their own businesses, having a succession plan in place will help you more quickly identify which employees will take over your company’s open positions so your business can continue to run as normal.

Less Time and Money

Dedicating time to plan the future of your organization will save your company time and money. Plans to promote and train people within your company means less time spent recruiting for external candidates, interviewing them and checking their references. Money allotted to those efforts will also decrease with a solid succession plan in place.

Weakness is Uncovered

Finding future leaders reveals the strengths within your workforce, but it also uncovers the weaknesses that your organization must work on to secure business and financial growth. Help areas of your company that you discover to be weaker than others by offering training and resources that will help improve performance.

Get a Bird’s Eye View

Evaluating your workforce in preparation for succession planning gives you a great perspective of the talent in your organization. Ascertaining who should fill the shoes of another will help your team better understand the day-to-day happenings of your business. So as you’re planning don’t solely include roles for higher level executives. Incorporate middle managers and their direct reports to create a comprehensive succession plan.

For additional information on the benefits of succession planning or how to develop your company’s plan, please contact a member of CAI’s Advice and Counsel Team at 919-878-9222 or 336-668-7746.

Photo Source: Victor1558

Is Your Company Prepared for America’s Ageing Workforce?

Thursday, April 12th, 2012

Many labor studies and workforce statistics indicate that the American workforce is ageing. Data from the U.S. Census Bureau shows that 4.6 adults will turn 65 each minute during 2012, and by 2025 that figure will increase to eight adults each minute. Knowing that America is graying rapidly, it is surprising that many employers have not prepared for this demographic change when planning for their future business ventures.

Ignoring reports revealing that baby boomers are interested in working past their retirement age and will stay at companies that offer flexibility will leave your company vulnerable to disorganization and revenue loss. Older workers offer a number of benefits to their employers. They are hardworking, loyal and professional. Older employees also boast vast networks of business contacts and extensive experience in their line of work.

Research shows that many baby boomers have no plans to fully retire and are interested in staying plugged into their career fields. If you’re interested in retaining the company knowledge that your older workers have acquired and the strong work ethics they incorporate into each of their projects, make sure you are keeping their needs in mind when you’re planning for company succession and total rewards packages. Listed below are a few items that older workers would like to see from their employers:

Flexibility

Employees approaching retirement age are not interested in working the typical 40-hour week. An increasing number of companies are receiving requests from their older workers to have more flexible work schedules.  Many workers at this age desire a high-quality of life and would prefer to work part time. To accommodate requests, organizations are implementing a number of measures to achieve productive, part-time schedules. Accommodations include reduced hours, telecommuting and job sharing.

Consulting

Data shows that the US is experiencing a skills gap between available positions and available talent. When older workers retire, they take with them company experience and expertise, which is impossible to replace. For your employees who are contemplating retirement, ask them if they’d be interested in working for the company as a part-time consultant. In this setup, they will be able to reduce their hours and continue to apply their knowledge while your organization still has a valuable and reliable company resource on staff.

Health Plans

A company’s health care plan can be a determining factor on whether an employee decides to retire or stay with his organization. Many older workers may remain in their position longer than they’d like for fear that they’ll lose their health benefits. Feeling trapped in their jobs could result in their disengagement and reduced productivity. Meet with your benefits provider and work to offer a wellness and benefits program that will suit all of your employees, including your older workers.

Don’t lose your high-value talent and the company knowledge they carry with them because of poor workforce planning. If you would like additional information on succession planning or managing an aging workforce, please call a member of CAI’s Advice and Counsel Team at 919-878-9222 or 336-668-7746.

Photo Source: skilledwork_org

Basic Strategies for Succession Planning

Thursday, September 2nd, 2010

Succession planning is an important process that should be carried out by a management team to ensure the continuity of an organization’s business plan.  The key goal is to identify, recruit and prepare the most talented employees for key roles within the company.  These carefully selected employees should be provided with the education and training they need to achieve and succeed at higher levels and with broader responsibilities.

Through the planning process, these highly recognized employees will appreciate the time, attention and development invested in them, resulting in key employee retention, which is absolutely necessary to ensure the effectiveness of succession plans.

Succession plans vary by company, business plan, and the availability of talented employees.  However, every succession plan should follow some basic strategies:

  • Monitoring Future Needs – Tomorrow’s key roles may not even exist in today’s organization
  • Talent Assessment – Develop a way to identify your most talented employees
  • Hire for the Gaps – Identify the roles that are beyond the capabilities of your current employees and hire to fill those skill gaps
  • Share Your Plan – Key employees should understand early in their careers the special path you have put them on and the importance of the role they are being developed to fill
  • Use Available Technology – Track and monitor the training and development of high potentials
  • Create Developmental Opportunities – Seek out education that offers executive training and mentoring
  • Measure Performance – Challenge your key employees, but measure them fairly as you are asking them to stretch beyond normal expectations

Remember, effective succession planning is a journey, not a destination. Once you have the plan in place, it requires constant and consistent monitoring for adjustments and improvements as the organization changes over time.

If you need further information or assistance with succession planning for your organization, contact Molly Hegeman, CAI’s Director of HR Services, at (919) 878-9222, (336) 668-7746 or molly.hegeman@capital.org.

Photo Source: madebytess