Succession planning is a process to create and manage the organization’s talent pipeline. A key (and often overlooked) part of leadership is developing the next generation of leaders. Succession planning often includes:
- Identifying the key positions in an organization, as well as the competencies and experience required for these positions.
- Cultivating a pipeline of high-potential talent from which to select new leadership.
- Conducting a talent inventory to understand the competencies and skills currently available within the organization.
This is a crucial process in every organization, but it is becoming increasing important as 72 million baby-boomer aged workers begin retiring over the next 10 years (U.S Census Bureau, 2009). In addition, estimates show the potential shortfall of replacement workers may be as high as 30 million people.
As a result, most businesses have key people with many years of knowledge and experience preparing to retire. Unfortunately, qualified replacement employees will become increasingly hard to find.
Planning for succession involves the selection and development of new leaders, as well as the transfer of crucial knowledge and experience. Organizations must also develop a culture of leadership that encourages leadership everywhere and gets the best from every employee.
Our leadership succession process is backed by over 40 years of field experience and the latest leadership psychology research.
The figure shown here depicts our family leadership succession process. U.S Census Bureau. (2009). US Census Bureau Press Releases. Retrieved from http://www.census.gov/population/age/publications/files/2006babyboomers.pdf