These tips can help organizations plan for the future.
Succession planning is essential for ensuring business continuity and operations, but research shows that not many organizations actually have formal succession plans in place. In fact, the Association for Talent Development's latest research, Succession Planning: Ensuring Continued Excellence, found that just 35 percent of organizations have a formalized succession planning process.
In April 2018, ATD Research surveyed 585 talent development professionals about their organizations' succession planning efforts—or lack thereof. This research served to identify trends in succession planning. It also updated the previous research on the topic from the 2010 report, Improving Succession Plans: Harnessing the Power of Learning and Development. In that vein, the research shows that organizations have increased exponentially in terms of effectiveness of succession planning efforts. Indeed, findings show an increase of 20 percent—from 14 percent to 34 percent—since 2010 in terms of participants rating their organization's overall effectiveness as high or very high extent.
Companies that have formalized succession plans enjoy a variety of benefits. One of the top benefits that participants identified is that the company is better positioned for expansion and growth; slightly fewer said that succession plans ensure continuity. Although a host of benefits are associated with succession planning, it's not without its challenges. For example, 40 percent of respondents indicated that there was a lack of robust development plans for succession candidates. Moreover, one-third of participants said that a lack of resources—such as funding, staff, and time—was a top challenge that they faced.
Clearly, organizations aren't using succession plans, but for those that want to, experts have some helpful tips. First, Thomas Bux, director of workforce development at Lehigh Carbon Community College, advises, "Begin with positions you know are going to become vacant in the near future. Begin by asking what is going to impact your business in the next six to 12 months and develop a plan to address those needs. Identify what skills that position requires as well as any special skills anyone in the position has brought to the table."
The study also found that it's important to consider the channels you use when looking for outside talent. Findings revealed that businesses that used external websites to seek outside talent to fill positions were significantly more effective in their succession planning efforts than those that did not; the same was true for workplaces that relied on networking groups, trade associations, or industry groups to locate outside talent.
Finally, don't forget to develop succession candidates for the role they are going to take on. Research found that organizations were most likely to provide succession candidates with mentoring or coaching, formal learning, and stretch assignments. Moreover, companies that offered these development opportunities were considered significantly more effective in their succession planning efforts than those that did not. Therefore, offering a variety of opportunities for candidates to learn and grow into their new role will set them—and the organization—up for future success.
Succession Planning Year-to-Year Comparison
To what extent do you agree with the following statements?
Our succession planning efforts extend far enough throughout the organization that key positions beyond senior management have pipelines in place.
2010
17%
2018
29%
Overall, our succession planning efforts are effective.
2010
14%
2018
34%
Our succession plans are fluid and flexible enough to change when different types of leaders or skill sets are needed.
2010
25%
2018
41%
Our succession planning efforts effectively identify and develop candidates for leadership positions.
2010
21%
2018
43%
Our succession planning efforts are not just “something we have to do”—we really depend on this process and use it when leadership vacancies occur.
2010
20%
2018
46%
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