Succession Planning: Why Your Organization Needs a Strategy

Why You Need A Plan

A key reason for engaging in succession planning is to harness the ability to adapt to demographic changes and talent scarcity. Today, as Continuing Care Retirement Communities (CCRCs) find themselves in an intense period of talent scarcity, those with an established succession plan are breathing a sigh of relief. Their past hard work and attention to this crucial aspect of staffing give them an edge in this incredibly tight job market. But those organizations who’ve yet to reach “Succession Planning” on their master to-do list might feel like they’re sinking in quicksand. “If we had only . . .” can be heard in the board room, the break room, and wafting through the hallways.

The bottom line: The workforce does not have enough skilled candidates to fill an ever-increasing number of positions. At this time, organizations find themselves caught up in the “perfect storm” of converging scenarios: the massive wave of retirement sweeping through the baby boomers, the ever-increasing senior population, and the myriad of contributing conditions stemming from the COVID-19 pandemic.

Because new hires will likely have less job experience overall, they should be willing to soak up everything they can from the more seasoned, successful employees. However, if your company experts, such as the CEO, CFO or other executive leader are in the midst of retirement, it is crucial to be proactive in capturing and preserving their industry experience, knowledge and expertise in order to best maintain organizational stability.

An intentional, written board-sanctioned (where appropriate) succession plan should be a part of every company’s strategy for continued and future success.

It’s What You Know

When it comes to succession planning, it is not so much who you know, as the familiar saying goes, but what you know. Key players within every organization hold volumes of knowledge, gained from real-life experiences in the workplace, often over decades of time. As a result, everyone can identify these wise individuals.

“Bob knows everything there is to know about ________.”

“Mary could manage her department blindfolded—that’s how in tune she’s become with every little detail.”

A collective shock ripples through the entire staff at the thought of Bob, Mary, or any of their equally capable coworkers retiring or resigning. Instead of panicking, why not attack the situation with a plan that seeks to capture the wealth of knowledge these valuable employees possess?

To set future generations of the business up for success, and before you start thinking of who could be an appropriate replacement you should explore various ways to preserve this knowledge and expertise. For example, Bob could compose a manual that would serve as a long-term resource to current and future employees when his departure arrives. But, more importantly, finalizing this document would drastically cut the learning curve for Bob’s successor and assist him or her in achieving success.

It’s necessary to consider all styles of learning when creating a robust succession plan. Since Bob created a written and digital manual, maybe a video would be more fitting for Mary. Consider asking her to record a videos series that captures her “tricks of the trade.” Ask her to pepper the messages with a dose of her well-known encouraging spirit. A video will not only appeal to those who identify as auditory learners, but will also be fitting for the incoming generation – Gen Z – as this group will surely be familiar with, and perhaps prefer YouTube-style learning.

Identifying Gaps and Needs

It is important to note that succession planning does not have to be overly complex or burdensome. The first step – examining and identifying where the crucial job skills, knowledge, social relationships, and organizational practices lie, will undoubtedly get the ball rolling in a productive direction. Organizations of every size—from the smallest to those that meet mega-sized descriptions— will benefit greatly from succession planning.

Check out LeaderStat’s Succession Planning guide for an in-depth look at this crucial staffing must-have.