Identifying and Developing Successor Competencies

This is the second in a four-part series.

People are the single most critical component of a sustained program of adaptability and innovation.  We are fortunate that while this is a challenging space, employees have a positive perception of our  Industry. In a study conducted by the National Restaurant Association, 7.5 out of 10 employees in the Food services industry believe the industry offers a strong career path and upward mobility. 

Succession planning goes beyond current performance. It is about being able to predict which individuals have the potential to step into your leadership team’s shoes and giving them the tools needed to become your next rock stars. 

Traditional succession planning processes using the nine-box grid can no longer be relied upon to meet business objectives due to their sole reliance on current performance, the risk of inflating the egos of high-potential employees, as well as the hesitation to label individuals as 'low potential'. Instead, companies must change the way they identify and engage with high-potential candidates.

To achieve this, a 'Skill Inventory' should be created, outlining specific skills and behaviors you are seeking in high-potential candidates. This will help you create a clear understanding of the desired competencies. Then, a staff survey should be designed to identify potential successors for specific roles. The staff survey will cover employees' career aspirations, their interest in leadership roles, their perception of readiness for such positions, and any potential skill gaps they identify. 

This survey will provide data, and offer insights on how to identify and prepare your company's future stars. We recommend setting a timeline for promotion and determining the development opportunities and training required to prepare them for these positions.  This should be done with input from all related parties (including HR, Operations, Sales & Marketing, etc.).

Commitment is another key factor while creating your plan.  Assess the potential risks of key candidates leaving the company. Determine what (if any) factors can help mitigate the risk of a well-developed candidate leaving the team.

Many companies focus only on technical skills.   We would encourage you to place equal effort in developing the cultural metrics needed to succeed at your company. This can include qualities such as Impact, Curiosity, Drive, and Courage. These values can be used to differentiate between good and great employees, allowing you to make strategic decisions about rewards, development, roles, and successions in a clear and consistent manner.

The only way succession planning truly works, regardless of the process that you use is the conversations. The quality of the conversations you hold and whether you are transparent or not will go a long way in achieving your objectives. To create a competitive advantage, replace static policies with authentic engagement, and trade one-off performance reviews with regular feedback and support.

I saw firsthand the value of succession planning during my time at McDonald's.  Jim Cantalupo became the CEO and later died unexpectedly.  He was succeeded by Charlie Bell.   Bell started his career with McDonald's in Australia when he was just 15 years old and steadily climbed the corporate ladder, holding various international positions till he became CEO. When he passed away suddenly, James Skinner, a 33-year system veteran, was ready to go.  Skinner’s Plan to Win built upon the foundation set by Cantalupo and Bell.  During his tenure, McDonald’s share prices tripled to an all-time high of $102.22 per share. 

Succession is about the entire organization, not just the most senior leadership positions. Identifying and engaging with the upcoming generation of leaders is a dynamic process, and making mistakes in this area can be costly. That's why transitioning from traditional succession practices to predictive succession is crucial. It puts businesses in a solid position, empowered by its people. So, be open, encourage conversations instead of following rigid processes, and track the progress of your plan.