The pandemic and its unprecedented challenges have shown that conventional approaches to succession planning fall short of what is needed now and in the post-pandemic era.

Until a few years ago, succession planning was primarily limited to executive-level positions in large organisations. According to ATD (Association for Talent Development) research, only 35% of organisations had a formalised succession planning process in 2019. Then came 2020, with its unprecedented challenges that demonstrated that such an approach to this crucial subject is no longer viable.

Succession planning in volatile times

The pandemic has brought about unprecedented global uncertainty. It has not only impacted economic activity but also created an unparalleled health crisis. As COVID-19 has proven to be especially dire for the older age group, many senior CXO leaders have succumbed to the virus, while others have been out of action as they recover and re-energise. Furthermore, some leaders and employees want to pause and heal as the situation gets overwhelming to deal with.

All of this — along with the coming of the second and third waves of the outbreak — has brought the war on talent to the forefront with an urgency that most did not anticipate. The pandemic has not only highlighted the importance of succession planning in organisations but also emphasised the need for HR leaders to be more visionary, agile and proactive. Before we get into how HR leaders can effectively undertake succession planning activities, let’s take a quick look at why it’s vital in the given scheme of things.

In the current scenario, I see a sudden rise in demand from business heads and a rush from HR leaders to have succession plans in place. I must emphasise that this is a rather deep subject, and robust succession plans cannot be put in place overnight or in a short time span.

Factors to consider in succession planning

In a nutshell, succession planning is the process of identifying, developing, and nurturing new business leaders who can replace current leaders when the time comes. It is a future-focused strategy that facilitates passing on leadership roles seamlessly. It is an inherent part of business continuity. Just as there are extensive risk management plans for processes, succession planning helps mitigate risks when it comes to people.

As succession planning begins with identifying the key roles that a business must have filled in at all times, one might wonder what defines a critical position in an organisation. You may think that leadership positions are by far the most important ones. However, the answer is not so obvious. There is a need to look beyond the management layer. The process weighs in multiple factors, including the impact on business results, the extent to which position drives revenue, the level of risk if the position remains vacant, the dependency of future business strategies on this position, and so on.

The next step involves developing and nurturing talent. HR managers may at times be so focused on acquiring external talent that they overlook strong internal employees. In volatile times, it is even more critical to manage and track the internal talent base from a business standpoint and know what your resources are and where they reside. On the other hand, employees are motivated to perform better if they know they are being groomed for bigger things.

At a time when evaluating internal talent for critical roles assumes paramount importance, it is only natural that HR and business leaders take a step back and assess the requirements from a fresh perspective to be able to nurture leaders for a better tomorrow (especially now that the expectations from leaders have undergone massive changes). This includes defining the required abilities for those key roles, factoring in new leadership skills needed in remote working culture, and considering essential soft skills during troubled times. It also entails understanding the direction the company wants to take and reinventing roles to achieve those goals.

Dos and don’ts of succession planning

We have established that succession planning can ensure business as usual if a leader decides to take a sabbatical, leave, retire, or unfortunate events such as the pandemic arise. Whether the situation is short-term or long-term, HR leaders need to be ready at all times.

 ✔ Prepare for different situations

If there is one thing that the pandemic has taught us, it is that anything can happen. HR professionals must take stock of the different scenarios that can play out. For example, a business could completely pivot, a key employee could leave, or a job role could become remote, opening up opportunities for employees across geographies. HR managers need to have a detailed plan ready for each of these scenarios. Additionally, it is critical to cultivate a pipeline of high-potential talent rather than relying on a single person. This allows you to draw the right fit at the right time and quickly fill in roles when needed.

✖ Don’t fall into the pitfalls of succession planning

Succession planning is more than fancy templates. It is about understanding the development needs of each individual and customising the process, rather than taking a ‘one size fits all’ approach. Instead, focus on creating specific competencies for each role to drive your leadership decision-making. While succession plans exist in many organisations, the burden often lies on one person. The responsibility must be shared by business heads, HR heads, and successors to ensure the successful execution of plans.

In closing

Succession planning must take precedence right away. It is the only way to ensure that transitions are smooth, no matter what curveballs get thrown at organisations. HR professionals must ensure that it is a continuous process rather than a knee-jerk reaction. While succession planning is a long and laborious process, the benefits far outweigh the efforts. The effects of the pandemic will be seen for many years after it is over. Hence, it is crucial that not only HR managers but also the entire top management begin thinking long-term and proactively undertake succession planning to develop future-ready leaders.

If there is one thing that the pandemic has taught us, it is that anything can happen.

HR professionals must take stock of the different scenarios that can play out. For example, a business could completely pivot, a key employee could leave, or a job role could become remote, opening up opportunities for employees across geographies. HR managers need to have a detailed plan ready for each of these scenarios. Additionally, it is critical to cultivate a pipeline of high-potential talent rather than relying on a single person. This allows you to draw the right fit at the right time and quickly fill in roles when needed.