Creating policies that will sustain your organization and your community
How to create policy templates that can be used and modified by a new leader
Best practices and lessons learned for proper succession management
Creating Low-Code Loan Applications using the Trisotech Mortgage Feature Set
Succession planning
1. Successful Succession
Planning for Aboriginal
Communities
Infonex, Winnipeg
Sept 2008
Lisa Peckham, Senior Associate,
CG Hylton & Assoc Inc.
2. Tues 3:45 - 4:45 , Successful Succession
Planning for Aboriginal Communities
Lisa Peckham, Senior Associate, CG Hylton &
Associates
Creating policies that will still be used with a
new Chief in your community
How to create policy templates that can be used
and modified by a new leader
Best practices and lessons learned for proper
succession management
3. Importance of Demographics
Underlying trends in Canada’s workforce are
heightening the skill shortage issue:
– Aging population
– Trends to earlier retirement
– Slower labour force growth
4. 2000 US Population
% 55 years +
Source: US Census Bureau, 2000
Red = >25% of the state
Green = 22%-24.99%
Yellow = 20%-21.99%
Blue= <20%
5. 2005 US Population
% 55 years +
Source: US Census Bureau, 2000
Red = >25% of the state
Green = 22%-24.99%
Yellow = 20%-21.99%
Blue= <20%
6. 2010 US Population
% 55 years +
Red = >25% of the state
Green = 22%-24.99%
Yellow = 20%-21.99%
Blue= <20%
Source: US Census Bureau, 2000
9. Projected Change in
Labour Force 2002-2012
1%
12% 10%
-10%
48%
40%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
20-24 25-34 35-44 45-54 55-64 65+
Horrigan,M. W. (2004, February). Employment projections to 2012. Monthly Labor Review, 127 (2), 3-22
10.
11. Average Annual Growth Rate of the Labour Force
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
1955-
1959
1960-
1964
1965-
1969
1970-
1974
1975-
1979
1980-
1984
1985-
1989
1990-
1994
1995-
1999
2000-
2004
2005-
2009
2010-
2014
2015-
2019
2020-
2024
2025-
2029
Source: The Canadian Labour and
Business Centre
12. Tracking the Near-Retirement Population
Older Workers 45+ : A Growing
Share of the Labour Force
25%
27%
29%
31%
33%
35%
1990 1992 1994 1996 1998 2000
13. Average Retirement Age Declines
57
58
59
60
61
62
63
64
65
66
1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999
age
14. Managing for Excellence…
Succession planning starts from a people perspective (vs
planning to fill positions)
Not a one-time stand alone project– to be successful,
requires dialogue, feedback, interventions tailored to
each individual
Goal to optimize the contribution of every Manager as a
means of achieving excellence at the highest level of the
org
15. The succession planning Map Process
Visit Managers
Discuss career plans, learning and development needs and
specific interventions contemplated for each
Also discussed general issues of concern about collective
management of the group
Managers identified high potential successors
Put succession planning right in performance process
16. Typical Manager demographics
Level 0 (217) EX-00 (92) Total (309)
Under 40 1 0 1
40 - 45 21 5 26 (8%)
46 - 50 50 13 63 (20%)
51 + 145 74 219 (71%)
Average age
EX-0: 52 EX-00: 54 All Managers: 53
17. A little more than one third of Managers have
been in their jobs for less than 2 years
EX-05s EX-04s
No. of years as
Manager
Number
of
Managers
No. of years as
Manager
8 %
38%
39%
15%
0
5
10
15
20
25
30
35
40
Less than 2 years 2 - 5 years 6 - 10 years More than 10 years
Number
of
Managers
30%
42%
18%
4%
0
20
40
60
80
100
120
Less than 2 years 2 - 5 years 6 - 10 years More than 10 years
And a third of Managers could retire now if they wanted
18. In terms of succession planning:
The average age of EX-0 is 52
The average age of the high potential cohort is 48
There are some gaps in the skills and experience of the
feeder group
19. Emerging Issues
Succession planning is a challenge for some of the more
significant policy or operational jobs
Learning and development needs of Managers require
attention
Some skills gaps at the Manager level
What are unexploited source of talent and experience to
develop new Managers?
