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Viewpoint May 8, 2008, 2:59PM EST

Succession Planning: Beyond the C Suite

(page 2 of 2)

Putting the Process in Place

By answering those questions, companies can clear the major hurdle: identifying that they actually have a problem and what it is. Once that's out of the way, it's a matter of defining a process and putting it into place.

CDW, a technology provider, had a problem, albeit one that most companies would love to have: It had an abundance of talented employees waiting to be promoted, butits internal succession and talent management program lacked the processes needed to encourage growth and leadership development. CDW used performance management software to measure its workforce and developed individual talent profiles for each employee with competencies, certifications, mobility, interests, career history, and goals. Using that information, the company was able to build a detailed organizational depth chart that identified potential successors for most key positions up and down the company.

Secondly, creating a truly comprehensive and successful succession plan also requires companies to shift their thinking about performance management processes. Human resources processes, by both definition and tradition, are generally molded and often uninspiring: Employee fills out review, gives review to manager; manager fills out review, gives back to employee; employee and manager talk because they are, by company policy, required to do so.

But truly knowing your employees—where they excel and where they currently fall short, what they want out of their job, and, yes, whether they're really ready to take over a key role in an organization—takes more than just process and a bit of paperwork. Through an equal blend of technology, smart senior leadership, nontraditional thinking, and an organizational commitment to its workforce, companies can make talent management an ingrained part of their culture and everyday work. This encourages individuals to openly declare their aspirations, provides development opportunities to prepare them for future roles, and facilitates collaboration among employees to help everyone achieve.

Like the Seattle Seahawks, all companies may face the unenviable task of replacing a key figure. Maybe not the top person in the organization—Mike Holmgren wasn't—but an important and oftentimes seemingly irreplaceable. To the team, Holmgren certainly was that.

The key is to not run into the situation blind and unprepared, simply accepting the gaping hole in the side of the proverbial ship as the cost of doing business. By doing a bit of forward thinking, preventative maintenance, and simple planning, by just properly managing and taking care of its workforce, a company can avoid hassle, headache, and financial hemorrhage. Even if it's not a pro football team.

Lars Dalgaard is the CEO of SuccessFactors, a global leader in on-demand performance and talent-management solutions.

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