About Momentum and its Services
Discuss about the Report On Succession Planning At Momentum.
Momentum is a reputable and leading tax, business consulting, and accounting firm in Canada. The company boasts of serving and responding to the needs of its clients both in the private and public sector. Additionally, it offers its services to non-profit organizations. The firm has remained steadfast in strengthening partner-led engagement in providing quality services. Further, Momentum endeavors to provide a cost-effective, collaborative approach as far as doing business is concerned. It suffices to point out that the company has developed strategies geared towards assisting other organizations to attain success in Canada and across the globe. The company is reputable for talent and leadership development[1]. The business activities are aligned to the mission and the need to enhance participatory management.
Succession planning is conceptualized as the entire process involving the identification and the development of a new crop of leaders when vacancies occur as a result of death, retirement, or leave[2]. In business realms, succession involves creating internal people with the ability to take up the key business leadership role in a company. Succession planning enhances the availability of experienced and skilled employees who can assume leadership roles in a company. Several studies have argued that talent mindset ought to be part of an organizational culture aimed at developing good leaders[3]. Indeed, succession management should be guided by the philosophy that top management in a company is central in gaining competitive advantage. By sticking to a good succession plan, a company or an organization is in a position to it employees for promotion or career advancement[4]. Therefore, succession planning is imperative in ensuring that an organization or a company is not hit by leadership vacuum if a particular employee exits[5].
Talent and leadership management is defined as processes and activities that occur throughout the life cycle of an employee. These activities include recruitment, training, onboarding, performance management, leadership development, professional development, workplace planning, work assignment, cross-functional roles, transition planning, and the exit process of an employee or a group of employees. It is imperative to point out that organizations often create elaborate models that are aimed at distinctively characterize their development and succession planning. In this endeavor, organization’s succession planning must reflect repeated activities for leadership development[6].
The following objectives guide the company's succession planning:
- To create efficient mechanisms for the identification of potential leaders who can assume greater leadership roles in the company.
- To provide the essential development experiences to employees who are qualified to move into key positions in the company.
- Engaging the leadership so that they can adequately support the development of highly skilled leaders within the company.
- Creating a database which is used to guide the human resource management in making sound staffing decisions for critical roles.
- To enhancing the employee retention and satisfaction within the company as a result of continued career development.
- Countering the challenges that are associated with recruiting leaders externally.
It is imperative to establish from the outset of this report that transition and succession planning are critical to the future success of any company. Succession planning is a complex process that requires due diligence and commitment[7]. In most cases, it is a far more emotional encounter when a long-serving employee or when a founding member of a company has to leave[8]. For instance, a founding member who has founded an organization will find it very emotional to leave owing to the barriers that he/she had passed through; in the transition period. There is often strong attachment to the role and how the specific role is carried out. As a result of these reactions, most people find it hard to plan, or any plan that is developed does not occur in a thoughtful and proactive manner[9]. Certainties often face many organizations as to whether the successor possesses the experience and skills to steer it to success[10]. In many cases, the planning for succession become a challenge because the management is often busy based on the operational demands[11]. In most cases, more than fifty-percent of companies have no formal plan for succession.
The Importance of Succession Planning
The company was awareness that the completion of a founder’s cycle of contribution to the company is imperative. It suffices to point out that proper succession and transmission planning requires transparency to avoid surprises. Additionally, the company in implementing its succession plan focused on leaders who have the ability to steer it to the next level in the coming future. The leader who is chosen to succeed the exiting leadership ought to be accepted and supported by other employees. The company has stressed the importance of employees and other stakeholders in the succession process. Additionally, the company has laid strong emphasis on candidates who are actually committed to the priorities, purpose, and vision of the company. The company’s succession planning is centered on harmonizing three integral elements that include the vision, leadership and culture within the company, and the strategic direction of the company. The company aligned these three aspects for the strategic selection of its successor. This step is imperative to ensuring that there is continuity of qualified leadership in the company. For the company, succession planning is aimed at enhanced growth[12].
