Succession PlanningWho will replace your leaders?

Presented by

Jacquelyn Thorp,

MSHR/SPHR-CA

What is Succession Planning?Succession Planning involves ensuring

that another individual is ready to move into a position of higher responsibility.

Succession planning is the process of identifying and preparing suitable employees through mentoring, training and job rotation, to replace critical people — such as the chief executive officer (CEO) — within an organization as their terms expire.

Who Will Replace Your Leaders?Succession Planning involves having

senior executives periodically review their top executives and those in the next lower level to determine several backups for each senior position.

A succession plan clearly sets out the factors to be taken into account and the process to be followed in relation to retaining or replacing the person.

A Facilitator HRIS

Management Inventory Report

Skills Inventory Training Job Rotation

Talent

Facilitator•Facilitates•Schedules •Conducts •Serves as a resource•Educates•Encourages

HRIS

Human Resource Information System

Skills Inventory BasicMotorIntellectualLearningNew TechnologyObsolescent

Job Specific

For Manager SuccessResourcefulnessDoing Whatever it

TakesBeing a Quick StudyBuilding and Mending

RelationshipsCompassion StraightforwardnessFlexibilityPutting people at ease

ComposureSetting a

development climateConfronting problem

subordinatesTeam OrientationWork Life BalanceDecisivenessSelf AwarenessHiring Talented staff

For Manager SuccessLeadershipMental abilityReasoning skillsAbility to get alongTolerance for

ambiguityAdministrativeInterpersonalOral communication

Written communication

JudgmentOrganization abilityStress toleranceProblem solvingSensitivity to others

Assessment Centers

Training•Management•Diversity•Leadership•Communications•Sensitivity•Team•Strategy•Conflict Management•Time Management

Job RotationInvolves providing employees with a series of job assignments in various functional areas of the company or movement among jobs in a single functional area or department.

Job Rotation

•Helps employees gain an overall

appreciation of the company’s

goals •Increases understanding

of different company functions•Develops a network

of contacts •Improves problem solving

Job Rotation

•Improves decision making skills

•New skill acquisition •Salary growth•Promotions •Salaries•Experience

Temporary Assignments

Projects Volunteer

WorkPresentation

sTeams

MENTORING – FORMAL OR INFORMAL

Talent

Organizations are losing large numbers of upper level managers due toRetirementPromotionsTransfersResignationsDeath

Restructuring that reduced the potential of upper level managers

Middle managers are not ready to move into upper level positionsSkill weaknessLack of experience

Retiring Part time work Starting their own

enterprises

…Leaving gaps in leadership talent

“40% of new CEO’s fail within 18 months”.

Systematically conducts a review of “High Potential” talent in the company

Ensures top-level management availability

Provides experiences that managers need to be considered top management talent

Attracts potential talent Retains potential talent by providing

opportunity

Have completed individualized programs› Education› Mentoring› Coaching› Job Rotation› Career Path

1. Large Pool of Potentials Identified › Candidates eliminated due to:

Turnover, poor performance, personal choice not to strive for a higher

level position, failure to complete academic programs.

2. Development Experiences› Excellent performance› Sacrifices (e.g., accepting new

assignments or relocating)› Excellent oral and written communication

skills› Excellent Interpersonal talent› Meeting the expectations of senior

management

3. Fit in the Company Culture› Personality characteristics› Exposure to Key Personnel› Direct work with CEO

Note: Reaching Stage 3 may take 15 plus years

1. Identify what positions are included in the plan.

2. Identify the employees who are included in the plan

3. Develop standards to evaluate positions (e.g., competencies, desired experiences, desired knowledge, developmental value).

4. Determine how employee potential will be measured (e.g., current performance and potential performance).

5. Develop the succession planning review.6. Link the succession planning system with

other human resource data and systems including training and development, compensation, and staffing systems.

7. Determine what feed back is provided to employees.

• Eligible employees enter their own information into the HRIS:– Education– Job preference– Location preference

• Their supervisor enters– Performance appraisal– Rating of core competencies– Promotion potential

• Creates an Online Resume• Talent Calibration Meetings– Who will stay– Who will go (“toxic” or ineffective managers)– Development programs

• 86% internal promotion rate• $21 million cost reduction in recruitment and

training expenses• Time to fill open positions reduced from 60

days to 35 days.

Understand strengths and weaknesses

Identify a development goal

Identify a process for recognizing goal accomplishment

Identify strategies for reaching the development goal

Performance Management…

simply put, is managing the performance of the entire

organization. It ensures that the organization is moving in the same direction.

The first day your The first day your employee begins to work…employee begins to work…

Job Descriptions

New Hire Orientation

Employee Handbook

Training

Plan for Excellent Performance› Mission of the Position› Essential Job Duties› Accountabilities› Goals and Actions› Vulnerabilities

Did employee meet standards and measurable targets?

Formal Performance Evaluation◦ Evaluates Performance◦ Evaluates Knowledge,

Skills, Abilities ◦ Evaluates Talent◦ Looks to the past

Looks to the future Clarifies essential

job duties Acknowledges

accountability Sets goals Sets actions

needed to reach the goals

Identifies vulnerabilities

Identifies ways to avoid the problems

Sample Replacement Chart

Arthur Roberts

Current Position: President

Expected Replacement: 1 year

Education: MA Taxation

Experience: 27 years financial ops

Possible Replacements, Potential, Ready:

John Harbor, Medium, 8 months

Sean Sanchez, High, 2 years

Natalite March, High, 14 months

John Harbor

Current Position: VP, Marketing

Expected Replacement: 1 year

Education:

Experience: 17 years marketing mgmtPossible Replacement, Potential, Ready:

Rick Nguyen, Low, 2.5 years

Jennifer Singleton, High, 3 years

Shawn Sanchez, SPHR-CA

Current Position: VP HRExpected Replacement: 5 years

Education: MS HR Experience: 18 years HR mgmt

Possible Replacement, Potential, Ready:

Bill McGregor, High, 2 years

Kristina Bui, High 5 years

Natalie March, JD

Current Position: VP & Corp Counsel

Expected Replacement: 11 months

Education: JD Harvard

Experience: 23 years law

Possible replacemnt, Potential, Ready:

Judy Nguyen, High, Immediately

No other candidates