Succession Planning refers to the process of passing on leadership roles within an organization. Succession Planning, also known as Replacement Planning, is about preparing for the future so that the organization does not face any problem in case any employee leaves the firm Source of Succession Planning - Inside or outside the organization - Internal succession encourages employee loyalty whereas external succession gives a fresh perspective to the existing structure Purpose of Succession Planning The purpose of succession planning is to train employees so that they can replace the existing employees at the right time - Superannuation - Resignation - Promotion - Diversification - Creating new positions Objectives of Succession Planning - Identifying employees with the capability to take on bigger responsibilities - Involving the current leader in training for future leaders - Improving employee dedication - Minimizing the cost and effort of external hiring - Promoting career development opportunities - Providing opportunities to gain experience in various roles Succession Planning Process 1. Identify the reason for the succession planning process 2. Determine the capability profile needed to fulfil the roles 3. Align your current and future needs and make viable evaluations 4. Identify employees with the potential to occupy specific roles 5. Train employees so that they are prepared for the future Who is responsible for Succession Planning? - The succession planning process is led by the CEO of the company - He is supported by the management who initiates the process - The Board of Directors also plays a major role - It is often the HR who implements the process - COO, CEO, Board and Management are all engaged in the process Succession Planning Steps 1. Create a plan and take charge 2. Identify potential candidates 3. Inform them 4. Ensure professional development 5. Trial run 6. Align hiring strategy with succession planning 7. Think about your replacement Benefits of Succession Planning - Increased job satisfaction - Employee empowerment - Career development - New opportunities for growth - The organizational vision is shared by the employer and the employees - Beneficial for all the stakeholders - Makes the company attractive to the investors Examples 1. Apple 2. Real Madrid This video is on Succession Planning and it has the following sub-topics. Time Stamps 0:00 Introduction 00:20 What is Succession Planning? 00:51 Source of Succession Planning 01:29 Purpose of Succession Planning 02:12 Objective of Succession Planning 02:45 Succession Planning Process 03:15 Who is responsible for Succession Planning? 03:52 Succession Planning Steps 04:16 Benefits of Succession Planning 05:07 Succession Planning