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.

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Planning to succeed March 2011

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