Role of Succession Planning for Organizational Continuity

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What is Succession Planning?

The goal of succession planning is to find and develop future leaders and key employees for the company (Peregrine Research, 2020). Whether a company is big or medium-sized, it is wise to invest in succession planning as a long-term strategy to protect itself against future disruptions or unexpected job openings. Succession planning, which typically lasts between one and three years or even more, entails preparing individuals to confidently and skillfully take on new roles. This is much needed for business continuity.


Check out this video for better insight into succession planning and its importance

Source: (Station Chase, 2023)

Where to Start?


Identifying key positions vital for the company's future is the first step in succession planning. These roles should significantly influence the company's strategy, competitive edge, customer satisfaction, or operational efficiency. This involves analysing the organizational structure, strategy, current staff performance, and potential, talent supply and demand, and gathering input from senior executives, managers, customers, and stakeholders. Creating a list of requirements and skills for each position helps prioritize those crucial for future performance.



Successor can be Internal or External

Whether it’s internal or external what matters most is the successor being the right fit. Making the correct cultural and job fit is crucial for organisations in today's market, when job hopping is commonplace and employee turnover is high (Thomas, 2022).

Several advantages accrue to an organisation when key positions or leadership are filled from within (Kennedy, 2023). Since internal successors are already familiar with the company's culture, procedures, and strategic goals, it permits a smooth transfer and guarantees continuity. In addition to lowering turnover rates, this strategy is very motivating for present workers as it lays out obvious paths for professional growth. Furthermore, internal appointments often save money in the long run as compared to external recruits since they save the costs associated with recruiting, hiring, and training. Because of their prior experience in the company, internal successors often need less time to integrate and achieve full productivity. Finally, the chance of external recruits not fitting in with the firm's culture or not performing up to expectations is reduced when internal applicants are used. This is because internal candidates already have experience working for the company.




On the other hand, a company might reap several benefits by bringing in an outside candidate to fill the role of successor. These people provide specialised knowledge and skills that may not be accessible internally. When it comes to promoting change and encouraging innovation inside the firm, nothing beats the fresh viewpoints and inventive ideas that it brings. In addition, outsider successors often bring a new, impartial viewpoint to the table, which helps them make unbiased judgments unaffected by the power dynamics or politics of the current organisation. More strategic and effective decision-making may follow, assisting the organisation in overcoming obstacles and capitalising on opportunities (indeed.com, 2024).


What are the Best Practices?

·      Early Start and Continuous Process: The process of succession planning should be initiated long in advance of when it is really required. There will be plenty of time to find somebody who could take over and train them for the job.

·      Prioritise Leadership and Key Technical Roles: Prioritise leadership and key technical roles in establishing a succession plan for the organisation. Identify crucial roles that are vital to the success of the business.

·      Talent Assessment and Successor Identification: Take stock of your present staff's abilities, output, and future promise to spot individuals with the makings of significant contributions. Think about the possibility for future growth as well as the preparedness for an instant promotion.

·  Training and Development: Once possible heirs have been identified, it is time to start developing them for their future positions by giving them the education, work experience, and mentoring they'll need.

·      Diversity and Inclusion: The importance of having a diverse leadership team in propelling an organization's success can't be overstated, thus it's crucial to include diversity and inclusion into the succession planning process.

·      Continuous Review: The strategy, structure, and talent pool of an organisation are subject to constant change, thus it is important to evaluate and revise succession plans regularly to account for these shifts.

Keep the lines of communication open: This will help keep expectations manageable and the succession planning process transparent. Make sure everyone is aware of the requirements for progression and how to apply for them.


Source: (AIHR, 2023)

References

AIHR, 2023. Succession Planning: Essential Guide for HR. [Online]
Available at: https://www.aihr.com/blog/succession-planning/
[Accessed 1 April 2024].

 

indeed.com, 2024. The Advantages of External Recruitment to a Company. [Online]
Available at: https://ca.indeed.com/career-advice/career-development/advantages-of-external-recruitment
[Accessed 1 April 2024].

