Succession planning is ensuring the right people in the right place at the right time. It is a part of HR planning for the organization and involves finding the right people to take higher responsibilities in the organization. The success of the organization is largely dependent on the quality of its human resources and leaders of the organisations. Succession planning is proactive in nature and results in the creation of a talent pool of candidates with the required potential and competencies who can take the high positions in future and help in the growth of the organization.
Succession planning is being practiced since a long time now and has become an indispensable part of corporate strategy in most of the organisations. One of the best approaches to succession planning is “performance based succession planning”.
HR planning for the probable future needs is a challenge for the HR managers and the performance review and can help tremendously to attain this challenge. Performance appraisal process (like performance reviews and competency assessment) and succession planning together can help to strategically identify and develop the required talent pool.
Apart from the various other factors, succession planning is based on:
- The positions for which the planning is being done
- The current and past performance levels of the employees
- Performance rating
- Competency mapping
- How have the selected employees managed to improve since their last review?
- The growth potential and the attitude of the employees.
- Their ability to meet the changing and increased level of standards and measurements set by the management.
Succession planning is a complicated process and requires time and ongoing effort. Therefore, performance appraisal and review process helps to judge the knowledge, skills, attitude, competencies and potential of the employees and finding the mentoring and coaching requirements if any and thus identifying the right candidates for taking future responsibilities i.e. succession planning.
For example at Wipro, the succession planning programme is called Talent Review and Planning (TRP), Wipro conducts regular quarterly talent engagement and development (TED) reviews, and action plans of each SBU and vertical are reviewed and a talent pool of the suitable identified candidates is prepared.
Therefore, performance based succession planning helps in creating a required talent pool of employees for the future needs of the organisation.