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Succession planning 1-1-1 succession development

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  • 1. Engage Employees with Career Planning and Succession Development $295 Info-Tech Research Group
  • 2. Executive Summary
    • Baby Boomer retirement and recent layoffs challenge IT retention. L ow availability of recent IT graduates is the biggest obstacle to building a stable and reliable IT workforce.
    • Replacing an employee costs 50-200% of that person’s annual salary. Succession development cuts these costs to less than 5-10% of salary if the right strategy, policy and culture are in place.
    • Begin your succession development rollout with staff contingency planning for critical roles, and then expand to include long-term career development.
      • Have HR own the succession development process to gain buy-in and standardization.
      • Address vulnerabilities throughout the ranks. Losing a manager brings longer-term pain, but it’s the loss of technical people that can create a near-term crisis.
      • Pinpoint candidates that have the flexibility, diversity and interest in being successors. Use a Performance vs. Potential Matrix to visualize potential for promotion.
      • Collaborate with candidates to map tailored career development plans. Different “manager versus tech guru” career paths exist across IT, so don’t limit options.
      • Offer diverse training mechanisms, including preparation for the political elements of future roles. Hold staff and supervisors accountable for hitting development goals.
    • Development does not stop once the promotion happens . Set success measurement metrics, provide end-to-end transition support, and fix performance problems.
    Info-Tech Research Group
  • 3. Baby Boomer retirement, low enrollment in IT programs and recent layoffs increase risks to IT recruitment and retention.
    • The unexpected departure of a critical staff member can constitute a crisis, but IT staffing stability faces bigger challenges:
    • The pending Baby Boomer exodus will leave leadership and expertise gaps in the IT ranks.
    • The share of people aged 25-40 in the US workforce will drop 7% per year through 2020, creating huge vacancies (“Do You Know Where Your Talent Is?” Deloitte).
    • Enrollment in computer science programs has dropped steadily since the turn of the millennium as IT is seen increasingly as a lifestyle versus a career choice.
    • Generation Y workers are unlikely to stay at an organization for more than a few years as they pursue more stimulating work and rapid promotion cycles.
    • Recruitment candidates hesitate to sign on with organizations that have recently gone through layoff action.
    0 Info-Tech Research Group Losing an employee is expensive. There’s a three-to six-month – sometimes a year – ramp-up time for the replacement. – IT Consultant “ ”
  • 4. 0 Info-Tech Research Group Availability of Business Skills 32% Business Management Support 34% Economic Conditions 44% Employee Turnover 53% Availability of Recent Graduates from IT Programs 57% Availability of recent IT grads is the biggest current obstacle to building a stable and reliable IT workforce. Getting business management support to develop a team is surprisingly easier than attracting the fresh talent needed to build it. Succession development aids in keeping that hard-won talent instead of going through a difficult and costly external recruitment process. Great Obstacle N=120, Source: Info-Tech Research Group
  • 5. Replacing an employee costs 50% to 200% of that person’s annual salary. Succession development can cut this to 5-10%.
    • What are the benefits of succession development?
    • Avoid costs. Replacing someone, especially with an external candidate, brings costs in the areas of:
    • Headhunting and recruitment.
    • HR administration.
    • Productivity loss. It takes about six months for a typical employee to reach 100% productivity.
    • Missed opportunities.
    • Retain skills and knowledge. These are assets with real value that may be impossible to replace.
    • Prevent backfilling. Stop the unintended ripple effect that’s created down the ranks as employees act as stop-gaps for vacant roles.
    • Create fluidity. An “irreplaceable person” won’t be promoted, blocking advancement for those below. This forces a costly external search.
    • Improve engagement and retention. Reduce turnover by engaging and keeping talented people. Offer clear career paths and build a sense of team.
    • Remove vulnerability. Skill redundancy ensures business continuity if a key staff member leaves.
    Info-Tech Research Group Succession planning is a critical aspect of our business. It ensures that we always have the skill set and capacity to perform the functions we need to move forward. – VP of HR, Telecommunications Definition: Succession Development The structured and coordinated practice of identifying and preparing pools of internal talent to fill key positions, with the goal of meeting business objectives. “ “
  • 6. Talent management software is powerful, but not the most effective tool for many enterprises. Info-Tech Research Group
    • Full-scale talent management suites offer a wealth of tools, but are unnecessary for most enterprises.
    • Most suites include the following modules:
    • Talent acquisition.
    • Compensation management.
    • Performance management.
    • Learning and development.
