Succession planning
What would happen if you got hit by a bus tomorrow? Who would run your company or take your position?
When I talk about succession planning most people say, "But I'm not planning to retire for a long time!" That's ok!! Just because you've taken the time to develop a succession plan and train someone to do your job just as well or (hopefully) better than you, doesn't mean you need to be on your way out the door. Not only could it ease some of your current workload, it will help you be open other opportunities that you couldn't have taken advantage of if no one was in place to take up your position. It could mean early retirement (because obviously you're good at planning for business so you must also be good at planning your personal finances ;) ). Or maybe you do get hit by a bus, or get sick, or a close family member gets sick, or, for whatever reason, you need to take a leave of absence. Do you really want to be worried about who is going to run your department and how they're going to do it while you're away? I know I sure don't!!
Having a well defined succession plan not only helps aleviate your own stress but will enable your employees to have a goal within the company. Some employees will be content with staying in the position they're in and that's ok. Other employees, when they see the potential for upward movement or simply understand the process, will do everything in their power to get on that path. Well-defined career paths help cultivate employee engagement.
Also, having a well-defined succession plan helps the management work together and train staff in the same process across the board. This will help everyone involved be on the same page, with the same message. But before we can get everyone to that place we need to take 5 steps towards building a succession plan.
Step 1: Identify the positions in most need of a succession plan.
The fastest way to get a short list for this step is to look at every position in your company and ask yourself, "If the person in that position no longer existed would their absence have a negative effect on us reaching our current and future business goals?" I'm sure you'll quickly see which positions are on the top of the list and which gaps are easier to fill without much planning or immediacy required.
Once you have those top few positions in mind you must either move through the remaining steps yourself or even better, work with the person who currenly holds that position to get a concrete succession plan in the works. Chances are that person knows more about what is required to do their job than you do.
Related: Find a great flow chart from the Treasury Board of Canada Secretariat here.
Step 2: Identify initial competencies required for those positions to function smoothly.
By having open communication with the person that currently holds the position being investigated, you can take a proper inventory of the relevant knowledge, skills, abilities and competencies required to fullfill the position. No one knows better what it takes to get a job done than the person that has to do it everyday. Don't underestimate their usefulness in developing the succession plan for their position.
This may be the best time to open initial communcation with the staff about the development of the succession plan.
Step 3: Identify interested employees and assess capabilities as they pertain to the key positions.
Once you have an idea of who may be interested in being part of the succession plan it is a good idea to have a meeting with that employee to get a sense of how they envision their career developing. Let them know that if they don't see themselves with the company in 5, 10, 15 years that's ok. You want them to feel they can be as open and honest with you as possible.
Once the employee or employees with the right competencies (or potential for development of those competencies) and a career goals that align with the company's has been identified it is time to incorporate development opportunities. Employees feel valued when you take the time to help them develop within the company and themselves. This can be in the form of internal workshops and courses run by management, stretch assignments, mentorship programs, company academy, etc. This will help you develop and maintain a talent pool which you can draw from when the need arises.
Don't underestimate the importance of the alignment of personal and corporate values. If an employee doesn't have the same values as the company that's ok, but that's something that needs to be dealt with first, before consideration for succession should be an option. It could end with them leaving the company or aligning with the company's values. Either option is ok. The success of a company greatly depends on the strength of its corporate values and culture. One person that doesn't align can easily derail things. If an employee does have values that align with the company's that is another checkmark in their favour!!
Related: Help yourself learn to read your employees and be empathetic to their needs by reading this blog post by TayLynn Bookkeeping.
Step 4: Develop succession and knowledge transfer plans.
You will need to take into account many different aspects of the transfer process. The first step is to make a list of all the responsibilities the position in question has and the tasks the position must perform. Once these are listed in their basic form they should be ordered in a sequence that makes sense for training purposes. Each task should build on the last until eventually the staff member can fully take on the new position.
The second step is coming up with a timeline. The business may need this new person in place next month or maybe it can be transferred over the next couple years. In both cases it is a good idea to place each task/responsibility (now in an order sequence) on a timeline. This will ensure that enough training is given for each task while still keeping to a schedule.
The last step in the process can often be underestimated in its importance. The staff member that is taking over the position should at some point be given the official title of the position. This should be announced to the other staff to assist with proper lines of communication (not to mention giving that person an extra boost in confidence).
If at all possible the original holder of the position should stay in contact with the new position holder to help with any trouble-shooting that may be required.
Step 5: Evaluate effectiveness of both the process and the employee.
To evaluate the effecctiveness of your succession plan ask yourself the following questions:
"Are the succession plans for each position fully developed and being implemented?"
"Are positions being filled quickly when the need arises?"
"Once in a position are employees performing to the best of their ability/to the level the company needs them to be performing?"
Based on the answers to these questions you may need to go back to the earlier steps and review your process. Your plan of execution will never be complete and will always need further development as the position evolves. Once the process is defined it should always be reviewed and evaluated (even when it seems to be working well). Any plan can always be developed to become even more efficient.
Do you have a succesion plan in your company? How do you identify staff that should be moving into key positions? Does your staff know where they can move upward within the company?
