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An assignment on Succession planning

Course code: MGT-502

Prepared by:
Md. Manir Sannyamat
ID: 153, Sec: A (HRM)
18th batch
Department of Management
University of Dhaka

Prepared for:
Dr. Md. Mosharraf Hossain
Professor
Department of Management
University of Dhaka

Date of submission: 18 July, 2016

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1. Introduction
The succession planning becomes one of the most important HR strategic processes. The
organization with the robust succession plan in place that is properly communicated and
executed builds a strong competitive advantage.Succession planning is a strategy for passing
each key leadership role within a company to someone else in such a way that the company
continues to operate after the incumbent leader is no longer in control. Succession planning
ensures that businesses continue to run smoothly after the businesss most important people
move on Succession plan entails evaluating each leaders skills, identifying potential
replacements both within and outside of the company, and in the case of internal replacements,
training those employees so theyre prepared to take over. Succession planning is not a one-time
event; succession plans should be reevaluated and potentially updated each year or as changes in
the company dictate. In addition, businesses might want to create both an emergency succession
plan in the event a key leader needs to be replaced unexpectedly and a long-term succession plan
for anticipated changes in leadership to improve performance.
The 2015 State of Succession Planning Report describes succession planning as, Any effort
designed to ensure the continued effective performance of an organization, division, department,
or work group by making provisions for the development, replacement and strategic application
of key people over time. Succession planning is part of a broader talent management program.
Succession planning aims to attract the best talent, retain those individuals, and develop them
through well-targeted development efforts. Succession planning helps build the bench strength of
an organization to ensure the long-term health, growth and stability.

2. Succession planning
Succession planning is a process for identifying and developing internal people with the potential
to fill key business leadership positions in the company. Succession planning increases the
availability of experienced and capable employees that are prepared to assume these roles as they
become available. Succession planning can be defined as a process of ensuring a suitable supply
of successors for present and future senior positions (arising from business strategy), so that the
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careers of people can be planned and managed to facilitate the attainment of the organizations
needs and individuals aspirations. Succession planning is a necessary part of an organizations
ability to reduce risk, create a proven leadership model, smooth business continuity and improve
staffs morale.
Succession planning is a process whereby an organization ensures that employees are recruited
and developed to fill each key role within the company. Through your succession planning
process, you recruit superior employees, develop their knowledge, skills, and abilities, and
prepare them for advancement or promotion into ever more challenging roles. Actively pursuing
succession planning ensures that employees are constantly developed to fill each needed role. As
your organization expands, loses key employees, provides promotional opportunities, and
increases sales, your succession planning guarantees that you have employees on hand ready and
waiting to fill new roles. Succession planning is the identification and development of potential
successors for key positions in an organization, through a systematic evaluation process and
training.Succession planning is a strategic approach to ensure that necessary talent and skills will
be available when needed, and that essential knowledge and abilities will be maintained when
employees in critical positions leave from an established firm or organization.

3. Objectives of succession planning


Each organization needs to be ready that the moment of the leaders departure will come
tomorrow in the morning. That is the key reason the succession planning exists in the company.
It is a simple list of key positions, current holders and potential successors from the business
with a defined take over date and the personal development plan. First, it sounds easy but it is the
HR process that involves the entire leadership team, and the approval and commitment of the
executive management is a necessary ingredient of the success. The most common goals and
objectives for succession planning processes are in the following areas:

succession plans development;

succession plans execution;


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top talents retention;

promotions and success stories

Figure 1.1: Objectives of succession planning


The development and innovative management of the succession planning are extremely vital.
Human Resources has to keep minds of the leadership team on all plans, and it has to define
processes and procedures for updating on the implementation progress. It has to incorporate new
talents, and it has to eliminate employees who do not participate in the system anymore. The
design of the methodology is usually the first objective for HR Professionals in this area.
The second goal of succession planning specialists is about the execution of the program. The
excel spreadsheet with tons of names can be in place, but it does not say a word about the
successful management of the process. Human Resources has to facilitate the process, and it has
to pick right people for the promotion at the right moment. No one should start discussions in the
corridor about the fairness of the selection procedure. No one should have doubts, beginning
with the leadership team. It is a difficult target.
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The successors have to be kept in the loop; they have to see a real chance to be promoted within
a defined time. The organization cannot afford to select its best talents and let them leave the
company because the employees realize they are valued. Many employees can find a better job
with a higher salary when they mention the succession plan. Human Resources has to make sure
that all personal development programs are executed, and participants are motivated and happy.
It is a difficult goal but the leadership team always measures the success of the program through
big numbers.
The last general goal and objective for the succession planning is about success stories. The
process needs to be based on the communication of achievement stories to the organization.
Employees have to feel good vibrations when the manager tells them that they will participate in
the program. It is a great honor for everyone in the program to be included. It is a role of Human
Resources to send positive and vibrant messages to all audiences. Besides those there are some
specific objective. This are given below

To identify and proactively plan for critical work force positions, by developing a pool of
potential successors and encouraging a culture that supports knowledge transfer and
employee development.