Rigidity of current classification system
20. In light of our observations and the emerging
issues, the following next steps are being
launched…
Communicate results to Managers
Continue succession planning
Launch a Corporate Succession Planning Exercise
Consider Launching an External Recruitment Exercise
Provide Learning and Development Opportunities
Keep an Eye on Classification Issues
21. Succession Planning Lessons Learned
Worthwhile exercise – value to the system
Needs to be meaningful: engagement of and feedback to
Managers is essential
More structured questions next round for even more
rigorous assessment
At least one more round before proceeding to all
Executives
Exploring means of taking the exercise further
22. What is succession
planning?
An ongoing process of identifying, developing, and retaining
talent for key positions/areas in order to meet business
objectives
23. The Succession Planning and Management link to the
Integrated Human Resources & Business Planning
24. A New Approach
Replacement Planning Succession Planning and Management
• Focus is limited to executive-level
positions
• Focus is on identifying immediate and
short-term replacements
• Plans are limited to identifying one or
two potential successors for senior
positions
• Plans are linked to individual job
requirements
• Potential candidates are identified
based solely on feedback from their
immediate supervisor
• Succession planning is done in isolation
from other related human resources
activities (e.g. learning & development,
diversity initiatives, and recruitment)
• Focus is on key positions/areas at
various levels
• Focus is on the development of talent
for the longer term
• Plans include developing pools of talent
for key positions/areas
• Plans are linked to building
competencies and skills for current and
future business needs
• A systematic process is used to
assess candidates based on feedback
from multiple perspectives and sources of
information
• Processes are in place to integrate
succession planning with other human
resources activities
Traditional Approach Leading Approach
25. Lisa this should be amended or
dumped
Federal Public Service
Demographic Information
26. Generational Composition of the Core
Public Administration (March 2007)
• Baby-boomers (born
1946-66) account for 2 out
of 3 employees of the Core
Public Administration.
• Most pre-boomers (born
before 1946) employees
have already left and those
who remain now account
for a very small proportion
of the workforce.
• Together, Generations X
(1967-76) and Y (1977-
1986) account for 30% of
the Core Public
Administration workforce
in 2007. 3%
67%
22%
8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Generation Y
Generation X
Baby-Boomers
Pre-Boomers
27. Core Public Administration
Projected Total Outflow*
2005-06 to 2009-10
Source: Canada Public Service Agency
Based on the assumption of population stability.
*Total Outflow includes voluntary & involuntary separations and retirements.
3.4% 3.6%
3.9% 3.9%
4.2%
4.4%
4.6% 4.7%
0%
1%
2%
3%
4%
5%
6%
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Projected Range
Historical Rates
4.4%
4.7% 4.8% 5.0% 5.1%
28. Representation and Workforce Availability
of Designated Groups in the Federal
Public Service
53.8%
4.2%
5.8%
8.6%
52.2%
2.5%
3.6%
10.4%
0%
10%
20%
30%
40%
50%
60%
Women Aboriginal
Peoples
Persons with
Disabilities
Visible Minorities
Mar-2006 WFA Estimate
29. Canada 2017
In 2017, one in five Canadians will be a Visible Minority
0
1
2
3
4
5
6
7
8
1981 1986 1991 1996 2001 2006 2011 2017
Millions
of
People
0
5
10
15
20
25
Percentage
of
Population
Millions
Percentage
30. Benefits of Succession
Planning and Management
Employee engagement through learning and career
development
Pools of candidates ready to fill key areas and positions
Managers gain appreciation of employees’ skill sets
Assists in attaining Employment Equity and Official
Languages goals
Assists in preventing corporate memory loss
Improves organization’s ability to deliver on priorities
31. The Five-Step Process
Step 1. Identify key areas and key positions
Step 2. Identify capabilities for key areas and
positions
Step 3. Identify interested employees and
assess them against capabilities
Step 4. Develop and implement succession and
knowledge transfer plans
Step 5. Evaluate effectiveness
32. 1. Identify key areas and key
positions
Key areas
Groups of positions that are the focus of
succession planning efforts
Key positions
Exert critical influence on operational or
strategic activities
Specialized expertise/difficult to fill
Takes time and commitment to develop
33. 2. Identify capabilities for key
positions and areas
Identify knowledge, skills, abilities or competencies to achieve
business goals
Ensure job description and merit criteria are up-to-date
Speak to incumbents
Use Revised Profile of Leadership Competencies when
applicable
Communicate capabilities to feeder employees so they can
better tailor learning plans
34. 3. Identify interested employees
and assess against capabilities
Develop employee profiles
Create skills inventory/database
Encourage employee/manager discussions to identify
interests in key positions/areas
Roll up information for management team
Conduct talent review meetings
Use multiple forms of assessment to minimize subjectivity
35. 4. Develop succession and
knowledge transfer plans
Identify critical development experiences
Tailor learning plans to current and future business needs
Use special projects/assignments to “stretch” employees’
abilities
Encourage mentoring, coaching, and job shadowing
Create templates to save critical knowledge
Make use of staffing options (for example, Special Assignment
Pay Plan)
36. 5. Evaluate Effectiveness
Do new employees in key positions perform effectively in their
role?
