13th Annual Farmer Cooperatives Conference

SUCCESSION PLANNING

Jim HoytVice President

Strategic Planning & Corporate ServicesGROWMARK, Inc.

Drivers of Change

Internal Assessment

Primarily Board

Board & Staff

Primarily Staff

MeasurementReporting

ActionsObjectives

MissionVision Values

Strategic IssuesPriorities

Strategic DirectionGoals

Strategies Success Factors

Alignment

Strategic Planning ProcessStrategic Planning Process

STRATEGIC DIRECTION

In support of our vision and mission, we will:1. Foster a strong member system.2. Grow and expand in and from our core businesses.3. Expand our marketing territory.4. Foster vertical integration opportunities which create

strategic advantages for the GROWMARK System.5. Pursue acquisitions, mergers, or business alliances.

Strategic Issue System Leadership Succession Development

It is essential that we work proactively to deepen our bench strength for key System leadership responsibilities. 

Goal: Extend the corporate depth chart in three additional vice presidents’ areas and implement the CDR tool to individuals identified as “ready” and/or “development” employees.

Goal: In conjunction with member cooperative boards of directors, create and recommend individualized plans for the development and succession of board leadership.

 

Are You Ready For

Key Leadership: Retirements Unexpected Departures Long-term Illness HBBT

Employee Demographics

Age Buckets

20-35 23.9%

36-45 18.5%

46-55 29.5%

55-60 16.8%

61+ 11.1%

Drivers of Change Aging leadership team Complexity of business Changing business models Experience exodus

Institutional memory/accumulated knowledge Workforce demographics Specialization Available and skilled talent pool Competition for best talent Gen X – capabilities and expectations

Succession Planning Project or Process

Assessment of: • Current leadership talent• Future leadership needs• Current bench strength and gaps• Increasing bench strength• Development programs

– Individual – Group

Depth Chart Key positions Key people

• Ready now• Development needed

Mid-management and up Honesty – openness – agreement

Depth Chart ExampleRegional Manager

(4)

MemberServicesAdmin.

STAREnergy

Mgr.Illini FS

GM

NewCentury

GMAgVantage

GM

FS PARTNERS

GM

Member

Services

GL √ √ √ √

RS √ √ √ √

CG √

BK - (cdr) √ √ √ √ 5

KM - (cdr) 5 5

GN- (cdr)5 5 5 5 5 5

FC 5 5

TS √ 5 5 √

SN 5 √

DL 5 √ √ √ √ 5

JK - (cdr) 5 √ 5 5 5 5

TA - (cdr) 5 5 √

Development Plan Are you using traditional and creative

development programs?• Individual and experiential• Special project assignments• Cohort groups• Job rotations• 360 evaluation and profiling• Mentoring• Diversity• CEO/VP sign off

Questions Do you know your bench strength in key

positions--mid-management and up? Are you rounding future leaders’ experience? Do employees know they are in a

leadership development process and what is expected? Do they want to be?

Are you attracting an appropriate percent of external talent?

Are you comfortable with “just in time” leadership?

Shared Responsibility• Board:

– Strategic Plan – Risk Management– Expect – Understand – Monitor

• Senior Management:– Plan Design – Cultural Acceptance– Implementation – Active and noticeable participation

• Mid Management:– Identify and mentor – Ensure development – Special projects– Look for opportunities

• Cross-train• Job rotations

Board Succession Ask the tough questions

• Do you have a formalized succession plan? • Who are potential directors for your board?• Is a directorship an endowment? • What is the “right” length of time to serve?• Should directors serve as officers until

retirement from the board?• What is best for your cooperative?

“Skate to where the puck is going to be”

The GREAT ONE

Succession Planning