My career has provided me with the opportunity to work in talent management in both small, medium, and global businesses and all have struggled with succession planning in their own ways. In every setting, I observed first-hand the challenge of the knowing-doing gap. Leaders know the importance of succession planning and will speak to its importance, but then systematically they struggle with prioritizing plans that demonstrate an ongoing commitment to the cause.
Consider that nearly 86% of leaders deem succession planning important, but only 14% feel effective at it (Deloitte)
Focusing on the small and medium-sized business (SMB) environment, here are a few unique challenges.
Talent Pool Size
- A limited pipeline means fewer potential successors and fewer high-potential candidates to choose from.
Role Redundancy
- Key roles may be filled by one or two people who hold critical organizational knowledge yet have no backup.
Assessment Tools and Data
- Small and medium businesses are less likely to have robust talent analytics and are often less likely to use validated assessments. This creates an environment where manager intuition and informal observation leads the way.
Development Tools
- Limited budgets for structured development, coaching, or opportunities for stretch assignments.
Confidentiality and Transparency
- In SMBs it is harder to maintain confidentiality as employees may quickly notice who is being groomed as a successor.
Overall, in SMBs, there is a struggle with depth, objectivity, and resources that make succession planning challenging and increase the risk of sudden departures of key talent who see greater career opportunities elsewhere.
What to do about it.
Start Simple.
Release the desire for perfection, which often feeds the knowing-doing gap. Consider focusing on the top 5 or 10 most critical roles in the organization. Consider which roles, if vacant, would disrupt the business quickly. With these roles identified, profile the Knowledge, Skills and Attributes (KSAs) needed for the role(s) today and how that may change in the coming years. With a clear picture of the KSAs, you have a starting point from which to look at your internal talent pools, identify the need to hire talent into roles to build your pipeline, or recruit for an immediate successor (heightened risk).
Use evidence, not gut feel.
A reliance on informal manager opinions is an open door to welcoming both conscious and unconscious bias into the process. Conduct a scan of the market and identify a validated, evidence-based, tool to help you validate potential based on the known science. We exist at a time where we know potential “is a thing” and we can objectively identify and develop it. However, identifying and validating potential starts with what we use as our filter. If informal opinions are included, our input is already off the train track, and so our succession planning process will follow.
Create development through work.
Developing potential and building a bench is a long-term project. Once you have identified your critical roles, and your current bench, apply the 70/20/10 learning methodology. Oftentimes, when approaching development, we over-index on classroom training and mentoring/coaching. While these elements are important for the overarching plan, they can be the most expensive areas for limited budgets. Be sure to scan the environment for developmental opportunities through work/assignments. With an eye towards the KSAs and experiences needed for the future, what assignments could those on your bench tackle to accelerate their development?
Consider transparency without entitlement.
In SMBs, everyone sees who gets “special treatment.” This can demotivate the other employees. It is important to communicate that everyone receives development opportunities, and some will get accelerated opportunities in favor of business continuity, not favoritism. The discussion about how to tell, or not tell those on an accelerated path, is a blend of art and science. However, that decision should not delay progress on succession planning.
No matter the environment you work in as a talent management professional, there will be challenges you face in closing the knowing-doing gap. Will you ever be able to close it? Maybe not. However, can you take an honest and courageous look at your context and close the gap by 10%? 20%? More? If so, your organization’s future and your employees will benefit. Start now, and don’t take your eyes off the prize.
Authored by: Garrick Throckmorton, TalentTelligent® COO