When Hossli who was the executive director of the company made an announcement regarding transitioning out of the company, he did this three years before exiting. The executive in this endeavor hired a coach who would assist him in his initial steps of departure. Additionally, Hossli sought assistance from two colleagues who worked in the private sector to help him. These two colleagues had undergone the succession process, and as such, they were able to avail insights and pieces of advice based on their personal experiences to Hossli. Further, the executive director of the company sought assistance from scholars who had vast experience in handling succession and transition.
The announcement made by the executive director regarding leaving the company prompted the Human Resources committee to hire a consultant. The consultant developed a detailed and multi-stage succession plan for the company[13]. The plan began with discovery and culminated into the transition to the new leadership. In the multi-stage succession plan, pertinent issues such as the professional duty of defining the role of the executive director and the leadership needs of the company. Additionally, the plan focused on the facilitation of the decisions of the Board concerning the selection of the candidate and how to effectively identify and prepare both Momentum and the successor for a seamless transition. It is worth noting that the company identified and developed the crucial roles in the succession plan. This was integral in guiding the final assessment and confirmation of the successor. In doing so, the company highlighted the key motivational and the competencies regarding the profile need to partake in the role of the executive director. Key importance was attached to preparing employees to be ready to advance in key roles in the organization[14].
It is imperative to note that externally there was growing demand for Momentum’s services. This meant that the company’s operations could not be affected or disrupted by a succession. In this regard, the management endeavored to continue meeting the needs of its customers while going ahead with the success plan. It is vital to point out that focusing on the internal environment of the company; its culture has always been embedded to ensure the competitive edge. The succession plan was designed to adhere to and strengthen the culture of the company. In the succession and transition, there was the realization that mentorship, significant knowledge transference, and interpersonal communication within the company was instrumental[15]. Additionally, there was the need to keep a good relationship with the outside stakeholders who had some uncertainty regarding the future of Momentum.
Talent and Leadership Management
For the company, the consultant acted as a third party between the staff and the board. The consultant developed an active profile of the future executive director. Additionally, the consultant was able to implement the executive director candidate feedback mechanism that was based interviews and surveys. Further, the consultant developed a leadership development plan that would guide the internal successor candidate. This detailed planning ensured collaboration and transparency in trying to choose the right successor. In developing the profile of the executive director the company undertook several tasks that including the following:
- Engaging in comprehensive document reviews that were conducted through company charts, role descriptions, and strategic plan.
- The company conducted intensive surveys and interviews the leadership and the board of management. The interviews and surveys were central in collecting further information about the successor in relation to the role specifications.
- There was an in-depth and thorough culture assessment so as to aid in gaining the full perspective of the company’s culture. Cultural aspect was critical because it acts as a tool for the definition the values, attributes, and the requirements that are useful for the new executive director[16]. Organizational culture is imperative in the process of succession planning owing to the fact that culture defines the values and the ways of carrying out activities.
After the consultant drafted a clear profile and applied in developing an updated executive director job description, the company had to make a decision based on the where the new executive director should come from; whether internally or externally. The company had two choices to make between searching for the new executive director internally or externally. The board of directors initially opted to begin the search for a new executive director externally. It suffices to point out that in the meantime, they were also considering the suitability of Jeff Looms who was part of the leadership in the company as a possible successor. After some time, the board of directors decided to evaluate the credentials of Jeff Looms’ potential and capacity for the success in the role of executive director. The decision to evaluate Jeff’s credentials was informed by the Momentum’s strength and depth defined by the strong culture. The company’s leadership was aware that by selecting an internal candidate would guard against compromising the culture of the company. Furthermore, by choosing an internal candidate, the company would be able to strengthen its existing culture[17].
Assessment is a critical practice in succession planning[18]. It is essential to point out that there are no specific guidelines for conducting the assessment. As such, different organizations use various mode of assessment. Several studies have shown the organizations and companies are struggling to locate practices that are practical in the process of succession planning. Evidence shows that leaders who only act on gut or instinct do not produce good outcomes. Assessments carried out through numerous methods are the best because they examine various aspects of the candidates. Multiple assessments, therefore, provide a way in which potential key leaders can be judged based on the right facilitation and tools[19]. In the case of the Momentum Company, cognitive, personality testing, and team-based interviewing was applied in searching for the next executive director. Indeed, assessing an individual’s ability to manage complex job requirements and the formulation of a robust operational definition of business intelligence.
