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If you havent yet begun succession planning within

your healthcare organization, youre not alone. In

fact, 70% of hospital chief executives say theres no

succession planning within their facilities, while more

than 50% of system CEOs report that it isnt done on

a system level, according to a report published by the

American College of Healthcare Executives.1

However, with nearly 75% of healthcare CEOs

planning to retire in the next 10 years and 60% of

chief nursing officers anticipating changing jobs in

the next four years, succession planning isnt

something hospitals can keep on the back burner.

There is never a better time to begin succession

planning than right now. Here are a few thought

provoking questions to help lay the foundation for

an effective succession planning process that will

ensure outstanding performance at all levels of your

organization, provide management strength and

continuity, plus enrich and fill your leadership pipeline.

1. What is succession planning?Succession planning is a documented plan for

management succession at all levels of the organiza-

tion. It creates a road map for the future talent of your

organization and defines how you will go about devel-

oping that talent. It also demonstrates a willingness to

invest in your employees and their future success.

2. Why should my organization have a succession plan?The overall health of your organization will be better

maintained with a well-planned, well-executed

succession plan in place. But if youre not convinced,

consider these sobering statistics; according to a

Salary.com survey, 62% of mid-managers said they

could be in the job market within three months.

According toHospitals & Health Networks

magazine, the average cost of replacing one leader

with an external candidate, at minimum, is

approximately $50,000 a cost that could reach as

high as $1.5 million for a CEO. The better question

is how can your organization afford notto have a

succession plan in place?

3. What is the most important factor in building astrong framework of support for a succession plan?

A succession plan simply will not succeed without

the support of the organizations board of directors.

A formal decree from the board will demonstrate to

all employees that this is not a flavor-of-the-month

initiative but a permanent fixture within the

organization and an excellent opportunity to learn

and grow in their careers.

Healthcare Leadership White Paper Series

10 Questions for ComprehensiveSuccession Planning

By Kathy M. Noland, PhD

1 Succession Planning Practices & Outcomes in U.S. Hospital

Systems: Final Report. American College of Healthcare Executives,

August 2007.

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4. What is the best way to gain the board of directors buy-in?Perform a baseline assessment (also a necessary first step in any

succession plan), which identifies the strengths and gaps within

your organization and helps determine actions to address bothcurrent and future needs. Share the results with your board,

and demonstrate how succession planning will enable your

organization to invest in employees talents while maintaining

your competitive edge.

5. How do I gain buy-in from associates and the management team?You need to demonstrate to all levels of staff that succession

planning is the organizations investment in their long-term

success by providing them with the necessary tools and support

to take their careers to the next level. Additionally, this provides

employees with the skills and competencies to perform to the

best of their ability in their current positions, thus benefiting bothemployees and the organization. Done correctly, succession planning

is a win/win for everyone.

6. What are some common pitfalls?Some of the most common pitfalls include:

Delegatingfullresponsibilitytohumanresources

Focusingonlyontheseniorteam

Replacingpeople,ratherthandevelopingthem

Notupdatingsuccessionplansregularly

Callingrecruiterstoolate

Allowingfriendshipstocloudyourjudgment

Makingassumptions

Relyingsolelyonanincumbentsperspective

7. When is it necessary to go outside the organization to fill aposition instead of going with an internal candidate?

There are times when rapid or far-reaching change is required

and no internal candidates fit the bill. You may need a person with

certain skills, new thinking or more varied experiences, and thats

the time to reach out to a recruiting expert to help round out and

strengthen your workforce. A best-practice search consultant

will expand your search horizon exponentially while providing

objectivity, a wide range of potential solutions and valuable time

for your team to focus on the other issues at hand.

8. Will succession planning fit into my organizational culture?Makesuccessionplanningfitthetoneofyourorganization.Ifyour

culture is formal, the succession plans attributes should mirror

that type of culture and vice versa with a more informal approach.Ensure your succession plan is practical, easy to communicate and

understand, and is ever-present in performance appraisals and other

organizational initiatives. Weave succession planning into the fabric

of your organizational culture, operating tactics and strategic plan.

9. How do I keep the momentum going once I begin?Succession planning must be integrated into job descriptions,

employee evaluations, and departmental goals and objectives.

Employees need to understand and trust that the activities

surrounding succession planning are not extra work or a

special project but are vital components of their daily work

life and position responsibilities. In addition, regular successionplanning reports and updates should be given in team meetings,

organizational presentations and at board meetings so that

everyone stays focused and remains accountable for keeping the

initiative moving in a positive direction.

10. How do I know when succession planning is working?At its best, succession planning is a win/win for both the organi-

zation and its employees. Associate turnover, patient satisfaction

and quality outcomes all stand to improve as succession planning is

further integrated into your organization. And while less measurable

increased employee morale and organizational loyalty, teamwork,

and shared vision can have a tremendous impact on the organi-

zations overall health and momentum. Perhaps most valuable, you

will gain a competitive advantage with a steady, strong workforce

to carry you into an uncertain healthcare future.

Whileyoucantcontrolallthefactorsofhealthcarereform,Medicar

andMedicaidreimbursement,ortheever-increasinghealthcareneeds

of the aging population, you can adapt and overcome these uncer-

tainties with a prepared, resilient workforce and a well-planned,

well-executed succession plan is the best way to achieve that. The

end result is a healthy organization with continuity of leadership

and employees who are excited about and committed to the future,

your organization and their careers.

10 Questions for Comprehensive Succession Planning

2011 B. E. Smith, Inc. WP081

B. E. Smith: Integrated Healthcare Leadership Solutions

Founded in 1978, B. E. Smith is a full-service leadership solutions firm for healthcare

providers. B. E. Smiths comprehensive suite of services includes Interim Leadership,

Permanent Executive Placements and Consulting Solutions. No matter where your

succession planning strategy stands today, B. E. Smith is ready to help your

organization ensure that youre taking advantage of all opportunities to identify

and develop your highest performers.

For more information, visit www.BESmith.com or call 877.802.4593.

Kathy Noland, RN, PhD, is a vice president ofsenior executive search at B. E. Smith. She has

expertise in working with boards of directors to

lead organizations through mergers, restructures,

and financial turn-arounds. Dr. Noland is also

effective in executive team mentoring, development

and succession planning, and has a proven track

record in recruitment/retention of chief executives,

vice presidents, and academic leaders.