Alternative Approaches
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Experienced managers know that there is more than one way to fill a critical
position.37 Job movements, described in the previous section, represent a traditional
approach, commonly associated with SP&M. Alternative approaches
are probably being increasingly used as managers in cost-sensitive organizations
struggle to meet SP&M challenges while finding themselves restricted in
the external hiring and internal promoting that they may do.
One alternative approach might be called organizational redesign. When a
vacancy occurs in a key position, decision-makers do not automatically ‘‘move
someone into that place’’; rather, they break up the work duties and reallocate
them across the remaining key positions or people. The desired effect is to
reduce headcount while holding results constant. It also develops the remaining
key people by giving them exposure to a new function, activity, or responsibility.
However, if rewards do not match the growing workload, exemplary
performers who have been asked to do more may grow disenchanted. There
is also a limit to how much can be loaded on people before they are incapable
of performing effectively.
A second alternative approach is process redesign. Decision-makers do not
automatically assume that a key position needs to be replaced when it becomes
vacant; rather, they review that function from top to bottom, determining
whether it is necessary at all—and if it can be done in new ways that require
fewer people.
A third alternative approach is outsourcing. Rather than assume that all
key positions need to be performed internally, decision-makers periodically
reassess whether activities can be more cost-effectively handled externally. If
headcount can be reduced through outsourcing, the organization can decrease
succession demands.
A fourth alternative approach involves trading personnel temporarily with
other organizations. This approach builds on the idea that organizations can
temporarily trade resources for their mutual benefit. Excess capacity in one
organization is thus tapped temporarily by others. An advantage of this approach
is that high performers or high potentials who are not immediately
needed by one organization can be pooled for use by others, who usually
offset their salaries and benefits. A disadvantage is that lending organizations
risk losing these talented workers completely if they are spirited away by those
having greater need of their services and greater ability to reward and advance
them.
A fifth alternative approach involves establishing talent pools. Instead of
identifying one likely successor for each critical position, the organization sets
out to develop many people for many positions. That is accomplished by mandated
job rotations so that high potentials gain exposure to many organizational
areas and are capable of making multifaceted contributions. While that
sounds fine in theory, there are practical difficulties with using this approach.
One is that productivity can decline as new leaders play musical chairs and
learn the ropes in new organizational settings.
A sixth alternative approach is to establish two-in-the-box arrangements.
Motorola has been known to use this approach. ‘‘Since most Motorola businesses
are run by a general manager and an assistant general manager, the
assistant slot is used to move executives from one business to another for a
few years so they can gain a variety of experiences.’’38 A form of overstaffing
that would not be appealing to some organizations, this approach permits
individual development through job rotations while preserving leadership
continuity. It is akin to forming an executive team in which traditional functional
senior executives are replaced by a cohesive team that collectively makes
operating decisions, effectively functioning in the place of a chief operating
officer.39
A seventh alternative approach is to establish competitive skill inventories
of high-potential workers outside the organization. Rather than develop organizational
talent over time, an organization identifies predictable sources of
high-potential workers and recruits them on short notice as needed. A disadvantage
of this approach is that it can engender counterattacks by organizations
that have been ‘‘robbed’’ of talent.
Of course, there are other alternative ways by which to meet successor
needs in key positions. Here is a quick review of a few of them:
▲ Temping. The organization makes it a practice to hire individuals from
outside on a short-term basis to fill in during a search for a successor.
The ‘‘temps’’ become candidates for consideration. If they do not work
out, however, the arrangement can be severed on short notice.
▲ Job Sharing. An experienced employee in a key position temporarily
shares the job with another as a means of on-the-job training—or assessing
how well the candidate can perform.
▲ Part-Time Employment. Prospective candidates for key positions are
brought in on a part-time basis. They are carefully assessed before employment
offers are made.
▲ Consulting. Prospective candidates for key positions are brought in as
consultants on projects related to the position duties. Their performance
is carefully assessed before employment offers are made.
▲ Overtime. Prospective candidates from within the organization are
asked to work in other capacities in addition to their current jobs. This
represents overtime work. The employer then assesses how well the
individuals can perform in the key positions, making allowances for the
unusual pressure under which they are functioning.
▲ Job Rotation. Prospective candidates for key positions are developed
from within by rotating, for an extended time span, into another job or
series of jobs in preparation for the future.
▲ Retirees. The organization looks to individuals with proven track records
to return to critical positions temporarily—or permanently. This
is likely to be a key focus of interest in the future.40
The important point about SP&M is that numerous approaches may be
used to satisfy immediate requirements. However, a continuing and systematic
program is necessary to ensure that talent is being prepared inside the organization.
As a starting point for describing what is needed to decision-makers in
your organization, start with addressing the Frequently Asked Questions
(FAQs) appearing in Appendix I at the end of this book.