Business Succession Planning

(1)

Business

Succession

Planning

(2)

!  what is succession planning and how will it address these human resource

i s s u e s ?

!  How does succession planning differ f r o m r e p l a c e m e n t p l a n n i n g ?

!  When do leaders know that their

organization needs a succession planning and management program?

(3)

!  Demonstrate an understanding of the value of succession planning for s u c c e s s f u l b u s i n e s s e s .

!  Develop expertise with the key elements o f a s u c c e s s i o n p l a n .

!  Create and discuss aspects of a

s u c c e s s i o n p l a n .

!  Discuss the elements of a succession plan in terms of roles, responsibility,

(4)

!  Demonstrate an understanding of the value of succession planning for s u c c e s s f u l b u s i n e s s e s .

!  Develop expertise with the key elements o f a s u c c e s s i o n p l a n .

!  Create and discuss aspects of a

s u c c e s s i o n p l a n .

!  Discuss the elements of a succession plan in terms of roles, responsibility,

(5)

D e f i n i n g a S u c c e s s i o n P l a n

Any effort designed to ensure the continued effective performance of an organization, division, department, or work group by making provision for the development, replacement, and strategic application of key people over

(6)

D e f i n i n g a S u c c e s s i o n P l a n

succession planning means that businesses provide developmental, support, and search activities to ensure that the organization continues effectively when people who occupy k e y r o l e s l e a v e o r a r e p r o m o t e d

(7)

How Does Succession

Planning Differ from

Replacement Planning?

(8)

Succession planning, in contrast, focuses on developing people rather than merely naming them as

replacements. Its goal is to build deep bench strength throughout the organization so that, whenever a vacancy occurs, the organization has many qualified candidates

internally that may be considered for advancement.

Replacement planning assumes that the organization chart will remain unchanged over time

(9)

What Are Talent Pools, and

How Are They Used?

(10)

A talent pool is a group of

people being prepared for

more challenging

responsibilities

(11)

succession planning encourages managers at all levels to regard talent

in any part of the organization as a possible successor for positions

immediately above them. Hence, talent pools may be identified underneath each “level” on the organization chart but are not tied to

specific positions at the next higher levels.

In replacement planning, individuals are usually identified

as “backups” for specific

(12)

(13)

!

 

A mission statement, supported by defined

v i s i o n a n d v a l u e s

!

 

A dedicated team for planning, design,

implementation and follow-up (although the

same people need not be involved at each stage)

(14)

Components of the Plan

SUCCESS results from

Succession Planning

System

•  Designing a system,

determining resources, and setting up progression

pathways.

Understanding resources

• Identify key positions,

analyze the environment, and establish individualized

engagement plan

Creating risk assessments

•  is a leader’s very honest

attempt to address the risks of continuing with a particular plan

(15)

Components of the Plan

SUCCESS results from

Crafting an action plan

•  Defining Roles,

Responsibilities, and Functions

Evaluating the plan

•  evolution of

individualized

engagement plans (IEP)

Setting the plan in motion

•  We have said several

times that succession planning is really a process. It involves a commitment to several different transitions rather

(16)

Components of the Plan

SUCCESS results from

Selling the

plan and

creating

reinforcement

•  . The succession program planners and

those responsible for implementation must be able to “sell” the value of the plan to many individuals involved in the

organization, not the least of which would include the CEO and perhaps a board

•  celebrating success and continually reminding

the board and members of the succession team of its value

(17)

!

 

This includes determining the resources that we

need and setting up what we will call progression

c

h

a

i

n

s

!

 

A dedicated team for planning, design,

implementation and follow-up (although the

same people need not be involved at each stage)

(18)

This includes determining the resources that we

need and setting up what we will call progression

c

h

a

i

n

s

(19)

The first step includes the system itself, and this

i n v o l v e s t h r e e m a i n c o m p o n e n t s .

1. Identify the critical people for our succession

p

l

a

n

(

S

P

)

2. D e v e l o p p r o g r e s s i o n p r o c e d u r e s

3. Incorporate top level support and buy-in

(20)

The leader’s role is to complete the analysis

honestly and with feedback from the individual as

well as the leader’s observations

(21)

Establish competency models by talent pool

considering the positions that will be fed by that

pool. A competency model is a narrative

description of the knowledge, skills, attitudes, and

other abilities that lead to exemplary performance

(22)

Engagement plans are a key component in the succession planning process. Each person that you

identify ANYWHERE in a succession plan as being either a critical link or a potential leader must have an IEP. The IEP is developed in consultation between the

leaders and their staff. Critical elements of an IEP include developmental needs as well as a career plan.

(23)

Key Ingredients of a Successful Plan

To conduct individualized multi-rater, full-circle assessment

We must be a part of a learning organization

Succession planning does not exist in a vacuum

Develop reliable data

(24)

Key Ingredients of a Successful Plan

Have senior level support Continually assess your results

You do not have to do it

all at once

Establish (or reengineer) an organizational performance management system

(25)

Key Ingredients of a Successful Plan

Assess individual potential for

success at higher levels of

responsibility Establish a means of regular, ongoing individual development planning Coaching and Mentoring

(26)

(27)

(28)

(29)

(30)

ATU’s succession planning organizational assessment.

Talent is more readily available for sourcing inside the organization when needed

Better decisions are made about who to promote

Enhanced competitive advantage by focusing promotion decisions on issues more effectively linked to the organization's competitive advantage

Better decisions are made about who to promote