The document discusses succession planning and talent management. It defines succession planning as identifying and developing internal people who have the potential to fill key leadership positions. Common approaches to succession planning discussed include talent reviews to assess performance and potential, succession mapping to categorize individuals by potential succession roles and timeframes, and identifying business critical roles and talent pools. The goal of succession planning is to ensure continuity of leadership by cultivating internal talent through planned development activities tied to the company's strategic plan.

1. Molly
Morales
HR
Terroir
www.hrterroir.com
707-­‐225-­‐4641
November
16,
2011
Grow
Your
Own

2. Road
Map
• What
is
Succession
Planning?
• Common
Approaches
to
Succession
Planning
• Indicators
and
Trends
that
influence
Succession
Planning
• Key
Learning's

3. Talent
Management
PlaMorm

4. Retain
ANract
Develop
SUCCESSION
PLANNING
TALENT
MANAGEMENT
Talent
Management
focuses
on
integraQng
efforts
to
aNract,
develop
and
retain
the
best
people
currently
in
the
company
Succession
Planning
focuses
on
developing
internal
talent
to
meet
future
organizaQonal
requirements

5. It’s
about
building
sufficient
bench
strength
and
preserving
the
insOtuOonal
memory
embedded
in
veteran
performers
at
all
levels
who
posses
specialized
knowledge
about
the
way
the
organizaOon
works.
Succession
Planning
is
a
process
for
idenQfying
and
developing
internal
people
with
the
potenQal
to
fill
key
leadership
posiQons
in
the
company

6. Succession
Planning
in
AcQon
•
Training
others
•
Mentoring
•
Variety-­‐of-­‐job
assignments
•
Formal
training
•
Temporary
or
special
project
assignments
•
Crisis
intervenQon
•
Observing
in
higher-­‐level
meeQngs
•
Serving
on
an
external
evaluaQon
•
Task
force
assignments
•
Receiving
or
giving
job-­‐related
coaching
•
Temporarily
stepping
in
to
serve
in
a
more
senior
role
•
Self
Study

7. Succession
Planning
Gains
Importance
• The
Need
for
Speed
• A
Seller's
Market
for
Skills
• Reduced
Loyalty
Among
Employers
and
Workers
• The
Importance
of
Intellectual
Capital
and
Knowledge
Management
• The
Importance
of
Values
and
Competencies
• The
Growing
AcQvism
of
the
Board
of
Directors
• Growing
Awareness
of
SimilariQes
and
differences
in
Succession
Issues
Globally

8. Common
Approaches
to
Succession
Planning

9. Talent
Review
Process
Performance
The
performance
input
is
derived
from
the
most
recent
Annual
Performance
Review:
-­‐
Outperformed
-­‐
Added
Value
-­‐
Needs
Improvement
X
Future
Capability
Future
capability
is
an
assessment
involving
mulQple
factors
to
indicate
an
individuals
ability
to
grow
and
succeed
in
more
senior
or
criQcal
roles
PotenOal
PotenQal
is
assess
by
using
a
matrix
to
plot
performance
and
future
capability.
The
assessment
output
informs
succession
planning
for
business
criQcal
roles.
=
Talent
Assessment
is
calibraQon
process
that
provides
inputs
from
Managers
about
their
individual
team
members
performance,
behavior
and
competence
against
company
standards
IdenQfy
&
Assess
Talent
Plan
for
Succession
Develop
Talent
for
Future
Roles

10. Internal
Talent
Pool
Future
PotenOal
High High Performer 2
(1-3 years)
High Performer 3
(6-12 months)
High Performer 4
(highly
promotable)
Medium Under
Performer
Medium
Key Performer 2
(3-5 years)
Achieve All
Key Performer 3
(3-5 years)
Sustain HP
Key Performer 4
(1-3 years)
Low Under
Performer
Low
Good Performer 2
(Coach+ Improve)
Good Performer
( G&D + HLP3
Good Performer 4
(grow & develop)
1
2
3
4
Improvement
Needed
Achieved
Most
Achieved
All
Exceeded
ExpectaQon
Current
Performance
HP
–PotenQal
KP
–Expert
GP
–Great
in
Current
Role
UP-­‐
Role,
Goals
and
Behavior

