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Transition planning on the HR front is a long-term prospect |
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| Planning for succession is becoming an important strategic issue for HR professionals |
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Written by Michael Epstein
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Friday, 05 September 2008 |
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Page 2 of 2
Another ongoing consideration that every HR professional needs to address is the available talent and skill level of people within the organization. An incumbent may have extensive "street smarts" that come with spending years in the business. However, that does not mean those skills have been passed on to the next management level.
Once a clear picture of internal resources has been developed, the next step is to identify the skills gaps, keeping in mind industry and technology trends that will influence the organization in the years to come. It is not enough to do a side-by-side comparison between the outgoing executive and a potential candidate. After all, the only thing that is constant in business is change - as it must be in the executive profile of an organization.
One of the more common mistakes comes when an internal candidate is chosen and groomed simply because he or she represents the closest match in personality and skills. While this may work in some cases, it is better to expand one's scope to include a consideration of present and future business trends and of his or her impact on the business as a whole.
Exiting baby boomers are often traditional leaders or entrepreneurs with a talent for sales or business development. But do they have the talent for developing people, improving business processes, or injecting the fresh perspective needed to tackle future business demands?
Remember that diversity is an asset. Successful transition planning often means looking externally to find people who are less entrenched in the current business culture and can bring a more dynamic and creative perspective to the organization moving forward.
HR professionals must also gain a clear understanding of the attributes that identify the leaders of the future, meaning individuals who are capable of nurturing long-standing relationships with clients and developing new ones. They must be comfortable with technology and change. More important, they must have the ability to find and attract new people, while retaining and developing existing staff. The last thing HR needs to face during a transition is a mass exodus of staff when a new executive comes on board.
Whether the talent you seek today to handle the coming change is internal or external, a transition strategy is far from over when the employment contract is signed. Having a mentoring plan in place long before the owner passes on the baton is essential to the integration of any new talent. A mentoring program should encompass two years at an absolute minimum, and the development and execution of the "blueprint" for that falls squarely in the lap of HR.
HR as a strategic partner
Transition planning is something that is a universal challenge for businesses of all shapes and sizes. In our many years of providing strategic support to businesses, we have seen countless operations struggling through this process. The war for talent will be endless - and relentless - in a majority of business sectors in the years to come, which is why long-term strategic transition planning is critical.
Unfortunately, many business owners have been demanding that their HR professionals spend a majority of their time and effort on administrative and compliance-driven issues. It is time for them to realize that HR is a strategic weapon that must be part of the leadership group and planning process.
The most valuable asset for future growth will be the HR person who understands transition planning and can effect a strategy that allows the organizations to meet its long-term goals.
Michael Epstein is the managing partner for Fuller Landau, a Toronto-based, mid-market public accounting and business advisory firm. Fuller Landau has more than 50 years of experience working with clients to develop business strategies that will facilitate innovation and growth and help them adapt to changing market trends. It also specializes in ownership transition, mergers and acquisitions, and operational change management. For more information, visit www.fullerlandau.com.
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