Healthcare organizations face a leadership crisis as many Baby Boomer executives retire over the next 5-10 years. Succession planning is important to ensure leadership continuity for key positions and guarantee service to patients. An effective succession plan identifies high-potential employees, develops their leadership skills, and prepares them to assume key roles when positions become vacant. The succession planning process includes defining important roles, evaluating current staff, developing a leadership program, and regularly reviewing progress.

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 would have a dramatic impact on their hospital.

4. Definition of Succession Planning 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 Planning Program 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. Building 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. Specific Objectives of the Succession Plan Include 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 descriptions Action plan 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