Succession Planning and Transparency (Part 2) — Why You Should Inform Employees of Their Part

The first part of this series examined some reasons why organizations might not want to let employees know about their part in a succession plan, but it also discussed how the potential negative consequences of disclosure can be avoided or lessened.  This installment will examine the reasons for telling employees about their part in a succession plan.

1. Transparency and openness build fundamental trust.

While a company’s decision to inform staff about their part in the succession plan will depend on a balancing of the pros and cons, special consideration should be given to how the decision will reinforce, and not contradict, the values expressed in leadership and mission statements.  If a company has articulated “transparency” as a core value, it may be appropriate to extend that ethos to the succession planning process.

Even without an explicitly stated policy of transparency, a succession plan which is properly disclosed will let staff know that superior skills and contributions will be recognized.  In turn, this knowledge should engender trust and commitment that leads to higher performance and continued loyalty from staff.

2. Secrets have always had a way of being revealed in even the most tightly controlled organizations.

Keeping secrets is very difficult and unless absolutely necessary a waste of time and resources.  Is it entirely possible to keep secret all the names of potential successors and all the meetings or consultations related to the succession planning process?

Old-fashioned in-person exchanges still serve as an effective way for people to share what they think they know about company secrets.  With the growth of online social networks and shared electronic calendars, it is now easier than ever for ostensibly confidential company information to be exposed and disseminated.  When information is first revealed though such “unofficial” channels it can lead to a great deal of inaccuracy, speculation and misunderstanding.  It can also can lead to wasted energy as curious employees try to ferret out what is happening.

Importantly, newer generations entering the workforce may expect a much higher level of transparency in exchange for their full engagement and commitment.

3. Succession planning is a critical component of an efficient and effective talent development process and needs to be shared widely.

Managers and human resources personnel can bring prioritization and focus to the application of talent development resources if they all know who will be part of the succession plan, especially as only a limited number of high potential individuals are likely to be picked for critical roles.  Otherwise, managers may themselves engage in speculation and guessing as they try to determine who has high potential.  They might, for example, strive to promote those who are not suited for successor roles and unnecessarily raise their expectations.

Potential successors themselves will more easily be developed if they are aware of the role for which they are being groomed, including the necessary skill set in light of their present strengths and areas for improvement.  During their development, they can serve as role models for all staff in terms of what the company identifies as excellence regarding behaviours and accomplishments.

4. Enhance retention and engagement.

A succession plan which is integrated with a talent development process based on openness and two-way conversations will ensure that high potential employees are not forced to take on roles in which they are not interested or driven to leave the company.  Designated successors who are in fact interested in the roles will appreciate the acknowledgement and be motivated to continue applying and developing their skills sets to the benefit of the organization.

Moreover, an open process may make it easier to identify and involve those individuals who have ambitions regarding successor roles but who are not selected in the first round.  Through targeted training and development, they might be prepared for critical roles even though their capabilities are not initially evident.  Notably, instead of losing top employees to competitors, transparency could allow a company to reduce staff turnover and to create an environment which attracts talented individuals from competing organizations.

5. Reinforce faith in decision-making and refute allegations of favouritism.

A secret list of potential successors might lead to conjecture about bias and preferential treatment, but a succession plan which is open to view can serve to demonstrate that a company bases its decisions on fair and objective criteria and that it desires to attract and develop a diverse range of talent.  A company can further avoid allegations of privilege and entitlement through regularly communicated updates to the selection list which indicate that employees are removed from or added to the list based on performance and fit. 

An “us and them” mentality can be avoided by a selection process which evolves to reflect candidates’ development efforts and a company’s changing strategic goals and needs.  Such a mentality can also be concretely negated by making a wide range of employees from all levels of the organization eligible for successor positions.  Importantly, if the process is based on merit and performance-related criteria, it is more likely that employees who are already respected by all staff will emerge as leading candidates.

The discussion above and in the previous installment suggests that informing employees about their part in the succession plan should be given serious consideration by a company.  An organization has to ask itself whether its perceptions about the potential negative consequences of informing staff merely reflect a lack of confidence in the design of the succession planning process.

Does the process contain these core elements: explicitly stated purpose linked to the company’s strategic business plans; precise definition of roles; requisite skill sets and criteria to be chosen as a successor; clear performance goals to maintain successor status; engagement mechanisms for all staff, not just the ones selected; and consistent communication which keeps everyone regularly informed?  If the answer is yes, then transparency can only enhance the execution of the succession plan.