In part 1, Target Leadership Consulting Managing Partner, Paul Surridge discussed the key factors to consider before embarking on a succession planning process. This time he switches his attention to how you set about identifying those potential successors. Read on to learn more about this critical business (not just HR!) issue…
I very briefly mentioned identifying potential successors last time. Here I’m going to give you more in-depth information about how you can reach those decisions, as you select the individuals you want to lead your organisation in the future.
Performance review ratings will tell you the current level of performance capability of your leaders today. Clearly, if someone already has capabilities and strong relevant experience, that will help inform emergency succession – the person in question will probably have enough of a toolkit to do the job with support. However, the same does not apply to long term succession.
Discovering who has potential is way more complex. Who in your midst has already demonstrated learning agility and the behaviours to adapt and deal with ambiguity and new challenges? But you need to know what those capabilities needed are for the future.
Some will have the potential and desire to become future leaders, others have reached their level or simply don’t want to progress. Some may have even been promoted above their level, the so-called ‘Peter Principle’. This is where a formal, scientifically data backed assessment of candidates is crucial to determine readiness, potential, desire, ambition and performance.
The results will help you create differentiated development plans that leverage tools such as promotions, positions, classroom and situational learning as well as formal mentoring. The ‘70/20/10’ model is often used as a ratio of job training, developmental relationships and classroom learning. A final point: don’t forget that the person you’re looking for could be in another role, sitting within another function!
Here are the FIVE key measures to determine your successors:
1) Sustained performance over time
The reality is if somebody is not performing in their current role, they’re not going to be a credible candidate for a bigger role in future. Performance reviews will provide you with most of the answers. But remember the point in the last article about not confusing potential and performance? The vast majority of high potentials tend to be high performers but the reverse is not true.
Top takeaway: while important, high performance is not an indicator of potential
2) Required leadership capabilities
You need to understand the broader leadership capabilities required to operate at the level above. For example, what makes a great CFO versus a Head of Finance? You could be a brilliant marketing director but you might not have what it takes to be a CMO.
Top takeaway: identify the competencies needed to perform at the highest levels
3) Relevant next level experience
Your organisational strategy for the future will highlight key areas of experience that is essential to the success of the person in the new role. For example, if you need someone to drive significant innovation, you’ll be looking to see if they have driven transformation programmes in the past? The same applies to commercial P&L or external stakeholder management experience.
Top takeaway: a degree of experience will add to the individual’s credibility
4) Potential to acquire new skills
As already mentioned, performance is a given – it’s unearthing those candidates in your organisation who have potential that is imperative. By potential, I mean the propensity to develop competencies and experience over the next few years that will enable them to step up. You should assess candidates against industry benchmarks and valid indicators of executive potential.
Top takeaway: who has the potential to build experience in readiness for the C-Suite?
5) Understand aspirations
The final important part is knowing whether the person you have identified actually wants to be your next CEO. And if not, why not? Is it a case that they’re happy and comfortable where they are (this might in turn cause a succession problem for those below them) or do they just not want to be the CTO of your organisation? Aspirations can change over time.
Top takeaway: you must have a deeper conversation about ambitions
To set yourself up for success, you have to assess for future needs and requirements and ensure you build momentum. You must be transparent and have ongoing conversations with those involved to ensure they not only receive the right development but are also aware of the succession plan. In this way, they’ll not only add greater value, they won’t feel threatened and will be more likely to stay.
If you have any questions or want to know more about leadership assessments, psychometrics and behavioural interviews to determine your short or long term successors, Paul can be contacted on 07587 003 990 or email paul.surridge@targetleadership.co.uk.