A failed or improperly-implemented succession plan can have devastating impacts on a company. While there are a number of reasons a succession plan may fail, here are the five most common.
Lack Of Formal Plan For Each Position
Not all leaders are created equal – nor are all leaders interchangeable. Though many leaders in key leadership roles can and do succeed when moved to different functions, some do not. To stymie the likelihood of failure, it’s imperative for organizations to prepare a clear succession strategy for each individual position.
Business is anything but static. The economic climate, an organization’s competitors, and technology are in a constant state of change, which is why succession plans need to be designed to be flexible. Flexibility fosters agility, which enables businesses to move with the peaks and troughs of various internal and external factors.
It’s imperative for organizations not to forget about those whom they place in succession management programs. If a high-potential employee participating in the program does not see a reward or feel she’s being guided in a clear direction, she may become irritated.
Not Taking Succession Management Seriously
In order for succession management to succeed, there needs to be commitment from the organization to take the program seriously and actually select talent from the pool of applicants within the program. In some organizations, succession management can be likened more to a dead end track than a strategy that enables leaders to emerge from a well-thought-out, strategically prepared program.
If leadership doesn't commit to taking the succession program seriously, the effects can be incredibly damaging to the organization. The results of not investing properly in succession management could lead to mediocre talent rising to the top, and qualified employees exiting the company.
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