The company leadership worked towards minimizing bias in the selection of the new executive director and selecting a qualified candidate for the position; it made a decision to Evaluate Jeff’s abilities against the criterion established in the executive director profile. The evaluation was planned to take place a period of eighteen months, and this involved a total of three hundred and sixty assessments. These evaluations were aimed at enhancing transparency within the company. The rest of the company team was made aware of the fact that Jeff Looms’ was being considered to be the next executive director. This announcement provided all the team members with the opportunity to join what was essentially an extended job interview[20].
Objectives of the Company's Succession Planning
According to the board of directors, if Jeff failed in any of these assessments then they will be prompted to explore the external search for the next executive director. Lack of progress or any regress on the internal candidate would automatic lead to revoking of his candidacy for an external candidate. The company through its board of directors made it clear to Jeff that his appointment to the position of executive director will only be based on meritocracy. Additionally, Jeff was aptly and promptly informed that he would not be offered the job as an executive director of the company as a result of his role in Momentum. At this moment, the board of directors decided to confirm Jeff as the internal candidate for the next executive director. The decision by the board prompted the consultant to offer advisory and supported the company’s staff as the transition plan was developed.
It suffices to point out that an effective integration was integral in the transition plan of Momentum[21]. On his part, Jeff was to face new challenges as the new executive director. Additionally, he was meant to hold a vital strategic position within the company. To ensure that the transition was a success, the transitional plan was tailored to take place in two phases. These phases included the transition plan and the development plan.
The Development phase
In this phase of the transition, there was regular coaching in the company. The training entailed general decision-analysis sessions[22]. The company leadership also conducted meeting debriefs. It suffices to point out that the external coaching centered on the new successor’s key development goals. These development goals were central developing a comprehensive understanding of the company’s context so as to support the transition and the succession plan fully. Furthermore, the company identified specific leadership courses were identified regarding the development goals that entailed change management, financial management, and active listening[23].
It suffices to mention that during the development process, many measurable processes were put into place so as to gauge the performance of the successor[24]. To achieve these measures, the company focused on the following: first, there was a focus on a development plan that built on concrete measures that were aimed at assessing the performance of the successor relating to the identified development areas. Additionally, the company laid emphasis on accountability agreement that outlined appropriate measures of progress. Secondly, the company conducted two more 360 assessments. One of the 360 assessments was carried out as a mid-point check-in. With this assessment; both the board of directors and the staff of the company had the opportunity to give their input.
The final 360 assessment was conducted in order to give the successor the confirmation as a preferred internal candidate[25]. At this point, members of the board had the privilege for an informal evaluation of the successor’s progress. Some organizations’ succession plans are characterized by confidentiality, handpicking of executives, and rigidity in picking successors. At Momentum, the succession plan is more fluid, very transparent, and a process that leads to the identification of talented and qualified leaders. Additionally, Momentum’s succession plan sufficiently incorporates development programs that are tailor-made to prepare employees for top leadership roles. At Momentum, succession planning is an integral part talent management.
How the Company Implements its Succession Plan
The Transition Phase
This plan focused mostly on the outgoing executive director, the human resource department, and the successor. This plan was spread over a period of seven months. It suffices to point out that every month in the transition plan provided the guide for transitioning particular area of roles forms the outgoing successor over to the successor. The company endeavored to provide both the staff and the board members with copies of the transition plan so as to keep them abreast with what was happening in the transition process. During this phase of succession planning, there was a lot of information and primary knowledge that was transferred[26]. There was coaching at every month of the transition plan between the successor and the outgoing executive director. The successor also had the opportunity to interview the outgoing executive director regarding the role, challenges, and opportunities of an executive director. It is worth noting that to reflect that the company was undergoing transition, the successor acquired the title “Associate Executive Director.”