Taya de Baat
Owner
TayLynn Bookkeeping
When I talk about succession planning most people say, "But I'm not planning to retire for a long time!" That's ok!! Just because you've taken the time to develop a succession plan and train someone to do your job just as well or (hopefully) better than you, doesn't mean you need to be on your way out the door. Not only could it ease some of your current workload, it will help you be open other opportunities that you couldn't have taken advantage of if no one was in place to take up your position. It could mean early retirement (because obviously you're good at planning for business so you must also be good at planning your personal finances ;) ). Or maybe you do get hit by a bus, or get sick, or a close family member gets sick, or, for whatever reason, you need to take a leave of absence. Do you really want to be worried about who is going to run your department and how they're going to do it while you're away? I know I sure don't!!
Having a well defined succession plan not only helps aleviate your own stress but will enable your employees to have a goal within the company. Some employees will be content with staying in the position they're in and that's ok. Other employees, when they see the potential for upward movement or simply understand the process, will do everything in their power to get on that path. Well-defined career paths help cultivate employee engagement.
Also, having a well-defined succession plan helps the management work together and train staff in the same process across the board. This will help everyone involved be on the same page, with the same message. But before we can get everyone to that place we need to take 5 steps towards building a succession plan.
Step 1: Identify the positions in most need of a succession plan.
The fastest way to get a short list for this step is to look at every position in your company and ask yourself, "If the person in that position no longer existed would their absence have a negative effect on us reaching our current and future business goals?" I'm sure you'll quickly see which positions are on the top of the list and which gaps are easier to fill without much planning or immediacy required.
Once you have those top few positions in mind you must either move through the remaining steps yourself or even better, work with the person who currenly holds that position to get a concrete succession plan in the works. Chances are that person knows more about what is required to do their job than you do.
Related: Find a great flow chart from the Treasury Board of Canada Secretariat here.
Step 2: Identify initial competencies required for those positions to function smoothly.
By having open communication with the person that currently holds the position being investigated, you can take a proper inventory of the relevant knowledge, skills, abilities and competencies required to fullfill the position. No one knows better what it takes to get a job done than the person that has to do it everyday. Don't underestimate their usefulness in developing the succession plan for their position.
This may be the best time to open initial communcation with the staff about the development of the succession plan.
Step 3: Identify interested employees and assess capabilities as they pertain to the key positions.
Once you have an idea of who may be interested in being part of the succession plan it is a good idea to have a meeting with that employee to get a sense of how they envision their career developing. Let them know that if they don't see themselves with the company in 5, 10, 15 years that's ok. You want them to feel they can be as open and honest with you as possible.
Once the employee or employees with the right competencies (or potential for development of those competencies) and a career goals that align with the company's has been identified it is time to incorporate development opportunities. Employees feel valued when you take the time to help them develop within the company and themselves. This can be in the form of internal workshops and courses run by management, stretch assignments, mentorship programs, company academy, etc. This will help you develop and maintain a talent pool which you can draw from when the need arises.
Don't underestimate the importance of the alignment of personal and corporate values. If an employee doesn't have the same values as the company that's ok, but that's something that needs to be dealt with first, before consideration for succession should be an option. It could end with them leaving the company or aligning with the company's values. Either option is ok. The success of a company greatly depends on the strength of its corporate values and culture. One person that doesn't align can easily derail things. If an employee does have values that align with the company's that is another checkmark in their favour!!
Related: Help yourself learn to read your employees and be empathetic to their needs by reading this blog post by TayLynn Bookkeeping.
Step 4: Develop succession and knowledge transfer plans.
You will need to take into account many different aspects of the transfer process. The first step is to make a list of all the responsibilities the position in question has and the tasks the position must perform. Once these are listed in their basic form they should be ordered in a sequence that makes sense for training purposes. Each task should build on the last until eventually the staff member can fully take on the new position.
The second step is coming up with a timeline. The business may need this new person in place next month or maybe it can be transferred over the next couple years. In both cases it is a good idea to place each task/responsibility (now in an order sequence) on a timeline. This will ensure that enough training is given for each task while still keeping to a schedule.
The last step in the process can often be underestimated in its importance. The staff member that is taking over the position should at some point be given the official title of the position. This should be announced to the other staff to assist with proper lines of communication (not to mention giving that person an extra boost in confidence).
If at all possible the original holder of the position should stay in contact with the new position holder to help with any trouble-shooting that may be required.
Step 5: Evaluate effectiveness of both the process and the employee.
To evaluate the effecctiveness of your succession plan ask yourself the following questions:
"Are the succession plans for each position fully developed and being implemented?"
"Are positions being filled quickly when the need arises?"
"Once in a position are employees performing to the best of their ability/to the level the company needs them to be performing?"
Based on the answers to these questions you may need to go back to the earlier steps and review your process. Your plan of execution will never be complete and will always need further development as the position evolves. Once the process is defined it should always be reviewed and evaluated (even when it seems to be working well). Any plan can always be developed to become even more efficient.
Do you have a succesion plan in your company? How do you identify staff that should be moving into key positions? Does your staff know where they can move upward within the company?
Taya de Baat
Owner
TayLynn Bookkeeping
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