11. Workforce
Planning
Succession
Planning
assesses
potenOal
vacancies
in
leadership
and
other
posiOons
and
readiness
of
current
staff
to
assume
the
posiOons,
idenOfying
mentoring
and
leadership
training
gaps
and
having
the
right
leadership
in
place
at
every
level
of
the
organizaOon.
Workforce
planning
is
a
methodical
process
of
strategically
aligning
human
capital
with
business
direcQon.
The
process
includes
the
enQre
workforce
determining
future
needs,
indenQfying
gaps
between
the
present
and
the
future,
developing
and
implemenQng
soluQons
and
evaluaQng
the
results.

12. Replacement
Planning
Replacement
planning
idenQfies
back
ups
for
specific
successors
limiQng
the
risk
of
immediate
and
unplanned
loss
of
key
incumbents-­‐as
happened
on
a
large
scale
when
the
Twin
Towers
of
the
World
Trade
Center
collapsed
Succession
Planning
is
a
proacQve
and
aNempt
to
ensure
the
conQnuity
of
leadership
by
culQvaQng
talent
from
within
the
organizaQon
through
planned
development
acQviQes
Qed
to
the
company’s
strategic
plan.

13. Succession
Mapping
Succession
mapping
categorizing
individuals
by
potenQal
succession
role
and
Qmeframe.
This
provides
the
organizaQon
a
“health
based
”view
of
the
succession
map.
Green
-­‐
2
immediate
successors
and
strength
in
the
pipeline
for
1+
years.
Yellow
-­‐
1
immediate
successor
and
strength
in
the
pipeline
for
1+
years.
Red
-­‐
No
immediate
successor
and
lack
of
depth
in
pipeline
for
1+
years.

14. Business
CriQcal
Talent
Pools
Business
CriOcal
Roles
Business
criQcal
roles
are
roles
that
have
a
significant
impact
on
customer
relaQonships
requiring
specific
skills
that
are
difficult
to
develop
or
replace
Business
CriOcal
Developmental
Roles
Are
development
roles
that
are
considered
to
be
an
ideal
posiQon
to
grow
and
develop
talent
before
moving
onto
a
larger
or
more
business
criQcal
role.
Business
CriOcal
and
Developmental
help
to
idenOfy
leadership
roles
throughout
the
organizaOon
versus
using
posiOon
Otles
or
organizaOonal
charts.

15. ReQrement
ForecasQng
Name
Dept
Job
Code
Pay
Grade
ClassificaOon
DOB
2011
2014
2017
Sally
Sue
HR
035
5
Benefits
Manager
1975
36
39
42
Johnny
Joe
TR
052
6
TR
Manager
1964
48
51
54
Mic
May
Sales
046
6
District
Manager
1936
65
68
71
Tom
Tidy
HR
035
6
CompensaQon
Mgr
1975
36
39
42
Get
your
CEO’s
A/en1on
–
Conduct
a
rolling
three
year
re1rement
assessment
which
assist
in
forecas1ng
specialized
knowledge
of
experience
that
is
walking
out
the
door.
William
J.
Rothwell
Effec1ve
Succession
Planning

16. Career
AspiraQon
Process
Personal
A_ributes
&
AspiraOon
High
Driven
and
demonstrates
a
willingness
to
grow
into
a
larger
role
Medium
Willingness
to
grow
in
current
or
larger
role
with
moderate
sense
of
urgency
Low
LiNle
or
no
willingness
to
grow
in
current
or
larger
role
Technical
Competency
High
Highly
competent
and
capable
of
delivering
above
requirement
of
the
role
Medium
Competent
and
capable
of
delivering
the
requirements
of
the
role
Low
Limited
or
developing
competency
and
capability
for
delivering
the
requirements
of
the
role
Career
AspiraQons
indenQfies
the
individuals
intenQon
to
move
up
in
the
company
can
be
used
in
Succession
Planning
for
planning
and
analysis.

