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Posted On 06.19.08

I have met with hundreds of organizations and am amazed by how predictable the response is to the question “How does your organization handle succession planning?”

The Organizational Development representative I’m meeting with usually gets very excited and tells me about how hard they work to groom their new potential leaders. They ALWAYS have a name for that group- High Potentials (HiPos), Emerging Leaders, Next Generation Leaders, etc. The OD rep tells me about all of the technical and soft skills training they invest in these groups including intensive Myers-Briggs® application training, Six Sigma training, and giving tuition reimbursement for those pursuing MBA’s (all of which is wonderful).

Once the rep is done promoting their HiPo program, I congratulate them on being so thorough in developing their emerging leaders. Then, as someone walks by the conference room, I say “What about that guy?” This usually catches the rep off-guard. “What is the succession plan for that guy?” More often than not, the rep says they don’t know that particular employee. That’s understandable in a large organization, but what matters is whether or not HE knows the plan. What is his career track? What investments are you making in HIS future? Who works beneath that guy? Do they know they could succeed him in his position? Does that person WANT to succeed that person?

So many employers don’t understand why their employees have an “it’s just a job” mentality? Maybe it’s because they’re only providing a career track to the HiPo’s and giving no attention to the “worker bees.” It IS just a job for the worker bees because you aren’t giving them a reason to envision it as a career.

This is one of the loudest complaints Gen Y employees make. What is my future here? We used to say “you have to put in your time and show your skills first- then we’ll decide about your future.” That’s not good enough for Millenials. If you take time to invest in the skills and interests of each of your employees, they will return the favor through hard work and loyalty. If, on the other hand, you use antiquated corporate thinking and only operate on a year-by-year goal/performance review process, don’t be surprised when your employees are only thinking about their future with the company in 365 day increments.

Take time to walk ALL of your employees through the directions they can take to move up (or around) in the organization. Ask them what THEY are interested in, and if they don’t know then use an assessment to help them learn about their interests (I suggest the Strong Interest Inventory®). These employees equally deserve all of the soft skills and technical training the organization can afford. Help them create personal plans and set goals to achieve greater rewards in the organization.

When you employ a successful succession plan, you are feeding your leadership pipeline. If you don’t devote adequate time to the rest of your human capital, you will find your pipeline and organization coming up dry!

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Comments

Adam
06.20.08

Breanne, I think this is a great post that highlights an all-too-often overlooked issue.

I think a lot of Org Dev people look at the big picture, and while that's to be commended, the "rank-and-file" of every company has an enormous wealth of corporate knowledge. If these people were to up and leave all at once . . .

Succession planning at all levels isn't just a good way to retain Gen Y, it's smart business practice!

Bart
06.20.08

I completely agree. Everyone needs to know where they're going, should have a mapped out plan (even if they're just planning to stay in their current position they should know whether it's feasible or not), and should have their employers support. Great post.

Norcross
06.20.08

Being one that has been labeled a "superstar" (my manager's words, not mine), I see the point in needing to also foster a good sense of worth towards the 'rank and file'. However, the flip side that I see all too often is that those same people don't commit much of themselves to the job other than the bare minimum. They start watching the clock at 4:50, they have a "not my job" response ready at almost all times, and don't look to improve the situation, only complain.

A generalization? Yes. But it's the main reason I see that companies don't invest more in these people. There's no inherent ROI for them.

Steve
06.20.08

I respectfully beg to differ. My personal experience as well as documented data tend to prove that you can't make, nor should you try to make everyone a superstar. They either have it or they don't.

Research done by the Gallup organization, and published in the book "First Break all the Rules" by Buckingham and Coffman clearly demonstrates that managers who invest in their best have the best outcomes for their organizations.

I strongly suggest that GenY folks read this book. It truly is a roadmap for success no matter what your career path may be.

Breanne Potter
06.20.08

I'm not saying EVERYONE can be superstars, but I believe it is detrimental NOT to invest in these people at all.

Which came first, the lack of commitment or the lack of career plan?

If companies gave employees a REASON to look past their job description and toward the future, would the display more engagement?

Of course, this isn't going to motivate everyone...there's no way to achieve 100% retention.

I'm just saying that by segregating out the HiPos and giving no attention to regular employees is a poor plan for filling the succession pipeline. Not everyone is made to be a star manager...but everyone can be a star at something.

The question is whether or not companies are investing in those employees at all and giving them a career path/goals.

Adam
06.20.08

This also makes me think of the reward structure usually in place.

In many organizations, the way to progress financially is to get promoted. For the most part, I don't really have a problem with this. If you want more money, you should be doing more for it.

However, there is the fact that you might have someone who is the greatest programmer alive, but only a mediocre manager at best. They've done well, and have earned reward, but that reward pretty much takes them out of a place where they can play to their strengths (programming), and puts them into a place where they're forced to rely on their weaknesses (managing).

Not only is this bad for the employee, but you've shot yourself in both feet as a company because you've lost a great programmer and saddled whatever poor saps with a less than competent manager.

So I don't think you've only got HiPos and people who watch the clock. There is a large group of people in the middle that have value and are necessary, but shouldn't necessarily be on the executive track. Companies can't ignore those people either.

Steve
06.20.08

@Breanne

This is the problem - not everyone is a star.

You play to their strengths and manage around their weaknesses, and if managing around their weaknesses costs more time than the benefits accrued, it is time to move on to someone without those weaknesses.

Good companies create star career paths for people who have no desire or skill set to rise on the company ladder by offering escalating pay scales and benefits for being great at what you do, but even in that scenario, you will still have people who cannot be stars even in the area they have skills in because they just aren't capable of being stars.

It is not just about skills - it is about talents and attitudes. Businesses need people who are hedgehogs about what they do, and increasingly, managers are focusing on hiring people who will best get the job done.

Bart
06.20.08

As far as I can tell, Breanne's point was never to stop catering to stars. It was to make sure the rest of the "non-stars" aren't being entirely left out of the equation.

In other words, don't focus on JUST your stars. Make sure ALL of your employees have the opportunity to fulfill the full measure of their potential, whether that's great or small. Some will accept such company encouragement, develop better job satisfaction, and become more focused because of a better view of the long-run benefits their career can offer.

Others may ignore the whole thing and continue to be average workers. But at least the company would be offering opportunities for everyone to make the most of their career, and everyone would recognize that. Such employee-focused support is often rewarded with higher levels of dedication and retention.

Breanne Potter
06.20.08

Bart- EXACTLY!!! Thank you for helping explain my intent!

Kiersten Mitchell
06.21.08

I think there's a major difference between potential and performance. It is completely possible for someone to be a high performer (i.e. they do a great job in their current role) but do not have the potential to advance (i.e. manage people). Succession plans are made for people with potential.

Those that are high performers that lack potential are either well placed in their current position, or they can possibly do more within their current position (i.e. training). There is no need for the succession plan because there is no movement.

They are not completely left out of the equation, they are just a constant.

michael cardus
06.21.08

When I consult with organizations that focus on the "emergent leadership" forum. I present an idea I heard once from Patrich Lencioni - Your team is broken into 3 catagories A) the champions the yes sayers the people that are high producer B) the undecideds in the middle they are not totally with the team and still not against it (this is your largest part C) the negatives this is your smallest part although they get your attention. Focus on the positive and the undecideds will follow.

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