succession planning is strategic, both in the investment of resources devoted to it and in the kinds of talent it focuses on. It is not a one time event; rather, it is re-assessed and revised annually through the process
Succession plans should cover a 3- 5 year span
Transcript of "Succession planning ppt"
Developing a Succession Plan
Why Do It?• Employees say company leadership is a key contributor to job satisfaction, commitment and intent to stay; especially true for top talent.• Recent surveys state that employees value most the leadership qualities of honesty and integrity.• Only 1% of companies rate their succession management plans as excellent; two-thirds rate them as fair or worse. 2
Is this Urgent?1. Have you lost high potential talent because they didn’t know they were on the succession list?2. If your executive team “got run over by a bus,” would their replacements be able to step right in and be productive?3. Is anyone on the “top floors” or in the Boardroom worried about the status of your “talent bench?”4. What lost opportunity costs has your organization incurred because it took a long time to replace a key leader? 3
What is Succession Planning?A deliberate and systematic effort by anorganization to ensure leadership continuity inkey positions, retain and develop intellectualand knowledge capital for the future, andencourage individual advancement. 5
Succession Planning• Ensures that employees are recruited and/or developed to fill each key role.!• Ensures that we operate effectively when individuals occupying critical positions depart.• May be used for managerial positions or unique or hard-to fill roles.• Align bench strength for replacing critical positions.
What is “Bench Strength”?An assessment of the organization’spreparedness to replace departing staff incritical positions. Identifying people who areready to step into someone else’s shoes at theappropriate time under the appropriatecircumstances with seamless transition.
Succession Planning is NOT• A one time event• Decided by an individual• Used solely for individual career advancement opportunities• Reacting only when a position becomes open• Line mangers relying solely on their own knowledge/comfort with candidates.
Replacement vs. Succession• Reactive • Pro-Active• Form of Risk • Planned Future Management Development• Substituting • Renewing• Narrow Approach • Organized Alignment• Restricted • Flexible 10
Traditional vs. Future• Driven by an annual HR • Driven by current and procedures future business needs• Entitlement focus – • Successors determined by bureaucratic/buddy an open process with multiple inputs and factors payback system - decided in secret • Development plans, development discussions• “The list” and identified and coaching with both development actions, but candidate, management, no accountability for mentors, and others held development accountable for progress and monitoring 11
Steps in the process• Phase 1: Identify Key/Critical Positions• Phase 2: Conduct Position Analysis• Phase 3: Develop Succession Plan• Phase 4: Monitor, Evaluate, Revise
Phase 1: Identify Key/Critical Positions• Key Contributor- in achieving the organization’s mission or would hinder vital functions• Specialized Leadership – The position requires specialized or unique expertise• Geographic – The position is the only one of its kind in a particular location• Vacancy- Position will be vacant due to retirement/advancement in the organization/lateral moves
Phase 2: Conduct Position Analysis• What are the external and internal factors affecting this position?• What competencies or skill sets will be required?• What are the gaps (competencies or skill sets not possessed by the current staff)?• What strategies will be used to address the gaps?
Phase 3: Develop Succession PlanThe succession plan is the culmination of Phases 1 and2.• Reviews of the individual positions and high turnover job classes are rolled into one document and gaps and strategies are formulated at an organizational or unit level.• The strategies to overcome the gaps are outlined to include target completion dates, responsible parties and required resources.
Phase 4: Monitor, Evaluate, Revise• Select evaluation period-typically reviewed annually• Be prepared to respond rapidly to unforseen changes to the plan• Status/Progress updates should be monitored via the succession planning template and EPA’s (depends what Holly choses here)• (Is this a good point to go into tools and add presentation of strategy?)
