Transcript Document

What is Succession Planning?
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Succession planning is a deliberative and systematic
effort by an organization to ensure leadership
continuity in key positions, retain and develop
intellectual and knowledge capital for the future, and
encourage individual advancement.
Systematic succession planning occurs when an
organization adapts specific procedures to insure
the identification, development, and long term
retention of talented individuals.
It’s all about readiness: the right people, for the right jobs,
at the right time.
Diversity Best Practices, 2004
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Business Drivers of Succession
Management Programs
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Labor market realities
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Retirement of Baby Boomers
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Tightening of labor market
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The first Baby Boomers
(1946-1964) will be eligible for
early Social Security
payments in 2008.
The U.S. Bureau of Labor
Statistics (BLS) projects a
labor force of 162.3 million
individuals in 2012 and
expects that the economy will
require 165.3 million jobs to
be filled.
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Improve the organization’s bench
strength in key positions
Identify high potentials early and
devise strategies to retain talent
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People who are perceived to be
potential successors to those at
higher organization levels
Difficulty finding candidates
outside the organization and
desire to promote from within
Unexpected loss of key
leaders/talent
Reducing the cost of replacing
employees
Increased global competition
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The Four Succession Risks
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3.
4.
Vacancy Risk: When a critical leadership
position is not filled
Readiness Risk: Underdeveloped successors
Transition Risk: Poor assimilation of
executive talent
Portfolio Risk: Poor deployment of talent
against business goals
Corporate Leadership Council, 2003
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Succession Management Best
Practices
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Aligning succession
management with
organizational strategy
Having leadership support
and involvement
Hiring potential successors
for organizational
compatibility
Holding leaders accountable
for developing their talent
Building a clear and robust
process ahead of time;
avoid multiple ad hoc
processes across an
organization
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Ensuring data-driven decisionmaking
Automating the succession
planning process
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Reducing laborious
administrative tasks, cutting
costs, ease of data analysis
Building a development
mindset in the organization
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Succession Management Best
Practices
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Integrating program with
other talent management
processes
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Talent Acquisition
Performance Management
Training and Development
Compensation and
Rewards
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Using a core set of
competencies or behaviors
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As a template for
development
To establish a standard of
comparison for assessment
Driving the process down in
the organization, not just
executive level
Including a wide range of
significant developmental
activities to extend talent
capabilities
Being open with employees informing their employees
about the program, process,
and where they stand
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Succession Management
Obstacles and Pitfalls
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Lack of leadership support
Office politics
Failure to align succession management goals with
organizational goals
Lack of an effective performance management system
A poorly defined and overly complicated process
Cost or lack of dedicated resources
Lack of metrics
Ignoring data when making promotion decisions (e.g.,
promoting friends instead of the best candidate)
Failure to hold leadership and talent accountable
Too much focus on a few hi-potentials versus growing a
robust pool of talent
Being reactive versus proactive: not doing it!
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5 Rules for Setting up a
Succession Planning System
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Focus on a flexible system oriented toward
development and not just traditional replacement
planning.
Focus on positions that are essential to the long-term
health of the organization, and manage the pipeline to
ensure development opportunities.
Have a transparent system – ensure that employees
know how they are doing and what they need to do to
reach the next step.
Regularly evaluate the system. Are the right people
being developed? Is the talent pool large enough?
Be willing to change the system as needed in
response to feedback.
Conger & Fulmer, 2003.
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Best Practice Succession
Management Cycle
Establish
Business
Case
Succession
Management
Adapted from Sobol, Harkins, & Conley (2007).
Best Practices for Succession Planning.
Banks Consulting LLC; Buchanan Consulting, LLC
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Establishing a Business Case*
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Describe the talent implications of internal and
external trends.
Describe the organization’s current state.
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Ability to acquire and retain talent
Talent gaps
Adequacy of systems and processes
Cultural fit
Readiness assessment
Describe the costs and risks inherent in the current
state.
Describe a preferred future state.
Describe benefits of the future state.
Finally, list the initial steps to closing the gap between
the current and future states.
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Stress involvement/commitment of audience
*Adapted from Best Practices for Succession Planning (2007) by Sobol, Harkins, and Conley.
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Best Practice Succession Management
Establish
Cycle
Business
Case
Develop
Structure
Succession
Management
Design
Systems
Plan
Implementation
Adapted from Sobol, Harkins, & Conley (2007).
Best Practices for Succession Planning.
Assess Bench
Strength
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Best Practice Succession Management
Tool: GE* Nine Box Model
Growth Potential
Low
Medium
High
8 - Hi Potential Future Leader
Superior performer with moderate
possibility of promotion to next level or
expanded lateral move within organization
within 1-3 years.
9 - Hi Potential Future Leader
Superior performer.
Strong possibility of promotion to
next level or beyond within
12 months.
4 - Solid Performer
Performance has been solid.
Unclear whether individual can
grow with the job. Unlikely to be ready
for promotion in foreseeable future.
5 - Hold for Development
Solid performer in current role. May be
relatively new in position and still
growing into job.
Promotion likely in 2-3 years.
6 - Hi Potential Future Leader
Solid performer with strong possibility
of promotion to next level within
1-3 years based on increased job
performance in current role.
1 - Watch List
Performance is weak in current role.
Individual is doing just enough to get by.
Chances of fixing are remote.
Consideration should be given to
replacing the individual.
2 - Watch List
Performance not good. May be due to
change in job scope or wrong job.
Due to recent performance trend,
potential may be questionable.
3 - Unusual Case
Current performance is not good
but past performance has been strong
(could be short term issue or
wrong job, etc.).
7 - Pro in Position
Seasoned Professional.
Consistently superior performer,
difficult to replace but not likely
to be promoted within 12 months.
High
Medium
Low
Performance
*Crotonville’s Management Training Center
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Key Steps to Analyzing Bench
Strength
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Before the SP meeting:
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During the meeting:
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Leaders assess their teams using the 9-box tool, the
organization’s competency model, and other tools as appropriate
Leadership team discusses placement of the assessed
managers
Makes final placements
After the meeting:
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Builds individual development plans with HR
Follows-up with team members
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Best Practice Succession Management
Establish
Cycle
Business
Case
Measure and
Improve
Develop,
Acquire,
Retain Talent
Develop
Structure
Succession
Management
Plan
Implementation
Identify
Successors
Adapted from Sobol, Harkins, & Conley (2007).
Best Practices for Succession Planning.
Design
Systems
Assess Bench
Strength
Banks Consulting LLC; Buchanan Consulting, LLC
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What Would Jack Do?
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“He would assess talent and he’d get
the right people in the right jobs.”
2
to 3 levels down
 Build organizational backup talent
 Fill any competency gaps
 Build a transparent system
It’s all about readiness: the right people, for the right jobs, at the
right time.
Banks Consulting LLC; Buchanan Consulting, LLC
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Contact Us…

Deanna Banks – Banks Consulting, LLC
 [email protected]
 703-310-7711
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Alice Buchanan – Buchanan Consulting,
LLC
 [email protected]
 703-707-9433
Banks Consulting LLC; Buchanan Consulting, LLC
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