Should Succession Plan be a secret?
There are many organizations and
HR Heads who believe that the succession plan should always be kept
confidential and divulging the succession planning process to concerned
employees can affect the organization negatively. In many companies, the
succession planning process is a mystery and promotions are a surprise. Even today many management professionals
believe that revealing the succession plan to employees can destabilize the
organizational harmony and team spirit. Is this belief a fact or just a
disquiet? Should the management hide the succession plan from employees, thus
paving way for prognostications and gossips?
Succession planning is an
important strategic process, but the absence of transparency might lead some
high-potential talents to quit the organization if they do not see the
opportunity of formidable growth opportunities. Communicating the plan of
advancement to employees will have a positive effect on their motivation to
take up developmental objectives, and to continue with the organization
long-term. Dr. Mary Kelly, CEO of Productive Leaders, says the succession plan
should not be kept as a secret from all employees and especially for those who
are being prepared for higher roles. This transparency always eliminates
surprises and will lead to higher level of employee engagement. Meridith
Elliott Powell, business strategist and award-winning author wrote in her
article ‘How to get your team engaged in succession planning’ that
“Communication is key to getting people to understand what you are doing, why
you are doing it, and how they can get involved. You need a strategy for
communication to ensure you are clear, consistent and effective. Always
remember, you can never communicate your succession plan too often or too
much.”.
Even though today’s corporate
world gives a lot of importance to succession planning, it is not a new
phenomenon. It is an age-old practice ensued strictly by Kings to ensure
that the country will not suffer in case of untimely death of monarchs. Most of
the monarchs identify one of their sons, normally the eldest son, to succeed
them. The prince who has been chosen as a successor will be informed about this
plan and will be imparted required trainings in all fields to become a
successful leader. Usually, the chosen prince will be placed under a wise man
to learn and develop through appropriate coaching / mentoring. In majority of
the cases, the communication of succession plan changes the entire mindset of
the princes. The selected princes will become more mature and will show a lot
of interest in learning and developing themselves to prove to the king and
people that they are competent enough to lead the nation. The same theory
applies to today’s corporate world, the communication of succession plan to
concerned employees will enhance their motivational level and concerned
employees will devote more time in learning and developing and attaining
necessary objectives set by their managements to prove their worthiness.
Many corporate leaders think that
the idea of communicating a succession plan to a potential successor can create
a feeling of unrest. Paul Georgoff, Director of Talent development for Dacotah
Bank mentioned in his article ‘Succession Planning Can’t Be a Surprise’ that
“leaders often fear this step and might even pose the question, “If I tell an
employee they’ve been identified as my successor, am I promising something I
might not be able to deliver?” The answer is “no.” You’re simply having a
conversation about potential, not promises. The onus still remains on the
employee to perform at high levels and develop to a degree necessary to take on
the expanded role.”.
The result of keeping succession
plan a secret can affect the organizations adversely due to the loss of highly competent
employees to rival companies. The ambitious and highly competent employees
always look for career progression and if they are not aware about their
future, will surely look for opportunities elsewhere. “But what happens if we
don’t tell these future leaders they have the potential to elevate into the
management or executive ranks? You’ll lose them. Not all of them, but more than
you’d like. The reality is the employee-employer contract has changed. Individuals
are no longer selecting career-long companies to work for, networking for new
opportunities is easier than ever before, and countless surveys identify
“opportunities for advancement” as a key attribute individuals consider when
assessing potential employers.” Says Paul Georgoff.
In today’s competitive world, stakeholders
and customers expect organizations to declare their succession plan, especially
for senior positions. Many organizations do the opposite, they keep the succession
plan a secret to their employees and to stakeholders/customers. They conduct covert
succession planning discussions, never discussing the plan with potential
successors, and never communicating succession planning endeavours to the customers.
Not conveying succession planning endeavours to the customers is a big risk. It
indicates an absence of business continuity planning and of leadership
development, both can cause a loss of trust in the prospects of the organization.
To drive a high level of employee
engagement, communicating the succession plan to employees is essential. As per
the survey conducted by Software Advice, over 90% of younger workers (18 to 34)
said working at a company with a clear succession plan would improve their
level of engagement. Succession planning is an alluring initiative that
millennials and Generation Z expect in a potential employer. Understanding a
succession plan can help employees manage their career and participate in the
process with enthusiasm. Hence, it is highly recommended communicating the
succession plan and groom the incumbents by providing adequate training and
coaching to take up the senior roles.
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