Succession Planning Model

22,708 views

Published on

Published in: Business
3 Comments
25 Likes
Statistics
Notes
No Downloads
Views
Total views
22,708
On SlideShare
0
From Embeds
0
Number of Embeds
150
Actions
Shares
0
Downloads
1,850
Comments
3
Likes
25
Embeds 0
No embeds

No notes for slide

Succession Planning Model

  1. 1. Talent Management & Succession Planning
  2. 2. Talent Management Succession Planning <ul><ul><ul><li>Engaged Performance </li></ul></ul></ul>Strategic Recruitment Career Development Compensation Alignment
  3. 3. Talent Management (TM) <ul><li>TM is a strategic approach to managing human capital throughout the employee's career cycle by selecting, developing, retaining, and transitioning your workforce. </li></ul><ul><li>Strategic Recruitment </li></ul><ul><ul><ul><li>Involves evaluating the knowledge, skills, and abilities that are needed to be successful on the job, as well as, the tangible value each position adds to your company's success. The evaluation of the job establishes the position specific competencies which are then used for selection of employees through a structured selection process. </li></ul></ul></ul><ul><li>Engaged Performance </li></ul><ul><ul><ul><li>Enables managers and employees to establish challenging line-of-sight goals, accurately evaluate performance on a continuous basis, with recognition and reward systems aligned with strategic vision, mission and objectives of the organization. </li></ul></ul></ul><ul><li>3. Compensation Alignment </li></ul><ul><ul><ul><li>Using compensation to attract, retain and motivate employees to achieve business goals. </li></ul></ul></ul><ul><ul><ul><li>Allocates salary and incentive to retain top performers and ensure their compensation is competitive in order to reduce flight risk. </li></ul></ul></ul><ul><ul><ul><li>Provides flexibility to business managers while adhering to corporate standards. </li></ul></ul></ul><ul><ul><ul><li>Aligns compensation with performance. </li></ul></ul></ul><ul><li>4. Career Development </li></ul><ul><ul><ul><li>Establishes an environment that enables the delivery and provides accountability for your company's initiative to develop your workforce and facilitate the movement of employees throughout the company. Your organization should have systems and structures in place that allow you to target each employee’s development, create plans for development , capture employees’ past experiences, and project each employee’s career path and goals. </li></ul></ul></ul><ul><li>5. Succession Planning </li></ul><ul><ul><ul><li>Deepens the talent pool so that your company's leadership is equipped with the necessary skills & experiences to meet and exceed future business needs. </li></ul></ul></ul><ul><ul><ul><li>Ensures that high-impact positions are filled with high-performing employees, and develop a pipeline of future leaders. </li></ul></ul></ul><ul><ul><ul><li>Understands the competencies required for success in key roles. </li></ul></ul></ul><ul><ul><ul><li>Identifies high-potential employees. </li></ul></ul></ul><ul><ul><ul><li>Develops effective programs to address competency gaps. </li></ul></ul></ul>
  4. 4. <ul><li>Several common symptoms may indicate a need: </li></ul><ul><ul><ul><li>A retention risk analysis conducted to estimate projected departure dates for each individual in workforce or work group. </li></ul></ul></ul><ul><ul><ul><li>No way to quickly respond to sudden losses of key talent . If a key person is suddenly lost due to death, disability or resignation, it may take a long time to find a suitable replacement. </li></ul></ul></ul><ul><ul><ul><li>The time it takes to fill positions is too long, i.e., perceived by managers to , i.e., time-to-fill metric -- . </li></ul></ul></ul><ul><ul><ul><li>Managers at one or many levels complain they have trouble finding people ready for promotion or willing to accept promotions as vacancies occur. </li></ul></ul></ul><ul><ul><ul><li>Workers complain that promotion decisions are made unfairly or capriciously. </li></ul></ul></ul><ul><ul><ul><li>Women, minorities, etc., not adequately represented at various levels and in various functions throughout the organization. </li></ul></ul></ul><ul><ul><ul><li>Critical turnover in high potential workers leaving Vs the number of fully successful (average) workers leaving. </li></ul></ul></ul>Do You Need a Succession Plan?
