The Modern Succession Planning Process: How it’s Changed & Redefining Traditional Succession Planning for 2023
Today, succession planning is much more complex than it was in the past.
Previously, succession planning mainly focused on a replacement strategy for
senior leaders.
The complexity of today’s workforce, workplace, and global challenges for all
organizations both small and large require them to look at succession planning
on a holistic basis.
Succession planning must account for a number of factors, including an
organization’s short and long-term strategy, areas of growth, talent
management, attraction, development, and leadership development strategies and
processes.

Succession Planning Strategy
Smart organizations today not only have a succession plan but take into
account the multiple factors that influence succession planning throughout the
organization.
When your company has strategically created a succession plan that maps to its
overall talent and business strategies, your organization will be ready and
prepared for any unwanted shifts in the market, unexpected turnover, and other
business challenges.
As businesses evolve within a global environment characterized by speed,
interaction, and socialization, business models are being forced to adapt and
change with an increasing pace.
One of the areas in which enterprises have been slow to recognize and adapt to
the need for change is in their approach to their succession planning process
and succession planning strategy.
Many businesses don’t do any succession planning at all, and most of the ones
that do are still stuck in an old-fashioned hierarchical mindset that is no
longer in line with today’s dynamic environment.
It’s time to move beyond your previous succession planning process and
succession planning strategy to ensure your company is prepared to account for
turnover of leadership positions, turnover of key employees, and at the same
time maintain institutional knowledge.
What is Succession Planning?
Succession planning is the method by which an enterprise ensures that it will
continue to have highly qualified people available for all positions
throughout the visible future.
It includes making provisions for the inevitable exit of all key personnel and
putting in place a network of talent so that no functional need will go unmet,
and the key skills required.
In essence, succession planning means ensuring the ongoing success of the
business through identifying and developing future leadership talent for a
matching key position.
Why Create a Succession Plan?
Close your eyes for a moment and think about all of the bad things that can
happen to your leaders that remove them from their role.
Here are some seeds to start the process - a plane crash, competition makes an
offer they can’t refuse, an inter-office affair, rage quitting, and more…
Be prepared; creating an emergency succession plan from a generic succession
planning template is not how you want to respond to a company cratering event,
expected leadership transition, or expected strategy shift.
Proactively developing a succession plan will ensure business continuity and
execution, and strategically align leadership and career development.
What is the traditional model of succession planning?
Traditional succession planning envisions a business as being divided into
generations like a family: as the older, more powerful members reach an age
where they no longer can perform the necessary leadership functions, younger
members rise to replace them.
This hierarchical leadership form involves top-down power and influence, and a
high priority being placed on stability.
However, a hierarchical leadership ladder is not well-suited for our current
era of greater collaboration, new generational expectations, and transparency.
As Thuy Sindell from Skyline Group notes:
“The relationship and expectations of today’s employees have drastically
shifted away from long-term employment and loyalty. Most in-demand employees
are loyal to their career and their relationship with their employer is based
upon an exchange of knowledge and skills for compensation. In response to
today’s dynamic workforce, your succession plan must be equally dynamic.”
A New And Expended Perspective of Succession Planning
The current workforce is multigenerational.
Power within an enterprise doesn’t necessarily depend on age, and a healthy
company needs representatives from all generations throughout its management
structure.
In some cases, a rapidly rising young star may be one of the top executives.
That said, youth doesn’t remove the need for succession planning.
Young executives can be struck by unforeseen illnesses or accidents, and (a
likelier scenario) they can easily decide to make a job change.
In this networked age, a highly competent officer will be the recipient of
almost continual new headhunting offers.
At the same time, older workers are staying in the workforce longer, due to
economic pressures as well as improved health and the desire to be useful.
The U.S. Department of Defense has a “Net Generation Guide,” which
characterizes the emerging workforce as being far more diverse than ever
before, across every demographic metric (age, ethnicity, religion, disability,
sexual orientation).
This guide states: “Generational diversity is important to sustain stability
and stimulate innovation in a multi-functional workplace.”
When a social trend reaches the point of being codified in official federal
documents, it’s clearly long past the point where the business community needs
to respond!