Overview of Process and Tools Executive Manager Decision-Making Profiles & Dev. plans focus Org.Strategic and Self Matrix Organization on both strengthsInitiatives, Mission Evaluations Chart And dev.areas Vision & Values Determine Gap Identify Assess between Determine Key Leadership Organizational Monitor & Track Actual Performance Competencies Candidates & Risks Employee’s & Behaviors vs. For Leadership Assess Against and Develop Performance Required Competencies Strategies Competencies Process Process Implementation Process Design Management 17
Insert Laura or Holly’s Talent Profile or readiness Assessment
Decision Making Matrix SOLID CITIZEN PERFORMER STRONG PERFORMER STAR PERFORMER (High Performance/Low Potential) (High Performance/Med Potential) (High Performance/High Potential) Gets all important things done Gets all important things done Gets all important things done Is a pro in his/her position May act at level of capability of one level Acts at a level of capability of at least one Is seen as a leader in his/her area above current position level above current position Has reached potential Acts as leader and role model Acknowledged as a skilled leader and role Action Required: Exhibits many strengths or competencies model Continue developing in current position; is in beyond current role Exhibits many strengths or competencies the right job Some leadership development issues beyond current role Action Required: Has wide spread influence beyond current Look for opportunity to display leadership in role current job Action Required: Stretch assignments to prepare for larger role QUESTIONABLE PERFORMER SOLID CITIZEN PERFORMER STRONG PERFORMER (Medium Performance/Low Potential) (Medium Performance/Medium Potential) (Medium Performance/High Potential)Performance Gets most important things done Gets most important things done Gets most important things done Is very proficient in his/her current position Shows signs of leadership and role modeling Acknowledged as a leader and role model Is not seen as a leader in his/her area Exhibits many FCC executive competencies Exemplifies FCC executive competencies Action Required: May be new in position Acts at level of capability of next level in the Work on improving performance in current Action Required: organization job; may be candidate for lateral move Leave in current job; continue developing Action Required: skills and improving performance Focus on performance short term and development opportunities long term LOW PERFORMER QUESTIONABLE PERFORMER SOLID CITIZEN PERFORMER (Low Performance/Low Potential) (Low Performance/Medium Potential) (Low Performance/High Potential) Isn’t getting most important things done Isn’t getting most important things done Isn’t getting most important things done Difficulty performing to standards in his/her Capable of making higher contribution Has been acknowledged as a team player and current position May be in wrong job or occupied with non- role model Action Required: work distraction Has exemplified FCC executive competencies Consider reassignment to more appropriate Action Required: May be in wrong job or occupied with non- position; including lower level or exit option Focus on improving performance work distraction Action Required: Address root cause performance issue; worthy of investment in development Potential 20
Decision Making Matrix SOLID CITIZEN PERFORMER-B STRONG PERFORMER-A STAR PERFORMER-A (High Performance/Low Potential) (High Performance/Med Potential) (High Performance/High Potential) JF LA BR EB TO EK QUESTIONABLE PERFORMER-C SOLID CITIZEN PERFORMER-B STRONG PERFORMER-A (Medium Performance/Low Potential) (Medium Performance/Medium Potential) (Medium Performance/High Potential)Performance DS EH TK LG AG TW KS DS LOW PERFORMER-Mange up or QUESTIONABLE PERFORMER-C SOLID CITIZEN PERFORMER-B out (Low Performance/Medium Potential) (Low Performance/High Potential) (Low Performance/Low Potential) Potential 21
Chart Results: Talent Summary Functional Competencies Leadership Competencies Adaptability Organizatio Alignment Communi Develops Boundary and Balance Drive for Influence Self and Participants Technology Results Knowledge Integration Others action Cross of Budget Business Manage- Planning Strategy Methods and Market ment and and ecti Per ve sp nParticipant 1Participant 2Participant 3Participant 4Participant 5Participant 6Participant 7Participant 8Participant 9Participant 10Participant 11Participant 12Participant 13 This graphical representation is a comparison of each individual’s performance by competency (each row on the vertical axis represents an individuals score). - Exceeds Standards - At Standard - Needs Development 22
For thought• It is an ongoing process where the players will change continuously• It is a strategic effort that utilizes inputs from multiple sources• The organizational direction may also change, so be flexible• Competencies need to be constantly monitored to ensure they are measuring what you want to measure 23
Refining the Program• Prepare a program action plan• Communicate the action plan• Conduct Succession Planning meetings at leadership level initially• Training on Succession Planning 24
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