1、1What is Succession Planning?nSuccession 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.nSystematic succession planning occu
2、rs when an organization adapts specific procedures to insure the identification,development,and long term retention of talented individuals.Its all about readiness:the right people,for the right jobs,at the right time.2Business Drivers of Succession Management ProgramsnLabor market realitiesRetireme
3、nt of Baby BoomersnThe first Baby Boomers(1946-1964)will be eligible for early Social Security payments in 2008.Tightening of labor marketnThe 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 t
4、o be filled.Increased global competitionnImprove the organizations bench strength in key positionsnIdentify high potentials early and devise strategies to retain talentPeople who are perceived to be potential successors to those at higher organization levelsnDifficulty finding candidates outside the
5、 organization and desire to promote from withinnUnexpected loss of key leaders/talentnReducing the cost of replacing employees3The Four Succession Risks1.Vacancy Risk:When a critical leadership position is not filled2.Readiness Risk:Underdeveloped successors3.Transition Risk:Poor assimilation of exe
6、cutive talent4.Portfolio Risk:Poor deployment of talent against business goalsCorporate Leadership Council,20034Succession Management Best PracticesnAligning succession management with organizational strategynHaving leadership support and involvementnHiring potential successors for organizational co
7、mpatibilitynHolding leaders accountable for developing their talentnBuilding a clear and robust process ahead of time;avoid multiple ad hoc processes across an organizationnEnsuring data-driven decision-makingnAutomating the succession planning processReducing laborious administrative tasks,cutting
8、costs,ease of data analysisnBuilding a development mindset in the organization5Succession Management Best PracticesnIntegrating program with other talent management processes Talent AcquisitionPerformance ManagementTraining and DevelopmentCompensation and RewardsnUsing a core set of competencies or
9、behaviorsAs a template for development To establish a standard of comparison for assessmentnDriving the process down in the organization,not just executive levelnIncluding a wide range of significant developmental activities to extend talent capabilitiesnBeing open with employees-informing their emp
10、loyees about the program,process,and where they stand6Succession Management Obstacles and PitfallsnLack of leadership support nOffice politicsnFailure to align succession management goals with organizational goalsnLack of an effective performance management systemnA poorly defined and overly complic
11、ated processnCost or lack of dedicated resourcesnLack of metricsnIgnoring data when making promotion decisions(e.g.,promoting friends instead of the best candidate)nFailure to hold leadership and talent accountable nToo much focus on a few hi-potentials versus growing a robust pool of talentnBeing r
12、eactive versus proactive:not doing it!75 Rules for Setting up a Succession Planning System1.Focus on a flexible system oriented toward development and not just traditional replacement planning.2.Focus on positions that are essential to the long-term health of the organization,and manage the pipeline
13、 to ensure development opportunities.3.Have a transparent system ensure that employees know how they are doing and what they need to do to reach the next step.4.Regularly evaluate the system.Are the right people being developed?Is the talent pool large enough?5.Be willing to change the system as nee
14、ded in response to feedback.Conger&Fulmer,2003.8Best Practice Succession Management CycleSuccession ManagementEstablish Business CaseAdapted from Sobol,Harkins,&Conley(2007).Best Practices for Succession Planning.9Establishing a Business Case*nDescribe the talent implications of internal and externa
15、l trends.nDescribe the organizations current state.Ability to acquire and retain talentTalent gapsAdequacy of systems and processesCultural fitReadiness assessmentnDescribe the costs and risks inherent in the current state.nDescribe a preferred future state.nDescribe benefits of the future state.nFi
16、nally,list the initial steps to closing the gap between the current and future states.Stress involvement/commitment of audience*Adapted from Best Practices for Succession Planning(2007)by Sobol,Harkins,and Conley.10Best Practice Succession Management CycleSuccession ManagementEstablish Business Case
17、Develop StructureDesign SystemsPlan ImplementationAssess Bench StrengthAdapted from Sobol,Harkins,&Conley(2007).Best Practices for Succession Planning.11Growth PotentialPerformanceLowMediumHigh LowMediumHigh9 -Hi Potential Future LeaderSuperior performer.Strong possibility of promotion to next level
18、 or beyond within 12 months.8 -Hi Potential Future LeaderSuperior performer with moderate possibility of promotion to next level or expanded lateral move within organization within 1-3 years.6 -Hi Potential Future LeaderSolid performer with strong possibilityof promotion to next level within 1-3 yea
19、rs based on increased job performance in current role.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.2-Watch List Performance not good.May be due to change in job scope or wrong job.Due to recent perf
20、ormance 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 PositionSeasoned Professional.Consistently superior performer,difficult to replace but not likely to be promoted with
21、in 12 months.4-Solid PerformerPerformance has been solid.Unclear whether individual can grow with the job.Unlikely to be ready for promotion in foreseeable future.1-Watch List Performance is weak in current role.Individual is doing just enough to get by.Chances of fixing are remote.Consideration sho
22、uld be given to replacing the individual.Best Practice Succession Management Tool:GE*Nine Box Model*Crotonvilles Management Training Center12Key Steps to Analyzing Bench Strength nBefore the SP meeting:Leaders assess their teams using the 9-box tool,the organizations competency model,and other tools
23、 as appropriatenDuring the meeting:Leadership team discusses placement of the assessed managersMakes final placementsnAfter the meeting:Builds individual development plans with HRFollows-up with team members 13Best Practice Succession Management CycleSuccession ManagementEstablish Business CaseDevel
24、op StructureDesign SystemsPlan ImplementationAssess Bench StrengthIdentify SuccessorsDevelop,Acquire,Retain TalentMeasure and ImproveAdapted from Sobol,Harkins,&Conley(2007).Best Practices for Succession Planning.14What Would Jack Do?n“He would assess talent and hed get the right people in the right jobs.”2 to 3 levels downBuild organizational backup talentFill any competency gapsBuild a transparent systemIts all about readiness:the right people,for the right jobs,at the right time.
