Despite this need, a variety of myths continue to persist regarding succession planning. We’ve included a few below as well as the reasons why they should be dispelled.

Myth 1 – Succession Planning Should Occur in a Vacuum

Everyone involved must commit to the succession plan in order to execute it properly. Keeping succession planning a secret tends to foster “group think”; that is, individuals involved may fail to recognize important issues. Additionally, keeping succession planning behind closed doors prevents key messages like valuing employee development from reaching talented personnel.

Myth 2 – Succession Planning Only Focuses on One Position — CEO

Focusing only on replacing the CEO perpetuates the image that this is the sole valuable member of the organization and negates the importance of having a team. Focusing on only one position also neglects to consider leadership competencies that are important across the organization.

Myth 3 – Succession Planning Is a One-Time Event

As opposed to preparing one individual for one position, succession planning is best practiced as the development of a leadership pipeline for the future. This allows for the development and placement of a variety of individuals in leadership positions across the credit union.

Myth 4 – Succession Planning Ends When a Successor Is Named

Succession planning should include assimilating the individual into the new position. Ignoring this step leads to a sink-or-swim mentality that accompanies the individual’s every move—good and bad. This increases one’s vulnerability to cultural missteps, which also increases the individual’s chance of failure.

In Conclusion

When executed correctly, succession planning specifies leadership competencies, identifies gaps in leadership, and eases the transitioning of leaders. Moreover, it reduces turnover, reduces the downtime in filling positions, improves the image of an organization, and increases employee satisfaction and commitment. It’s the best way to ensure that the right people are in the right positions—today, tomorrow, and 10 years from now.
 

The 6 Steps of Succession Planning

Step 1 — Organizational Assessment

• Culture analysis
• Strategic planning

Step 2 — Position Competencies

• What are the knowledge, skills, abilities, personality, etc. required for effective job performance?
• What are the position requirements today and in the future?

Step 3 — Individual Assessment

• Consider interest, abilities, education, etc. to determine who will be assessed
• Grade employees on readiness to fill another position

Step 4 — Individual Development

• Based on the assessment, identify who will be developed, and in what areas (It is important to understand that some things cannot be trained!)
• Part of performance management includes continuous feedback and rewards

Step 5 — Filling Vacancies

• Naming successors; ideally filled from within
• Continuing assistance with the position

Step 6 — Evaluating the Process

• Are more positions being filled with internal candidates?
• Is turnover decreasing?
• Is the leadership team more capable?