Businesses like this tend to fail after a leadership change – most of the time it's a lack of planning. Creating a formal and intentional succession plan will address this issue.
- Association of General Contractors of America (AGC)
What is Succession Planning?
The A/E/C industry is seeing shortages of talent making succession more important than ever before. During your succession planning engagement, FMI's Center for Strategic Leadership will help you identify high-potential employees, evaluate and hone their knowledge, skills and abilities and prepare them to take over leadership roles in the future. The way your organization engages in succession planning may mean the long-term success or downfall of your organization.
Why is Succession Planning Important?
Having a well-developed and current succession plan in place is important because it will help you:
- Prevent vacancies in key leadership positions
- Guarantee the stability of business operations
- Provide developmental opportunities for employees
- Help promote a diverse workforce
- Avoid costly hiring and promotion mistakes
- Maximize the value of your business
What is Involved in Succession Planning?
The succession planning process is unique for every organization and leadership team. At a high level, the process involves:
- Assessing current leaders to measure ability and fit in future executive roles
- Developing a leadership competency model: Clarifying the competencies and skills necessary to be a successful leader in each role
- Workforce planning: Understanding workforce trends and making predictions about your business
- Identification, evaluation and selection of candidates: Identifying high potential candidates and their developmental needs
- Next generation development: Providing high-potential employees with individualized development plans so they will be ready to replace key leaders who retire or leave the company