emerging best practices in succession planning...• trends influencing succession planning...
TRANSCRIPT
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Emerging Best Practices in Succession Planning
Karen N. Caruso, Ph.D.Leah Groehler, Ph.D.
viaPeoplewww.viapeople.com
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Overview
• Succession Planning as a critical business process
• Trends influencing Succession Planning practices
• Emerging Best Practices in Succession Planning
• Best Practices in action
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What is Succession Planning?
Succession PlanningSuccession Planning can be defined as a purposeful and systematic effort made by an organization to ensure leadership continuity,
retain and develop knowledge and intellectual capital for the future, and
encourage individual employee growth and development.
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Why is Succession Planning such a “Hot Topic”?• Board concerns and directives• Increased costs associated with external searches• Increased turnover
– People who had been regarded as successors for key positions left by surprise
– High performers are leaving• Managers complain that they have no one ready to fill
vacancies• Employees complain that promotion decisions are
made unfairly• Insufficient numbers of women and/minorities at
senior levels
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Trends Impacting Succession Planning
• Shifting demographics– Shortfall in the number of future leaders – Increase in attrition in executive level positions
• Economic conditions resulting in massive downsizing and increasingly flat and dynamic organizational structures.
• Reduced loyalty among employees despite focus on employee engagement and involvement
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Trends Impacting Succession Planning, contd.
• Recognition on the part of senior executives of the importance of values, competencies, intellectual capital, and leadership
• Increase in the complexity of executive positions– Financial market and employee expectations– Globalization– Technology
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Emerging Best Practices1. Top management involvement2. Targeted processes to focus on clearly
defined, specific goals3. Comprehensive assessment programs
based upon competencies4. Creation of talent databases incorporating
performance, assessment, demographic, education, experience, and career interests
5. Identification of future talent requirements6. Structured and individualized development
programs
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Best Practice 1: Top Management Involvement
• Communicates importance of planning for the future
• Allocation of adequate resources• Modeling of effective coaching and
development • Key development resource to high
potentials
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Best Practice 2: Targeted Processes
• Evolutionary versus revolutionary • Clearly defined set of goals• Meaningful executive reviews• Eliminate administrative burdens• Using technology to facilitate data gathering,
tracking and decision making
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Best Practice 3: Comprehensive Assessment of Talent
• Behaviorally defined competencies• Learning agility and derailment factors• Defining performance and potential • Early identification of talent • Multi-source methods• On-going feedback processes• Continuous re-assessment
– Test learning agility, development of competence and performance
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Best Practice 4: Creation of Talent Databases
• Integration of data from multiple systems, including HRIS, CRMS, SFA systems
• Definition of missing talent data elements• Collection of missing talent data
– Education, competencies, experiences, career interests, mobility
• Reporting to facilitate decision making
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Best Practice 5: Identification of Future Talent Requirements
• Competency, skill and experience requirements for critical positions
• Profiling the development content of key jobs– P & L accountability– Forming/managing external alliances
• Detection of current and future talent gaps• Targeted career pathing and development • Sourcing and recruitment plans to secure
new external talent
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Best Practice 6: Structured and Individualized Development Planning
• Formal, structured development plans• Targeted, individual activities with
emphasis on experience-based learning• Transitional coaching during stretch
assignments• Reporting and tracking of progress and
outcomes• Accountability for performance
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Case Example: Board Directive for Succession Plan• Selected critical positions and identified talent
requirements– Leadership competencies– Technical skills and experiences
• Comprehensive assessment of current talent– Customized online Talent Assessment of skills,
experiences, overall future potential• Identified successors and positions without
internal successors
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Case Example: Succession Linked to Career Pathing and Development
• Identified Current and Future Talent Requirements– Identified critical positions and detailed requirements (skills
and specific experiences)– Created developmental paths for critical positions
• Employed On-going, Comprehensive Assessment Programs– Annual leadership 360 assessment– Structured quarterly assessment for all
• Development checkpoints• Reward and recognition
– In-depth assessment for high-potentials• Learning Agility, Potential for Derailment
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Sample Sales Management Career Path
Area Director
Senior Regional DirectorRegional Director
Area Training Manager
Senior Business A Division ManagerBusiness A Division Manager
Senior Business B Division ManagerBusiness B Division Manager
Senior Division ManagerDivision Manager
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• Developed Robust Talent Database– Online Talent Assessment to gather critical information– Integrates data from multiple systems– Updated regularly– Real-time reporting
• Individualized Development Planning– Linked to performance management– Updated quarterly– Targeted development resources
• Open Communication– Internal Branding
Case Example: Succession Linked to Career Pathing and Development
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Performance vs. Potential
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Continuing Challenges
• Ineffective balance between identification and development
• Identifying successors/hi-po’s not in line with most organizational cultures
• “Executive cloning”• Poor linkage to business strategy• Overemphasis on replacement planning• Lack of top management support• Poor business unit buy in• Lack of organization-wide talent database
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Questions