A successful succession plan should account for multiple perspectives and is
not just a simple exercise in replacement planning.
What Does the New Succession Plan Look Like?
In the new knowledge economy, we have to develop new types of organizational
structures. According to Dr. Mary Uhl-Bien, who led a discussion at the
Research Center for Leadership in Action at NYU, the reason why hierarchical
leadership no longer works is that it’s based on the simplistic assumption
that the role of a leader is to align diverse interests toward a common goal.
In the complex world we live in, it’s necessary to develop an adaptive form of
leadership that promotes ongoing change and learning. It’s crucial to be open
to new goals, in other words.
Her premise is that this type of adaptive leadership can draw insight from
complexity science, which looks at how systems grow in the world of nature.
Complexity theory shows us that these systems are not mechanistic structures,
but are instead dynamic collections of organisms and elements that
continuously reshape and reorganize themselves.
One of the chief sources of diversity is the different perspectives that
workers of various generations have to offer. As such, succession planning
needs to reflect sources of key talent in a range of positions.
How is the New Succession Planning Implemented?
It’s important to do a quick review of the diverse skill sets and perspectives
that a multigenerational workforce has to offer.
Key positions including senior leadership positions, and other key employees
must be considered at all levels.
Through having a better understanding of the perspectives and expectations of
each generation and level of worker, it’s possible to move into (in Uhl-Bien’s
words) a “connectionist” form of leadership instead of a hierarchical one.
Here is a brief outline of overall generational characteristics:
“World War II or Greatest Generation,” ages 64 and up
This cohort is driven by the key values of stability, responsibility and
upholding tradition. They are pragmatic and on the conservative side, with
their outlooks formed by the events of World War II and the Korean War.
“Baby Boomers,” ages 45 to 63

These are the people who came of age around the time of the assassinations of
John and Robert Kennedy and Martin Luther King, the Vietnam War, Woodstock and
Watergate. They are strong believers in equality and somewhat in indulgence.
They were the dreamers, the ones who expected to change the world.
“Gen-X,” now ages 32 to 44.

Smaller in numbers than the groups before and after them, this population
sector came of age in a media-saturated environment. The economy was strong
while they grew up, and they watched the fall of the Soviet Union and the rise
of the dot com bubble. They are strong advocates of individual freedom and a
good work-life balance, and they are more realistic than the preceding
generation.
“Millennials,” now ages 19 to 31

These “digital natives” are still emerging into a defined generation as they
come of age, but their realities have been defined by 9/11 and a new age of
corporate scandal and economic dislocation. They are fluid, independent and
able to market themselves on their own, ready to take their toolkit wherever
it can bring them the most meaning. Security seems like a nearly antiquated
notion to this generation.
In addition to considering the varied generational perceptions when developing
a succession plan, effective succession planning should be viewed as a
strategic initiative taking into account multiple actions and a perspective
that views the succession plan beyond just an HR activity.
The benefits of having a strong and living succession plan in place allows
companies to ensure continuity and retention of institutional knowledge.
Every business succession plan is unique and the benefits of succession
planning are easily attainable.
Before searching the internet for a succession planning template first
consider what is unique about your business operations, internal employees,
special key skills, and other promising employees. An effective business
succession plan should take into account and include the following:
1. Clearly Define The Need for Succession Planning
This includes identifying internal company drivers as well as external
drivers.
For example, internal drivers can include stock vesting schedules and the
upcoming retirement of individuals in key roles.
External drivers might include Sarbannes-Oxleyy compliance and competition for
key talent.
2. Align the Succession Plan with Company Strategy & Goals
The succession plan must align with short-medium and longer-term company
objectives.
As such effective succession planning is an ongoing process and not a one-time
check-the-box initiative.
Succession plans should align with short, medium, and longer-term goals and
evolve annually.
3. Identify & Assess Current Leaders & Key Positions
As part of the succession planning process, an assessment of current
leadership roles, responsibilities, skills, and understanding of what makes
them successful in their given role needs to be done.
From this information specific skills, behaviors, and personality traits can
be identified as part of creating a talent profile for the individual(s)
identified to fill specific roles.
