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July 17, 2008
Half of Companies Fail to Update Succession Plans
BOSTON, July 17, 2008 — Of those
North American companies that have management succession
plans barely half update them on a regular basis, according
to a survey of more than 2,500 senior human resources
executives by Novations Group, a global consulting
organization based in Boston.
How would you characterize succession planning at
your organization?
|
Our succession planning is regularly updated.
|
46%
|
|
Our succession planning is done in fits and
starts.
|
25%
|
|
Our succession planning is in place, but as often as not
we recruit from outside when there is a senior-level
opening.
|
22%
|
|
Our succession planning hasn’t gotten off the
ground.
|
7%
|
Succession planning is increasingly recognized as a top
corporate responsibility, said Novations Executive
Consultant Michelle Knox. "Many
companies find themselves in a never-ending cycle of
recruiting, which costs a great deal in terms of dollars,
engagement and productivity."
According to Knox, the real issue is succession management,
not just planning. "Companies think that because they
have a plan they’re all set, but the challenge is
broader and needs to fit into a process that supports
ongoing talent development, not only the need to quickly
fill an empty slot."
In organizations that do succession management well, Knox
said, the entire process is owned by the executive team and
executed by HR. "And it’s aligned with corporate
strategy and all human capital systems. Instead of a single
individual slotted to fill a particular position, talent
pools are created and members are given access to the tools
and resources to be responsible for their own continuing
development."
Another best practice, that also reflects transparency is
allowing individuals to nominate themselves, said Knox.
"Their development needs may then be evaluated, a
development plan created, and they both give and get
feedback on progress made. "Of course, this means
senior leaders are checking that progress throughout the
year."
But at the majority of companies succession management
hardly reflects best practices, Knox noted. "When the
plan is seldom updated it’s a symptom of a more
fundamental problem."
According the survey, about three-quarters of organizations
conduct some type of succession planning, a finding
consistent with recent studies.
Novations Group is a leading provider of consulting and
training services on four continents. Novations is
recognized for its expertise in diversity & inclusion,
employee engagement, talent management, employee selection,
leadership development, organization communications, sales
training and customer service.
Contact: Phil Ryan, Ryan Public Relations,
845-339-7858, or Pat FitzGerald, Novations, 617-787-2163, pfitzgerald@novations.com.
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