17. Wine
Industry
Skills
Matrix

18. “There
is
no
one
universal
approach
that
works
well
across
all
companies,
rather
effecOve
companies
match
their
succession
strategies
to
their
business.
William
J.
Rothwell
Effec1ve
Succession
Planning

19. Indicators
and
Trends
US
Department
of
Labor
Napa
County
Workforce
Investment
Board

33. Looking
at
California's
aging
workforce.
Baby
boomers
are
expected
to
re1re
soon,
and
companies
should
be
seriously
thinking
about
succession
planning.
The
recession
gave
lots
of
companies
a
"re1rement"
cushion
because
a
significant
number
of
employees
delayed
their
re1rement,
but
as
the
economy
recovers,
many
of
these
employees
will
leave.
Companies
that
aren't
planning
for
this
shiU
may
find
themselves
struggling
to
fill
crucial
posi1ons.
-­‐
Al
Gore

34. Supply-­‐Demand
=
Reality
Supply
• StaQsQcally
fewer
people
to
fill
jobs
– Over
the
next
15
years,
there
will
be
a
15%
decline
in
the
number
of
35-­‐44
year
olds
• Aging
Workforce
• Widespread
reQrements
of
the
baby
boom
generaQon
• Reduced
loyalty
• ImpaQence
of
Gen
X
and
Gen
Y
Demand
• New
skills
and
capabiliQes
are
in
demand
for
industries
across
the
globe
• War
for
Great
Talent
• Sellers
Market
for
skills
• Need
for
Speed
Reality
• Hiring
external
candidates
is
slow
• You
many
not
find
the
right
skills
• External
hiring
requires
lots
of
training
SoluOon
–
Grow
Your
Own
• IdenQfy
high
talent
individuals
• Promote
employee
development
• Refine
company
planning
• Establish
talent
intelligence

35. What’s
Happening
Locally?

36. North
Bay
Business
Journal
• Less
than
20
percent
of
execuQves
surveyed
in
a
naQonal
poll
said
that
they
had
selected
a
successor.
• Of
the
1,400
Chief
Financial
Officers
who
parQcipated
in
the
April
survey
from
Robert
Half
InternaQonal,
83
percent
said
they
had
not
idenQfied
a
successor.
• Four
out
of
five
of
those
responding
said
they
had
no
plans
for
leaving
their
role.
North
Bay
Business
Journal
October
2011

37. Napa
County
Workforce
Investment
Board
Highest
Replacement
Jobs
Difficulty
Finding
Qualified
Applicants
Specific
Knowledge
and
Skills
•
Finance,
AdministraQon
•
Winemaking
&
ViQculture
•
Finance
and
IT
•
Hospitality
(Visitor
Center)
•
Packaging
Dept.
•
ProducQon
Workers
•
Packaging
and
Warehouse
•
Retail
Employees
•
Shipping/Receiving
•
TasQng
Room
Staff
•
Tractor
Drivers
•
Vineyard
•
OperaQons
(Cellar)
•
Wine
Educators
•
Drivers
(Warehouse)
•
Customer
Service
•
ATF
Compliance
Jobs
•
Maintenance
Mechanics
•
Customer
Service
•
Enologist
•
AccounQng
Analyst
•
Vineyard
Mechanic
•
ProducQon
Workers
•
Quality
Control
Tech
•
BoNling
Line
Workers
with
Experience
•
Lab
Tech
•
Restaurant
Manager
•
IT/SAP/CSI/ERP
•
ViQculturist
•
Retail
Employees
•
Shipping
and
ProducQon
•
Shipping/Receiving
•
Vineyard
•
Common
Sense
•
ANenQon
to
Detail
•
Computer
Skills
•
CommunicaQon
&
Math
Skills
•
Supervisory
AbiliQes
for
ProducQon
Jobs
•
Manufacturing
Skills
•
Knowledge
of
the
English
Language
•
People
with
good
work
ethic
•
Professional
Phone
EQqueNe,
Data
Entry
Skills,
MS
Word
and
Excel
ApplicaQons
Skills
•
Reading,
WriQng
and
General
EducaQon
•
Vineyard
Mechanical
Skills,
Compliance
Knowledge

