Succession Planning Simple replacement planning. A process that indicates possible internal replacements for critical positions. Developmental succession planning. Talent pool planning. Best practice organizations link succession planning with business strategy.

1. CEO SUCCESSION PLANNING
& COMPETENCY MODELING:
ENSURING LEADERSHIP AT
THE TOP
Camico Mutual Insurance Company
Consulting Psychologist & Executive Coach:
Dr . Maynard Brusman

2. Leadership Competency and
Behavioral Description Example
o Leadership
Creates, communicates and reinforces a shared vision for
areas of responsibility; drives the organization toward
success by example and action; provides focus, resources
and direction to the organization at all times, including
during emergencies. Creates an environment that fosters
creativity, innovation, productivity and customer focus.
Earns respect and confidence of employees as well as
internal/external customers. Puts welfare of the company
ahead of own personal gain. Acts in accordance with the
organization’s ethical principles. Is aware of obstacles,
problems or issues facing, as well as achievements of,
his/her group and effectively communicates these to senior
management. Acts as an advocate for the needs of his/her
team within the company.

3. Succession Planning
Definition
o Any effort designed to ensure the
continued effective performance of an
organization, division, department, or
work group by making provisions for
the development and replacement of
key people for key positions and work
activities over time.

4. Succession Planning
o Simple replacement planning. A process that
indicates possible internal replacements for
critical positions.
o Developmental succession planning.
o T alent pool planning.
o Best practice organizations link succession
planning with business strategy.

5. Reasons for Succession
Management
o Business strategy can be implemented only
if appropriately skilled and experienced
leadership is in place.
o Decisions about filling positions are more
accurate when candidates are internal.
o Effective succession management systems
operate as both talent-growth and talent-
retention mechanisms.
o Constant organizational change.

6. BUSINESS STRATEGY
o Optimize processes with prospects, policyholders,
agents and vendors.
o Improve risk selection and pricing.
o Build knowledge resources and related
communications mechanisms.
o Increase effectiveness of sales distribution channels.
o Identify and develop enhanced products and services.
o Develop and implement actions to create a talented.
energetic and committed group of employees.
o Develop and implement plans for more targeted
marketing and communication.

7. VISION
o We are: CAMICO is the leading
national provider of professional
liability insurance and related
products and services. We are
integral to CPAs in public practice and
to the profession.

8. MISSION
o We are a policyholder owned and
directed company that provides CPA’s
with insurance and business risk
services that address their evolving
needs.

9. Culture Statement
TEAM VALUES
q Integrity
q Creativity
q Openness
q Teamwork
q Expertise
q Encouragement

10. How Are Competencies Used
in Succession Planning
o Link and align the organization’s core
competencies (strategic strengths) to job
competencies.
o Define high potentials
o Clarify present and future competencies.
o Create multi-rater assessments tailored to
corporate culture.

11. Competency Models: The
Benchmarks for Succession
o The best systems incorporate
assessments of the individual’s
leadership capabilities, adherence to
the organization’s values, and
capacity for development and
learning in addition to performance
outcomes.

12. Define What You Want
oJob Challenges/Preparatory
experiences (what one has done).
oOrganizational knowledge (what one
knows).
oBehaviorally defined competencies
(what one is capable of).
oExecutive derailers and other persona
attributes (who one is).

13. ALIGN BEHAVIOR with
ORGANIZATIONAL STRATEGY AND
VALUES
o Competency models translate general
messages about strategic direction
and culture change into specific
specific behaviors desired for
individual performance.

14. Well-Defined Competencies
o Maintains customer trust – Listens and
responds with empathy to customer issues
or ideas; acknowledges customer
contributions to discussion in a manner that
maintains esteem.
o Customer Orientation – cultivating strategic
customer relationships and ensuring that
the customer perspective is the driving force
behind all value-added business activities.
o Definition is thorough and specific and
describes key actions (behaviors) a person
would exhibit when effectively displaying
this competency.

15. How Many Competencies
Are Needed?
o 10-18

16. Competency Domains
o Interpersonal Skills
o Leadership skills
o Business/Management Skills
o Personal Attributes

17. Linking Human Resource Systems
Through Competencies
o Selection
o Performance Management
o Training/Development
o Succession Planning
o Organizational Alignment
o Coaching

18. COMPETENCY-BASED SUCCESSION
PLANNING SYSTEM
o A list of the positions under consideration.
o Agreement among decision makers about
what is required for success in each
position.
o A list of who’s ready now and why.
o A list of who will be ready soon,
developmental needs, and actions to close
gaps.

