Passing on the baton: succession planning is the key to a smooth transition

Black Enterprise, Sept, 1996 by Cassandra Hayes

James D. Brown's recent promotion at the Guardian Life Insurance Co. of America in New York was a picture-perfect transition. A senior financial executive had left, enabling Brown to move from manager of tax accounting to director of financial analysis--a natural chain of events in the company's employee succession plan.

In some organizations, an employee's departure creates havoc as a replacement is sought. But at Guardian Life, "six people were promoted as various managerial and executive slots were filled," says Brown, president of the New York Chapter of the National Association of Black Accountants. Even more impressive, those who were promoted trained their respective successors for the next four months while carrying out their new roles. Had Guardian not had a succession plan in place, things might not have been so smooth.

As companies continue to restructure and downsize, a formal employee succession plan is critical. "Companies must identify and develop existing talented employees who can take over when key employees leave, are promoted or take extended leaves of absence," says Timothy White, manager of human resources at MCI Communications in Atlanta. "Used effectively, a formal succession planning program maintains productivity and ensures that your customers continue to receive quality sales and services."

While the majority of firms have formal succession plans, most small and mid-size companies don't. But even if you work for a company without a succession plan you can still ensure that your department will continue to operate smoothly after you're gone. First, assess your staff to determine who'll be the best for the job. "Managers should also evaluate their own biases to ensure they are assessing all qualified people in their department," says Joan Burnett, principal of Path Ways International, an executive recruitment firm in Windsor, Connecticut. "If you are not thoroughly acquainted with your staff, a fair assessment is difficult and you might overlook some high-potential employees." Other factors to consider as you choose your successor:

* Target individuals with the technical, leadership and administrative skills and competencies required for the job. Don't just look at those you like or know well.

* Ask yourself, how does this person interact with co-workers? The candidate should possess good interpersonal skills and be able to effectively lead and motivate people. "The higher you go up the corporate ladder, the more influential you have to be," adds Burnett.

* Talk to your potential successor. Let them know you are recommending them for the job and, more importantly, find out if they are interested in the position.

* Give your chosen successor increased responsibilities. This will keep them from competing with you or possibly looking for advancement elsewhere.

* Set up a career development plan. Send your hand-picked successor to executive education or management training classes. They should be ready to fill your shoes quickly and with minimal guidance.

* Discuss with your successor your department's long-range plans and seek their feedback. Bringing them in on decision-making early on will make the eventual transition easier.

* Don't set someone up for failure. Coach them along the way and provide the support they need. "That person may never get another opportunity if they fail," says Burnett, adding, "Not only do they lose, but so do you."

* Keep in mind that you may be judged by how your department functions without you. If your heir apparent fails, then it could be seen that they inherited a problem you created.

NETWORKING NOTEBOOK

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