To build human resource programs that attract and retain qualified individuals

To implement a framework that identifies the competency requirements of critical


positions, assesses potential candidates and develops required competencies through
planned learning and development initiatives.

4. Key advantages of succession planning


The advantages of succession planning include the opportunity to:

Conduct a SWOT analysis of the business to determine its leadership needs now and in
the coming years
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Develop a strategic Leadership Human Resource Plan that includes comprehensive


position descriptions, needs analysis and plans to bridge the gaps

Build relationships with and carefully study the performance and behavior of successors
over a long period of time

Provide a sense of direction, stability and expectations for all key stakeholders:
employees, customers, shareholders and vendors

Retain a critically important employee who might otherwise leave if not formally
recognized as the successor

Aligning strategic goals and human resources to enable the right people in the right
place at the right time to achieve desired business results

The development of qualified pools of candidates ready to fill critical or key positions

Providing stability in leadership and other critical positions to sustain a high-performing


public service and ensure the uninterrupted delivery of services and programs to New
Brunswickers

Identifying workforce renewal needs as a means of targeting necessary employee training


and development

Helping individuals realize their career plans and aspirations within the organization

Improving employees ability to respond to changing environmental demands, and

The opportunity for timely corporate knowledge transfer.

5. Key disadvantages of succession planning


Its difficult to think that there might be disadvantages to succession planning but here are some
things to consider:

Appointing the wrong person can lead to a variety of problems that result in poorer
company performance and turnover
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Pulling the trigger too quickly to appoint someone only to have a better candidate appear
later on

Engaging in succession planning when the business is immature may lead to erroneous
conclusions about leadership needs

A poorly conducted succession planning process will lead to poor decisions, disharmony
and ultimately poor company performance as well

6. Guidelines to Successful Succession Planning


Management is responsible to ensure that the organization continually has high-quality
operations and employees. One of the most important practices to meet this responsibility is to
conduct successful succession planning. Employees leave their jobs either on a planned or
unplanned basis. Unplanned termination may occur because of sudden illnesses or death, or poor
performance on the part of the employee. Planned termination usually occurs because the
employee is making a career or life change.
Especially regarding managers in the workplace, demographic trends indicate that there are not
sufficient numbers of next-generation leaders to replace retiring baby-boomers in organizations.
Thus, succession management is an increasingly important priority. Consider the following
advice.

7. Basic Principles of Successful Succession Planning


Do not wait until the employee will be leaving. Start planning now. Succession
planning is a matter of strong practices in personnel management, not a matter of sudden
crisis management. Start attending to those practices now.
Succession planning is a responsibility of the management, not just the employee.
The best succession planning results from 1) a working partnership between management

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and employees to accurately define the employees role and current priorities, and 2) the
employee ensuring that management has the information and resources to refill the role
Succession planning should be in accordance with up-to-date personnel policies.
Hiring of new employees must be in accordance with up-to-date personnel policies to
ensure fair, equitable and legally compliant employment practices.
Quality in managing succession is proportionate to the quality of the new employee.
The best way for management to promptly convey expectations of high quality to a new
employee is to convey that high-quality in how the employee was hired. The more
thorough and careful that management does the succession, the more likely that the
organization will get a new employee who successfully fills the position for the longterm.

8. Need for Succession Planning


Succession Planning is the systematic and deliberate process of ensuring the availability of
highly qualified people for all positions not only in the present time, but at any point in the future
as well.
Succession Planning
The process that helps ensure the stability of tenure of personnel
Any effort designed to ensure the continued effective performance of an organization, division,
department or workgroup by making provision for the development, replacement and
strategic application of people over time
A means of identifying critical positions (usually managerial) starting at the levels of project
manager and supervisor and extending up the highest position of the organization and preparing
people to move into those jobs, often to replace employees who are leaving
Succession planning describes management positions to provide maximum flexibility into
lateral management moves and to ensure that as individuals achieve greater seniority, their
management skills will broaden and become more generalized in relation to total organizational
objectives as opposed to department objectives
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A deliberate and systematic effort in an organization to ensure that key leadership continuity is
key positions retain and develop intellectual and knowledge capital for the future and encourage
individual enhancement
Planning occurs when an organization adopts procedures and practices that Identify, develop
and work toward long term retention of talented individuals.

9.Why we should do succession planning


To accelerate the development and improve the retention of talented people.

