Management Development: The Neglected Part of Succession Planning

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Management Development The Neglected Part of
Succession Planning
Richard E. Stup, Ph.D. RStup_at_agchoice.com
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Succession Planning in Agriculture usually
focuses on

• Taxes
• Finances
• Transferring the farm to the next generation
• Preparing the next manager is given little
  attention

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Management Succession Planning

• Response to the Succession Crisis in America.
  Large numbers of baby boomer leaders are
  beginning to leave the workforce with far fewer
  people to replace them
• Ensures continuity of leadership
• Retains and develops talented people

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Steps in Management Succession Planning (Rothwell)

• Set objectives for the program
• Define key positions
• Assess present and future work requirements
• Assess individual potential
• Develop internal successors
• Evaluate the program

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Step 1 Set Objectives

• What will it look like if the program is
  successful?
• A good transition
• Little interruption in performance
• Good relations with employees who leave and with
  those who stay
• Others?

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Step 2 Define Key Positions
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Step 2 (continued)

• How long would it take me to train a new person
  to a reasonable level of proficiency?
• Who would be able to fill in until a new person
  was placedalmost anybody, or another talented
  key person?
• If no one did this job for a few weekswhat would
  happen?
• Does the person in this job have to make a lot of
  decisions, or is it just straightforward tasks?

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Step 3 Assess Work Requirements

• Job analysis can be used to identify current work
  requirements
• Future work requirements must be projected based
  on the best information available

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Step 4 Assess Individual Potential
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What happens when were talking about family?

• What if junior is just not able to manage people
  effectively?
• What if none of the kids like working with cows?

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Approaches to Individual Potential Assessment

• Leader-driven approach
• Decisions are made privately by senior leaders
• Leaders are responsible for developing successors
• Participative approach
• Leaders discuss career goals, required
  competencies, and development
• Responsibility for development is shared
• Empowered approach
• Leader defines required competencies and
  successors take responsibility for developing
  them
• Leaders help successors in a coaching role

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Step 5 Developing Successors

• On-The-Job training
• Formal education
• Performance Appraisal and Feedback
• Cross-training
• Off-site formal training
• Off-farm experience/employment
• Mentoring (finding meaning in experience)
• Delegation (running a popcorn stand)

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Step 6 Evaluating the program

• How well were the objectives met?
• What do employees in the development pipeline say
  about the program?
• When a key employee leaveswhat happened? Was
  the transition smooth or did the wheels fall off
  the cart?

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Conclusion

• Identifying and developing the right successors
  should be the core of succession planning
• Key managers can make or break a business
• Family relationship does not guarantee management
  ability