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Planning to succeed March 2011
 

Planning to succeed March 2011

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Half day interactive open workshop in Toronto on succession planning from the perspective of Human Resources.

Half day interactive open workshop in Toronto on succession planning from the perspective of Human Resources.

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    Planning to succeed March 2011 Planning to succeed March 2011 Presentation Transcript

    • Planning to succeed
      by Toronto Training and HR
      March 2011
    • Contents
      3-4 Introduction to Toronto Training and HR
      5-6 Definition
      7-8 Components of succession planning
      9-11 Preparing for succession planning
      12-18 Steps to effective succession planning
      19-22 Succession management
      23-28 Formal succession planning systems
      29-36 CEO succession
      37-46 Talent and succession planning
      47-48 Common planning pitfalls
      49-50 Case study
      51-52 Conclusion and questions
      Page 2
    • Page 3
      Introduction
    • Page 4
      Introduction to Toronto Training and HR
      Toronto Training and HRis a specialist training and human resources consultancy headed by Timothy Holden
      10 years in banking
      10 years in training and human resources
      Freelance practitioner since 2006
      The core services provided by Toronto Training and HR are:
      • Training course design
      • Training course delivery
      - Reducing costs
      • Saving time
      • Improving employee engagement & morale
      • Services for job seekers
    • Page 5
      Definition
    • Page 6
      Definition
      What is succession planning?
      Formal succession planning
      Informal succession planning
    • Page 7
      Components of succession planning
    • Page 8
      Components of succession planning
      Recruitment of new people into the organization
      Creating the next generation of managers
      Identifying subject matter experts and creating
      knowledge transfer plans and processes
    • Page 9
      Preparing for succession planning
    • Page 10
      Preparing for succession planning 1 of 2
      Determine trends, attrition rates, high risk departures to make a plan
      Get the numbers and understand them
      Target efforts to areas where the lack of competent employees will hurt you the most
      Undertaking an environmental scan
    • Page 11
      Preparing for succession planning 2 of 2
      Recruitment
      Knowledge transfer plan
      Criteria for identifying subject matter experts
      How to identify subject matter experts
      Lessons learned in knowledge transfer
      Communities of practice
      Management development
      General managers/specialists
    • Page 12
      Steps to effective succession planning systems
    • Page 13
      Steps to effective succession planning systems 1 of 6
      SUCCESSION PLANNING MODEL
      Identify key positions
      Build job profiles for each position
      Competency gap analysis
      Development opportunities
      Personal development plans
      Maintain skills inventory
    • Page 14
      Steps to effective succession planning systems 2 of 6
      INTEGRATED SUCCESSION MANAGEMENT
      The CEO and executive team engage in succession management
      HR develops tools, structures discussions,
      facilitates the process, and assists in identifying and assessing high performers and high potentials
      Leaders have an enterprise view of talent, and do not limit replacements by function, business, or geography
    • Page 15
      Steps to effective succession planning systems 3 of 6
      INTEGRATED SUCCESSION MANAGEMENT
      Succession management is highly aligned with the business strategy
      Talent in professional and management tracks is highly valued; high performers in key positions who may have “topped out” are also highly valued
      These companies prepare for future needs while considering future changes, such as the restructuring, growth and development of new product lines
    • Page 16
      Steps to effective succession planning systems 4 of 6
      INTEGRATED SUCCESSION MANAGEMENT
      Managers are held accountable for carrying out action items from talent review sessions
      These companies are more transparent about the
      succession process and provide more focused development opportunities
      Succession management processes are linked to
      other talent management activities, including a strong integrated development component
    • Page 17
      Steps to effective succession planning systems 5 of 6
      They have smooth transitions
      They are able to identify the right developmental assignments
      They provide meaningful appraisals and feedback
      They use appropriate selection criteria
      They have a number of candidates for each position
    • Page 18
      Steps to effective succession planning systems 6 of 6
      Determining job requirements
      Determining high potentials
      Gap analysis
      Executing a development plan
    • Page 19
      Succession management
    • Page 20
      Succession management 1 of 3
      BENCHMARKING THE BEST IN CLASS
      Quality and quantity
      Talent realities are driving succession management adoption
      The maturity class framework
      Internal challenges
      Pressure, Actions, Capabilities, Enablers
      Best in class strategies
      Making succession management more strategic
    • Page 21
      Succession management 2 of 3
      BENCHMARKING REQUIREMENTS FOR SUCCESS
      Competitive assessment
      Capabilities and enablers
    • Page 22
      Succession management 1 of 3
      REQUIRED ACTIONS
      For all organizations
      Steps to success
    • Page 23
      Formal succession planning systems
    • Page 24
      Formal succession planning systems 1 of 5
      REASONS FOR ADOPTING
      Identify and prepare future leaders
      Assure business continuity
      Create opportunities for internal advancement
      Retention
      Fill future vacancies created through retirement
      Prepare for business growth/expansion
      Address projected talent shortages
    • Page 25
      Formal succession planning systems 2 of 5
      REASONS FOR ADOPTING
      Deal with a skills gap among employees
      Address change effectively
      Handle emergencies or threats effectively
      Reduce financial and operational costs for external recruitment
    • Page 26
      Formal succession planning systems 3 of 5
      BENEFITS
      Provides a specific connection to business and strategic planning
      Provides a more systematic basis to judge the risk of making particular succession and developmental moves
      Assists in developing systematized succession plans that fit with a distinct trend to codify, whatever possible, more general and comprehensive corporate palling actions
      Improves the identification of high potential and future leaders, whereby the organization can engage with them for leadership development initiatives
    • Page 27
