What are the steps to create a succession plan for your most important roles?

Identifying critical roles is the crucial first step in developing a succession plan and internal mobility strategy. Critical roles are the ones you want to ensure you have a plan around so that they don't become vacant, and most companies don't spend enough time on this step or do it wrong. Critical roles aren't necessarily leadership roles, they are your highest impact roles, those that are most closely related to your competitive advantage – the ones that if vacant, your business would falter.

To identify critical roles, we mainly ask ourselves a question: which business functions would we like to maintain during the worst situations, such as disasters or pandemics? In my opinion, this is the operations department. During the worst situations, I don’t think we can sell or need to hire any new staff, so the sales department or HR department, although very important during normal situations, are not as critical. In the worst-case scenario, we need to maintain what we are offering to customers, which is the most critical aspect. That’s why the operations department, the team that maintains our service to customers, is considered the most important team, and their team members and leaders are also considered critical roles.

While identifying a primary successor is important, having a backup plan or a pool of potential successors can enhance the resilience of the succession plan. It's wise to recognize that unexpected circumstances can arise, and having multiple options ready can ensure a smoother transition in critical roles. A comprehensive succession plan should consider both primary and contingency successors.

Critical roles within an organization encompass positions where the individuals play a pivotal role in generating added value and fostering a competitive edge for the business. The absence of competent individuals in these roles can lead to significant voids and potentially inflict adverse financial consequences upon the organization. Crafting a succession plan for these pivotal positions is far from a simple task; instead, it represents a multifaceted strategic initiative typically championed by forward-thinking companies.

Yes 360 degree feedback and assessment are utmost importance. Nurturing the talent to get into critical role can only done post this assessment and feedback. This can be worked as a filtration process.

Conducting an annual talent review facilitates the identification of high-potential employees capable of excelling in critical roles. Once these individuals are identified, strategic actions for investment in their development and retention can be devised, contributing to the construction of a robust talent pipeline. A more effective approach involves establishing a skill taxonomy for all employees, with proficiency levels assessed annually. This ensures that talent identification and development become ongoing processes, facilitating succession planning as needed.

Always have the future in mind. Who are your potential successors? Identifying these key employees early on will strengthen your team long term. Be sure to gain constant feedback from employees to evaluate 'readiness' of your future talent pool.

The second step is to understand the key requirements of these key positions and start to look for potential successors within your organisation, potential successors should be employees who have high potential and high performance to assess their readiness to play the new role

Evaluating your team's current performance and future potential is key in Agile talent management. Use honest feedback and assessments to understand each person's strengths, aspirations, and how they align with your organization's culture. It's like when I helped a rising star find her perfect role, leading to success for her, the team, and the company. This approach not only ensures you have a robust succession plan but also shows your team you're invested in their growth. By putting people first, you create a win-win scenario, fueling both individual careers and your business's future.

The third step is to design a development plan for each successor customizable per the employee's needs, the development plan could include job shadowing, internal or external training, coaching, mentoring and job rotation

After we identify the key successor, one of the steps I would add is to communicate with them and ask whether they are interested and willing to participate. This is also a great opportunity to set up expectations. Once the candidate agrees, make sure all the managers know the development plan so we can provide the most support for their success.

There is other face of succession planning.?If we do not clearly communicate the objective of the plan to participants, it will not result in expected outcome. Bias of favoritism and turning it into big competition can also reason of its failure

In crafting a succession plan, clear communication and engaging stakeholders are vital. In my Agile approach, involving everyone from senior leaders to potential candidates ensures transparency and builds trust. It's like when I share insights on my podcast or guide someone to a new role; it's all about creating connections and understanding expectations. This open dialogue fosters a sense of belonging and commitment, crucial for a smooth transition. Remember, a successful plan isn’t just about picking the next leader but about making everyone feel they are part of shaping the future.

This also provides networking/exposure/awareness opportunities for successors. This helps when planning projects or events and what talent to tap into.

Effective succession planning never stops, and typically as a minimum, at least three potential successors per business critical role, is seen as good practice. However, as we already know, managing succession timelines is a challenge, and inevitably some individuals will leave well before they progress in their career journey, ergo reducing the volume of potential successors. Its important to recognise therefore, that dependent on current talent pipelines and labour market constraints, the volume of potential successors will vary, and you should aim to react accordingly based on regular workforce planning processes so that skills gaps do not 'creep' up on you, longer term.

Regularly assessing and refining your succession plan is crucial. In the Agile world, this means looking at outcomes like team retention and performance, and genuinely listening to feedback from everyone involved. Just as I’ve seen in my podcast conversations and coaching, continuous improvement is key. It’s about leveraging strengths and addressing gaps, ensuring the plan supports both individual growth and organizational goals. This cycle of evaluation and improvement not only keeps your strategy fresh but also reinforces a culture where people feel valued and aligned with the broader mission.

Regularly revise your succession plan, understand it is an everchanging process. Identify multiple successors for leadership roles, don't 'put all your eggs in one basket!'. Gain feedback from multiple stakeholders, and ensure leaders align with long term business goals & needs.

In Agile and talent management, it's essential to remember that people are the heart of any plan. From my own experiences, such as aiding a team member's career leap or discussing leadership on my podcast, the key takeaway is always to put people first. This approach not only boosts morale but also enhances loyalty and performance. Keep in mind, each person's unique strengths and aspirations can greatly contribute to your organization's success. Embrace continuous learning and open communication as cornerstones of your strategy. This not only cultivates a robust succession plan but also fosters a thriving, engaged workplace culture.

Talent management starts from the very first step of talent acquisition. Line manager and HR must have discussion on future growth of new joiners and possibility of a successor for the right position. Create a talent pool and plan of readiness using different tools. Succession planning is an important process to ensure business continuity. Steps could be different for different companies depending on business, size, culture etc.