    • Goal setting.
    • Succession management.
    • These suites typically start at $20,000 and can quickly climb to $500,000 for large implementations.
    • On-demand solutions are much more cost-effective entry points into the talent management software space. SuccessFactors , for example, costs $3,000 for set-up and $15-$60 per user per month.
    • For smaller enterprises, simple Word templates and Excel tools are effective enough for tracking succession development information.
    • See some of the tools that are available from Info-Tech:
    • IT Skills Inventory Tool
    • IT Leadership Skills Inventory
    • Annual Professional Development Plan
    • Quarterly Professional Development Progress Report
    Learn about the top three mistakes that IT leaders make and how to fix them, in the video, “Succession Development: Get it Right.”
  • 7. Start with Info-Tech’s “Succession Development Planning Tool” to assess areas for both immediate and long-term action.
    • This “Succession Development Planning Tool” will help you:
    • Identify individuals and roles that pose a skills gap threat, and the potential impact if that threat comes to pass through employee departure.
    • Focus your succession development efforts on the roles and individuals whose departure may present the greatest risk.
    • Evaluate staff members that have the potential to be strong successors using established criteria.
    • Focus your career development efforts on those individuals who have the potential to take over high risk roles.
    Info-Tech Research Group Formalizing succession efforts creates a safeguard for those under development in the event that the person overseeing their development leaves. A systematic and well-documented developmental track is more likely to be preserved regardless of who is running the show. Info-Tech Insight:
  • 8. Use a Performance vs. Potential Matrix to quickly plot and visualize an individual’s potential for promotion. Info-Tech Research Group Shaky Solid Strong Shaky Star Poor Strong Solid Solid Performance Potential Low High High
    • To use the chart on the left, assess an individual employee from “low” to “high” in terms of:
    • Actual on-the-job performance to-date.
    • Potential to learn and grow, including their willingness to engage in development activities.
    • The person’s plotted position on the chart will help you assess the amount of effort and investment it will take to make them succession-ready. The closer to “Star,” the less effort required.
    If an individual is not on a development track due to performance issues, then don’t waste anyone’s time. Seriously consider termination. . Info-Tech Insight:
  • 9. Collaborate with each candidate to figure out how to get from A to B, then map a tailored career development plan to get there.
    • Treat the training in the Career Development Plan like a contractual commitment.
    • Conduct a gap assessment that looks at what it will take to get the succession candidate to their target role.
    • This exercise will pinpoint opportunities and required effort.
    • Create an individualized Career Development Plan that maps targets, timeframes, obstacles, and actions.
    • Build in accountabilities. Link achievement of Plan objectives back to the performance evaluations of both the succession candidate and their supervisor.
    • Focus on obstacles beyond basic skills acquisition that could block the promotion path, such as:
    • Poor or false perceptions held by others.
    • Personal circumstances that limit options.
    • Get HR sign-off on the plan as part of the ongoing buy-in process.
    Info-Tech Research Group Succession planning drives the actions in employees’ career development plans. – CIO, Manufacturing “ “
    • Use Info-Tech’s “Career Development Plan” template to:
    • Establish career targets.
    • Identify career-building strengths and obstacles.
    • List must-do activities for career advancement.
  • 10. Development does not stop once the promotion happens. Provide end-to-end transition support and fix performance problems.
    • Succession development is an ongoing process:
    • The nuances of a given role won’t be fully understood by the candidate until he or she has actually experienced the role first hand.
    • If you wait until someone is 100% ready to be promoted, then they’ll never get the hands-on experience they need.
    • Start preparing to promote a person when they reach the “80% ready” mark.
    • An employee in a new role might struggle. Either they were promoted too soon, suffered from poor transition support, or are in the wrong role entirely.
    • Stipulate a three-month probation period to support the transition and assess on-the-job performance.
    • If the candidate is clearly out of their depth, give them a graceful way out.
    • If at all possible, let the employee return to their previous position. They clearly excelled in their former role, so they still have value to deliver.
    Info-Tech Research Group Too often I’ve seen individuals move in or out, and it’s a cold hand-off. They don’t have an understanding of the team environment, expectations or politics. – CIO, Telecommunications “ “
    • Info-Tech’s “Role Transition Plan” template lays out the activities that must occur in order for an employee to successfully move out of an old role and into a new one, including:
    • Immediate new accountabilities and expectations.
    • Transition activities.
    • Current role handoff tasks.
    • New role orientation.
  • 11. Survey Demographics (e) Info-Tech Research Group