Succession planning 1

635 views

Published on

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
635
On SlideShare
0
From Embeds
0
Number of Embeds
38
Actions
Shares
0
Downloads
16
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • Hmm, really interesting
  • Succession planning 1

    1. 1. Succession ManagementSuccession Management Could you walk away todayCould you walk away today and your business be OK?and your business be OK? Mobile Chamber of CommerceMobile Chamber of Commerce January 11, 2011January 11, 2011 Rick MillerRick Miller
    2. 2. www.pro356consulting.comwww.pro356consulting.com 22 Start a diet or a succession plan?Start a diet or a succession plan?  According to Dec 2010 Korn Ferry Survey¹According to Dec 2010 Korn Ferry Survey¹  98% of companies believe a succession plan is98% of companies believe a succession plan is important.important.  Only 35% of those companies are actually preparedOnly 35% of those companies are actually prepared for the unexpected or planned departure of their CEO.for the unexpected or planned departure of their CEO.  Harris/Decima Nov 2010 survey²Harris/Decima Nov 2010 survey²  46% are thinking about a succession plan.46% are thinking about a succession plan.  Less than 20% have identified a successor.Less than 20% have identified a successor. 1 – Korn Ferry Institute Global Executive Survey, December 20101 – Korn Ferry Institute Global Executive Survey, December 2010 2 – Harris/Decima survey of 650 business owners in US and Canada, November 20102 – Harris/Decima survey of 650 business owners in US and Canada, November 2010
    3. 3. www.pro356consulting.comwww.pro356consulting.com 33 Succession PlanningSuccession Planning  Why is it necessary?Why is it necessary?  90% of all businesses are small businesses.90% of all businesses are small businesses.  Only 30% of those survive to the secondOnly 30% of those survive to the second generation.generation.  Only 15% survive to the third generation.Only 15% survive to the third generation. Source: SBASource: SBA
    4. 4. www.pro356consulting.comwww.pro356consulting.com 44 Succession PlanningSuccession Planning  What is the track record?What is the track record?  75% failure rate¹75% failure rate¹  Big Dog SyndromeBig Dog Syndrome  What got you here won’t keep you here.What got you here won’t keep you here.  Gene Pool BluesGene Pool Blues  Failure to plan really is planning to fail.Failure to plan really is planning to fail. ¹¹ Jim Collins –Jim Collins – Good to GreatGood to Great 19911991
    5. 5. www.pro356consulting.comwww.pro356consulting.com 55 The Great Balancing Act:The Great Balancing Act: Ego vs. OrganizationEgo vs. Organization  Nothing succeeds like success.Nothing succeeds like success. OROR  Nothing leaves like success when a leaderNothing leaves like success when a leader leaves.leaves.  ““It’s amazing what you can accomplish whenIt’s amazing what you can accomplish when you don’t care who gets the credit.”you don’t care who gets the credit.” John WoodenJohn Wooden
    6. 6. www.pro356consulting.comwww.pro356consulting.com 66 Succession Planning HistoricallySuccession Planning Historically  Source: Google Ngram ViewerSource: Google Ngram Viewer
    7. 7. www.pro356consulting.comwww.pro356consulting.com 77 Succession PlanningSuccession Planning
    8. 8. www.pro356consulting.comwww.pro356consulting.com 88 Succession ManagementSuccession Management  Working your way out of a jobWorking your way out of a job  When it is C level – SuccessionWhen it is C level – Succession ManagementManagement  When it is everyone – Workforce PlanningWhen it is everyone – Workforce Planning
    9. 9. www.pro356consulting.comwww.pro356consulting.com 99 Who should be involved?Who should be involved?  Current ownership or board-(Current ownership or board-(Critical)Critical)  Existing key managersExisting key managers  Family, if appropriateFamily, if appropriate  Outside experts – (Outside experts – (Tax, Financial, LegalTax, Financial, Legal))  Vendors/key customersVendors/key customers Treat this like another component of your strategicTreat this like another component of your strategic plan.plan.
    10. 10. www.pro356consulting.comwww.pro356consulting.com 1010 Succession ManagementSuccession Management  How do you define success (ion)?How do you define success (ion)?  Passing on the business to familyPassing on the business to family  Passing on the business to new CEOPassing on the business to new CEO  Selling outSelling out  MergingMerging Depends on your Strategic Plan.Depends on your Strategic Plan. Key:Key: Include people in your strategicInclude people in your strategic plan!plan!
    11. 11. www.pro356consulting.comwww.pro356consulting.com 1111 Family BusinessFamily Business  Succession Planning is really pre-paid LegacySuccession Planning is really pre-paid Legacy Insurance.Insurance.  70% of family businesses fail in the second70% of family businesses fail in the second generation.generation.  Only 15% make it to the third generation. ¹Only 15% make it to the third generation. ¹ Staying in the game takes more than a name:Staying in the game takes more than a name: August Busch IV.August Busch IV. ¹Source: SBA.GOV¹Source: SBA.GOV