19. COMPETENCY MODELS
o Groups of individual competencies are
organized into competency models.
o Identify the essential skills, knowledge, and
personal characteristics needed for
successful performance in a job.
o Demonstrate that the behaviors and skills
you identify and develop are proven
predictors of success.
o Identify the traits of top performers.

20. OBJECTIVES OF COMPETENCY
SYSTEMS
oLinks interviews, appraisal, coaching,
training, and compensation to vision,
mission, values, and culture.
oPlan for skills needed to grow
organization.
oCommunicate valued behaviors.
oClarify the focus of leadership.

21. OBJECTIVES OF COMPETENCY
SYSTEMS
o Focus on customer-oriented
behaviors.
o Close skill gaps.
o Identify selection criteria for
interviews.
o Develop a 360- degree feedback
system.
o Plan for succession.
o Orient manages to corporate strategy
and culture.

22. COMPETENCY DEFINITION
oA cluster of related knowledge, skills,
and attitudes that affects a major part
of one’s job.
oCorrelates with performance on the
job.
oCan be measured against standard
oCan be improved via training and
development.

23. War for
Executive Talent
o High failure rate of CEO’s in recent
years.

24. Basketball Example:
Shooting is a valid competency
o The object of basketball is to score points by
shooting baskets.
o The related skills in knowing when to shoot,
where to shoot, and how to shoot are critical
to success in scoring.
o Shooting has well-accepted standards of
success. The goal is to make at least 50
percent of field goals, 80 percent of free
throws, and 35 percent of three-point
attempts.
o Shooting skills can be improved by
extensive practice and play.

25. FOCUS ON BEHAVIOR
o What skills, knowledge, and characteristics
are required to do the job?
o What behaviors have the most direct impact
on performance and success on the job?
o In selection systems, a competency model
ensures that all interviewers are looking for
the same set of abilities and characteristics.
o For succession planning, competency
models ensure that decision makers focus
on characteristics relevant to success.

26. MULTI-RATER 360-DEGREE
FEEDBACK
o Focus on the behaviors necessary to
perform the job effectively.
o Competency models helps ensure that
feedback relates specifically to the
competencies crucial to success.
o Feedback provides a method of assessing a
candidate’s current competencies.

27. COMPETENCY MODEL PROJECT
o Determine objectives and scope of
project
o Clarify implementation goals and
standards.
o Create an action plan.
o What does successful performance on
the job look like? Interview high
performers.

28. COMPETENCY MODEL TEAM
o CEO
o Human Resources Director
o Consulting Psychologist and Executive
Coach

29. DEVELOPING A COMPETENCY
MODEL
o Determine data collection
methodology.
o Conduct interviews.
o Perform job analysis/observations.
o Analyze data and develop interim
competency model.

30. BEHAVIORAL LANGUAGE
oThe best way to word competencies is
with behavioral language that
describes the things you can see or
hear being done.
oBehavioral language is very concrete.
oA behavior is an action that you can
observe, describe, and verify.

31. THE PURPOSE OF
COMPETENCIES
q Performance
q Culture change
q Training and development
q Recruitment and selection
q Business objectives/competitiveness
q Career/succession planning

32. THE PURPOSE OF
COMPETENCIES
o Skills analysis
o Flexibility
o Clarity of role
o Integrating HR strategy

33. The 12 Most Common
Competencies
o Communication
o Achievement
o Customer focus
o T eamwork
o Leadership
o Planning and organizing

34. The 12 Most Common
Competencies
o Commercial/business awareness
o Flexibility/adaptability
o Developing others
o Problem solving
o Analytical thinking
o Building relationships

35. Begin with the
End in Mind
o Vision exercise
o Board members take their five year
objectives and identify which
behaviors CEO will need to
demonstrate to achieve them.

36. Why Executives Fail
o Decline in business performance.
o Insensitive, cold, aloof.
o Betrayed success.
o Over-managing.
o Poor at choosing staff.
o Overly ambitious.
Center for Creative Leadership

37. CEO SUCCESS
o Track record
o T echnical or business competence
o Outgoing, charming
o Loyalty to management
o Willingness to lead

38. FINALIZING AND VALIDATING
COMPETENCY MODELS
o Conduct surveys to test model.
o Analyze survey data and refine
model.
o Validate the model to determine the
correlation of the competencies with
those of top performers.
o Finalize the model.

