Succession planning has changed.
In the past, a company was ahead of the curve if it had a succession plan in place at all—even if that plan was nothing more than a list of critical positions and potential candidates. Eventually, a company that had identified pools of talent to fill a specific key position could say they were the most likely to reap the benefits of cutting-edge succession management: high employee engagement, low turnover, and quick transition times. Today, that isn’t the case.
Today, we know better. We understand that a micro-level planning process isn’t broad enough to ensure company-wide success. It now takes a macro-level model to achieve long-term results.
By definition, a microeconomic succession model is limited because it is so narrowly focused on a specific person(s) to fill a specific job role. This narrow focus costs businesses time, money, and resources by ignoring what truly matters when it comes to success: the competencies needed to excel. While the microeconomic succession model does identify pools of talent, it doesn’t include any correlation between shared and differing skills across pools. This means it doesn’t provide insight into the skill gaps that might be present across an organization. Using this model, it is entirely possible for a company to have identified multiple successors for each of its key positions and still not have anyone who can actually succeed in those positions.
A better model focuses on identifying overarching skill gaps across the organization and creating talent pools based on the skill gaps critical to the company’s success. Rather than starting with a job to fill or a person to replace, the macroeconomic succession model begins by defining the critical skills the company needs to thrive, such as risk management, business acumen, and strategic planning. Then, employees are assessed against those skills to identify individual gaps. Next, the data is aggregated to a skills gap matrix of the company as a whole. This makes it easy to identify major gaps in the company and focuses training and development in the right areas. With a focused development plan, a more qualified workforce and more diverse talent pools for succession are created. Instead of training one or two people to perform in a specific job role as defined by the talent pool, the macroeconomic approach focuses on training people in critical skills areas that can span multiple job roles.
Imagine a world with no job titles. A world in which employees are brought onto projects because they have the specific skills needed for that team. A world where the entire company functions as a dynamic, integrated entity that changes and adapts for success at each moment. The macroeconomic succession model creates that world. We live in a skills economy!
How to Be Smart About Paying for Health Care Today and in the Future
6 Tips for Creating a Positive Customer Service
How to Design a B2B Website That Generates Real Results
3 Ways to Discover What Will Add Value to Your Financial Life
The Robotics Evolution: What Will Work Look like in the Future?
10 Questions Advisors Must Consider Before Podcasting
Being More Effective By Doing a Pulse-Schedule!
How to Spend More Time Working On Your Business
3 Things Every Manager Must Do in December
Investment Grade Bonds Behave as Expected During Recent Bout of Market Volatility
Equities13 hours ago
Bubble, Meet Pin; It’s Just the Beginning of the Downslide
Market Strategist13 hours ago
Don’t Be Boxed Into Style Boxes
Development14 hours ago
As an Advisor, Are You “The Great Communicator?”
Equities2 days ago
This Is the End of Trump’s Economic Sugar High
Development2 days ago
When You Cannot Think of a Better Way to Market Yourself, Try This…
Global2 days ago
It’s Time to Reconsider Risk
Forward-Looking Investing3 days ago
2019 Outlook: Don’t Fight the People’s Bank of China!
Financial Podcasts3 days ago
How to Qualify Prospects and Increase Your Success Rate