Are there qualified employees ready to compete for key
positions?
Are designated group members adequately represented among
feeder groups for key positions and areas?
Are skill inventories and/or employee profiles kept
up-to-date?
Is the succession plan reviewed following organisational
changes?
37. The Players and their Roles
Deputy Heads
All Levels of Management
Human Resources Professionals
Employees
38. Critical Success Factors
Strong support among senior management
Input and collaboration among key stakeholders
Aligned with business plans and human resources planning
process
Simple tools are available to support the process
Assessment of employees based on multiple perspectives
Critical development opportunities are identified
Development of talent at multiple organisational levels
Process is reviewed and updated as needed
43. Case Discussion
Human Resources Policy &
Planning Branch
To illustrate some of the main steps and
important considerations of succession
planning, we will take a look at how a
sample organization might carry out a
succession planning exercise.
44. Case Discussion
Step 1: Identify key positions
Instructions
Analyze the HR Policy and Planning Branch
Which positions would you identify as critical (i.e.,
without this role, the organization would be
unable to effectively meet its business
objectives) and vulnerable (i.e., at high risk of
separating from the organization), and why?
Discuss as a group.
45. Case Discussion - DEBRIEF
Step 1: Identify key positions
Based on a review of the business plan, the org chart, the job
descriptions and discussions with the incumbents, one key
position was identified:
ES-06 – Head, Human Resources Policy
Criticality: HIGH
Incumbent is playing a central role in the design and
development of the new Integrated Planning Policy and brings
significant policy design experience and corporate knowledge
to the process (i.e., exerts a critical influence on the strategic
objectives of the organization).
Vulnerability: HIGH
Incumbent is eligible to retire in 2008-2009.
46. Case Discussion
Step 2: Identify capabilities for key positions
Discussion Questions
1. Where can you find the information
you need to be able to identify the
capabilities for key positions?
2. What information should you be
communicating to employees at this
stage of the succession planning
process?
47. Case Discussion - DEBRIEF
Step 2: Identify capabilities
Reviewed job description, existing competency profiles
Conducted in-depth incumbent interview re: nature of work
performed / skills and knowledge required. Confirmed
incumbent’s significant amount of corporate memory and
valuable experience
Developed a Key Position Profile that described the capabilities
required for the position
Decision made to create a pool of potential successors for the
Head, Human Resources Policy position. Selection criteria
developed (based on capabilities)
Capabilities and selection criteria shared at a team meeting.
Followed-up with email outlining the next steps in process
48. Step 3: Identify interested employees &
assess them against capabilities
Instructions
Consider the current staff of the HR Policy and
Planning Branch and suggest employees who
might be suitable candidates for the key
positions that have been identified.
Discuss as a group.
Case Discussion
49. Case Discussion - DEBRIEF
Step 3: Identify & assess interested employees
Interested employees asked to complete an Employee Profile form;
reviewed against selection criteria
Promising candidates interviewed
Based on the interviews / additional reference checks, the following
employees were selected for the pool:
– Both of the Human Resources Policy Officers (ES-05)
– Senior Human Resources Planning Officer (PE-05)
Notes:
These candidates were the most likely to meet the developmental targets
within the necessary timeframe
None of the pool candidates is a member of a designated group, so the
Branch needs increase designated group representation when it fills
other vacancies.
