Leadership Talent Winning The Succession Wars

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Leadership Talent: Winning the Succession Wars


Summary


The demand for leadership talent is outpacing supply. If economic growth continues at a modest 2% over the next 15 years, we will need one-third more senior leaders than we have today. How can you prepare for this by ensuring a robust leadership pipeline and finding capable successors for retiring executives?

Article Body


The need for strong leadership talent is greater than ever. As the economy grows steadily at around 2% over the next decade and a half, companies will require significantly more senior leaders. With baby boomers retiring, many large organizations face an impending leadership gap. So, who will step up to replace your retiring executives, and how can you maintain a continuous flow of leadership talent?

The modern, global economy demands executives with a diverse and sophisticated skill set, including:

- Advanced technological literacy
- A deep understanding of global marketplaces
- Multicultural fluency
- Strong relationship-building skills with extensive networks
- Leadership capabilities across dispersed and virtual teams

Succession Planning in the 21st Century


In response to these challenges, organizations are revitalizing their succession planning systems. Unlike the replacement charts of the past, today's succession planning focuses on two key aspects:

1. Leadership development at all levels, not just among senior executives
2. Involving managers and teams in leadership development, rather than leaving it solely to HR

Recognizing Leadership Levels


Many development models overlook the changing leadership requirements as individuals rise from line manager to business manager to functional manager. Companies often focus too much on leadership traits and technical skills, neglecting the evolving skills required at different leadership levels.

Building the Leadership Pipeline


While hiring talented individuals is beneficial short term, companies need a strategy focused on cultivating leaders. Potential is not fixed, and as individuals achieve more, their willingness to embrace new challenges increases. To harness this potential, organizations must clearly define the work requirements for each leadership level. Succession planning systems should articulate the necessary skills for transitioning between leadership roles.

Steps for Effective Succession Planning


Implement a robust succession plan with these five steps:

1. Customize a leadership pipeline model to meet your organization’s needs.
2. Define performance and potential standards in clear, understandable terms.
3. Communicate these standards organization-wide.
4. Evaluate succession candidates using a potential-performance matrix.
5. Regularly review and assess the entire leadership pipeline’s progress.

By following these strategies, your organization can ensure a steady supply of capable leaders ready to guide your company into the future.

You can find the original non-AI version of this article here: Leadership Talent Winning The Succession Wars.

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