Professional Documents
Culture Documents
1
Succession: It’s History
What did the Pope, King Henry the VIII and the
Godfather have in common?
2
The Talent Crisis
3
% change in pop. by age group 2000-2010
60.00%
50.00%
40.00%
Percentage
30.00%
20.00%
10.00%
0.00%
-10.00%
-20.00%
5-9 10- 15- 20- 25- 30- 35- 40- 45- 50- 55- 60- 65- 70- 75-
14 19 24 29 34 39 44 49 54 59 64 69 74 79
Age
4
Recent Research Data
• Factors that impact your need to develop your talent bench
– Corporate officers reported (40%) that company growth was
limited because they didn’t have the right talent.
– Corporate officers reported (75%) that their company is
chronically short of leadership talent.
– Within next 5 years, average company will lose 30% of its
executive staff .
– Failure rates are high (40-50%) when executive talent is hired
from outside.
– Two-thirds of employees have low to moderate confidence in
their companies’ top executives; three-fifths of executives
say the same.
5
Recent Research Data
Factors that impact your need to develop your talent
bench (continued)
– Employees say company leadership is a key contributor to
job satisfaction, commitment and intent to stay; especially
true for top talent.
– Recent surveys state that employees value most the
leadership qualities of honesty and integrity.
– Only 1% of companies rate their succession management
plans as excellent; two-thirds rate them as fair or worse.
7
Ask your CEO these top questions
1. Have you lost high potential talent because they didn’t know
they were on the list?
2. If your executive team “got run over by a bus,” would their
replacements be able to step right in and be productive?
3. Is anyone on the “top floors” or in the Boardroom worried about
the status of your “talent bench?”
4. What lost opportunity costs has your organization incurred
because it took a long time to replace a key leader?
8
Key discussion questions …
6. How does someone in your organization get selected to
be a potential successor?
7. Do you have leadership development and talent
management processes in place to grow successors?
8. If your organization has succession criteria, is it past
focused or future oriented?
9. If you have a succession planning process, is it grounded
in your business strategy?
10. Would your selection/promotion practices pass a “drop in”
legal challenge?
9
Common Flaws
• Talent planning and placement efforts are not linked to
business strategy.
• Succession planning and talent assignment by default -
react only when a position becomes open.
• Line mangers ignore the “talent pool,” relying instead on
their own knowledge/comfort with candidates.
• Lack of ownership by the “top floors;” Succession
planning and key assignment of talent is perceived as a
human resources issue.
10
Common Flaws, con’t.
• Entitlement culture rather than criteria-based
promotion process; Halo effect for “chosen ones.”
• Lack of objective discussions; Limited data points to
make good decisions.
• No formal process to keep track of candidates.
• No leadership/career development process to grow
your own talent.
11
What is Succession Planning?
12
Replacement vs. Succession
• Reactive • Pro-Active
• Form of Risk • Planned Future
Management Development
• Substituting • Renewing
• Narrow Approach • Organized Alignment
• Restricted • Flexible
13
Traditional vs. Future
• Driven by an annual • Driven by current and future
business needs
bureaucratic HR procedure
• Successors determined by
• Entitlement focus – good an open process with
old boy payback system - multiple inputs and factors
decided in secret • Development plans,
development discussions
and coaching with both
• “The list” and identified candidate, sponsors and
development actions, but no others held accountable for
accountability for progress and monitoring
development
14
Traditional vs. Future
• Assumes targeted people • Actively involves candidates
in development discussion.
will be ready when needed. Regular, developmental
Little, if any feedback feedback
• Hindered by paper process • Aided by on-line assessment
that needs to be updated and regularly updated talent
bank; scales to meet the
masses
• Heirs apparent in line for • A fluid pool of qualified
specific positions leaders to be tapped as
needed for the next level
15
Reasons for Succession Planning
16
Reasons for a Succession Planning
Program
• Provide increased opportunities for “high potential”
workers
• Identify “replacement needs” as a means of targeting
necessary training, and employee development
• Increase the talent pool of promotable employees
• Contribute to implementing the organization’s
strategic business plans
17
Reasons, con’t.
• Help individuals realize their career plans within
the organization
• Tap the potential for intellectual capitol in the
organization
• Encourage the advancement of diverse groups
• Improve employee’s ability to respond to
changing environmental demands
• Improve employee morale
• Cope with effects of voluntary separation
programs
18
Assessment Questionnaire
19
Critical Considerations for a
Successful Succession Process
Let’s discuss…..
Examples:
• Common values on the why’s and how’s are
communicated.
• True commitment to only the best people getting
nominated.
• Focused on future strategy and emerging
business needs.
Others?
20
Critical Considerations for a
Successful Succession Process
1. Common values on the why’s and how’s are
communicated.
2. True commitment to only the best people getting
nominated.
3. Focused on future strategy and emerging business needs.
4. Accurate research information on retirement and attrition.
5. Good communication between line and HR on promotions
and transfers.
6. Senior level commitment, involvement and ownership;
alignment with key stakeholders.
7. Horizontal and vertical communication at appropriate
levels
21
Critical Considerations, con’t.
8. Key criteria understood; competency identification and
validation; “Leadership Profiles” for targeted positions.
9. 360, multi-rater and other objective assessments and
methods.
