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Succession planning
 

Succession planning

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    Succession planning Succession planning Presentation Transcript

    • Succession Planning
    •  In today's era of stiff competition a big organization needs to have a capable leader who takes the organization ahead and ensures that its long-term goals are fulfilled. But this does not end here for obvious reasons. Depending on one man alone can often be dangerous and thus a backup is required. This is where succession planning comes to the rescue for it ensures that the organization does not come to a standstill and there is always someone to take it forward. This is why succession planning is an on going process and senior executives review the performance of their top executives and those in the next lower level on a regular basis to have a look at their work and decide on who the right person would be.
    • Meaning  In organizational development, succession planning is the process of identifying and preparing suitable employees through mentoring, training and job rotation, to replace key players — such as the chief executive officer (CEO) — within an organization as their terms expire. From the risk management aspect, provisions are made in case no suitable internal candidates are available to replace the loss of any key person. It is usual for an organization to insure the key person so that funds are available if she or he dies and these funds can be used by the business to cope with the problems before a suitable replacement is found or developed.
    •  DEFINITION: Process of identifying and preparing suitable employees, through mentoring, training and job rotation, to replace key managers within an organization
    •  Succession Planning involves having senior executives periodically review their top executives and those in the next lower level to determine several backups for each senior position. This is important because it often takes years of grooming to develop effective senior managers. There is a critical shortage in companies of middle and top leaders for the next five years. Organizations will need to create pools of candidates with high leadership potential.
    •     A careful and considered plan of action ensures the least possible disruption to the person’s responsibilities and therefore the organization’s effectiveness. Examples include such a person who is: suddenly and unexpectedly unable or unwilling to continue their role within the organization; accepting an approach from another organization or external opportunity which will terminate or lessen their value to the current organization; .
    •    indicating the conclusion of a contract or time-limited project; or moving to another position and different set of responsibilities within the organization. A succession plan clearly sets out the factors to be taken into account and the process to be followed in relation to retaining or replacing the person
    • Activities included in SP 1. 2. 3. 4. 5. 6. Analysis of the demand Audit for existing executives Planning for individual career paths Career counseling undertaken Accelerated promotions Performance related training
    • Succession planning: Pros and cons   Saves money: One of the biggest advantages of succession planning is the savings factor, which actually adds up to a sizable amount if one takes into account the cost of hiring an outsider, his training and the time lost in bringing him up to the same level of productivity. “Succession planning not only saves on hiring costs, but also on the opportunity cost that is involved in hiring and training the new incumbent Reduces Atrrition: The best answer to counter the problem of attrition is succession Planning
    •  Identifying and Grooming : one of the strongest reasons in favour of implementing a succession planning strategy remains that the process of identifying and grooming the right talent to ably take over the leadership responsibility, is an achievement which few organisations can boast of.
    •   Employee turnover in any company is a given and today, there are huge costs involved in hiring an external back-up. Succession planning is a cost effective tool Today, there is a clear talent crunch in certain leadership positions in the market in India. So hiring from outside is not only cost consuming but also very difficult for certain functions or industries
    •   A lot of multinationals today are looking to buy out the notice period of their prospective employees. Thus if you lose an employee, there is a very good possibility that he may not serve his entire notice period. Having succession planning in place will save you the opportunity loss created from a vacant position A successor is usually a known devil
    • Disadvantages    Have come across a lot of candidates who quit their jobs because his/her peer is now his/her boss If succession planning is not done well, it could land up promoting an incompetent person to a role and in the bargain run the risk of losing other team members Sometimes it helps to get fresh blood from outside the company in the role. A successor more or less will have the same ideas and approach as the predecessor and this may not always be good
    •     SUCCESSION PLANNING Our company has extensive experience in helping companies create, implement and continue succession plans to ensure a predictable supply of the talent required for key positions and critical to human resource management. General steps involve: Identification of need through retirements, turnover, growth, etc. Identify success characteristics for position or category of position, using the steps below:
    •    T-A-S-K Traits: Deep-seated characteristics of the individual. (These are best selected rather than developed. Examples are: Drive and initiative; psychological stability and integrity; agile and self-directed learner.) Abilities: Clusters of discrete skills. (Examples are: Leads and participates in teams effectively; organizes self and others.)
    •   Skills: Specific, demonstrable result-producing actions. (Can be seen and assessed through observation. An example would be probing for resistance as a sales skill.) Knowledge: Broad, organized and accessible information relative to a topic area. (An example would be: knows Federal, State, Local and Company environment laws and policies.)
    •      Categories to use in describing the Traits-Abilities-SkillsKnowledge desired are: Technical or Professional; product, industry, customer, competitor knowledge. General Business Knowledge; budgeting, project planning, etc. Company Knowledge; policies, procedures, regulatory requirements, systems and politics. People Skills, Work Habits, Relationships and Managing People.
    •     Assess internal candidates against established criteria. Create development plans where appropriate. Manage development activities using primarily on-the-job assignments. Be positioned to place the "right" person in the "right" position based on clear knowledge of the candidate's potential and readiness.
    • Conclusion The purpose of succession planning s to help he individual in achieving developmental objectives by setting milestones at different levels along career development.
    • Succession Planning is the Growth of Individual And the Organisation. Thank You