best practices in succession management · robert edwards robert edwards specializes in talent...

Best Practices in Succession Management

presented by

William J. Rothwell, Ph.D., Professor, Pennsylvania State University

Robert Edwards, Linkage Principal Consultant

Copyright © 2008 by Linkage. All rights reserved. www.linkageinc.com

Copyright © 2008 by Linkage. All rights reserved. www.linkageinc.com 2

Agenda

• Introductions• What is Succession Planning?

• Critical Success Factors • 7-Step program to optimize your Succession Planning• Succession Planning vs. Talent Management• Employment Branding and why it’s important• Technical vs. Management Succession Planning• The role of Knowledge Transfer in Succession – 12

practical strategies• Managing High Potentials: Unique competencies

required of managers


Succession Planning Defined & Critical Success FactorsWhat is it?Succession Planning is a systematic approach to ensuring that an organization has a steady, reliable pipeline of talent that will meet its future needs in leadership and other lynchpin roles.

Critical Success FactorsSenior Management commitmentLinked to business strategies and HR systemsFocused on future requirementsActive work on closing development gapsSustainability


Why Is Succession Planning Necessary for Organizational Success and Growth? • One of the most critical questions facing leading

organizations is how to develop the next generation of leaders

• Organizations need to be proactive and prepared for future performance with a “ready now” workforce


7-Step Program to Optimize Your Succession Planning System1. Build a development mindset in your organization

• Choose to manage people as tangible assets• Motivate employees and help drive performance

2. Drive organization alignment both domestically and internationally• Be integrated with the overall business model • Ask, “why are we doing it?”


7-Step Program to Optimize Your Succession Planning System3. Inspire a “learning organization”

• Document and discuss the lessons learned, both positive and negative

• Be open minded, respond to change, and reward risk taking

4. Ensure data driven decision-making• Data analysis leads to credibility• Measure improvements in leadership pipelines,

diversity, progression and development


7-Step Program to Optimize Your Succession Planning System5. Segment, align, and develop talent

• Critical to driving operational excellence and organic growth • Succession planning should not be viewed as a single process

6. Continually assess your performance culture• Make sure employees on benchmarks are performers

7. Gain the support and participation of the CEO or President in the process • Essential to achieve positive results and drive change


More organizations are implementing formal succession plans — up 18% over 2006

Yes

No

2007200665%

47%

53%35%

“Do you have a formal succession plan for your organization in place?”

N = 118 respondents in 2007N = 297 respondents in 2006


Commitment from management is most critical to implementation success

Focus on future requirements

Management commitment

Active work on closing development gaps

Link to business strategiesand HR systems

Sustainability

N = 120 respondentsmultiple responses accepted

“Please rate the following based on what you consider critical success factors in succession management.”

70%

35%

30%

28%

25%


Consistency since 2006 in the top four activities organizations do successfully

Identifying High Potentials42%

50%

46%53%

53%60%

54%71%

Training

Attracting/Recruiting

Retention

“Please select the following activities that your organization does successfully.”

Training

New employee on-boardingorientation

Retention

20072006

N = 120 respondents in 2007N = 288 respondents in 2006

Attracting/Recruiting


Succession Planning vs.Talent Management

The difference between:• A replacement program• A succession planning program• A talent management program


The Linkage Talent Management Diamond™

Talent Development

Talent Placement

Talent Acquisition

Talent Retention

StrategyOrganization BrandCompetenciesCulture


Talent Management: Aligned with HR Systems

BusinessStrategy

Current Talent

CapabilityAnalysis

Future Talent

RequirementAnalysis

Talent Acquisition Tools

and Processes

Leadership Development

Tools and Activities

Performance Management

Tools and Processes

BusinessStrategy


Strategy influences all four points of the Talent Management Diamond:

• Strategy determines who you hire (Acquisition)• Strategy determines how you develop your leaders

(Development)• Strategy determines who you retain and how you retain

them (Retention)• Strategy determines who best to move into selected

positions (Placement)

Strategy


What is an Employment Brand?

• An employment brand is not the same thing as your organization’s brand name, though they are related

• Brand relates to reputation and what people think of your organization

• An employment brand is the reputation that an organization has achieved in its relevant communities

© Copyright William J. Rothwell, Ph.D., SPHR


Why is an Employment Brand important?

• People seek out organizations that match their self- image and avoid those organizations that do not match their self-image

• An employment brand is important for establishing a reputation that will attract the right kind of people and discourage the wrong kind of people from applying or staying with your organization

© Copyright William J. Rothwell, Ph.D., SPHR


The HR function is responsible for Talent Management

N = 118 respondents

“Who is primarily responsible for Talent Management in your Organization?”

Other

CEO

Senior executives

HR function 57%

19%

8%

8%

7%Line managers


Transparency of high-potential status is inconsistent

“Do you inform employees of their succession management rating and/or high potential status?”