10. Feedback rich process; development culture.
11. Fluid in design; pools high potentials for possible next jobs.
12. Established committees to oversee the review and placement
process.
13. Rigorous talent review team process includes individual,
manager and/or sponsor, objective sources and organization.
14. Promotions evaluated against the succession candidate pool.
22
Critical Considerations, con’t.
15. Aligned/linked with other practices of talent development and
performance management throughout the organization.
16. Relevant development opportunities and assignments.
17. Executive coaching for key players or those in accelerated roles.
18. Accessible e-based talent bank to manage candidate data,
assignment and relocation needs, and identify ready candidates.
19. Built with checks and balances; diversity and legal considerations.
20. Defined outcomes and ongoing review process to measure
effectiveness.
23
Sample: Succession Planning Process
24
Overview of Process and Tools
Executive
Manager Decision-Making Profiles & Dev. plans focus
Org.Strategic and Self Matrix Organization on both strengths
Initiatives, Mission Evaluations Chart And dev.areas
Vision & Values
Determine Gap
Identify Assess
between
Determine Key Leadership Organizational Monitor & Track
Actual Performance
Competencies Candidates & Risks Employee’s
& Behaviors vs.
For Leadership Assess Against and Develop Performance
Required
Competencies Strategies
Competencies
25
Functional and Leadership Competencies
FUNCTIONAL LEADERSHIP
26
POSITION HISTORY
2002-Present, Fairbanks Capital Corp., Controller
Sample, Sally 1998-2002, Independent Consultant
Controller 1990-1998, Household International Inc.
•V.P. Specialty Finance
•CFO
Date of Hire: 1/7/2002 •Deputy Controller
Talent Code: Solid Citizen Performer
Potential Positions: Chief Financial EDUCATION
Officer Northwestern University, Kellogg School of Mgmt., M.S.
Purdue University, B.S.
STRENGTHS
• Strategy and Planning
Competency A
• Budget Management
• Good Judgment
• Good communication/interpersonal skills
Functional
• Driven to improvement and success
DEVELOPMENT AREAS
• Development of treasury/technical skills
• Working effectively across departmental lines to accomplish goals
• Build knowledge of FCC and servicing operations
At Standard
Needs Development
27
Results: Talent Summary by Competency
Functional competencies Leadership competencies
Communication
Organizationa
and Influence
and Balance
Developing
Adaptability
Technology
Perspective
& Business
Integration
Knowledge
Alignment
Strategy
Methods
Market
Budget
This graphical representation indicates how the high potential group scored on each competency. It is compiled so that the competencies are listed from left
to right in the order in which there is the greatest need for development according to our data collection. It is most useful for looking at the talent needs of
the group (rows do not represent an individual's scores in this grid).
28
Decision Making Matrix
SOLID CITIZEN PERFORMER STRONG PERFORMER STAR PERFORMER
(High Performance/Low Potential) (High Performance/Med Potential) (High Performance/High Potential)
•Gets all important things done •Gets all important things done •Gets all important things done
•Is a pro in his/her position •May act at level of capability of one level above •Acts at a level of capability of at least one level
•Is seen as a leader in his/her area current position above current position
•Has reached potential •Acts as leader and role model •Acknowledged as a skilled leader and role model
Action Required: •Exhibits many strengths or competencies beyond •Exhibits many strengths or competencies beyond
Continue developing in current position; is in the current role current role
right job •Some leadership development issues •Has wide spread influence beyond current role
Action Required: Action Required:
Look for opportunity to display leadership in Stretch assignments to prepare for larger role
current job
Potential
29
Decision Making Matrix
SOLID CITIZEN PERFORMER STRONG PERFORMER STAR PERFORMER
(High Performance/Low Potential) (High Performance/Med Potential) (High Performance/High Potential)
JF BW BR
EB TO
EK
DS EH TK
LG AG
TW
KS
DSo
Potential
30
Results: Talent Summary by Individual
Functional Competencies Leadership Competencies
Participants
and Balance
of Budget
Knowledge
Technology
Strategy
Drive for
Adaptability
Organization
Develops
Communi
Planning
Manage-
Perspective
Influence
Integration
Results
Self and
Business
Alignment
Boundary
Market
Methods
action
Others
ment
and
and
Cross
and
Participant 1
Participant 2
Participant 3
Participant 4
Participant 5
Participant 6
Participant 7
Participant 8
Participant 9
Participant 10
Participant 11
Participant 12
Participant 13
This graphical representation is a comparison of each individual’s performance by competency (each row on the vertical axis represents an individual's score).
- Exceeds Standards - At Standard - Needs Development
31
Lessons Learned
• It is an ongoing process where the players
will change continuously
• In smaller less stable organizations, the
organizational direction may also change
• Competencies need to be constantly
monitored to ensure they are measuring
what you want to measure
32
Refining the Program
• Prepare a program action plan
• Communicate the action plan
• Conduct Succession Plng. meetings
• Training on Succession Plng.
• Counsel managers to deal with Succession
Plng. issues affecting them and work areas
33
Goal: Build a Development Culture
“The strategic objectives of the company
lead to assessment of talent to determine
future staffing needs and bench strength,
which in turn determine development
needs and actions.”
─ “Promoting A Development Culture,” Right Management
Consultants, Peggy Simonsen
34