Managing Organizational Knowledge

There's no time like the present…

Each year when the month of May rolls around, we are once again reminded of the many contributions firms in the motor sports industry have made to the economy and business community of Central Indiana. The lessons of racing can also have an impact for us in the human resource community as we examine the human resource challenges racing firms face and apply their lessons learned to our own companies.

Tragic news in the motor sports industry creates both a reality as well as provides a grim reminder about the need for succession planning in small and mid-sized businesses. For example, Hendrick Motorsports, a powerhouse organization in the NASCAR arena, lost both their chief engineer and general manager along with a number of other key individuals connected to the firm in an October, 2004 plane crash near the Martinsville , WV racetrack.

Fortunately, most small to mid-sized companies don't experience this magnitude of devastation. However, many of these firms do routinely lose key talent when a competitor hires away that top technical guru, or when the company's high-performing regional sales manager takes an extended leave of absence to care for her critically ill child.

Small to mid-sized companies are simply left to pick up the pieces caused by such business interruptions. While larger organizations are often more prepared for the exodus of talent with sophisticated and formal succession planning systems, such planning is often a “back burner” activity for many small to mid-sized companies. Yet those firms, like Hendrick Motorsports, can often be thrown into a potential business tailspin by the loss of one or two key personnel.

Steps for initiating succession planning…

•  Identify key positions : what positions and roles are mission-critical to carrying out your firm's business? What skills, knowledge and previous experiences are required of employees to successfully perform in these positions?

•  Identify key players : which individuals in your organization have the potential to move into these roles and begin to contribute quickly? Think about those employees who have the ability and willingness to learn in a new assignment, not just those who have been strong performers in previous jobs. Learning agility is a very strong indicator of potential.

•  Match key positions and players : make a list of who could move tomorrow – if need be -- into those key positions. And then make a second list of who could move a bit later with some coaching and development.

•  Help employees prepare : work with key employees to create development plans that provide the experiences and allow them to develop the knowledge and skills they need to step into the key positions in your firm.

While the loss of key talent is difficult for any firm to endure, both from a personal as well as business perspective, succession planning can ease the pain and trauma of business interruption.

About the author:

Marianne Whelchel, Managing Director
The Delta Learning Group
501 Shady Lane, Suite 210
Greenwood , IN 46142
317-865-9523 (voice)

mswhelchel@worldnet.att.net
www.deltalearning.com

The Delta Learning Group is a management consulting firm dedicated to assisting companies improve their ability to attain results. From human performance analysis to succession planning and other targeted solutions, we provide a wide range of services and tools to help both leaders and employees increase their contribution to the bottom line.