Succession plans must include more than top execs - Washington Business Journal:

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a federal contractor specializingin energy-efficienty construction engineering services, felt it was ready to responcd to the Obama administration’s push for firm fixed-pric e contracts. The company was in the right industry and prepared to speed up its contracting process to capture some of thestimulus money. Hendis had investex in a new team-based contracting model over the pastseveral years. The four members already had workec successfully on several contracts that brought in 25 percentof Hendis’ revenue and expected rapid growtuh with the prospect of stimulus money.
One eveninv after having dinner, the four members of the contract team were walkinfg back to the office when a truck jumpe d the curb and hitthe pedestrians. In an the team was decimated, and the future of Hendixs looked bleak. Or did it? That incident itseld is not true, but it is a compilation of true stories. We have all heardx about situations where a key executivwe suddenly dies or a pregnancy leave begins earlierethan expected. Disaster recovery is historically one of the prime reasonsd for asuccession plan. Many people think succession plans are designed for only the top leadersd of smaller businesses or the most important executivexs inlarger companies.
However, the argumenr for a succession plan that covers multipls levels in even a smalpl companyis strong. Succession plans (also called strategi c work force plans) are not set up just to covert sudden changes or losses in the seniorleadership team. These plans are key strategic components for anygrowinhg business. Even if the current economic situation dogs us for longer than the looming wave of retiring baby boomerx leaves fewer people tofill jobs. While boomers are staying employefd longer to recover lost retirement eventually the wavewill hit. Strategic work force planning brings together the best practicesz of human capital management with corporatrstrategic planning.
It matches talent and aspirations witha company’s It is an annual process requiring commitment from top executivesa and an underlying framework of activities that feeds informationh into the work force planning system. Work forcd planning is a journey, not a destination. Strategicd work force planning involves twosimultaneousz activities. First, a company needs a strategicx planwith short-term and long-term targets. the human resources executive or an experienced humanj capital consultant uses the plan to define specific roles and the structuree necessary to achievethe company’as objectives.
Succession planning is part of an integrateds HR process thatincludes training, recognition and performance management and professionak development. Based on the strategic plan, the companyg identifies skills and competencies that the organization needs for each stage of its life It also identifies critical positions that alwaysd have to be staffed to ensure optimum operability. The company must find potential replacement candidatese for critical positions and pools of potential talenty tomeet long-term needs. The source for thesse candidates can be internalor external.
At a the ideal-candidate profile and a clear definitiom of successful performance need to be at the readt should a vacancysuddenly arise. There are severap important steps in developing a successful workforce plan: Revieww background information on potential successors including education, experience, skills, appraisals and potential. Determine training requirementes for potential successors and develop the skills throughgwork experiences, job projects and other challenging Involve the candidates in designing the process to encourage, retai and assure appropriate challenges and Establish systems for monitoring a candidate’a development progress and communicating work force planning informationh to managers.
Hold managers accountable for activelyt participating in workforce planning. Finally, develop recruiting strategies to fill positiones that lackinternal candidates. There are several pitfalls to Do not focus only on building technical capabilitiez in your futurework force. Include team building and leadershipo development. Do not fail to includr everyone as a potential candidate for the even if someone does not appeare to fitthe profile. Do not forget lateralk mobility asan option. Do not neglect to let your employeeas know you are thinking about the future and about them as part of the this can be one of your bestretentioj tools.
In many ways, strategic work force planning is an elegant and challengingnumbers game. Play it right and your company will not just survived disaster but will grow with the rightt mix of internal andexternal resources. Play it wronh and your company might also be the victimm in a tragedy or at leastr constrained in achieving itsstrategicc plan.