Succession planning ppt

Developing a Succession Plan

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Why Do It?• Employees say company leadership is a key

contributor to job satisfaction, commitment and intent to stay; especially true for top talent.

• Recent surveys state that employees value most the leadership qualities of honesty and integrity.

• Only 1% of companies rate their succession management plans as excellent; two-thirds rate them as fair or worse.

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Is this Urgent?1. Have you lost high potential talent because they didn’t

know they were on the succession list? 2. If your executive team “got run over by a bus,” would

their replacements be able to step right in and be productive?

3. Is anyone on the “top floors” or in the Boardroom worried about the status of your “talent bench?”

4. What lost opportunity costs has your organization incurred because it took a long time to replace a key leader?

Succession Planning – What it IS

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What is Succession Planning?

A deliberate 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.

Succession Planning • Ensures that employees are recruited and/or

developed to fill each key role.!• Ensures that we operate effectively when

individuals occupying critical positions depart.• May be used for managerial positions or

unique or hard-to fill roles.• Align bench strength for replacing critical

positions.

What is “Bench Strength”? An assessment of the organization’s

preparedness to replace departing staff in critical positions. Identifying people who are ready to step into someone else’s shoes at the appropriate time under the appropriate circumstances with seamless transition.

Succession Planning – What it is Not

Succession Planning is NOT • A one time event• Decided by an individual• Used solely for individual career advancement

opportunities • Reacting only when a position becomes open• Line mangers relying solely on their own

knowledge/comfort with candidates.

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Replacement vs. Succession

• Reactive

• Form of Risk Management

• Substituting

• Narrow Approach

• Restricted

• Pro-Active

• Planned Future Development

• Renewing

• Organized Alignment

• Flexible

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Traditional vs. Future

• Driven by an annual HR procedures

• Entitlement focus –bureaucratic/buddy payback system - decided in secret

• “The list” and identified development actions, but no accountability for development

• Driven by current and future business needs

• Successors determined by an open process with multiple inputs and factors

• Development plans, development discussions and coaching with both candidate, management, mentors, and others held accountable for progress and monitoring

Steps in the process

• Phase 1: Identify Key/Critical Positions • Phase 2: Conduct Position Analysis • Phase 3: Develop Succession Plan • Phase 4: Monitor, Evaluate, Revise

Phase 1: Identify Key/Critical Positions

• Key Contributor- in achieving the organization’s mission or would hinder vital functions

• Specialized Leadership – The position requires specialized or unique expertise

• Geographic – The position is the only one of its kind in a particular location

• Vacancy- Position will be vacant due to retirement/advancement in the organization/lateral moves

Phase 2: Conduct Position Analysis

• What are the external and internal factors affecting this position?

• What competencies or skill sets will be required?

• What are the gaps (competencies or skill sets not possessed by the current staff)?

• What strategies will be used to address the gaps?

Phase 3: Develop Succession Plan The succession plan is the culmination of Phases 1 and 2. • Reviews of the individual positions and high turnover

job classes are rolled into one document and gaps and strategies are formulated at an organizational or unit level.

• The strategies to overcome the gaps are outlined to include target completion dates, responsible parties and required resources.

Phase 4: Monitor, Evaluate, Revise • Select evaluation period-typically reviewed

annually • Be prepared to respond rapidly to unforseen

changes to the plan • Status/Progress updates should be monitored

via the succession planning template and EPA’s (depends what Holly choses here)

• (Is this a good point to go into tools and add presentation of strategy?)

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Overview of Process and Tools

Assess Organizational

Risks and Develop

Strategies

Managerand Self

Evaluations

Org.Strategic Initiatives, Mission

Vision & Values

Determine Gap between

Actual Performance & Behaviors vs.

Required Competencies

Decision-MakingMatrix

Monitor & Track Employee’s Performance

Executive Profiles &

Organization Chart

Dev. plans focuson both strengths

And dev.areas

Determine CompetenciesFor Leadership

IdentifyKey LeadershipCandidates &

Assess Against Competencies

ProcessDesign

Process Implementation ProcessManagement

What tools will we use?