To identify ongoing needs for replacement and design appropriate training and employee

development programs;
To increase the pool of talented employees to fill key positions;

To add value to the organizations strategic plan and contribute to ongoing business strategies;

To ensure individuals receive appropriate developmental opportunities and are successful in


their career goals;
To ensure that the organization has full access to the intellectual capital of their employees

10. Succession planning model

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Figure 1.2: Succession planning model

In the succession planning model, there are six steps .these are given below
Step 1: Identify Key Positions
Succession Planning identifies necessary competencies within key positions that have a
significant impact on the organization. Criteria for key positions may include:
Positions that require specialized job skills or expertise.
High-level leadership positions
Positions that are considered mission-critical to the organization.
Step 2: Build Job Profiles for each Key Position
Determine the key success factors of the job and how proficient the job holder would need to be.
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This information can be obtained several ways, including performing job analysis or gathering
critical information during the performance appraisal process. The information that should be
gathered includes the knowledge, skills, abilities, and attributes that the current employee in a
position possesses that allow for the competent and efficient performance of the functions.
Step 3: Competency Gap Analysis
Using the job profile of competencies determine the tool required to gather data on
current
Employee competencies for the key positions
Analyze the difference between current employee competencies and future needs
Document findings for development opportunities
Step 4: Development Opportunities
Assess the abilities and career interests of employees
Candidates should demonstrate high potential or ability that will enable them to achieve
Success at a higher level within the organization. Preferably, the list of possible replacements
should be stored in a database so that the organization can easily track candidates.

Step 5: Individual Development Plans


Design a plan for each candidate developmental plans should be available for
candidates and then incorporated into their performance management plans. Plans may
include identifying career paths for high-potential candidates and others who have the
interest and ability to move upward in the organization
Provide development opportunities This can be accomplished through job assignments,
training, or job rotation, and it is one of the best ways for employees to gain additional
knowledge and skills
Step 6: Maintain Skills Inventory
Continually monitor skills and needs to determine any gaps and develop plans to meet
Deficiencies.

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Keep an inventory of current and future needs and maintain the information for
individual and group development

11. Sample of completed succession planning status worksheet

Position name

ency Director

Incumbent

Retirement

Name

status

Mr.Sabid

Critically

Number of

Number of stuff

Succession planning

staff ready

ready in 1-2

priorities

now

year

Mrs. Rakhi

Mr.

Hoque

Director
Director

ance Director

Tahsin

Ahmed
Mr.Ihsanul
Hamim

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mmunications

Farnaz Sabiha

ector

Retirement Status:
A: Retirement likely within 1 year
B: Retirement likely within 3 years
C: Retirement eligible within 5 years

Criticality:
1: Critical - Must "hit the ground running"
2: Very Important - Fully functional within 6 months

12. Challenges to effective succession planning


Some challenges to succession planning are:

Size of the organization: some nonprofits have so few positions that they may not have
the ability to offer opportunities for advancement; employees with the potential and the desire
to advance their careers may move to larger organizations as a result

Lack of financial resources: employees may leave for better salaries and benefits offered
in other workplaces

The nature of funding: as more and more organizations depend on project funding as
opposed to core funding, there are fewer core staff members available to take up positions in
the organizations

Project staff come and go and may not be seen to be part of the talent pool available to
organizations

In some cases, senior leaders are staying on in their positions, despite the fact that the
skills needed for the job may have changed or they are no longer making a meaningful and
productive contribution to the organization

Indiscriminate inclusion of employees in the succession plan including those who are
disinterested, unmotivated or lack capacity to advance

Inadequate training and development resulting in an employee who is not prepared for a
promotion

A plan that does not promote people in a timely fashion, leading potential successors to
leave the organization to seek new opportunities
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Poor communication resulting in confusion and turmoil within the organization as staff
speculate about what the succession plan really is

Potential candidates for promotion cannot be guaranteed that they will be promoted; a lot
depends on timing and need of the organization

13. Conclusion
A succession plan, simply put, is a component of good HR planning and management.
Succession planning acknowledges that staff will not be with an organization indefinitely and it
provides a plan and process for addressing the changes that will occur when they leave. Most
succession planning focuses on the most senior manager - the executive director, however, all
key positions should be included in the plan.
Succession planning is not an issue that many organizations address in any systematic way.
Because many nonprofits are small (with fewer than 10 employees) and because they may be
facing other organizational challenges, thinking about who the next executive director might be
or what would happen if the director of finance suddenly left is not high on their priority list.
There are many reasons why organizations need to be thinking about succession planning. The
most important reason, of course, is that we rely on staff to carry out our missions, provide
services and meet our organization's goals. We need to think about what would happen to those
services or our ability to fulfill our mission if a key staff member left.

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Reference
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The

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effective

succession

planning,

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2016,

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http://www.halogensoftware.com/blog/8-steps-for-effective-succession-planning
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