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Succession planning

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Overview of Best Practices in Succession Planning

Published in: Business

Succession planning

  1. 1. Succession Planning<br />Maya Kurian<br />
  2. 2. Organizations are Not Prepared for Leadership Vacancies<br />Source: 2010 Survey on CEO Succession Planning- Heidrick & Struggles , Stanford University<br />Succession Readiness Among Leaders’ Direct Reports<br />Source: Corporate Leadership Council EVP Survey and Improving Business Leader Effectiveness Survey, 2008.<br />
  3. 3. What is Succession Planning?<br />Succession planning is a process of identifying, developing & transitioning potential successors for the companies present and future key roles , aligned with the talent and ambition of its current employees and talent network.<br />Transparent Talent Mobility<br />No organizations so far<br />MATURITY<br />LEVEL<br />Integrated Succession Management<br />Fewer than 12% of companies have achieved this level of maturity<br />Traditional Succession Planning<br />52 % of organizations operate at this level today.<br />Replacement planning<br />Approximately 15 %of organizations today function at this Level <br />No Succession Process<br />May include identification of successors for executive level positions<br />
  4. 4. Make the ‘Build Vs Buy’ Decision<br />Source: Aberdeen Group (2008)<br />
  5. 5. Inter-linkage with Talent Management Aspects<br />
  6. 6. Succession Planning: Key Elements<br />
  7. 7. Identification of key positions<br />It is important to identify positions across the organization that directly impact key business factors like revenue or product development.<br />Two factors can be considered here:<br />Criticality: the impact the position has on strategic imperatives of the organisation. i.e. <br />Business results<br />Internal & external customers, <br />Characteristics of the positions in terms of time to fill, skills required and the adaptability towards changing circumstances<br />Retention: the likelihood that the organization will be able to retain the employee currently holding these positions<br />
  8. 8. Identification of key talent<br />Different organizations use different metrics for identification of their key talent<br />Most organizations use the following to identify their top talent<br />Performance<br />Potential<br />High<br />Potential<br />Prepare for future role<br />Medium<br />Low<br />High<br />Medium<br />Low<br />Performance<br />
  9. 9. Assessment of Potential<br />Commonly used methods for assessment of potential<br />Source: Deloitte (2008)<br />
  10. 10. Identification of Key Talent- IBM<br />IBM uses a network of Executive Resource Program Managers (ERPMs) across Business Units to match executives to jobs, while balancing executive development , business & performance needs<br />
  11. 11. Assessment of key talent-Johnson & Johnson<br />Aggregated assessments of talent offer an overview of the leadership bench, providing executives with an understanding of the strategic “portfolio” of leadership assets<br />Movers-:- Employees needing reassignment based on suboptimal performance or people development histories<br />Keepers- Solidly performing executives whose potential match their level of accountability<br />Positions level of accountability<br />High<br />Growers-High Potential, High Performing Executives in need of development assignment<br />Size of circle<br />Potential Assessment<br />People Development Codes<br /><ul><li>5-Outstanding
  12. 12. 4-Superior
  13. 13. 3 – Competent
  14. 14. 2- Needs Improvement
  15. 15. 1- Unacceptable</li></ul>4<br />3<br />5<br />3<br />3<br />4<br />2<br />Low<br />Low<br />High<br />Performance Results<br />
  16. 16. Assessment of key talent- GE’s ‘Session C’<br />GE’s Session C aims to review performance, identify rising talent, have a cross- calibration of talent across the organization & plan for development actions<br />Assessment of Performance & Potential<br />
  17. 17. Assessment of key talent- GE’s ‘Session C’<br />2 Page snapshot of each individuals performance & potential to be used as a reference tool<br />
  18. 18. Grooming & Development<br />It is necessary to create Individual Development Plans (IDPs) for identified successors to address critical skill gaps <br />Organizations may use the 70-20-10 approach for creation of the IDPS <br />
  19. 19. Supporting Leaders through Transition- Shell<br />Identify Individual Transition Challenges<br />ADC developed to bridge the gap between existing skills & those required in the next position <br />Identified individuals receive targeted development guidance to translate their challenge into concrete development actions.<br />Ensure Candidate-Led Pre-Transition Development<br />Accountability for development lies with the individual <br />Senior faculty members and managers are involved to ensure development is realistic and supported.<br />Manage External Entrant Expectations<br />HR department launches an informal research process to identify common derailers external entrants might face<br />Range of on-boarding initiatives are developed to manage expectations and support new executives arrival into the organization <br />
  20. 20. <ul><li>Ensure that succession management is owned by business leaders rather than just HR
  21. 21. Assess potential for future roles, not just track record of performance
  22. 22. Manage succession data on individuals and talent pools
  23. 23. Balance talent development and acquisition in achieving future objectives
  24. 24. Develop the processes, tools, and organizational capabilities necessary to effectively implement and sustain the system
  25. 25. Integrate succession planning systems with other businesses and HR systems in the organization to achieve efficiency, consistency, and impact</li></ul>Checklist for Effective Succession Planning<br />
  26. 26. THANK YOU<br />

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