Identify any gaps in these key positions, qualified employees, and the career
development needs required to help succession candidates succeed.
Look at your entire organization and the talent pool of current employees from
senior management to potential candidates at lower levels.
Succession plans should consider external candidates and how they can replace
employees, as well as future roles, taking the broader environment into
consideration is critical as you create your succession plans.
4. Identify Current Talent & Potential Candidates to Current Objectives and
Required Talent for Future Objectives.
Identify replacement strategies for key roles throughout the organization.
Replacement strategies can include developing internal candidates as well as
identifying talent outside the company, as part of this process ensure that
you are identifying and building in redundancies.
An important part of the succession planning process is contingency planning
in the case that one or two replacement candidates are unable to fill a
predetermined role.
Once internal candidates have been identified, inform them of how they are
being considered, what the path and timeline might look like, as well as a
potential option in the case that a specific role does not manifest.
5. In Conjunction with Any Initiative Identified as “Important” There Must
be Both Dollars, Time by Way of Allocating Head-count, & Visual Reinforcement
by Leadership.
Effective succession planning is an ongoing process and as such, requires an
ongoing budget and head-count allocation.
6. Take a systemic approach
Align developing talent with existing employee and leadership development
programs, performance management systems, and methods for identifying both top
performers as well as individuals with strategic knowledge and abilities.
Identify key positions and identify skill gaps in current programs required to
meet the talent/leadership needs of the company.
Writing in Harvard Business Review, Marshall Goldsmith urges that the
effective approach to succession is to term it “succession development” rather
than “succession planning.”
He points out that in traditional views of succession planning, it’s too easy
to get lost in the process:
Charts, meetings and checklists get confused for the actual act of developing
a broad future pool of dedicated personnel.
Goldsmith compares classical succession planning with a person’s plan to lose
weight:
The person might make a list of all the ways that they’ll diet and get more
exercise, but the actual weight loss isn’t going to happen until they actually
implement all the things they plan.
He urges businesses to measure how well their succession plan works by
evaluating actual instances of succession which have been executed.
Remember there is no one size fits all succession planning template - your
company and people are unique and so is your succession strategy.
In order to facilitate productive collaboration in a diverse workplace, and
inculcate a new awareness of “connectionist” leadership, it’s almost a
necessity to bring in an outside leadership coach.
The goal of expert coaching is to maintain consistent communication within and
between different sectors of the organization and to acknowledge the
achievements of individual staff people.
A coach can assist each department to capitalize on the varied skill sets that
each generation brings to the workplace, and to strengthen a sense of teamwork
and leveraging key positions.
Coaching supports the needs of senior leaders in the organization to feel
confident that there is a deep pool of competent dedicated personnel to draw
upon if the need arises.
At the same time, a skilled leadership coach assists with establishing
targeted mentorships where appropriate and an outside perspective in personnel
management.
Sometimes a coach can surface an unhealthy organizational stasis by
encouraging managers to cross-train, changing their scope of responsibility
and even their department. This type of risk-taking is not something that the
executives might initiate without a nudge, but it’s often the most solid way
to prepare for succession.
Most importantly, coaching provides real-time learning and skill development
that can then be applied to the job.
This “in-the-moment learning” can be much more effective than traditional
classroom or off-site training programs because coaching deals with current
and pertinent issues. The guidance the coach provides can be applied
immediately and results of newly deployed behaviors can be observed and
experienced.
Coaching is a powerful, targeted, and individualized tool for engaging
strategic talent as well as developing and aligning an individual to the role
that they will fill in the future. Coaching can also address the unique
perspectives and development requirements of a multi-generational workforce.
Conclusion
In addition to enabling an effective succession, encouraging diverse voices in
an enterprise yields a whole bouquet of advantages.
Generational diversity promotes the company’s ability to relate to a
heterogeneous customer base and can improve its public image as well.
When younger talent perceives that an organization has flexible, responsive
management, they are likelier to feel that they can achieve their own goals
within that enterprise.
The long-term health of an enterprise depends on its ability to make full use
of the insights of every generation.
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