39. ALIGN BEHAVIOR with
ORGANIZATIONAL STRATEGY AND
VALUES
o Competency models translate general
messages about strategic direction
and culture change into specific
specific behaviors desired for
individual performance.

40. Competency Models: The
Benchmarks for Succession
o The best systems incorporate
assessments of the individual’s
leadership capabilities, adherence to
the organization’s values, and
capacity for development and
learning in addition to performance
outcomes.

41. How Are Competencies Used
in Succession Planning
o Link and align the organization’s core
competencies (strategic strengths) to job
competencies.
o Define high potentials
o Clarify present and future competencies.
o Create multi-rater assessments tailored to
corporate culture.

42. Define What You Want
oJob Challenges/Preparatory
experiences (what one has done).
oOrganizational knowledge (what one
knows).
oBehaviorally defined competencies
(what one is capable of).
oExecutive derailers and other persona
attributes (who one is).

43. Well-Defined Competencies
o Customer Orientation – cultivating strategic
customer relationships and ensuring that
the customer perspective is the driving force
behind all value-added business activities.
o Maintains customer trust – Listens and
responds with empathy to customer issues
or ideas; acknowledges customer
contributions to discussion in a manner that
maintains esteem.
o Definition is thorough and specific and
describes key actions (behaviors) a person
would exhibit when effectively displaying
this competency.

44. How Many Competencies
Are Needed?
o 10-18

45. Competency Domains
o Interpersonal Skills
o Leadership skills
o Business/Management Skills
o Personal Attributes

46. Visioning Exercise
o Characterize the organization’s
specific future challenges and
opportunities.
o Describe the kind of CEO the
organization will need to solve
problems, overcome barriers, take
advantage of opportunities, and
manage change.

47. Linking Human Resource Systems
Through Competencies
o Selection
o Performance Management
o Training/Development
o Succession Planning
o Organizational Alignment
o Coaching

48. COMPETENCY-BASED SUCCESSION
PLANNING SYSTEM
o A list of the positions under consideration.
o Agreement among decision makers about
what is required for success in each
position.
o A list of who’s ready now and why.
o A list of who will be ready soon,
developmental needs, and actions to close
gaps.

49. COMPETENCY MODELS
o Groups of individual competencies are
organized into competency models.
o Identify the essential skills, knowledge, and
personal characteristics needed for
successful performance in a job.
o Demonstrate that the behaviors and skills
you identify and develop are proven
predictors of success.
o Identify the traits of top performers.

50. OBJECTIVES OF COMPETENCY
SYSTEMS
oLinks interviews, appraisal, coaching,
training, and compensation to vision,
mission, values, and culture.
oPlan for skills needed to grow
organization.
oCommunicate valued behaviors.
oClarify the focus of leadership.

51. OBJECTIVES OF COMPETENCY
SYSTEMS
o Focus on customer-oriented
behaviors.
o Close skill gaps.
o Identify selection criteria for
interviews.
o Develop a 360- degree feedback
system.
o Plan for succession.
o Orient manages to corporate strategy
and culture.

52. COMPETENCY DEFINITION
oA cluster of related knowledge, skills,
and attitudes that affects a major part
of one’s job.
oCorrelates with performance on the
job.
oCan be measured against standard
oCan be improved via training and
development.

53. War for
Executive Talent
o High failure rate of CEO’s in recent
years.

54. Basketball Example:
Shooting is a valid competency
o The object of basketball is to score points by
shooting baskets.
o The related skills in knowing when to shoot,
where to shoot, and how to shoot are critical
to success in scoring.
o Shooting has well-accepted standards of
success. The goal is to make at least 50
percent of field goals, 80 percent of free
throws, and 35 percent of three-point
attempts.
o Shooting skills can be improved by
extensive practice and play.

55. FOCUS ON BEHAVIOR
o What skills, knowledge, and characteristics
are required to do the job?
o What behaviors have the most direct impact
on performance and success on the job?
o In selection systems, a competency model
ensures that all interviewers are looking for
the same set of abilities and characteristics.
o For succession planning, competency
models ensure that decision makers focus
on characteristics relevant to success.

56. MULTI-RATER 360-DEGREE
FEEDBACK
o Focus on the behaviors necessary to
perform the job effectively.
o Competency models helps ensure that
feedback relates specifically to the
competencies crucial to success.
o Feedback provides a method of assessing a
candidate’s current competencies.

