Mehrzad Manuel Ferdows, who is a leading entrepreneur, investor, adviser and industrial Engineering graduate from University of Southern California has given speech on succession planning. Mehrzad Ferdows stated that "In the modern business world in case of a rapid transition for instance when a key player leaves the organization, one needs to assure that there are the right leaders in place". Mehrzad Ferdows further added that by failing to create a methodical plan for succession, your company may not get a second chance. Succession planning boosts the accessibility of skilled and knowledgeable employees that are prepared to take up these roles as they become available. In business, succession planning necessitates developing internal people with the potential to fill key business leadership positions in the company rather than employing new individuals. Mehrzad Ferdows continued that “building a series of feeder groups up and down the entire leadership pipeline or progression is the main concern of effective succession or what is termed as talent-pool management while replacement planning is focused narrowly on identifying specific back-up candidates for given senior management positions.” Introspection prompted in the retention of key employees, and the consequences that their departure may have on the business should be extremely valued. In addition, succession management process involves a more fundamental underlying philosophy challenging that top talent in the corporation must be managed for the common good of the enterprise.
Mehrzad Manuel Ferdows defines Objectives That Will Be Accomplished in Succession Planning as hereunder:
Mehrzad Ferdows stressed that a number of objectives will be accomplished that will not only help candidates to perform extraordinary in their new positions, but also facilitate a broader set of advantages to the organization as a whole. These objectives include improved retention, individual development and engagement, business continuity, and risk reduction.
Mehrzad Ferdows pointed out that Succession Planning Boosts Retention
Succession management strategies help the organizations to avoid the expensive and time-consuming undertaking to replace an employee which accounts for higher turnover.
Mehrzad Ferdows contributed that undoubtedly, not seeing an opportunity to advance one's career is of significant importance why people leave in the first place instead of enduring with their current employer. Executing a strong succession strategy that evaluates leadership potential and sets employees on a clear development path does contribute to a promising future with the company. It is less likely for an employee to seek opportunities for growth and development elsewhere when they feel like they have those right set of circumstances with their current organization. This makes it easier for a company to retain and develop its best talent rather than constantly scrambling to replace its high-potential employees.
Mehrzad Ferdows reiterated that Succession Planning leads to Individual Development
Any business flourishing for employee development strategies is also providing brilliant foundations with the goal of succession planning. To develop competency models, companies help employees expand the skills and expertise needed to be successful in various organizational roles, and moreover, they can illuminate their training and development process. This helps them to make provisions to lead employees to step into more senior roles when the time comes rather than leaving development to chance.
Furthermore, when high-potential leaders are recognized and settled it also enhances their level of engagement. On the other hand, when failing to make development opportunities available employees can easily become disengaged assuming that they lack values or appreciations for continuing to perform at a higher level to advance their careers. This might ultimately lead to resignations, or many disengaged employees performance deteriorates and they may engage in increasingly negative behavior. Providing guided development opportunities to high-potential employees helps them to stay engaged and feel valued, which encourages them to continue performing at a high level as they work to build the skills and experience necessary for them to advance their careers.
Mehrzad Ferdows contributed that Business Continuity is a Merit to Succession Planning
It is incredibly troublesome to lose an employee who has worked in key positions in a corporation like senior leadership positions. Without succession planning, someone in the organization must take up the slack until the position can be hunted once again. Moreover, in the meanwhile other employees working in other departments would take on extra work along with their regular job description. Hence considerable hindrance will be created and productivity and effectiveness will be diminished. Mehrzad Ferdows put it further that if companies establish strong succession pipelines, these vacancies will be filled promptly and with minimum confusion or disruption ensuring that personnel transitions is as predictable and orderly as can be. In addition, long-term plans will well be organized regardless of who is taking up the leadership positions. Mehrzad Ferdows restated that since candidates are being trained and prepared to step into key roles, uncertainties will be lessened about whether can ensure the continuity of the business in case changeovers occur.
Succession Planning Helps Reduce Risks Mehrzad Ferdows added
There are risks when organizations become dependent upon employees who have been working with the company for a long time by failing to build out necessary processes and knowledge bases to allow another individual to take up key leadership positions. This means those employees take a great deal of expertise and critical information about how the job should be done. Should the company do nothing to facilitate a transition, it could face significant risks in time of filling up the vacancy since the new candidate may not be fully prepared for what the role actually demands of them. Here is when establishing succession plans incorporating mentoring aids to make sure crucial knowledge is not lost when previously abandoned positions are filled with trained candidates within the organization. Mehrzad Ferdows concluded that without succession planning there would be financial risks along with talent risks when a position becomes unoccupied, often leaders make prompt choices to immediately fill the position leading to employing the wrong person for the role. Hiring quickly may enforce additional costs and ultimately end up in loss of revenue and internal equity risks when companies provide a more substantial salary and bonuses package for filling the role as quick.