Insert Laura or Holly’s Talent Profile or readiness Assessment

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Decision Making MatrixSOLID CITIZEN PERFORMER(High Performance/Low Potential)Gets all important things doneIs a pro in his/her positionIs seen as a leader in his/her areaHas reached potentialAction Required:Continue developing in current position; is in the right job

STRONG PERFORMER(High Performance/Med Potential)Gets all important things doneMay act at level of capability of one level above current positionActs as leader and role modelExhibits many strengths or competencies beyond current roleSome leadership development issuesAction Required:Look for opportunity to display leadership in current job

STAR PERFORMER(High Performance/High Potential)Gets all important things doneActs at a level of capability of at least one level above current positionAcknowledged as a skilled leader and role modelExhibits many strengths or competencies beyond current roleHas wide spread influence beyond current roleAction Required:Stretch assignments to prepare for larger role

QUESTIONABLE PERFORMER(Medium Performance/Low Potential)Gets most important things doneIs very proficient in his/her current positionIs not seen as a leader in his/her area Action Required:Work on improving performance in current job; may be candidate for lateral move

SOLID CITIZEN PERFORMER(Medium Performance/Medium Potential)Gets most important things doneShows signs of leadership and role modelingExhibits many FCC executive competenciesMay be new in positionAction Required:Leave in current job; continue developing skills and improving performance

STRONG PERFORMER(Medium Performance/High Potential)Gets most important things doneAcknowledged as a leader and role modelExemplifies FCC executive competenciesActs at level of capability of next level in the organizationAction Required: Focus on performance short term and development opportunities long term

LOW PERFORMER(Low Performance/Low Potential)Isn’t getting most important things doneDifficulty performing to standards in his/her current positionAction Required:Consider reassignment to more appropriate position; including lower level or exit option

QUESTIONABLE PERFORMER(Low Performance/Medium Potential)Isn’t getting most important things doneCapable of making higher contributionMay be in wrong job or occupied with non-work distractionAction Required:Focus on improving performance

SOLID CITIZEN PERFORMER(Low Performance/High Potential)Isn’t getting most important things doneHas been acknowledged as a team player and role modelHas exemplified FCC executive competenciesMay be in wrong job or occupied with non-work distractionAction Required:Address root cause performance issue; worthy of investment in development

Potential

Per

form

ance

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Decision Making MatrixSOLID CITIZEN PERFORMER-B(High Performance/Low Potential)

JF

STRONG PERFORMER-A(High Performance/Med Potential)

LAEB

STAR PERFORMER-A(High Performance/High Potential)

BR TOEK

QUESTIONABLE PERFORMER-C(Medium Performance/Low Potential)

DS

SOLID CITIZEN PERFORMER-B(Medium Performance/Medium Potential)

EH LGTW KSDS

STRONG PERFORMER-A(Medium Performance/High Potential)

TKAG

LOW PERFORMER-Mange up or out(Low Performance/Low Potential)

QUESTIONABLE PERFORMER-C(Low Performance/Medium Potential)

SOLID CITIZEN PERFORMER-B(Low Performance/High Potential)

Potential

Per

form

ance

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Chart Results: Talent Summary

Participants

Integration and

Balance

Manage-ment

of Budget

Market Knowledg

e

Technology

andBusiness Methods

Strategy and

Planning

Participant 1          

Participant 2          

Participant 3          

Participant 4          

Participant 5          

Participant 6          

Participant 7          

Participant 8          

Participant 9          

Participant 10          

Participant 11          

Participant 12          

Participant 13          

Cross Boundary

Perspective

Drive for Results Adaptability

Organization

Alignment

Communiactionand

Influence

Develops Self and Others

Functional Competencies Leadership Competencies

This graphical representation is a comparison of each individual’s performance by competency (each row on the vertical axis represents an individual's score).

- Exceeds Standards - At Standard - Needs Development

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For thought

• It is an ongoing process where the players will change continuously

• It is a strategic effort that utilizes inputs from multiple sources

• The organizational direction may also change, so be flexible

• Competencies need to be constantly monitored to ensure they are measuring what you want to measure

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Refining the Program

• Prepare a program action plan

• Communicate the action plan

• Conduct Succession Planning meetings at leadership level initially

• Training on Succession Planning