  5. 5. A Sample Replacement Chart
  6. 6. TYPICAL METHOD I <ul><li>Rely heavily on chance observations of people. </li></ul><ul><li>CEO observes a manager making a presentation and subsequently draw conclusions about the person’s abilities and future with the company. </li></ul><ul><li>Chance observations offer, at best, only a glimpse into a person’s talents. </li></ul><ul><li>What about possible successors who could be equally or better qualified, but didn’t have an opportunity to display their talents while an executive was looking on? </li></ul>
  7. 7. <ul><li>Ask senior executives throughout your organization to nominate High Potential Successors. </li></ul><ul><li>The nomination process often has one or more of these fundamental flaws: </li></ul><ul><ul><ul><li>The criteria for selection are not clear. </li></ul></ul></ul><ul><ul><ul><li>The standards against which people are evaluated vary from one unit to another within a division or vary from one division to another division. </li></ul></ul></ul><ul><li>Some nominators may be conscientious about submitting names and supporting documentation, while others who don’t want to give up their best people, may play games, e.g., </li></ul><ul><ul><ul><li>Naming an individual who just started an expatriate assignment, knowing full well that the person can’t be transferred out of the division. </li></ul></ul></ul><ul><ul><ul><li>Hiding best people and submit names of people they wouldn’t mind losing. </li></ul></ul></ul>TYPICAL METHOD II
  8. 8. SYSTEMATIC SELECTION <ul><li>To make your talent identification process as accurate as possible, your organization should have a systematic selection process with a uniform set of criteria against which candidates for accelerated development can be evaluated. </li></ul><ul><li>Criteria may include: </li></ul><ul><ul><li>A history of job success, as evidenced by measures of revenue growth, process improvements, or innovation. </li></ul></ul><ul><ul><li>Proven leadership. </li></ul></ul><ul><ul><li>Motivation for top management and demonstrated actions to get there. </li></ul></ul><ul><ul><li>Displayed business acumen/ entrepreneurial ability. </li></ul></ul><ul><ul><li>Evidence of strategic thinking. </li></ul></ul><ul><ul><li>Modeling your organization values. </li></ul></ul><ul><ul><li>Development of others. </li></ul></ul>
  9. 9. STEP ONE <ul><li>While Human Resources and other parts of the organization must participate, leadership responsibility for succession planning rests with your CEO. </li></ul><ul><li>If your CEO does not favor systematic succession planning, it cannot be successful. </li></ul>
  10. 10. DEVELOP A STRATEGY Q. What is the objective of the strategy? Possible Answer: To have one or more qualified internal candidates prepared to assume each key leadership position.
  11. 11. Possible Answer: The number of qualified internal candidates prepared to assume each leadership position by December 2010. HOW WILL YOU MEASURE SUCCESS?
  12. 12. Possible Answer: Mid-Level, Senior, & Executive Management . What Critical Positions In The Succession Plan Are Affected By This Process?
