Your leaders are leaving soon and you may have gaps within the ranks, both in qualified people and the necessary competencies. While this is potentially alarming information, now is not the time to panic.
Many companies have been stripping out layers of management to gain operating and cost efficiencies. But in the process of paring down, these ‘lean’ organisations cut out many developmental opportunities for next-generation leaders. So there are fewer and fewer candidates ready to step into crucial management roles as older managers retire.
Replacing capable and seasoned employees, while developing a new cadre of managers, certainly takes considerable time and investment. It is time to focus efforts on creating a leadership development strategy to meet this challenge, and then rigorously execute this strategy to maintain – and drive – business both during and after this flux.
The key is to get ahead of other companies by taking action now, with six critical steps designed to competitively position your organisation during and after this dramatic workforce transition:
- Map the exiting skills and expertise – Determine who is retirement-eligible and when retirement is likely. Have frank discussions with your senior management team on their future plans and determine if they have made any efforts regarding succession planning. Know what skills the company will lose and what functions, locations and roles will be impacted the most.
- Accelerate knowledge transfer – Start with a preliminary meeting with potential retirees to understand the gap between the knowledge only known by the individual(s) versus that which is documented as part of your company’s process or knowledge management.Once you have a general sense of the information that needs to be captured, you can then decide how to do it. If you use a technology system, be sure to think through how the successor will employ it, in order to balance a system with a lot of “bells and whistles” with a practical one.Also, keep in mind how the knowledge transfer process might change for different positions, and whether a third party will do the gathering or if it will be left to the retiree. The higher the impact of the retirement on the organisation, the more tailored this process needs to be in order to capture all relevant information.
The process may need to involve speaking with direct reports and job shadowing, particularly for senior management. For departments where there will be a larger number of retirements, a process can be designed for department heads to distribute knowledge transfer plans in a more time efficient manner.
-
Assess talent supply and demand – both internally and externally – Once you have identified the impending skill gaps, the next obvious step is to fill them. First look internally, and use the information you have gathered from retirees and other managers to determine whether the skill sets exist within your organisation. The goal is to identify successors.Where no successors exist, look externally to see if the type of skill you need is available in the market. If talent is available, begin building a pipeline. If it looks like a tough market, use a three-pronged approach: build a pipeline, keep looking internally for potential successors and work to retain Boomers past retirement.
- Accelerate development – Now that you have identified the successors, they need to start moving towards the goal of stepping into the retiree’s position. This will require creating a plan that develops the required skills within the necessary time frame.This is often a difficult process to balance that only gets tougher the longer companies wait to prepare for retiring Boomers. The plans ideally should include on-the-job activities, formal training and knowledge building.
- Maintain focus – The first four steps require a methodological approach that is best carried out by one project management office or one team leader depending on company size. Nominate a person or group to centrally coordinate and lead workforce planning. Ensure that the leader(s) also keeps an eye on your employee brand in terms of how retirees are treated as they exit and how the company is portrayed to external candidates during this crunch process.
- Learn from others – Now that you are aware of your problem areas, keep an eye out for ideas. Consider ways to retain Baby Boomers past their retirement date with alternative arrangements such as part-time retirement.
Many companies have already addressed the Baby Boomer issue. While this is further reason to get started if you have yet to begin, there is also the chance to learn from others who have gone down this path.
Guest Author
Norman Schippers, Capital H Group. Capital H Group is a consulting firm that takes a value-based approach to helping companies manage, and invest in, their human capital. Partnering with our clients, we focus on creating value through their people. For further information, visit web site: http://www.capitalHgroup.com
CEO People Management 