50. Step 4: Develop and implement
succession & knowledge transfer plans
Discussion Questions
1. What strategies can be used to develop
potential successors?
2. What strategies can be used to transfer
corporate or specialized knowledge?
3. What challenges might you face in
carrying out this step of succession
planning in your organization? What could
you do to overcome these challenges?
Case Discussion
51. Case Discussion – DEBRIEF
Director worked with candidates on Personal Learning Plans to
map out developmental activities - e.g.: stretch assignments,
acting assignments, formal training activities.
Some candidates needed language training to meet CCC level.
Branch also explored the option of creating a parallel position for
the incumbent. In this transitional role she would serve as a
coach and mentor to pool candidates who would have rotating
opportunities to act in her position.
Director provided specific feedback re: candidate’s progress
against their developmental objectives during their
performance appraisals.
Step 4: Develop & implement succession
and knowledge transfer plans
52. Step 5: Evaluate Effectiveness
Discussion Questions
1. What types of indicators can be used to
evaluate the effectiveness of an
organization’s succession planning effort?
Case Discussion
53. Case Discussion - DEBRIEF
Step 5: Evaluate effectiveness
The Human Resources Policy and Planning Branch
is:
Monitoring the effectiveness of this succession
planning effort on an ongoing basis and making
necessary adjustments
Capturing lessons learned as it moves through the
process in order to leverage this learning for
future succession planning processes
55. The Strategic Role of Human
Resources Planning
HR Planning
–review human resources requirements to
ensure:
• the necessary number of employees
• the necessary employee skills
• to meet organizational goals
56. The Strategic Role of Human
Resources Planning
-plan staffing and development activities
–achieve economies in hiring
–anticipate and avoid staff shortages/surpluses
–establish employment equity goals/timetables
Importance of HR Planning
57. The Strategic Role of Human
Resources Planning
HR Planning Strategic Planning
–reciprocal and interdependent relationship
–environmental scanning critical for both
58. The HR Planning Process
2. Forecast Future Internal/External Candidates
(Supply)
1. Forecast Future HR Needs (Demand)
3. Balance Supply and Demand
59. Forecasting Future HR
Demand
Forecasting based on:
–quality and nature of employees
–decisions regarding product quality
–plans for technological change
–financial resources
60. Forecasting Future HR
Demand
Trend analysis: review past employment levels
Ratio analysis: ratio of business activity/employees
Scatter plot: graph of business activity/employees
(regression or forecasting software can enhance
the scatter plot)
Quantitative Approaches
61. Forecasting Future HR
Demand
1. Nominal Group Technique
–experts meet face-to-face
–group discussion facilitates exchange of ideas
–possible subjectivity, group pressure
2. Delphi Technique
–experts work independently
–wide range of views
–difficult to integrate diverse opinions
Qualitative Approaches
62. Forecasting Future HR Supply
(Internal Candidates)
–manual or computerized records
–used to identify internal candidates for transfer
or promotion
–summary of each employee’s:
• education
• experience
• interests
• skills
Skills Inventories
63. Forecasting Future HR Supply
–visual representations of likely internal
replacement employees for each position
–data on each candidate includes:
• age
• present performance rating
• promotability status
Replacement Charts
64. Forecasting Future HR Supply
Succession Planning
–plans to fill key executive positions
–maintains a supply of successors for current
and future jobs
–balances organization's needs for top
managers with the potential and aspiration of
internal candidates
–support individual career development
66. Balancing Supply and Demand
Dealing with a Labour Surplus
–hiring freeze
–attrition
–buy-out and early retirement programs
–reducing hours (job sharing, reduced
workweek, part-time work, work sharing)
–layoffs
–termination with outplacement assistance
67. Balancing Supply and Demand
Dealing with a Labour Shortage
–overtime
–hiring temporary employees
–subcontracting work
–external recruitment
–transfers
–promotions
68. Recruitment
–process of managing a labour shortage by
searching for job candidates:
