The document discusses the importance of succession planning for healthcare leadership. It notes that many healthcare organizations lack succession plans, despite projections that 50% of healthcare management could be lost in the next 5 years due to retirements. It then provides definitions and rationale for succession planning, including cost savings, continuity, and having a contingency plan. The document outlines best practices for developing a succession plan, including making a business case, identifying and developing high-potential leaders, and implementing leadership development programs. It discusses factors that can impede effective succession planning if not addressed.

1. Enhancing Workforce
Performance Through
Succession Planning

2. Healthcare Leadership Crisis
• Every day for the next 19 years over 10,000
Baby Boomers will reach age 65
• Projections are that 50% of healthcare
management could be lost over the next 5
years

3. Healthcare Leadership Crisis
• 56% of executives polled said that they did not know who
would assume leadership should they have a vacant key
executive role
• 59% of executives say they do not feel that their hospital
has a succession plan in place
• 64% say that their hospital is not adequately prepared
should their CEO resign suddenly
• 68% of executives polled said that the departure of their
key executive

4. Definition of Succession Plan
• The process of identifying, developing, evaluating and
reinforcing and a group of talented employees to assume
key management roles
• The principles of succession management are simple and
flexible. They can be used for every management and
leadership position (CEOs, VPs, Directors, and Managers),
and they can be used to help identify potential board
members.

5. Develop a Succession Plan
The overall objective of the succession plan
will be to “plan and initiate a program to
ensure leadership continuity for key positions
that will help to guarantee the survival of the
group/community served.”

6. Rationale for Succession Plans
• Cost Savings
• Continuity
• Loyalty/Morale
• Less Risk
• Contingency Plan “Hit by a Bus” Scenario
• Successful Companies Have Succession Plans

7. Succession Plan Foundation
• Make the business case
• Define High Potential Leaders
• Evaluate current staff and identify High Potential leaders
• Develop High Potential Leaders
• Evaluate and Reinforce High Potential Leaders

8. Objectives of a Succession Plan
• Define the Relationship Between the Succession Plan and
your Organization’s Mission
• Establish Key Positions that Should Fall within the Scope
of the Succession Plan
• Identify Which Individuals Can Step into the Key
Positions and What Development Plan Should be Utilized
• Prepare a Curriculum for the Development of Leadership
Talent
• Document the Succession Plan Together with an
Implementation Schedule

9. Best Practice Model
• Make the business case
• Define High- Potential Leaders
• Identify High-Potential leaders
• Communicate High Potential Status
• Develop High Potential Leaders
• Evaluate, Reinforce , Reward

10. Make the Business Case
• Analyze Workforce Demographics
• Determine Organizational Strategic
Priorities
• Determine Diversity Goals

11. Developing a Work Plan
• Prepare your organization-get buy in but do not relent
• Establish key leadership Positions and assess work
requirements- have all key leaders update their job
descriptions (do not rely on human resources for this)
• Bring in outside human capital subject matter experts to
assess current staff for each key role
• Assess Future Work Requirements

12. Developing a Work Plan
• Review Individual Performance
• Identifying High Potential Leaders
• Construct Leadership Development Program
• Install Evaluation Process for Succession Planning
Program

13. Fundamentals of Work Plan
• Key leadership roles should have updated job description
• Action to bring individual performance in line with
requirements
• Requirements for implementing leadership development
program
• Timeline, stakeholders and ownership of results

14. Identify High Potential Leaders
• Review Performance Score
• Identify Key Success Factors for Advancement
• 360 Degree Review Process
• Solicit Leaders Interest in Advancement

15. Key Attributes of High Potential
Leaders
• Should know the company and mission knowledge and
lives it
• Demonstrated passion thru measurable career
accomplishments,
• Has exceeded expectations in current role
• Track record of overcoming adversity with clear concise
results
• History of “getting things done through others” , good
relationship building skills
• Community service mix- “it is not all about me”

16. High Potential Leader
Development
• Experiential Learning- Stretch Assignments
• Cross Functional Teams
• Leadership Academies
• Shedding Silos

17. Communicate High – Potential Status
• Discuss status with High Potential Leaders
• Assess is interested in Advancing in organization
• Detail Advancement Strategies
• Review resources needed for successful outcomes

18. Evaluate and Reinforce High Potential
Leaders
• Align Performance Management with Incentive System
• Senior Leadership Engagement
• Support Leaning Culture
• Develop Metrics for Success

19. Keys to a Successful Plan
• An operating and/or business plan
• Employee engagement and accountability
• Updated detail as to job description of key person(s)
• Involve key stakeholders obtaining buy-in
• Leadership development program-management and
performance focused such as Lean

20. Impediments to Success
• Cutbacks leave little or no budget for leadership
development
• Formal mentoring programs are virtually non-existent
• Increased workloads to achieve cost savings
• Budget cuts for tuition reimbursements, professional
events etc.

21. Impediments to Success
• High turnover among top level staff, “leaders firing their
boss”
• Tight talent market-finite number of leaders, highest/best
bidder
• Focus on processes, systems and away from people
• Promotion without training
• Loss in patient continuity-quality and satisfaction suffer
• Strong competition for patients/dollars

22. Impediments to Success
• Time/procrastination
• Fear of going outside the culture/fishbowl
• Cost-how expensive is it to lose continuity
• Perceived absence of talent-only we/I can do it
• Internal rivalry/ego/politics
• Lack of mentors

23. Factors to Avoid
• Choice of convenience-someone who you know who
might be able to rise to the occasion
• Choice via internal political pressure for internal candidate
• Choice via pressure from one or more advisors against best
judgment
• Work on weaknesses in a non-fit candidate-don’t talk
yourself into a substandard fit
• No immediate worst case scenario-e.g. death of a key
member/senior leader

24. The great French Marshall Lyautey once
asked his gardener to plant a tree. The
gardener objected that the tree was slow
growing and would not reach maturity for
100 years. The Marshall replied, 'In that
case, there is no time to lose; plant it this
afternoon!'
John F. Kennedy
35th president of US