Companies need a succession plan, just like people need a will. HAVE you ever been in a room full of friends, colleagues or family where you were confronted by the question: "Do you have a personal will?"

What was your answer? If you replied no, then why not? Although you've probably experienced a lot of discomfort, remember, you aren't immortal and you aren't bulletproof. Let's face it, things happen.

Things happen in the business world too. And guess what? Just like many individuals without a personal will, many companies often haven't prepared themselves very well, either. In fact, a 1996 study of human resource professionals found that only 40 per cent of firms had any kind of "corporate will" or succession plan that enabled them to deal with the unexpected departure of a key executive. More than 60 per cent failed to have any kind of succession planning process. On the Canadian scene, a recent study of 1,000 small and medium-size entrepreneurial businesses by BDO Dunwoody and COMPASS Research indicated only 44 per cent had an exit strategy and only 24 per cent had selected a successor.

Well, why not? There's a multitude of excuses, not unlike those you hear from people who don't have a personal will. Executives and business owners will throw out any of the following: "We're too busy," or "things are going well, so why worry?" Better yet, have you ever heard the comment: "Why focus on the negative when the chances of something tragic happening are so slim?" For some business leaders, talking about succession feels like you're talking about failure. It's simply so distasteful that it's avoided.

But why is a corporate will or succession plan even an issue? Not unlike the personal tragedy of leaving your family in financial difficulty, companies without a succession plan are also placing their firms at substantial risk. After all, it doesn't take much of a change to send a shudder through your customer base, resulting in a loss of competitiveness, profitability and future growth.

Replacing a senior executive isn't so easy, nor is it quick. High-productivity employees and top talent are simply not as readily available as they once were. With middle management downsizing during the last several years, there are fewer of them ready to step into senior leadership shoes. Also, baby boomers are retiring at age 65 or earlier, and young people aren't quite as inspired to sacrifice their lifestyle for corporate glory. Then too, it's difficult to retain ambitious young talent who think nothing of using an aggressive job-change strategy as the most rapid approach to career advancement. But developing a corporate will or succession plan isn't just about designating a potential new leader; it's about the right skills and the right fit, all at the right time, for every key position in your organization. And it's more than just strutting your stuff on a golf course casually sizing up potential candidates, or mulling over tactics to raid your competitor for top talent. It's about developing a comprehensive strategy that is embedded in your business plan, and it's about developing an overall succession culture. Although there is no standard process, the following tips will assist you to map an employee succession plan for your future.



* BUSINESS STRATEGY DRIVES SUCCESSION: Succession planning must support the corporate strategic initiatives and be embedded in the strategic plan. It's a continuous process rather than an isolated event driven by a human resource department. To be successful, the CEO must lead the process and ensure highly visible involvement and support of the entire management team.



* FORECAST SKILLS AND COMPETENCIES: Once you understand where you are going in your business plan, you need to forecast the leadership and general employee competencies needed to get you there. Be sure to assess all internal job roles and identify the skills and talents required. Don't forget to examine the age of your employees, assess your risk for unexpected retirements and plan to fill skills gaps.



* IDENTIFY COMPETENCY GAPS: Mapping your existing talent pool will ensure you are fully aware of all employee capabilities for both current and future needs. Determine how close your employees are to your future requirements and project the need for personal and professional development. Don't forget to consult employees to determine if they are indeed interested and committed to progressing to higher levels in their careers or if they are willing to learn entirely new skills and techniques.



* DEVELOP A SUCCESSION/ EMPLOYEE DATABASE: It doesn't matter whether you use a simplified Excel spreadsheet or sophisticated succession planning software, the key is to link information between employees and identified successors to various positions.

Be sure to consider that one candidate can be viewed as a potential replacement for more than one position. Develop a summary of strengths, weaknesses, job history, career and leadership training requirements and a history of completed training. Use a simple colour-code system to identify different stages of readiness and update your records frequently.



* APPLY DEVELOPMENT PLANS: Developing employees occurs in many different ways. Strategies typically include mentoring, coaching, formal training and project-based stretch assignments or on-the-job training. Determine the best learning approach for each employee and be certain that personal initiative and accountability for their own development is integrated into the planning.



* REVIEW HR PRACTICES: Keeping high-productivity talent is difficult, so it is important to ensure your HR practices such as performance management, compensation and employee development support rather than impede employee retention. Keep your human resources involved and ensure all management practices are integrated.



* DEVELOP A SUCCESSION CULTURE: Succession planning shouldn't just stop with the top executives -- it's every manager's responsibility. After all, a lack of highly specialized technical staff can derail a successful business as quickly as the departure of a CEO. Plan for succession and replacement staffing at all levels.

Lack of succession planning is nothing other than a ticking time bomb -- a risk no company should want. So put away your excuses and become a positive rather than a negative statistic. You and everyone in your company will benefit.