57. COMPETENCY MODEL PROJECT
o Determine objectives and scope of
project
o Clarify implementation goals and
standards.
o Create an action plan.
o What does successful performance on
the job look like? Interview high
performers.

58. COMPETENCY MODEL TEAM
o CEO
o Human Resources Director
o Consulting Psychologist and Executive
Coach

59. DEVELOPING A COMPETENCY
MODEL
o Determine data collection
methodology.
o Conduct interviews.
o Perform job analysis/observations.
o Analyze data and develop interim
competency model.

60. BEHAVIORAL LANGUAGE
oThe best way to word competencies is
with behavioral language that
describes the things you can see or
hear being done.
oBehavioral language is very concrete.
oA behavior is an action that you can
observe, describe, and verify.

61. THE PURPOSE OF
COMPETENCIES
Performance
q Culture change
q Training and development
q Recruitment and selection
q Business objectives/competitiveness
q Career/succession planning

62. THE PURPOSE OF
COMPETENCIES
o Skills analysis
o Flexibility
o Clarity of role
o Integrating HR strategy

63. The 12 Most Common
Competencies
o Communication
o Achievement
o Customer focus
o T eamwork
o Leadership
o Planning and organizing

64. The 12 Most Common
Competencies
o Commercial/business awareness
o Flexibility/adaptability
o Developing others
o Problem solving
o Analytical thinking
o Building relationships

65. Begin with the
End in Mind
o Vision exercise
o Board members take their five year
objectives and identify which
behaviors CEO will need to
demonstrate to achieve them.

66. Why Executives Fail
o Decline in business performance.
o Insensitive, cold, aloof.
o Betrayed success.
o Over-managing.
o Poor at choosing staff.
o Overly ambitious.
Center for Creative Leadership

67. CEO SUCCESS
o Track record
o T echnical or business competence
o Outgoing, charming
o Loyalty to management
o Willingness to lead

68. FINALIZING AND VALIDATING
COMPETENCY MODELS
o Conduct surveys to test model.
o Analyze survey data and refine
model.
o Validate the model to determine the
correlation of the competencies with
those of top performers.
o Finalize the model.

69. EMOTIONAL INTELLIGENCE &
LEADERSHIP
o Recent research ranks emotional
intelligence competencies as more
important to leadership success than
traditional attributes.

70. Top Five Leadership
Competencies
o Vision
o Strategic Thinking
o Relationship Building
o Execution
o People Development

71. Emotional Intelligence is the
ability to…
o recognize our own feelings and
those of others, motivate
ourselves, and manage emotions
well in ourselves and in our
interpersonal relationships.

72. EI vs. IQ
o Ei is the vision to create the
future.
o EI is a skill. Skills can be learned.
o Employees in an emotionally
intelligent company empowered
to contribute fully.
o Emotionally intelligent
organization creates innovative
products & services, and
exceptional customer loyalty.

73. EI key to success in the
business world
o EI is the ability to bring people
together and motivate them.
o EI is the trust to build productive
relationships.
o EI is the resilience to perform under
pressure.
o EI is the courage to make decisions.
o EI is the strength to persevere
through adversity.

74. RESEARCH
o Up to 90% of the difference between
outstanding and average leaders is
linked to emotional intelligence. EI is
twice as important as IQ and technical
expertise combined, and is four times
as important in overall success.
o Research by the Center for Creative
Leadership found the primary cause of
derailment in executives involves
deficits in emotional competence.
1. Change 2. Teamwork 3.
Interpersonal Relations

75. Visioning Exercise
o Characterize the organization’s
specific future challenges and
opportunities.
o Describe the kind of CEO the
organization will need to solve
problems, overcome barriers, take
advantage of opportunities, and
manage change.

76. Action Learning & Planning
o Dialogue on how you envision the
requisite leadership qualities of the
President/CEO position of CAMICO
essential to world-class performance
now and in the future. Include how
these characteristics are aligned with
the organizations strategy, mission,
vision, and values.

77. CEO Succession Management &
Competency Modeling Team
o T eam members
o Process
o Input mechanisms

78. Dr . Maynard Brusman
Consulting Psychologist & Executive Coach
Working Resources
P .O. Box 471525 San Francisco, California 94147
T el: 415-546-1252
E-mail: mbrusman@workingresources.com
Web Site: http://www.workingresources.com
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