  13. 13. COMPETENCY MODELS <ul><li>Competency models provide blueprints of the talent to build at present and in the future. </li></ul><ul><li>In short, a competency model describes &quot;what should be&quot; for such hierarchical levels as executives, managers, supervisors, salespersons, technical professionals, and others. </li></ul><ul><li>Let’s look at the following model: </li></ul><ul><ul><ul><li>Cultural Competencies </li></ul></ul></ul><ul><ul><ul><li>Job-Specific Competencies </li></ul></ul></ul><ul><ul><ul><li>Key Job Responsibilities </li></ul></ul></ul><ul><ul><ul><li>Organization Knowledge </li></ul></ul></ul><ul><ul><ul><li>Job Challenges </li></ul></ul></ul><ul><ul><ul><li>Executive De-railers </li></ul></ul></ul>
  14. 14. <ul><li>Cultural competencies </li></ul><ul><li>Assessing current corporate culture may determine how it needs to change in the future. This allows you to develop a set of cultural related leadership criteria and development approaches. Some examples include Change Leadership, Establishing a collaborative environment, Entrepreneurship, and Marketplace Acumen. </li></ul><ul><li>2. Job-specific competencies </li></ul><ul><li>What one is capable of , i.e., the clusters of behavior, knowledge, technical skills, and motivation that are important to success in senior management . Identify competencies that correlate with job success. </li></ul><ul><li>3. Key job Responsibilities </li></ul><ul><li>The major components of position should be listed in a well-written job description. Identify most important responsibilities or accountabilities of job. Few jobs have more than six key responsibilities.  If you have more, you’re probably listing minor tasks that are performed to accomplish a key responsibility. </li></ul>Identifying Competencies
  15. 15. 4. Organization Knowledge Functions, processes, systems, products, services, or technologies of your organization that a manager must understand. For example, a candidate might be assessed in terms of his or her knowledge of company products, how the R&D process operates, or the function of the Quality Department. 5. Job Challenges Kinds of situations that someone entering management should have experienced or at least been exposed to. Examples include carrying a key functional assignment through from beginning to end; being heavily involved with a merger, acquisition, strategic alliance, or partnership opportunity; implementing plans to cut costs or control inventories; negotiating agreements with external organizations; operating in high-pressure or high-visibility situations. 6. Executive De-railers Personality traits that might cause an otherwise effective senior leader to fail on-the-job. These would include being approval dependent, argumentative (defensive), arrogant, attention-seeking (self-promoting), avoidant (procrastinator), addresses issues covertly, eccentric, imperceptive, impulsive, perfectionist, (micromanager), risk-averse, and volatile. Identifying Competencies (Cont’d)
  16. 16. ASSESS BENCH STRENGTH <ul><ul><ul><li>Determine critical leadership positions that have at least one person ready to successfully assume role and responsibilities of each position. </li></ul></ul></ul><ul><ul><ul><li>Assess high potential managers' strengths, weaknesses, and succession readiness. </li></ul></ul></ul><ul><ul><ul><li>Identify leadership planning gaps and develop action plans for improving the capabilities of select managers and professionals. </li></ul></ul></ul><ul><ul><ul><li>Implement a high-impact coaching/mentoring program for the personal development of future leaders. Continue to observe, assess and challenge these key employees to better understand potential advancement options. </li></ul></ul></ul>
  17. 17. Assess Individual Potential for success at higher levels of responsibility. <ul><li>Unlike past or present-oriented performance management, potential assessment focuses on the future. </li></ul><ul><li>Some means must exist to examine the talent available for future possibilities--and advancement. </li></ul>
  18. 18. Development Grid <ul><li>Low RESULTS High </li></ul>“ C” Players Loose Canon Provide Feedback to Participants CELL 3 “ A” Player Star Potential Actively Develop For Next Level of Leadership CELL 1 “ A” Player Star/Hi-Potential Actively Develop For Next Level of Leadership CELL 2 “ A” Player Solid Citizen Actively Develop For Next Level of Leadership “ B” Players Average Performer Provide Feedback to Participants KEEP MOTIVATED “ C” Players Problem Child Provide Feedback to Participants “ C” Players Poor Performer Provide Feedback to Participants “ B” Players Slow poke Provide Feedback to Participants KEEP MOTIVATED “ B” Players Cash Cow Provide Feedback to Participants KEEP MOTIVATED HIGH POTENTIAL LOW