    12. 12. www.pro356consulting.comwww.pro356consulting.com 1212 Traits of Enduring FamilyTraits of Enduring Family Businesses¹Businesses¹  Strong sense of purpose – Clear missionStrong sense of purpose – Clear mission statementstatement  Active board participation, but professionalActive board participation, but professional managementmanagement  Ownership control maintained by dynamicOwnership control maintained by dynamic portfolio evolutionportfolio evolution  Wealth management officerWealth management officer  Foundations for family member participationFoundations for family member participation ¹“The five attributes of enduring family businesses”, McKinsey Quarterly,¹“The five attributes of enduring family businesses”, McKinsey Quarterly, January 2010January 2010
    13. 13. www.pro356consulting.comwww.pro356consulting.com 1313 Succession ManagementSuccession Management  What’s involved in a succession management plan?What’s involved in a succession management plan?  Where is your company in its strategic journey?Where is your company in its strategic journey?  Where is your business going?Where is your business going?  Current skills assessment vs.Current skills assessment vs.  Future skills assessment =Future skills assessment =  Skill Gap AnalysisSkill Gap Analysis   Workforce Development PlanWorkforce Development Plan   ImplementationImplementation  Follow up and manage – The hard part!Follow up and manage – The hard part!
    14. 14. www.pro356consulting.comwww.pro356consulting.com 1414 Where is your company in itsWhere is your company in its strategic journey?strategic journey?  Product Life Cycle?Product Life Cycle?  Industry Life Cycle?Industry Life Cycle?  Customer Demographic?Customer Demographic?  Competitive Trends?Competitive Trends?  How do these fit with your existing culture andHow do these fit with your existing culture and mission statement?mission statement?  Are these factors likely to motivate or de-Are these factors likely to motivate or de- motivate the next generation of management?motivate the next generation of management?
    15. 15. www.pro356consulting.comwww.pro356consulting.com 1515 Skills AssessmentsSkills Assessments  What are the skills necessary to adapt to a changingWhat are the skills necessary to adapt to a changing market for your company?market for your company?
    16. 16. www.pro356consulting.comwww.pro356consulting.com 1616 Where is your business going?Where is your business going?  What is your business strategy?What is your business strategy?  Product lines, business markets, etc.Product lines, business markets, etc.  What changes are in your plan for theseWhat changes are in your plan for these components?components?  What changes will this mean for your business?What changes will this mean for your business?  CEOCEO  Other officersOther officers  Managers and staffManagers and staff  What is the expected rate of change?What is the expected rate of change?
    17. 17. www.pro356consulting.comwww.pro356consulting.com 1717 What management skills will beWhat management skills will be necessary?necessary?  What organizational structure will beWhat organizational structure will be necessary to support the strategic plan?necessary to support the strategic plan?  What new positions are needed?What new positions are needed?  What existing positions need phasing out?What existing positions need phasing out?  Which positions are mission critical?Which positions are mission critical?
    18. 18. www.pro356consulting.comwww.pro356consulting.com 1818 Skills AssessmentsSkills Assessments  What skills will be necessary to successfully market to aWhat skills will be necessary to successfully market to a changing demographic customer base?changing demographic customer base? Customer Demographics 2016 By Age 65-80 41% 18-26 14% 26-48 18% 49-64 27% Customer Demographics Today By Age 49-64 50% 26-48 30% 18-26 10% 65-80 10%
    19. 19. www.pro356consulting.comwww.pro356consulting.com 1919 Skills Necessary for SuccessSkills Necessary for Success  What are they now?What are they now?  What will beWhat will be necessary for thenecessary for the future?future?  Can they be trained?Can they be trained?  Who has them?Who has them?  Who has them andWho has them and what is missing?what is missing?  What skills need to beWhat skills need to be acquired?acquired?
    20. 20. www.pro356consulting.comwww.pro356consulting.com 2020 Assessing Current StaffAssessing Current Staff  Behavior fit for future jobs?Behavior fit for future jobs?  Future skill sets required?Future skill sets required?  Internal talent demographics?Internal talent demographics?  RetirementRetirement  AttritionAttrition