The Results
The succession planning in Momentum Company was a success. This success was attributed to adequate preparations, the effort given to the succession planning, and transparency. The succession planning was seamless. When the successor stepped into the role of the executive director, he has already experienced responsibilities in the role in several aspects. The company has shown a continued strong operational outcome after the succession planning. Further, the company boasts of the prudent financial management and continued program results. All these attributes point to the fact that the succession planning was indeed seamless in the company[27]. There has been an external validation of the succession planning by the company’s annual funder survey. The succession planning at the company has been considered a major success was because it gave all stakeholders the opportunity to be involved in the process. Further, the succession planning at the company showed no negative perception of the company’s stakeholder[28]. The company has continued to make meaningful and measurable progress towards achieving its mission.
From the case of Momentum Company, it is very clear that the value of prioritization and preparation is crucial. Companies ought to recognize and be thoughtful of succession planning as an intellectual process and planning. The succession planning and the process are equally emotional. Furthermore, leadership plays an integral role in the success of the plan. In this regard, it is imperative that the Momentum dedicated both resources and time to ensure that the process was a success.
Secondly, in the succession planning and process, transparency is important. It suffices to point out that one of the measures that the company stressed on in order to promote collaboration and transparency was creating a connection with all board members, external stakeholders, and the staff. This initiative allowed everybody to partake in the process of succession effectively. By doing this, the company was able to address all risks and uncertainties in real time. Further, the company cemented stronger relationships with other stakeholders along the way. Ideally, the benefits derived from an external communication plan provided for an appropriate relationship with the business community[29].
Hossli's Succession and Transition Process
Third, for proper succession planning, all stakeholders need to collaborate effectively. During the succession planning at Momentum Company, there are considerable gains that were made by engaging the whole leadership team and the staff in coming up with the success plan. The enhanced collaboration provided the opportunity for various perspectives on how the succession planning should be done[30].
Fourth, the succession planning should embrace a holistic approach. It suffices to point out that despite the fact that this plan focuses so much on the transition, the company should not forget that the process is only one of the numerous roles of the leadership teams[31]. Therefore, there is need to invest in the significant development of all staff to enhance their chances of being leveraged within the company.
In conclusion, the process of succession planning is robust and participatory. In the succession plan, the company stresses on the need of developing employees’ leadership capabilities so as to fill leadership gaps that may arise. Further, the company uses several assessments as a way of gauging and determining the suitability of candidate selected as successors. It is important to note that when companies are managing with talents internally, there is need to seek for the right people. These are individuals who are moving in the direction of the business’s mission and vision. Accordingly, a good succession planning strategy contributes to employees’ retention and a bright future for the organization. In approaching the succession planning, the company hired a consultant who provided useful insights into the process. By carrying out the succession planning in two phases, the company provided enough time and resources to examine the candidate for the role of executive director. Its vision and mission guide the company's succession planning. It is worth noting that developing a seamless succession planning reduces the potential harm to the stakeholders. In a nutshell, the company has been successful in its succession processes because it has continued to a financial powerhouse and the production process has been satisfactory.
Armstrong, Michael, and Stephen Taylor. Armstrong's handbook of human resource management practice. Kogan Page Publishers, 2014.
Barbuto, John E., and Ryan K. Gottfredson. "Human Capital, the Millennial's Reign, and the Need For Servant Leadership." Journal of Leadership Studies 10, no. 2 (2016): 59-63.
Burney, Shamaila. "An Integrated Conceptual Model of Performance Appraisals and Succession Planning using Multi valued Evaluation." Pakistan Journal of Engineering, Technology & Science 2, no. 2 (2016).
Cohen, Debra J. "HR past, present and future: A call for consistent practices and a focus on competencies." Human Resource Management Review 25, no. 2 (2015): 205-215.
Drury, Pauline, and Pauline Drury. "Passing the baton: Successful succession planning in a family business." Human Resource Management International Digest 24, no. 3 (2016): 35-37.
Gandhi, Deepakshi, and Pradeep Kumar. "Succession planning: Developing leaders for tomorrow to ensureorganizational success." The International Journal of Business & Management 2, no. 3 (2014): 1.
Geroy, Gary D., Denise Caleb, and Phillip C. Wright. "Understanding and Articulating Effective Succession Planning: A Means for Infusing Influence by NAITTE Constituencies." Journal of STEM Teacher Education 42, no. 1 (2017): 3.
