succession planning

PRESENTED BY

ELIAS BENYU

[email protected]

Introduction Succession planning is a systematic approach to:

Building a leadership pipeline/talent pool to ensure leadership continuity

Developing potential successors in ways that best fit their strengths

Identifying the best candidates for categories of positions

Concentrating resources on the talent development process yielding a greater return on investment.

Succession planning recognizes that some jobs are the lifeblood of the organization and too critical to be left vacant or filled by any but the best qualified persons. Effectively done, succession planning is critical to mission success and creates an effective process for recognizing, developing, and retaining top leadership talent.

11/9/2012 [email protected]

WHAT IS SUCCESSION PLANNING?

Getting the right number of people with the right skills, experiences, and competencies in the right jobs at the right time.

Succession planning is nothing more than having a systematic process where managers identify, assess and develop their staff to make sure they are ready to assume key roles within the company.


Effective Succession Planning is . . .

Identifying key player gaps through workforce

planning

Giving employees at all levels opportunities to

develop their skills

Embedding development opportunities in

everyday work processes

Embedding knowledge sharing into work

processes

Developing many employees for more

challenging positions; not just one


Effective Succession Planning is not . . .

Identifying a specific employee for a specific job

at a future point in time


Why Succession Planning? How Succession Planning Helps

Organizations

Engages senior management in a disciplined review of organizational talent

Guides development activities of staff

Brings HR systems into alignment

Assures continuity of key positions / Avoids

transition problems

Assures new managers are prepared for their jobs

Focus on Organizational Effectiveness


Why Succession Planning?

When Succession Planning has not occurred, or has not been

conducted effectively, some of the more detrimental results

can include:

• Disruptions in services, production, or productivity,

• Stalled critical projects,

• Decreased employee morale,

• Unclear organizational direction,

• Loss of critical knowledge,

• Competing interests or ideas stalling the replacement

process and putting further strain on the organization.


Without Proper Succession Planning &

Leadership Development…. Loss of continuity of business

Lost productivity

Potential loss of customers/ business

Time/ expense to find replacement

Negative impact on revenue

Reduced employee morale

Possible band aid replacement results in longer-term issues

Shareholder concerns and potentially lower stock price (if

CEO or key senior leader)

Possible acquisition target (if CEO with no replacement)

Consider the possible impact of an unexpected, immediate

departure of a senior manager yet there is no-one readily

available to succeed him/her 11/9/2012 [email protected]

Investment in Human Capital “Leading organizations understand that

effectively managing employees, or human

capital, is essential to achieving results. Only

when the right people are on board and

provided the training, tools, structures,

incentives, and accountability to work

effectively is organizational success possible.”

Quote from GAO report: “Addressing High Risk and Improving Performance and Accountability”

Business Concept RISK of not having a succession plan

Will your organization have the right skill mix for the future? Human Capital Challenge! ◦ If not, what will the cost to your organization be?

Will your organization have the right leaders to accomplish the mission? ◦ Visionary, creative, risk-taking, initiative, technologically

advanced

CHALLENGE: What is your Organization’s

Plan to meet the needs of the future?


Developing a Succession Plan

1. Choose Your Successor

2. Develop a Formal Training Plan for

Your Successor

3. Establish a Timetable

4. Prepare Yourself for Retirement

5. Install Your Successor


THE SUCCESSION PLAN

1. Workforce analysis and forecasting

2. Communications strategy

3. ID positions targeted for growth and

attrition

4. ID current and future competencies

5. ID and assess high potential employees

6. Conduct competency gap analysis


THE SUCCESSION PLAN

7. Establish recruitment strategy and assessment / selection tools

8. Institute formal coaching and mentoring

(training and development)

9. Select for positions

10. Establish a retention plan

11. Evaluation / Measurement


Supply Analysis

•Workforce analysis and

trends

•Employee competencies

•Workforce demographics

•Current workload analysis

GAP Analysis

•Comparison of

future workforce

competencies with

future needs

•Analysis of how

workforce

demographics will

change

•ID of areas in

which management

action will be

needed to reach

workforce

objectives

Demand Analysis

•Workforce knowledge, skills

and abilities to meet projected

need

•Staffing patterns

•Anticipated programs and

workload changes

Solution Analysis

•Planning

workforce

transition

•Employee

development and

retraining

•Changes in

staffing patterns


Core Principles Underlying Succession Planning

1. Leaders really do matter … in managing/driving accountability, results, culture.

2. Performance is what counts … top performers over high potentials

(the “what” & “how” both count).

