The Growing Importance of Succession Planning

The Growing Importance of Succession Planning

As organizations face complicated changes to global marketplaces, strong and stable leadership will be needed now more than ever. At the same time, at play in today’s volatile environment is an increase in CEO turnover. That means if we aim to create high-performing organizations chat consistently deliver on patient outcomes, we must put the practice of succession planning front and center to ensure constant delivery of products and services.

The increased turnover is the result of a number of factors, including the increasing number of baby boomers retiring, the emerging trend toward consolidation in all industries and the growing complexity of the field in general. It is mainly a matter of developing a regimented methodology that results in something more meaningful than names in boxes on an organizational chart. Having well thought out, careful succession plans in place has always been important, but the increase in turnover reinforces the need for executives to work with their boards to make them an organizational priority.

Succession planning allows for a timely settlement of a deceased partner’s share of the business with minimal effect on a business’s operation.

For chose CEOs reporting chat they did not have someone named to take over their role, some major barriers included the faces that succession planning was not a high priority for their board and chat there were no internal candidates who could be prepared for the position. These findings emphasize some of the areas in which senior leaders and board members can improve. Succession planning is a matter of strong practices in personnel management, not a matter of sudden crisis management. Start attending to those practices now.

Personnel Management

So what can executives do to address turnover and succession planning in their organizations? To start, CEOs and other C-suite leaders must work together with their boards to ensure succession planning and talent development strategies are entrenched in the organization. Some organizations report they are grooming several candidates for succession to the CEO and other senior leadership roles through mentorship and providing succession candidates with rich work experience such as “stretch” assignments. It is through this kind of investment that organizations can prepare for the unforeseen and minimize disruption in case of a staff member departure.

Additionally, successor CEOs must be provided with effective on-boarding tools to strengthen and support their ability to lead. Finally, leaders, when taking a new role, need to consider how long they will stay with the organization. Instead, succession planning must be part of the overall planning process, one that starts with the strategic plan and an assessment of the resources needed to implement it. It takes a good amount of time to make lasting changes within an organization, and both the potential candidate and the hiring organization should consider the length of commitment required.

Strong leadership will continue to be key to maintaining organizational strength during this evolutionary time in all industries. Making succession planning a priority in your organization will help ensure top talent is prepared to lead. A steady cadre of leaders will help all organizations provide quality care to the patients and communities we serve. You and your organization must make sure you are ready.

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