• adequate number
• qualified
from whom to select staff needed to meet
job requirements
69. Recruitment
–generate adequate pool of candidates at
minimum cost
–increase success rate of selection process
–achieve employment equity goals
–attract qualified candidates suited to
organizational culture
Purposes of Recruitment
70. The Recruitment Process
Identifying job openings
Specify job requirements
Select methods of recruitment
Generate pool of qualified candidates
71. Constraints on the Recruitment
Process
–organizational policies and plans
–job specifications
–inducements of competitors
–environmental factors
72. Recruiting Within the
Organization
–enhanced morale if competence is rewarded
–more commitment to company goals
–longer-term perspective on business decisions
–more accurate assessment of candidate’s skills
–less orientation required
Advantages
73. Recruiting Within the
Organization
–discontent of unsuccessful candidates
–time consuming to post and interview all
candidates if one is already preferred
–employee dissatisfaction with insider as new
boss
–possibility of “inbreeding”
Disadvantages
75. Recruiting Outside the
Organization
–larger, more diverse pool of qualified candidates
–acquisition of new skills and knowledge for
creative problem solving
–elimination of rivalry for transfers/promotions
–cost savings from hiring skilled individuals with
no need for training
Advantages
76. Recruiting Outside the
Organization
Yield Pyramid
50
100
150
200
1200
New hires
Offers made (2:1)
Candidates interviewed (3:2)
Candidates invited (4:3)
Leads generated (6:1)
79. Recruiting Outside the
Organization
Three approaches:
1. Internet job boards
2. Company Website and intranet
3. Application Service Provider software rental
Online Recruiting
80. Recruiting Outside the
Organization
–media to be used depends on:
• type of position
• type of candidate
–construction of the ad:
• AIDA (attention; interest; desire; action)
• want ads vs. blind ads
Advertising
81. Recruiting Outside the
Organization
–no HR department
–past difficulty in generating pool of qualified
candidates
–position must be filled quickly
–desire to recruit designated group members
Use of Private Employment Agency
82. Recruiting Outside the
Organization
–often specialize in particular type of talent
–adept at approaching employed candidates
not currently looking for a job
–confidentiality
Executive Search Firms
83. Recruiting a More Diverse
Workforce
– older workers
– younger workers
– designated group members:
• women
• visible minorities
• disabled
• Aboriginal
84. Flexibility Options
Hours Schedule Place Career Employment
Contract
Benefits
Reduced
hours
Job share
Phased
Retireme
nt
Part-year
Flex
schedule
Annualize
d hours
Compress
ed work
week
Remote work
Work from
more than
single work
location
On/off ramps
(including
leaves)
Reduced
responsibilities
Job change/
occupation shift
Project work:
consultant
Project work:
temporary
work
Emeritus
Alumni
Cafeteria plan
Health
Spending
Account
Benefits during
retirement
85. The BRICs are Changing
Everything
The entry of Brazil, Russia, India and
China into the global market
economy has doubled the size of the
global workforce and dramatically
changed its demographic profile
(many more younger workers)
86. Big picture demographics:
Global population (millions)
1520
2367
1301
1437
1087
1628
885
1941
728
668
549
778
326
457
0
500
1000
1500
2000
2500
Asia &
Oceania
China India Africa Europe Latin
Am erica
North
Am erica
■ 2004 ■ 2050
Source: Population Reference Bureau, 2004
87. Foreign Workers
– Foreigners who landed in Canada during
the 1990s, and were in the labour force in
2001, accounted for almost 70% of the
total growth of the labour force over the
decade (CBC, 2007).
– “If current immigration rates continue, it is
possible that immigration could account
for virtually all labour force growth by
2011” (Statistics Canada)
– Are Foreign Workers Our Future?
88. Annual Flow of Foreign Workers
0
20,000
40,000
60,000
80,000
100,000
120,000
1
9
9
5
1
9
9
6
1
9
9
7
1
9
9
8
1
9
9
9
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
Annual Flow of Foreign Workers by Source Country
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000
USA
Mexico
France
Philippines
Australia
United Kingdom
Jamaica
Japan
Germany
India
2004
2005
2006
The number of TFW requests (LMOs) processed
by HRSDC/SC has increased from 79,000 (2000)
to 150,000 (2006), an increase of roughly 90%
over 6 years.