3. Today’s top performing leaders aren’t necessarily tomorrow’s …

even our best leaders can fall behind or derail.

4. Talent is an enterprise resource … willingness to share talent makes

the system work.

5. A broad set of experience & assignments is the best classroom …

yet a balanced approach is still necessary for development.

6. It’s incumbent upon today’s “top-100” to leave a legacy of

future talent … current leaders must teach, mentor, & role model others on what

it takes to succeed.

7. Invest in the best … focus the rest.


THREE TYPES OF SUCCESSION

PLANNING

Currently, your organization may utilize one of three approaches

to succession planning:

Simple Replacement planning - a process that indicates

possible internal replacements for critical positions.

Developmental succession planning – a process that

indicates not only possible internal replacements for critical

positions but also provides for developing individuals to meet

the challenge of future organizational change by grooming

them for advancement possibilities and for exercising

increasing technical proficiency.

Talent pool planning – a process that indicates a group of

possible internal replacements for critical positions and also

provides for developing groups of people to meet the

challenge of future organizational change.


A FOUR PHASE APPROACH

An effective alternative to using one of the

previously listed three types of succession

planning is entitled: The Four Phase

Approach to Effective Succession

Planning and Management.

This approach is used to translate the forces

driving the need for succession planning

within organizations into the reality of

actually executing it.


FOUR PHASE APPROACH

Phase 2. Create a Succession Plan 1. Identify job functions.

2. Identify staffing levels needed and related

KSAs (Knowledge, Skills and Abilities)

3. Determine availability of staff

4. Conduct gap analysis and establish priorities.

5. Create workforce plan with strategies and

measures of Success.

Phase 1. Establish the Scope 1. Review the organization’s strategic plan.

2. Analyze attrition data and retirement

projections.

3. Determine external factors.

4. Define parameters of succession planning.

Phase 4. Monitor,

Evaluate and Revise 1. Monitor progress and make

necessary interventions.

2. Evaluate implementation and

revise plan based on lessons

learned and new succession

planning issues.

Phase 3. Implement the Succession Plan 1. Communicate succession planning process

2. Implement strategies and tactics for developing employees`

*American Society

for Training and

Development,

2004 11/9/2012 [email protected]

FOUR LEVERS FOR LEARNING

On-The-Job

Experiences

Mentoring or Coaching

Training or Continuing

Education

Motivated Self-

Development

55-65% 25-30%


“There are two kinds of people in

organizations: Those with 20 years

experience and those with one year

experience repeated 20 times.”

—Gene Dalton, BYU


“We put good people

in big jobs before they

are ready.”

—Pepsi Co. 11/9/2012 [email protected]

Leadership Development =

V+C+L

Variety of Experiences +

Challenging Assignments +

Ability & Willingness to Learn

—Center for Creative Leadership


The Development Formula

The formula:

10% Knowledge (classes/book learning)

+ 20% Learning from others (mentors)

+ 70% Experience (do it)

= 100% (A shiny new competency!)


Assessment of

Key Positions

Assessment of

Key Talent

Generation of

Development Plans

Key

Elements

Succession Planning: Key Elements


1. Assessment of Key Positions:

• What are the competencies and experiences needed

to qualify for each key position?

2. Identification of Key Talent:

• Typically people at the top two levels of the organization

and high potential employees one level below.

• Identified by their management’s assessment of their

performance and potential for advancement.

3. Assessment of Key Talent:

• For each person on the radar screen, primary development

needs are identified focusing on what they need in order

to be ready for the next level.

4. Generation of Development Plans:

• A development plan is prepared for how we will help the

person develop over the next year.



