Where does succession planning fall on your priority list?

If you're like other executives, your answer is probably, "Pretty low." That's because many leaders consider succession planning as something to be completed, much like an audit. However, succession planning is much more than that. It's your valuable ticket to your next big job, and it can be a powerful mechanism for internal talent development.

I remember an annual officers' meeting where the CEO asked us to raise our hands if we had our succession plans in place. As you would expect, most hands shot up like fifth graders wanting to answer the teacher's question as quickly as possible. Upon seeing the response, our CEO said, "You can put your hands down now. Most of you are wrong."

He continued, "I reviewed many of your plans and few of them are actionable." He was referring to the same name showing up in multiple places, replacements that were clearly not ready, several references to "outside hire," and outdated plans in general. After commenting on his findings, he informed us not to worry. "When the next big job comes along," he said, "don't worry. I'll find someone other than you to do it. I would certainly not jeopardize our business by taking any of you out of your current roles without a solid replacement." He made it clear to us that we would not be considered for the next big opportunity without a high-quality, actionable succession plan.

Reframing Succession Planning

Instead of viewing succession planning as another to-do, look at it as a process to work yourself out of your job so that you're available for the next opportunity. This cannot be accomplished without encouraging your team to do the same for you.

Think of your organization as an elementary school where children know that they have one year to learn the material of first grade, then another year for second grade, then third, and so on. They are increasing their knowledge base in preparation for the next step. Leaders must think of themselves as teachers with the goal of students taking over. As Peter Senge said in The Fifth Discipline, "The only sustainable competitive advantage is the organization's ability to learn faster than the competition."

Each layer of the organization must create additional capacity to take on the next job. How can your team learn faster so they have the bandwidth to take things off your desk? And how can you improve your ability to teach and delegate?

Creating a Culture of Learning

Aim to create a stronger connection between learning and career advancement and encourage your team to learn. Foster a culture where leaders are teaching their people at least one thing per month. Teach the budgeting process. Teach the customer interface process. Improve communication in general. Train your people to learn and expand their reach.

With associates learning faster and working themselves out of jobs, you might be concerned about creating a demotivator if you have limited opportunities for promotion. This could be an outcome, of course. For example, if your subordinate was ready to take your job and your boss wasn't ready to move on, your subordinate would feel blocked.

To remedy this, look for leadership roles outside your department for either you or them. In this way, people will build broader skills, and you will be regarded as the developer of talent, sending your key people off to do great things on behalf of the company. If the culture catches on, you can guarantee great talent will be coming your way as well.

A Theoretical Outcome

Everyone needs to develop their people, have a solid succession plan, work themselves out of a job, and be ready for the next big opportunity, So, if everyone is successful with this approach, won't the career block happen at the top?

Yes. If you do this correctly, there won't be enough spots at the top unless the company is rapidly growing. If you have the luxury of this problem, you can help your key people find big jobs at your partner companies, supply base, or even with customers. You will create allies in your business network. Moving out of the company on great terms is an asset for both companies. I know this all sounds great when you say it fast, but the fundamental principle is solid, and it works: teach your people to learn and work themselves out of their jobs. A flexible workforce is a competitive advantage.

Not having enough spots for your great leaders is a theoretical outcome that few companies will experience. The practical outcome, however, is a sound process of succession with opportunities for everyone to grow. Be open about the plans. Hold your teams accountable for teaching and raising the bar for their people. Make them aware that their future lies with their ability to learn. An organization that takes talent development seriously is an attractive environment for great people.

Key Takeaways

A few things to keep in mind on succession planning:

1. An actionable succession plan is a ticket to the next big job.
2. Succession depends on all levels creating additional capacity.
3. Create a culture of learning. Talent development creates capacity and attracts and retains great people.

When the next big job comes along, don't miss the opportunity. Have a solid successor in place and be ready to go.