Succession planning has long been a cornerstone of business strategy, focusing on preparing for the departure of key personnel. However, this traditional approach often neglects the critical element of nurturing talent from within and strategically promoting individuals into positions of greater responsibility. It's time for a paradigm shift—from succession planning to promotion planning.
Instead of fixating solely on the exit of a leader or key employee, organizations should adopt a proactive approach that prioritizes the talent that’s moving in. This ensures that even in the worst-case scenario, the incoming individual surpasses their predecessor, guaranteeing not just a seamless transition but also positioning the business for enhanced success.
Identify high-potential talent early
Organizations must identify high-potential talent early to remain competitive. This involves implementing a structured talent identification process that goes beyond traditional performance evaluations. Look for individuals who demonstrate not only exceptional job performance but also key competencies such as problem-solving, adaptability and grit.
Encourage peer nominations and feedback mechanisms to uncover hidden talent and create a diverse pool of candidates for future leadership positions. At Asset Living, we use a technique called "topgrading," which takes a more holistic view of candidates than a traditional interview, exploring who the candidate is as a person, including their hard and soft skills, personality, values, ambition and resourcefulness.
Establish growth paths
Within promotion planning, there isn't a singular route to senior leadership roles; rather, there are numerous pathways. A well-structured organization provides diverse opportunities for advancement, acknowledging that true leadership potential can emerge from any role or department. For example, I started my journey on-site at Asset Living and gradually transitioned through corporate roles in finance, sales and operations before eventually becoming CEO.
By prioritizing internal promotions and lateral movement, organizations empower employees to chart their own journeys. Regular career development conversations between managers and team members further facilitate clarity, enabling individuals to align their aspirations with larger, organizational objectives.
Encourage cross-functional exposure
Cross-functional exposure is key to the idea of promotion planning and the broader strategy of shifting away from traditional succession planning. By encouraging employees to explore roles and projects outside their immediate expertise, organizations can identify potential future leaders.
For instance, someone excelling on a large cross-functional project may demonstrate the adaptability and leadership skills necessary for the C-suite. Facilitating collaboration and communication between departments through initiatives like job rotations or larger project teams helps promote this exposure.
Create a succession bench
Building a robust succession pipeline is essential for mitigating talent shortages and ensuring resilience to turnover and unexpected headwinds. Since there are various growth paths within promotion planning, the likelihood of cultivating several potential leaders is higher. In other words, promotion planning works to identify and develop multiple candidates for certain key positions.
To do this, organize talent reviews and planning meetings to assess readiness and potential, involving senior leaders and key stakeholders along the way. By investing in the development of multiple future leaders, organizations can ensure continuity during unexpected leadership transitions.
Promote based on merit, not just tenure
Promotion based on merit rather than tenure is paramount in fostering a culture of excellence and fairness. To achieve this, it's important to implement promotion criteria that objectively assess skills, achievements and potential. This entails conducting comprehensive performance reviews to thoroughly evaluate employees for advancement.
Establishing a promotion panel of diverse stakeholders ensures a more impartial assessment of candidates' capabilities. Regular feedback and coaching also empower employees to grasp advancement expectations and cultivate the necessary skills for growth.
Hire people smarter than you
In the context of promotion planning, hiring individuals who surpass your own capabilities becomes even more critical. Rather than seeking replacements for outgoing leaders, promotion planning emphasizes cultivating talent that can elevate the organization to new levels of success. These talented individuals not only fill immediate needs but also have the potential to rise through the ranks, contributing to the organization's long-term success.
Hiring people smarter than you supports the proactive nature of promotion planning, ultimately ensuring the organization is continuously moving forward and adapting to new challenges.