N = 112 respondents

Yes 29%

No 35%

Sometimes 36%


Watch out for these Common Fallacies about SuccessionAll false!1. Success at one level will guarantee success at higher levels2. Promotions should be regarded as rewards for a job well-done3. Managers are always the best judges of who should be their

replacements (the “like me” fallacy)4. The managers our organization has now are ideal for the future

(the “like us” fallacy)5. “All people are created equal—and should be treated equally to

avoid charges of discrimination or favoritism”6. The best way to develop people is to send them off-site


Clear and Open Processes

• Flexible and Sustainable - Talent management processes are systems-independent, flexible, user- friendly

• Visible and Transparent - Open talent management processes are critical to attracting and retaining top talent. An open system also encourages shared accountability and involvement throughout the process


Typical “Burning Platforms” for Succession Planning Work

1. CEO/Senior Team Retirements2. Lack of “bench strength” for key leadership & other “lynchpin” roles3. Changes in company structure/governance4. Strategic shifts in the company business model5. “External” pressure:

• Board of directors & Shareholders• “Parent” organizations• Key “financial” stakeholders (VCs & private investors)

6. Organization heavily siloed7. A “broken/outdated” former succession planning process8. Turnover of key leadership & loss of top talent


Technical Succession Planning vs. Management Succession Planning• Technical succession planning is not carried out in

the same way as management succession planning• Management succession is about finding and

developing the “right people” to place in the “right positions” and in the “right locations” at the “right times” to achieve the “right (because strategically- important) objectives”

• Technical succession is about isolating, distilling, and transmitting the “right information” to people at the “right times” to ensure the continuity of operations and provide a foundation for future improvements

Source: © Copyright William J. Rothwell, Ph.D., SPHR


Technical Succession Planning vs. Management Succession Planning• The emphasis in management succession planning is

really on who (people) • The emphasis in technical succession planning is

really on what (processes) and capturing tacit information about processes before those who possess that knowledge leave the organization



12 Practical Strategies for Knowledge Transfer

Strategy 1: Job shadowingStrategy 2: Communities of practiceStrategy 3: Process documentationStrategy 4: Critical incident interviews/questionnairesStrategy 5: Expert systemsStrategy 6: Electronic Performance Support Systems



12 Practical Strategies for Knowledge Transfer

Strategy 7: Job aidsStrategy 8: StoryboardsStrategy 9: Mentoring programsStrategy 10: StorytellingStrategy 11: Information exchangesStrategy 12: Best practice studies or meetings



Unique competencies required of managers to manage High Potentials• The research suggests that the most productive

workers in any job category may be as much as 20 times more productive in getting results than their equally qualified but less productive peers

• The most productive workers, sometimes called exemplary employees or high flyers, may require special attention from managers to help them realize their potential



Unique competencies required of managers to manage High Potentials• While definitions of High Potentials differ, one

common definition is that a HiPo is someone capable of advancing 2 or more levels in a 5-year time span

• If they are not handled well, their departure from an organization could represent the equivalent of losing as many as 20 people!



Unique competencies required of managers to manage High PotentialsSuch teachers must exhibit:• Better-than-average self esteem and self-confidence• Strong communication skills• A high level of intelligence• An ability to delight in the learning process itself• Curiosity, flexibility and a willingness to experiment

with dramatically new, and often previously untried, approaches



About the Presenters

• William J. RothwellWilliam J. Rothwell, Ph.D. is recognized globally as an expert on succession planning and management. He served as the national thought leader for a 2001 Best Practices study of succession that examined 18 multinational corporations. A Professor of Human Resource Development at Pennsylvania State University, Rothwell's well-known publications include Effective Succession Planning, The Action Learning Guidebook, and The Competency Toolkit, to name a few.

• Robert EdwardsRobert Edwards specializes in talent management systems including management succession planning. His experience and practical approach as a management consultant is unique in that he has a broad background in organization development, change management, executive coaching, project management and “hands-on” implementation. Prior to joining Linkage in 2007, Bob had his own consulting firm where he served a variety of clients from start-ups to Fortune 100 companies in a number of different industries for more than ten years. Bob holds a Masters in Business Administration with honors in strategy and management from the Marshall School of Business, University of Southern California and a Bachelor of Arts in Sociology from City University of New York.

Join William J. Rothwell and Robert Edwards for Best Practices in Succession Management, a two-day program developed to accelerate your learning and provide you with direct business application as you address strategic succession related issues. Program dates: September 18-19, 2008, Chicago, IL; December 15-16, 2008, Chicago, IL.


About Linkage

Linkage is a global organizational development company that specializes in leadership development. We provide clients around the globe with integrated solutions that include strategic consulting services, customized leadership development and training experiences, tailored assessment services, and benchmark research. Linkage’s mission is to connect high-performing leaders and organizations to the futures they want to create.

With a relentless commitment to learning, Linkage also offers conferences, institutes, summits, open-enrollment workshops, and distance learning programs on leading-edge topics in leadership, management, human resources, and organizational development. More than 200,000 leaders and managers have attended Linkage programs since 1988.

LinkageBurlington, MA

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best practices in succession management · robert edwards robert edwards specializes in talent...

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