  19. 19. Candidate Assessment Report <ul><li>Low RESULTS High </li></ul>John Smith Amanda Jones Sally Filet John Cameron Matt Delaney Janet Gross Alice Wonder Jerry Palmer Billy Evans Scott Ritter Tom Miller Jane Doe Bill Jones Gene Turnkey Mathis Masterson No Candidates HIGH POTENTIAL LOW
  20. 20. Ongoing Individual Development Planning. <ul><li>Once it is clear what present and future gaps exist for individuals as a result of performance assessment and potential assessment, some means should be established to help them prepare for the future by narrowing those gaps. </li></ul><ul><li>Individual workers and their immediate supervisors should jointly devise a plan to help individuals develop and prepare for possible future promotions. </li></ul>
  21. 21. Individual Development Action Plans IDAP <ul><li>Determine developmental activities to address individual learning needs with an IDAP for each pool participant. </li></ul><ul><li>Examples of developmental suggestions might include books to read, classroom courses to attend, online courses in which to participate, on-the-job assignments to seek out, and action learning projects that bring together groups of people to solve practical business problems while simultaneously permitting the means by which to build competence in new areas. </li></ul><ul><ul><ul><li>Direct towards closing critical gaps & leveraging important strengths of the organization </li></ul></ul></ul><ul><ul><ul><li>Focus on preparing for next level of leadership </li></ul></ul></ul><ul><ul><ul><li>Structure to create logical sequence of learning </li></ul></ul></ul>
  22. 22. DEVELOPMENT ACTIVITIES Cell 1 <ul><li>High Potential/High Results IDAPT </li></ul><ul><li>Identify lead roles within key assignments (typically there are only a select few of these ) to engage participants in functioning at greater level of scope (i.e., magnitude, time & complexity) than current position. </li></ul><ul><li>For example: </li></ul><ul><ul><li>job rotations </li></ul></ul><ul><ul><li>action learning </li></ul></ul><ul><ul><li>task force leader </li></ul></ul><ul><ul><li>committee chair </li></ul></ul>
  23. 23. DEVELOPMENT ACTIVITIES Cell 2 <ul><li>Med Potential/High Results IDAPT </li></ul><ul><li>Identify active role (but not leader) within key assignments. </li></ul><ul><ul><li>Stretch at a different pace than participants in cell #1. </li></ul></ul><ul><ul><li>Engage participants to function at greater level of scope (than current position). </li></ul></ul><ul><ul><li>Provide coach to help achieve results </li></ul></ul><ul><ul><li>Provide mentor to improve proficiency levels of competencies </li></ul></ul>
  24. 24. DEVELOPMENT ACTIVITIES Cell 3 <ul><li>High Potential/Med Results IDAPT </li></ul><ul><li>Identify active role (but not leader) within key assignments. </li></ul><ul><ul><li>Stretch at a different pace than participants in cell #’s 1 & 2 </li></ul></ul><ul><ul><li>Engage participants to function at greater level of scope (than current position) </li></ul></ul><ul><ul><li>Provide coach to help achieve better results (for example: Serve as a subcommittee chair on a multi-functional team) </li></ul></ul><ul><ul><li>Identify mentor to improve proficiency levels of competencies </li></ul></ul>
  25. 25. DEVELOPMENT ACTIVITIES Others <ul><li>Med Potential/Med Results IDAPT </li></ul><ul><li>Encourage self directed growth & development </li></ul><ul><ul><li>Identify a coach to help achieve results </li></ul></ul><ul><ul><li>Identify mentor to improve proficiency levels of competencies </li></ul></ul><ul><ul><li>Identify assignments, special projects with broader/bigger role than current level </li></ul></ul><ul><ul><li>Provide other development opportunities </li></ul></ul><ul><ul><li>Keep Motivated </li></ul></ul>
  26. 26. Development Grid LOW RESULTS HIGH “ C” Players Provide Feedback to Participants Encourage self directed growth & development Provide coach to help achieve better results Identify smaller role in assignments or special projects at current level. Provide opportunities for development or training Cell 3 “A” Player Actively Develop For Next Level Of Leadership Identify active role (but not leader) within key assignments. Stretch at a different pace than participants in cell #’s 1 & 2. Engage participants to function at greater level of scope (than current position). Provide coach to help achieve better results For example: Serve as a subcommittee chair on a multi-functional team Cell 1 “A” Player Actively Develop For Next Leadership Level Identify lead roles within