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In my recent article
on reality based succession planning, I address several aspects critical to identifying
and training next generational leaders.  As the economy continues to fluctuate, but we
see some positive signs, organizations anticipate the inevitable increase in
turnover at both senior management and executive levels.  Without a strong bench of capable
replacements ready to hit the ground running, companies are putting themselves
at significant risk.

Since publishing my article, I’ve ruminated over the thought that
many CEOs, HR leaders and small business owners might read my points, nod knowingly,
and self-assuredly give themselves a pat on the back.  Perhaps they might even pose a thought, something
like: Great points, but our leadership team
has a long history of succession planning and we’ve already identified the high
potentials that will step up when the time comes.

Ever passionate about this topic, I would gladly respond: “Fantastic! But does everyone know about it?
Is everyone clear on the goals?”

Okay, removing ourselves from the hypothetical, let’s talk about the
elusiveness of most succession strategies. A recent survey
conducted by the American Management Association shows that succession plans
are among the areas most closely guarded by top management. Participants
reported that their employers are open about the majority of HR policies, but
don’t share information about their high-potential selection criteria or
admission to leadership programs. Shareholders feel the same frustration with
the companies with whom they invest. Forthright investors are firing off angry
letters to boards, demanding a view of the succession plans along with
other corporate governance issues.

Which brings me to my intended point.  Is there any valid reason why leadership
teams shouldn’t be transparent with their stakeholders—both employees and
investors on their plans for succession? From my perspective, the answer is no.
But many companies keep the details of their succession plans under lock and
key, worrying that full disclosure may invite unwanted discussions or
questions. This can and often does backfire. Apple certainly felt the heat from
its investors when they were less than clear about their plan to replace Steve
Jobs; here are some interesting
lessons from that process.

Communicating a succession plan to employees is an immeasurable
retention and development tool.   Even
traditionally conservative firms like Citigroup
are opening up to their employees and shareholders about their plans for the
future.  This is promising to see.  Leaders are beginning to realize the inherent
advantage of drawing the curtain back to reveal the collaborative and strategic
nature of succession plans. 

Remember, just having a succession plan in place is not
enough.  Don’t squander this strategic
tool by not sharing it with your most valuable assets.  Use it to your full advantage.