Gothard, Suzanne, and Michael J. Austin. "Leadership succession planning: Implications for nonprofit human service organizations." Administration in Social Work 37, no. 3 (2013): 272-285.
Grossman, Connie S. Succession planning and knowledge transfer in higher education. Northcentral University, 2014.
Holland, Craig. The Art of Business Succession: Who will fill your shoes?. John Wiley & Sons, 2016.
Jackson, LeKeisha D. "A Critical Examination of Senior Executive Leadership Succession Planning and Management with Implications for Underrepresented Minorities." PhD diss., Mercer University, 2017.
Karaevli, Ayse. "The “Turnaround Trap” of outsider CEOs: Causes and solutions for succession planning." Organizational Dynamics 45, no. 4 (2016): 278-282.
LiouMcConnell, John J., and Qianru Qi. "Just Talk? CEO Succession Plan Disclosure, Corporate Governance and Firm Value." (2016).
McKee, Gregory, and Karen Froelich. "Executive succession planning: barriers and substitutes in nonprofit organizations." Annals of Public and Cooperative Economics (2016).
Murnane, Jennifer Aden. "Developing Organizational Citizens: Creating Business Impact and Greater Human Capital." Journal of Leadership Studies 10, no. 2 (2016): 64-68.
O’Donohue, Mary. "Using a Knowledge Management Approach to Support Effective Succession Planning in the Civil Service." PhD diss., Dublin Institute of Technology, 2016.
Pepper, Donna. "Exploring the strategies organizational leaders need for implementing successful succession planning." PhD diss., Colorado Technical University, 2016.
Sanchez, Paul. "The moderating effect of self-efficacy on the relationship between sources of self-efficacy and succession planning intentions." In United States Association for Small Business and Entrepreneurship. Conference Proceedings, p. BB1. United States Association for Small Business and Entrepreneurship, 2016.
Sanghi, Seema. The handbook of competency mapping: understanding, designing and implementing competency models in organizations. SAGE Publications India, 2016.
Santora, Joseph C., and Gil Bozer. "23 Leadership and Planning." Leadership Today: Practices for Personal and Professional Performance (2016): 401.
Sharma, Aparna, and Tuhin Sengupta. "Perspective on succession planning in multiple MNCs: interview with Aparna Sharma." Human Resource Development International (2017): 1-9.
Shirey, Maria R. "Lewin’s theory of planned change as a strategic resource." Journal of Nursing Administration 43, no. 2 (2013): 69-72.
Stephens, Stephanie. "Succession Planning: Don't Get Caught Off Guard: Planning for Staff Transitions." Biomedical Instrumentation & Technology 50, no. 6 (2016): 451-453.
Timms, Michael. Succession Planning That Works: The Critical Path of Leadership Development. FriesenPress, 2016.
Vance, David, and Jennifer Moss Breen. "The Challenge of Human Capital Leadership." Journal of Leadership Studies 10, no. 2 (2016): 34-38.
Wilkinson, Heidi A. "Executives’ perceptions of succession planning efforts within global organizations." PhD diss., Colorado Technical University, 2016.
Wilson, Angela K. "Successful Succession Planning for Chairs: Perspectives on Passing the Torch." The Department Chair 27, no. 1 (2016): 5-6.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). Succession Planning And Talent Management - The Importance Of Planning For Leadership Continuity. Retrieved from https://myassignmenthelp.com/free-samples/succession-planning-at-momentum.
"Succession Planning And Talent Management - The Importance Of Planning For Leadership Continuity." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/succession-planning-at-momentum.
My Assignment Help (2018) Succession Planning And Talent Management - The Importance Of Planning For Leadership Continuity [Online]. Available from: https://myassignmenthelp.com/free-samples/succession-planning-at-momentum
[Accessed 11 December 2024].
My Assignment Help. 'Succession Planning And Talent Management - The Importance Of Planning For Leadership Continuity' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/succession-planning-at-momentum> accessed 11 December 2024.
My Assignment Help. Succession Planning And Talent Management - The Importance Of Planning For Leadership Continuity [Internet]. My Assignment Help. 2018 [cited 11 December 2024]. Available from: https://myassignmenthelp.com/free-samples/succession-planning-at-momentum.