    21. 21. www.pro356consulting.comwww.pro356consulting.com 2121 Step _ Identify Your Key TalentStep _ Identify Your Key Talent CEO CFO Production Sales/Marketing Administrative/IT R & D Quality Mgr. Marketing Mgr. Sales Mgr Top Engineer # 1 Sales Person Production Mgr. Floor Leader  Identify yourIdentify your criticalcritical players.players.  Identify your in-houseIdentify your in-house potential successors.potential successors.  Both require succession plans to insureBoth require succession plans to insure successful transitions.successful transitions.
    22. 22. www.pro356consulting.comwww.pro356consulting.com 2222 Planning ToolsPlanning Tools  Personality AssessmentsPersonality Assessments  DISCDISC  MBTIMBTI  TK ConflictTK Conflict  FIRO B LeadershipFIRO B Leadership  360 Assessments360 Assessments  Specific Skills AssessmentSpecific Skills Assessment  Executive/Business CoachingExecutive/Business Coaching
    23. 23. www.pro356consulting.comwww.pro356consulting.com 2323 Identify Talent GapsIdentify Talent Gaps  What positions need to be filled?What positions need to be filled?  When will the positions need to be filled?When will the positions need to be filled?  How?How?  Internal talent – requires a plan.Internal talent – requires a plan.  Redeployment – requires a plan.Redeployment – requires a plan.  Outside talent – requires a plan.Outside talent – requires a plan.  Project alliances – new paradigm for riskProject alliances – new paradigm for risk management.management. Don’t leave the planning entirely up to HR!Don’t leave the planning entirely up to HR!
    24. 24. www.pro356consulting.comwww.pro356consulting.com 2424 InventoryInventory PositionPosition CurrentCurrent SkillsSkills Future SkillsFuture Skills SkillSkill GapsGaps DISCDISC Work StyleWork Style CEOCEO Strategic thinker,Strategic thinker, customercustomer relations,relations, negotiating,negotiating, financefinance Alliance builder,Alliance builder, people motivator,people motivator, cloud marketing,cloud marketing, new productnew product developmentdevelopment CFOCFO Analysis,Analysis, presentation, riskpresentation, risk assessment,assessment, industryindustry knowledgeknowledge People skills,People skills, customercustomer interaction,interaction, broader visionbroader vision Executive coach,Executive coach, customercustomer satisfactionsatisfaction survey,survey, outside boardoutside board Problem solverProblem solver and pace orientedand pace oriented
    25. 25. www.pro356consulting.comwww.pro356consulting.com 2525 ImplementImplement  Owner/Board/Family/Stakeholder supportOwner/Board/Family/Stakeholder support upfront – CRITICAL!upfront – CRITICAL!  Hands on programs designed toHands on programs designed to demonstrate skill gap acquisition.demonstrate skill gap acquisition.  Interim evaluations to keep progressInterim evaluations to keep progress manageable.manageable.  Focus on mission critical skills only at first.Focus on mission critical skills only at first.
    26. 26. www.pro356consulting.comwww.pro356consulting.com 2626 Succession Performance PlanSuccession Performance Plan  Give successors a plan for them toGive successors a plan for them to demonstrate skill development.demonstrate skill development.  Let them “self identify” by THEIR actionsLet them “self identify” by THEIR actions not your expectations.not your expectations.
    27. 27. www.pro356consulting.comwww.pro356consulting.com 2727 Plan the work and work the plan.Plan the work and work the plan. PositionPosition SkillSkill DevelopmentDevelopment ObjectiveObjective TrainingTraining ProgramProgram ResponsibilityResponsibility MeasurementMeasurement MetricsMetrics ReviewReview DateDate
    28. 28. www.pro356consulting.comwww.pro356consulting.com 2828 Potential Planning Pitfalls¹Potential Planning Pitfalls¹  Trying to plan in secret.Trying to plan in secret.  Underestimating existing in-house potential.Underestimating existing in-house potential.  Lip service commitment.Lip service commitment.  Lack of individualized development programs.Lack of individualized development programs.  Failure to prune while fertilizing.Failure to prune while fertilizing.  Not linking subordinate development toNot linking subordinate development to supervisor evaluations.supervisor evaluations.  ¹ Lin Grensing-Pophal, “Who Are Your ‘Next Generation’ Leaders? SHRM White Paper,¹ Lin Grensing-Pophal, “Who Are Your ‘Next Generation’ Leaders? SHRM White Paper, www.shrm.orgwww.shrm.org, July 2000, July 2000
    29. 29. www.pro356consulting.comwww.pro356consulting.com 2929 Even the best plans don’t alwaysEven the best plans don’t always work?work?  Texas LonghornsTexas Longhorns  Will MuschampWill Muschamp  GEGE  Jeffrey ImmeltJeffrey Immelt  FSU SeminolesFSU Seminoles  Jimbo FisherJimbo Fisher  MicrosoftMicrosoft  Steve BalmerSteve Balmer
    30. 30. www.pro356consulting.comwww.pro356consulting.com 3030 DiscussionDiscussion

    ×