 

Kennedy, S., 2023. The advantages and disadvantages of internal recruitment. [Online]
Available at: https://www.charliehr.com/blog/the-advantages-and-disadvantages-of-internal-recruitment/
[Accessed 1 April 2024].

 

Peregrine Research, 2020. Succession Planning & Talent Management, s.l.: Peregrine Research. [Online]
Available at: https://peregrineglobal.com/wp-content/uploads/Succession-Planning-and-Talent-Management-Syllabus-November-2020.pdf. [Accessed 1 April 2024].

 

Station Chase, 2023. What is Succession Planning and Why is it Important?. [Online]
Available at: https://www.youtube.com/watch?v=koiyHjGHDKM
[Accessed 1 April 2024].

 

Thomas, 2022. Internal vs external in succession planning. [Online]
Available at: https://www.thomas.co/resources/type/hr-blog/internal-vs-external-succession-planning
[Accessed 1 April 2024].

Comments

  1. G K A N AbeywickramaApril 11, 2024 at 7:44 AM

    This article emphasizes the need of succession planning for organizational continuity while providing a concise yet thorough review of the subject. It addresses important topics including determining pivotal roles, evaluating internal and external successors, and putting best practices into action. References lend credibility to the material, which makes it a useful tool for HR specialists and business executives looking to guarantee sustained success through people management tactics.

    ReplyDelete
  2. Anjali Hettiarachchi E225448April 11, 2024 at 11:45 AM

    Succession planning is crucial for organizational continuity. It involves identifying future leaders, whether from within the company or externally. Best practices include starting early, prioritizing key roles, assessing talent, providing training, promoting diversity, and regularly reviewing the plan. Open communication is essential throughout the process.great job!!!!!!!!

    ReplyDelete
  3. LAthan (E223750)April 11, 2024 at 3:01 PM

    It's clear how crucial it is for ensuring business continuity and preparing for the future, especially in today's fast-paced environment. I particularly like how you've explained the choice between internal and external successors, highlighting the benefits of each approach. It's a great reminder that finding the right fit for the company culture and the specific job is essential, whether the candidate comes from inside or outside the organisation. How do you suggest companies balance the benefits of internal familiarity and external fresh perspectives when making these decisions?

    ReplyDelete
    Replies
    1. Ruvini DissanayakeApril 12, 2024 at 1:58 PM

      Lathan, I think that the companies can balance the benefits of internal and external successors by considering factors like organizational culture, skill gaps, leadership style, time and cost, and seeking diverse perspectives. It's about evaluating what's best for the specific role and the organization's goals.

      Delete
  4. Thushari Dilrukshi ( E-225496 )April 11, 2024 at 9:36 PM

    Succession planning is like laying out a roadmap for the future of a company by identifying and grooming potential leaders to step into key roles. Whether from within the organization or outside, finding the right fit is crucial. It's about being proactive, assessing talent, providing development opportunities, and ensuring diversity and inclusion are part of the process. Regular reviews and open communication help keep everyone on track and aligned with the company's goals.

    ReplyDelete
  5. Sajana Rupasiri E223450April 12, 2024 at 4:37 AM

    Your blog clearly mentioned , How successful organizations must identify critical responsibilities and develop personnel for future roles. It increases employee retention and morale in addition to ensuring continuity. Giving current employees clear career routes keeps talent from leaving and empowers them, Which builds a great sustainable organization,

    ReplyDelete
  6. Harshi WijeratneApril 12, 2024 at 8:34 AM

    This blog offers a comprehensive guide to succession planning, highlighting its importance in ensuring organizational stability and growth. The emphasis on identifying key positions, considering internal and external successors, and implementing best practices is insightful. Succession planning truly is a strategic investment in the future of any company. Great read!

    ReplyDelete
  7. Dinesha Paranagama ELMSApril 12, 2024 at 8:43 AM

    I really like the way you back the points with solid evidence. I agree that organizations should find successors for the key roles in the organization either internally or externally. That's how a company could thrive.

    ReplyDelete

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