The annual flow of temporary foreign workers
(TFWs) in Canada has increased in recent
years:
– From 69,000 (1995) to over 110,000 (2006);
– There was a slight decrease in 2002 and
2003 due to a slowdown in Canada's
economy.
Currently, the United States is the top source
country for TFWs to Canada. Following the
USA are Mexico, France, and the Philippines
Number and countries of origin
Source: Citizenship and Immigration Canada
89. Global population by age (%)
17
15
33
5
0
5
10
15
20
25
30
35
More developed
countries
Less developed
countries
■ under
age 15
■ age 65
and over
About 90% of the growth in world population to 2050 will occur in developing
countries in Africa and Asia (including China and India)
N.B. Data are for 2004
90. Global population aged 65 and
over (%)
16
21
28
12
18
21
10
15
19
6
10
19
6
10
18
3
4
7
0
5
10
15
20
25
30
Europe North
America
Oceania Latin
America
Asia Africa
■ 2007 ■ 2025 ■ 2050
Source: Population Reference Bureau, 2007
92. Employees with disabilities
Where is your passion?
What are your current competencies? What competencies
do you want to develop?
How can our work be adapted to suit your situation?
What occupational choices align with your passion and
competencies?
What type of organization and work environment aligns
with your career objectives?
How do your career objectives fit with other life interests
and responsibilities?
Adapted from: Christina Matz-Costa, MSW, Research Associate Center on Aging and
Work at Boston College matzch@bc.edu
93. Diversity
Under-represented or under-utilized groups
constitute a valuable but often untapped
source of skilled labour
Women, Aboriginal people, persons with
disabilities, displaced workers, low-skilled,
older workers
Ensure these groups have appropriate access
and support to relevant education and training
opportunities in the skilled trades and technical
professions
Report of the Newfoundland and Labrador Skills Task Force 2007
94. Summary: Shortage of knowledgeable staff
Province-wide problem at all levels and in all
organizations
Recruit all generations from other provinces or
countries
Team up with other companies to share resources
Train Millenials to take load off other staff
Train senior staff to delegate to Millenials
Hire retain retireds
95. Sources
Merrill Lynch. (2005). The Merrill Lynch New
Retirement Survey. Downloaded March 2005:
www.totalmerrill.com/retirement
Moen, P., Erickson, A. W., Agarwal, M., Fields, V., &
Todd, L. (2000). Cornell Retirement and Well-
Being Study: Final report. Ithaca, NY:
Bronfenbrenner Life Course Center at Cornell
University.
The Conference Board. (2002). Voices of
experience: mature workers in the future
workforce. Research report. New York, NY:
Parkinson, D.
96. Sources…
Bridging the Generation Gap by Linda Gravett
and Robin Throckmorton
Retiring the Generation Gap by Jennifer J. Deal
Generations at Work by Ron Zemke, Claire
Raines, and Bob Filipczak
Generational Differences: Myths and Realities,
SHRM Workplace Visions, No. 4, 2007
97. Sources…
Bridging the Generation Gap by Linda Gravett
and Robin Throckmorton
Retiring the Generation Gap by Jennifer J. Deal
Generations at Work by Ron Zemke, Claire
Raines, and Bob Filipczak
Generational Differences: Myths and Realities,
SHRM Workplace Visions, No. 4, 2007
98. Our offer to you
98
Please call if you have any HR, or workplace
issue that you are overwhelmed with
We can help you
We also are pleased to do Free Workshops for
your organization (some limits apply) Let us
know what your needs are and we will make it
happen!
99. CG Hylton - Services
HR Consulting
Job Descriptions
Salary Grids
Wellness at Work
Staff Morale
Training and
Workshops
Benefits, Pensions,
EAP
Strategic Planning
Drug and Alcohol
programs
Dept re-orgs
Leadership
compensation
99
Tel 403 264 5288
chris@hylton.ca
100. Encouraging Collaboration
CG Hylton & Associates Inc would
like to thank you for the
opportunity to meet with you
today
Questions?
lisa@hylton.ca
tel 800 449-5866