succession planning

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PRESENTED BY ELIAS BENYU ebenyu@yahoo.com SUCCESSION PLANNING

Introduction : 

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.

WHAT IS SUCCESSION PLANNING? : 

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 . . . : 

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 8/29/2010 4

Effective Succession Planning is not . . . : 

Effective Succession Planning is not . . . Identifying a specific employee for a specific job at a future point in time 8/29/2010 5

Why Succession Planning?How Succession Planning Helps Organizations : 

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? : 

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…. : 

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

Investment in Human Capital : 

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 ConceptRISK of not having a succession plan : 

Business ConceptRISK 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 : 

Developing a Succession Plan Choose Your Successor Develop a Formal Training Plan for Your Successor Establish a Timetable Prepare Yourself for Retirement Install Your Successor

THE SUCCESSION PLAN : 

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 : 

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

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Succession Planning Model 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 knowledges, 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

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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 : 

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 : 

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 : 

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

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FOUR LEVERS FOR LEARNING

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“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

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“We put good people in big jobs before they are ready.” —Pepsi Co.

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Leadership Development =V+C+L Variety of Experiences + Challenging Assignments + Ability & Willingness to Learn —Center for Creative Leadership

The Development Formula : 

The Development Formula The formula: 10% Knowledge (classes/book learning) + 20% Learning from others (mentors) + 70% Experience (do it) = 100% (A shiny new competency!) 8/29/2010 23

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Assessment of Key Positions Identification of Key Talent Assessment of Key Talent Generation of Development Plans Implementation; Monitoring & Review Key Elements Succession Planning: Key Elements LEADERSHIP COMMITMENT CLEAR PROGRAM GOALS EMPLOYEE COMMITMENT TO LEARNING

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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. Succession Planning: Key Elements

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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 Planning: Key Elements

SAMPLE DOCUMENTATION : 

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

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SUCCESSION PLAN SUMMARY ORGANIZATION:_____________________

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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.)

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PLANS FOR SELECTED TALENT ORGANIZATION:_____________________

LEADER DEVELOPMENT TOOLBOX : 

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 : 

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

Keys to Success : 

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 : 

Choosing to be PROACTIVE vs. REACTIVE FAILING TO PLAN IS PLANNING TO FAIL THANK YOU