5. Implementation; Monitoring & Review

An annual or semi-annual succession planning review is held to review

progress of key talent and to refresh or revise their development plan.

Linking succession planning to HR processes

– Performance management

– Compensation

– Recognition

– Recruitment and retention

– Workforce planning

Implementing strategies for maintaining senior level commitment.

-Tracking selections from talent pools

-Listening to leader feedback on success of internal talent and

internal hires

-Analyzing satisfaction surveys from customers, employees,

and stakeholders

-Assessing response to changing requirements and needs.



SUCCESSION CANDIDATES

KEY POSITION TITLE ________________________

Backup Candidate Name: ______________________

Current Title: ________________________________

Div: ______________ Level of Readiness (Circle One):

Within 1 Yr. 1–3 Yrs. 3–5 Yrs.

__________________________________________________

Strengths for this position:

Developmental needs for this position:

Comments:

_________________________________________________

Date: FY:

Completed by: Division:

SAMPLE DOCUMENTATION


SUCCESSION PLAN SUMMARY

ORGANIZATION:_____________________

Key Position

Title

Incumbent

Name

Position

Vulnerability

Succession Candidate

Names

Open

in

< 1 Yr

Open

in

1–3

Yrs

Open

in

3 + Yrs

Ready in

< 1 Yr

Ready in

1–3 Yrs

Ready in

3 + Yrs


Overall Performance Summary:

(Indicate recent performance including major accomplishments

or performance issues.)

Key Strengths:

(List 2 - 3. Indicate key technical or professional competencies,

skills, or knowledge the person has.)

Development Needs:

(List 2 or 3. Indicate key experiences, skills, or knowledge the

person lacks in order to move to the next level.)

Development Actions:

1. On The Job: (What new responsibilities do you plan to assign

to help this person develop this year?)

EXECUTIVE DEVELOPMENT PLAN

NAME: ________________ TITLE: ________________

2. Special Assignment: (What task force, projects, or special

assignments will be given this year to aid development?)

3. Training: (What specific training or seminars are

recommended this year for his/her development?)

Potential For Promotion:

(Indicate this persons readiness to be promoted to the next

organizational level.)

Ready now for the next level.

Ready in the next 24 months.

Ready in 2 to 3 years.

Recommended Next Position: (List the next assignment that

would most benefit the individual in his/her development.)


PLANS FOR SELECTED TALENT

ORGANIZATION:_____________________

Name Title High Level Plan


LEADER DEVELOPMENT TOOLBOX

On The Job: • Job Enrichment • Special Projects • Committee Assignments • Task Force Participation

• Lead Person Responsibilities • Giving Presentations • Preparing Proposals • Installing A New System • Leading A New Program • Temporary Job Assignments • Full Job Change

Learning From Others

• Working With a Mentor

• Teaming with an Expert

• 360 Feedback

• Focused Interviews

Training & Education

• Seminars & Conferences

• Continuing Education

• E Learning

• Cross Training


Semi-Annual Succession Planning

Review Review of succession candidates and

development plans in each organizational

unit

Report development progress and make

necessary adjustments to the plan

Orchestrate moves for the next six months


SUCCESSION PLANNING-CASE STUDY

Succession Planning-Case Study.doc

Motorola Succession Planning Case






Keys to Success Laying out a detailed implementation plan from the beginning

(ID budget and resources required. START TODAY!)

Involvement and buy-in from top management, program managers, and human resource managers.

Availability of accurate input data

Good communication and marketing

Employees are committed to their own self-development.

Linkage of succession plan to strategic planning and investment in the future.

HR serves in a consulting role but management owns the process

Workforce data and analysis inform the process.

Leadership competencies are identified and used for selection and development.

A pool of talent is identified and developed early for long-term needs.

Development is based on challenging and varied job-based experiences.

Senior leaders form a partnership with human resources.

Succession planning addresses challenges such as diversity, recruitment, and retention.


Choosing to be

[email protected] 11/9/2012

succession planning

Documents

effective succession

workforce planning

replacement process

talent development process

leadership continuity

right time

leadership talent

right jobs