      Formal succession planning systems 4 of 5
      BENEFITS
      Reduces randomness of managerial development movements
      Helps anticipate problems before they get started – and thereby avoid awkward or dysfunctional situations
      Provides logical approach for locking succession planning into the process of human resource planning – connecting formats (data, timing) with process (judgement, discussions, analyses)
    • Page 28
      Formal succession planning systems 5 of 5
      BENEFITS
      Facilitate integration of the many components of human’s resources planning after having done many of these separately in the past
      Improves internal promotion opportunity
      Provides early warning if succession does not exist for a position allowing for lateral hiring from the market.
    • Page 29
      CEO succession
    • Page 30
      CEO succession 1 of 7
      The goal of CEO succession is finding the right leader at the right time
      CEO succession is a board-driven, collaborativeprocess
      CEO succession is a continuous process
      The board should ensure that the CEO builds a talent-rich organization by attracting and developing the right people
      Succession planning should be driven by corporate strategy
    • Page 31
      CEO succession 2 of 7
      SYSTEMIC STRATEGIC CHANGE
      You’re always in CEO succession
      Create a valid CEO model
      Evaluate both competencies and character
      Create a culture of leadership development at the top
      Assess top internal candidates against the CEO Model and create enterprise/CEO leadership development plans
    • Page 32
      CEO succession 3 of 7
      SYSTEMIC STRATEGIC CHANGE
      Get key candidates exposed to the board
      Consider benchmarking the external market
      No halos allowed!
      Develop the new senior team
      Cascade leadership development to support strategic change
    • Page 33
      CEO succession 4 of 7
      BEST PRACTICE
      Using an experienced third party to assess external and internal candidates in order to bring the requisite objectivity and uniformity
      Giving the third party extensive exposure to the organization, its structure, culture, and aspirations
      Defining the job specifications for the CEO in terms of the company's future strategy and the competencies that will be required to achieve it
    • Page 34
      CEO succession 5 of 7
      BEST PRACTICE
      Ensuring that the third party evaluates all internal and external candidates using proven, quantitative and qualitative methods of assessment
      Using the results to guide development activities for internal candidates
    • Page 35
      CEO succession 6 of 7
      Addressing the disconnect
      Start with a vision
      Strategic alignment
      Addressing human nature
      Pull and push
    • Page 36
      CEO succession 7 of 7
      GETTING IT RIGHT
      Establish a succession committee
      Review succession plans early and often
      Identify your gaps
      Build a strong candidate list
      Know your strategy
      Learn from best practice
      Evaluate the process often and make changes when appropriate
    • Page 37
      Talent and succession planning
    • Page 38
      Talent and succession planning 1 of 9
      Critical conversation one
      Critical conversation two
      Critical conversation three
      Critical conversation four
    • Page 39
      Talent and succession planning 2 of 9
      Internal dialogue of employee
      Systematic dialogue of employee with immediate stakeholders
      Employee/organization dialogue
      Social networking dialogue
    • Page 40
      Talent and succession planning 3 of 9
      ROUTE TO THE TOP
      Insiders
      Outsider
      Insider-outsiders
      Board members
      Former executives
    • Page 41
      Talent and succession planning 4 of 9
      IDENTIFYING HIGH POTENTIAL LEADERS
      Strong track record of performance, proven results, and success in past or current roles
      Strong interpersonal skills—understanding the people-side of business
      Strong verbal and written communication skills
      Drive, initiative, or an ambition to increase level of responsibility or readily accept new challenges
      An ability to create and articulate company vision and strategy, set direction, execute objectives, and understand the total business
    • Page 42
      Talent and succession planning 5 of 9
      DEVELOPING LEADERSHIP TALENT
      Exposure (to peers, executives, board members, decision makers, different levels of the organization, or the global business).
      Increased responsibilities.
      Special assignments/projects (including stretch assignments).
      Job rotation.
      Coaching, feedback, mentoring, and development planning.
    • Page 43
      Talent and succession planning 6 of 9
      PREVENTING DERAILMENT
      Increase feedback and communication.
      Develop an action plan.
      Minimize the impact of stressors and personal problems.
      Improve levels of maturity.
      Offer coaching.
      Provide new opportunities or challenges.
    • Page 44
      Talent and succession planning 7 of 9
      PROMOTING PEOPLE WHEN THEY ARE NOT SUITED TO THE NEW ROLE
      An underdeveloped or non-existent leadership
      strategy.
      Lack of a leadership model.
      Inability to be honest, authentic, and transparent with high-performers.
      No common definition of high potential
      and high performer.
    • Page 45
      Talent and succession planning 8 of 9
      EVALUATING BOARD DIRECTORS
      It is imperative for boards to have standards of
      performance metrics. Without these, the board cannot assess its own successes and failures
      Directors should be held accountable for the
      responsibilities for which they are paid. Evaluations make them aware of this accountability
      One size does not fit all. Good governance is an
      organic process, and evaluations should relate to the
      unique situation of a particular company
    • Page 46
      Talent and succession planning 9 of 9
      EVALUATING BOARD DIRECTORS
      As an evaluation progresses, it must serve one clear objective: to provide guidance that will create superior long-term shareholder value
      The development of an evaluation process often occurs in stages, building from CEO evaluation to full board evaluation to individual director self-assessment and, finally, to peer evaluations
      To evaluate itself, a board should compose a description of its specific duties/goals/objectives, and then set about measuring its performance against those responsibilities
    • Page 47
      Common planning pitfalls
    • Page 48
      Common planning pitfalls
      Concentrating on a succession plan for the senior leadership team only
      Attempting to “clone” the incumbent
      Assuming that good performance at one level will guarantee good performance at the next
      Viewing a succession plan as merely a replacement
      program
    • Page 49
      Case study
    • Page 50
      Case study
    • Page 51
      Conclusion & Questions
    • Page 52
      Conclusion
      Summary
      Questions