Upon announcing that he was stepping down as Apple’s top boss, Steve Jobs, the man once named Fortune Magazine’s CEO of the Decade, ignited wide-ranging speculation about the future of one of the most innovative and respected companies in the world.
Jobs has been the creative mastermind behind many industry-defining products and services since he helped establish the company in 1976 with the release of the Apple I personal computer. Now, 35 years later, many have wondered what a Steve Jobs-less Apple, Inc. will look like and if it will continue to maintain its innovative edge.
Following the initial news that Jobs would be leaving, details of an extensive succession plan that has been developed over the last few years emerged and have helped to reassure industry analysts, investors, and consumers that Apple isn’t going to be left high and dry.
The news of Jobs’ departure has also been a catalyst for many companies to take a closer look at their own succession plans. Is your business prepared to respond to the blow dealt by the exit of your top brass? Are there other important leaders within your company who would create a significant rift if they decide to leave?
Succession planning is a vital part of ensuring the future viability of a company, and it’s a process you can start by taking a few important first steps now.
Identify the Key Roles
Take a close look at your company from the top down. Obviously, losing a C-level leader or other senior executives could have a major impact on a business and the way it operates. But what about other, less-senior employees? There are probably key individuals throughout your company who play a vital role in maintaining productivity and driving innovation.
Establish Criteria for Each position
After you’ve identified those individuals who would have a significant impact on the company should they leave, establish specific criteria their replacement must meet in order to successfully transition into the vacant position. This is an important step because it will help you identify the right candidate by providing a set of guidelines and minimum expectations for the job. Involving current leadership in the process of establishing these criteria can be especially helpful because who knows the ins and outs of a particular role better than the people currently performing them.
Identify Future Leaders
You may not have to look too far to find a suitable replacement for an exiting leader. Look to your current workforce. Are there individuals who show signs of future leadership potential? Some considerations to keep in mind when identifying your next generation of company leaders include:
- What do you expect the business to look like in 5, 10, or 15 years, and beyond?
- Who among your current staff is most aligned and informed about where the company is going?
- Does that person have the skills needed to lead or the desire to learn?
- Does that person have the support of co-workers and the executive committee?
- Is their current performance in line with necessary performance demands for a leadership position?
The list can go on and on, but the point is, identifying who will be able to fill key leadership roles isn’t necessarily a matter of seniority. Focus on who best fits the requirements of the position.
Establish An Action Plan
Once you have identified those individuals who show future leadership potential, it’s important to not only have a plan for the actual transition process, but also an action plan to help prepare a new leader for the responsibilities of their new role. From training to mentorship to higher education, start taking steps early to ensure that when the time comes, your business will be in good hands. When transitioning between leaders, having an established action plan will not only minimize stress, it will also help ensure the company stays productive during the process.
Revise Your Plan As Needed
Establishing a succession plan isn’t a one-time thing. You should revisit your plans regularly and revise them when necessary. From the economy to evolving corporate cultures to new hot shot employees moving through the ranks, there are a wide-variety of factors that could easily derail or transform even the most well-thought-out succession plans. Stay on top of changes in the business environment and be prepared to react in response to your company’s needs.
Succession planning isn’t an easy process, but the potential benefits are well-worth the time and effort it takes to do it right. Companies that are prepared for the future are the ones that stand the best chance of seeing it. Timely examples, such as Apple, provide great learning opportunities – and you can be sure business leaders around the world will be watching to see how their transition unfolds.
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