key assignments (typically there are only a select few of these ) to engage participants in functioning at greater level of scope (i.e., magnitude, time & complexity) than current position. For example: job rotations, action learning, task force leader, committee chair Cell 2 “A” Player Actively Develop For Next Leadership Level Identify active role (but not leader) within key assignments. Stretch at a different pace than participants in cell #1. Engage participants to function at greater level of scope (than current position). Provide coach to help achieve results and mentor to improve proficiency levels of competencies “ B” Players Provide Feedback to Participants Encourage self directed growth & development. Identify a coach to help achieve results & mentor to improve proficiency levels of competencies. Identify assignments, special projects with broader/bigger role than current level. Provide other development opportunities Keep Motivated “ C” Players Provide Feedback to Participants Encourage self directed growth & development • Coach to help achieve better results • Identify smaller role in assignments or special projects at current level. Encourage participant to find a mentor to improve proficiency levels of competencies “ C” Players Provide Feedback to Participants Encourage self directed growth & development. Mentor & train to improve proficiency levels of competencies. Provide additional learning/ development opportunities at current level (e.g., seminars, workshops). Provide opportunities for involvement in special projects “ B” Players Provide Feedback to Participants Encourage self directed growth & development Mentor & train to improve proficiency levels of competencies. Provide additional learning/ development opportunities at current level (e.g., seminars, workshops) Provide opportunities for involvement in special projects Keep Motivated “ B” Players Provide Feedback to Participants Encourage self directed growth & development • Mentor & train to improve proficiency levels of competencies. Provide additional learning/ development opportunities at current level (e.g., seminars, workshops) Provide opportunities for involvement in special projects Keep Motivated HIGH POTENT IAL LOW
  27. 27. Implement Individual Development Action Plan Tactics (IDAPT) <ul><li>Benchmark best practices </li></ul><ul><li>Identify a structured set of sequential developmental activities </li></ul><ul><li>Identify multiple developmental strategies </li></ul><ul><li>Identify cafeteria-style activities </li></ul><ul><li>Identify how system will allow proficient people to “test out” </li></ul><ul><li>Identify how annual development activities and competency updates will be obtained </li></ul><ul><li>Identify if everyone is to go through the same developmental strategies, or, will developmental strategies be customized based on individual gaps, and how this will be accomplished </li></ul>
  28. 28. <ul><li>Depends on number of positions, and organization’s ability to support development, which includes: </li></ul><ul><ul><ul><li>Management’s available time. </li></ul></ul></ul><ul><ul><ul><li>Availability of coaches & mentors. </li></ul></ul></ul><ul><ul><ul><li>Number of prime developmental assignments. </li></ul></ul></ul>High Potential Pools Top Management Supervisory Management Middle Management Individual Contributors Pool I Pool II
  29. 29. The number of pools may reflect how a company is organized. For example, a Pool in your organization may be established to fill Single Business Unit management positions, while a pool of mid-level managers might be designated to fill a range of corporate positions. SBU I SBU II SBU II CORPORATE
  30. 30. Establish Accountability & Evaluate results <ul><li>Identify Persons Responsible for Executing Individual Development Action Plan Tactics (IDAPT) </li></ul><ul><li>Track IDAPT progress </li></ul><ul><li>Assign Individual(s) Responsible for Auditing Results </li></ul><ul><li>Executive Team & (HR) Staff person </li></ul>
  31. 31. Talent Management A Systems Approach Succession Planning <ul><ul><ul><li>Engaged Performance </li></ul></ul></ul>Strategic Recruitment Career Development Compensation Alignment <ul><li>Business Impact </li></ul><ul><li>Attract & Hire Top Quality Talent </li></ul><ul><li>Develop Future Leadership </li></ul><ul><li>Pipeline </li></ul><ul><li>Fill Key Positions w High Performers </li></ul><ul><li>Build A Culture of Performance </li></ul><ul><li>Engage & Retain Employees </li></ul>
  32. 32. MANUFACTURERS’ ASSOCIATION OF SOUTH CENTRAL PENNSYLVANIA 160 Roosevelt Ave York Pa 17401 www.mascpa.org JIM BAKER SR CONSULTANT TALENT MANAGEMENT 717-781-4070

×