The following is an outline for developing an effective grooming plan.
Current position
The grooming plan starts by identifying the current position of the individual being groomed within the company or the position he or she will occupy when they begin the process. In other words, what is their current job description and where are they currently situated on the organizational chart. If you do not have job descriptions or an organizational chart, you should consider developing these as your benchmark for the grooming process.
Desired position
The grooming plan outlines the desired position at the end of the grooming period. In other words, what will the desired position/title and job description be at the end of the process? What will the new organizational chart look like when they take up that position? For example, over the next three to five years, XYZ will be groomed to become the CEO of the family business. By the end of the grooming period, he will have earned the privilege of becoming a responsible owner. Ideally, the grooming plan would include a job description for the desired role and a revised organizational chart outlining the new positions. The use of job descriptions and organizational charts is to provide clarity with respect to who reports to whom now and in the future.
Mentors
Each of the individuals being groomed should be assigned a ‘mentor(s)’ to guide them through the grooming period. If at all possible, this should not be a direct family member. Ideally, the mentor would be an existing owner or senior manager who is working in the area in which the successor is being groomed. If that is not feasible, a trusted and seasoned employee (whether active or retired) would make a good mentor. The mentor may need to change as the grooming plans unfold.
Performance reviews
The individuals being groomed should undergo a performance review based on their current positions in the company, including a self-assessment component at the start of the process as a benchmark for their grooming. This performance review would continue at three-month or six-month intervals for the duration of the grooming period. If the individual being groomed is new to the family business, the self-assessment would still be conducted. The initial and ongoing performance reviews for those already in the business would require input from not only their respective mentors, but from key employees, as well as all the owners. The performance reviews do not need to identify who is providing the feedback, since this could create some discomfort for those conducting the reviews. The results can be consolidated and shared with the potential successor.
Learning objectives
The grooming plan outlines the learning objectives along the way, as well as how they are to be achieved in a type of ‘time and event schedule.’ If you start with a skills assessment, it is easier to identify gaps and plan accordingly. For example:
- What skill does the successor need to acquire or improve upon and over what time frame?
- What internal training is required to achieve the desired outcome and how should it be implemented? Further, who is the appropriate person to provide it?
- What external training is required and how is it best achieved?
- What continuing education would the successor benefit from?
- What professional and business associations should they join?
