Succession Planning Tools Current technology Trends

Succession planning has evolved, securing a prominent position in the hierarchy of human capital management. Once a singular strategy for CEO replacement, succession management is now mainstream. Increasing numbers of corporations are cascading succession planning throughout their entire organization, embedding it into their corporate strategy. And those at the top of the curve, are embracing technology to achieve their goals.

How many companies have succession plans?

Current research shows that

• 87% of Best in Class companies are implementing succession planning programs (Succession Planning Strategies: The Right People, for the Right Jobs, In the Right Amount of Time, Aberdeen Group 2006, sponsored by Insala).
• 56% of organizations surveyed have formal succession planning processes; 7 out of 10 plan to modify those processes over the next few years (Succession Management Survey 2006, Institute for Corporate Productivity)
• 49% of organizations surveyed cascade their succession management initiatives down to the managerial level; 24% include technical positions (Succession Management Survey 2006, Institute for Corporate Productivity)

The days of corporate leaders sitting in a room bouncing around names of employees, are obsolete. Efficiency is now the name of the game. Data is key. Leaders need to mine their workforces, finding their best people – their hidden gems - to create on-demand talent pools and staffing plans. To do this, they must have up-to-date employee information at their fingertips. Hence, succession planning tools are leading the next stage of this powerful evolution.

How many companies have automated succession planning tools?

Aberdeen’s research

• Only 7% of companies have a fully automated and integrated succession planning process
• 62% use a paper-based process
• 32% have partially automated the process
• 60% of Best in Class companies are using automation for succession planning compared to 28% of laggard companies.

Bottom line, most organizations have succession plans, but the majority are not automated and integrated with other human capital solutions. “IT needs to recommend succession planning technologies that help senior managers make data-driven decisions on worker deployment and replacement,” says David Foster, Director of Aberdeen’s Human Capital Management Practice.

Increasing Use of Succession Planning Software

The succession planning technology movement, although in its infancy, is underway. Consider the following:

• 33% of companies plan to adopt new technology solutions for succession planning in the next 2 years (2007 HR Technology Trends, Watson Wyatt)
• 55% of companies plan to use new technologies for succession planning (Succession Management Survey 2006, Institute for Corporate Productivity)

The companies achieving the greatest success, are establishing their succession planning strategy and processes first, and then deploying succession planning software to support those strategies and processes.

What is Driving the Need for Successon Planning Tools?

A number of factors are driving this push for automation. Below are some of the most significant ones.

• Changing labor markets with serious labor force shortages projected – 50% of surveyed companies use succession planning as a retention strategy (Succession Planning Strategies: The Right People, for the Right Jobs, In the Right Amount of Time, Aberdeen Group 2006, sponsored by Insala).
• Objective (data-based) decision-making increasingly required for efficient re-deployment of talent.
• Costs of labor associated with manual processes, and concerns over data integrity

Such pressures are causing companies to analyze their needs, and determine the human capital solutions required to meet those needs. So what are they deciding?

Key Ingredients of Succession Planning Software

Best in class companies are investing in the following succession planning technology:

• Career Profiling Tools
• Performance Management
• Development Tools
• Assessment Tools

(Succession Planning Strategies: The Right People, for the Right Jobs, In the Right Amount of Time, Aberdeen Group 2006, sponsored by Insala).Succession planning tools, such as Insala’s iSuccession, enable organizations to

• Create talent inventories tracking employee skills, competencies and interests
• Match talent to positions company-wide
• Generate accurate talent pools
• Identify and track high potentials and high performers
• Produce bench strength graphs and reports
  
• Reduce paper processing

Integration, Integration, Integration

The trend toward automated succession planning tools, also touches on the broader need for integrated talent management processes, supported by talent management software. Consider the following:
David Foster, Director of Aberdeen’s Human Capital Management Practice, suggests that companies should “link succession planning to other talent management processes, such as performance management, learning and development, and compensation” to improve the succession planning process.
Richard Hubbard, Director of Watson Wyatt’s U.S. Technology and Administration Solutions Practice, states, “ . . . many companies are missing opportunities to make them [talent management programs] less complicated through technology solutions. While implementing a succession planning solution is driving many companies, putting in place an integrated talent management system can help streamline administration of a broad array of programs and can really pay off for employers.”
Research from Leadership 2012: Trends and Best Practices, Corporate University Xchange, lists the following as the #1 change “believed to be essential for delivering a good flow of leadership and core talent to sustain successful operations and pursue growth initiatives”:

• Integrated Processes - Leadership talent identification, selection and development processes are still highly fragmented, and no single approach emerges as a solid best practice. Organizations should consider the “integrated supply chain” as a more appropriate model for structuring leadership and talent processes. The model must streamline the flow of information among the owners of the process steps and improve the efficiency for moving leadership talent through its development evolution.

In summary, current trends indicate that most organizations have succession plans, but the majority are not automated and integrated with other human capital solutions. However, the movement toward automation and integration is underway. Many companies are turning to technology solutions such as Insala’s iSuccession which provides integrated tools and resources to deliver on human capital strategic objectives. Request a live demo to learn more.