38. New
Employees
with
Basic
Skills

39. New
Employees
with
Workforce
Skills

42. Succession
Planning
is
an
Investment

43. Succession
Planning
is
an
Investment
Growth
=
Investment
x
(Fit
+
Talent)
Talent
Natural
apQtude
or
skill
Fit
Possessing
the
requisites,
qualiQes
or
skills
to
undertake
something
competently
Investment
The
act
of
devoQng
Qme,
effort
or
energy
to
a
parQcular
undertaking
with
the
expectaQon
of
a
worthwhile
result
Investment
=
CommunicaQng
expectaQons,
measuring
results
and
providing
informaQon
on
our
score
keeping
process.
Providing
Qmely
rewards
&
recogniQon,
performance
evaluaQons
and
understanding
what’s
important
to
them.
+
x

44.
”Leaders
have
the
same
obliga1ons
to
protect
the
human
resource
asset
base
for
the
shareholders
as
they
do
to
protect
the
balance
sheet
of
the
corpora1on.”
Lester
Korn
Korn
Ferry
Interna1onal

45. Key
Learning's

46. Build
a
culture
that
transcends
your
leadership
Build
a
management
team
and
company
culture
that
embraces
your
vision
and
shares
your
passion
Great
companies,
build
great
leaders
that
can
excel
without
them.
Transi<on
proac<vely
Choose
people
who
can
take
over
your
du<es,
not
your
personality

47. Along
with
the
many
lives
that
were
lost,
"the
FDNY
esQmates
that
it
lost
4,440
years
of
experience
the
day
of
the
aNacks”
In
the
past,
the
second
highest-­‐
ranking
person
would
typically
succeed
the
CEO.
Since
many
senior
level
managers
died
on
9/11,
the
surviving
managers
of
the
organizaQons
that
suffered
the
most
losses
had
to
confront
the
reality
that
key
talent
and
brain-­‐
power
were
gone
forever,
but
they
also
had
to
cope
with
gaping
holes
in
their
management
structure.
They
immediately
had
to
idenQfy
posiQons,
competencies,
and
skills
that
they
needed
just
to
stay
afloat.
Failure
to
achieve
SP,
in
some
cases,
may
have
contributed
to
the
short-­‐comings
in
the
command
and
control
aspects
of
crisis
management
during
9/11

48. La
TorQlla
Factory,
Santa
Rosa,
CA
31
years
in
OperaQon
• Business
psychologist
listened
and
managed
the
feelings
and
emoQons
of
the
family,
assisQng
them
in
learning
how
to
negoQate
and
compromise
to
work
together.
• The
plan
outline
the
process
in
steps
to
go
from
110
percent
to
zero,
allowing
for
the
gradual
change
in
role
and
the
development
plans
to
be
completed.
• TransiQon
planning
developed
for
key
relaQonships
to
build
confidence
in
the
successor.
• Long
Qme
qualified
advisors
assisted
in
idenQfying
issues
that
were
key
to
the
business.
• Qualified
people
were
on
board
and
family
members
were
assessed
for
readiness
and
qualificaQons
to
run
the
business.
• Open
communicaQon
with
the
enQre
family
to
help
everyone
understand
their
role.

49. Succession
Planning
Improves
the
BoNom
Line
• Ensures
Qualified
Supply
of
Talent
• More
EffecQve
Leadership
• Improves
ProducQvity
• Transfers
Knowledge
to
Replacement
Workers
• Increases
RetenQon
• Links
Workforce
to
Strategic
DirecQon

50. Molly
Morales
HR
Terroir
www.hrterroir.com
707-­‐225-­‐4641
November
16,
2011
Business
ConQnuity
Sustainability
Grow
Your
Own
CulQvate
Talent
Bench
Strength
Preserving
InsQtuQonal
Memory
Specialized
Knowledge
About
How
it
Works
Retaining
Culture
&
Values
Intellectual
Capital
Knowledge
Management