Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning...

37
Emerging Best Practices in Succession Planning Karen N. Caruso, Ph.D. Leah Groehler, Ph.D. viaPeople www.viapeople.com

Transcript of Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning...

Page 1: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

Emerging Best Practices in Succession Planning

Karen N. Caruso, Ph.D.Leah Groehler, Ph.D.

viaPeoplewww.viapeople.com

Page 2: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

Overview

• Succession Planning as a critical business process

• Trends influencing Succession Planning practices

• Emerging Best Practices in Succession Planning

• Best Practices in action

Page 3: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

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.

Page 4: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

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

Page 5: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

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

Page 6: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

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

Page 7: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

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

Page 8: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

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

Page 9: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

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

Page 10: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

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

Page 11: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

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

Page 12: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

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

Page 13: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

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

Page 14: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

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

Page 15: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 16: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 17: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 18: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 19: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 20: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 21: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

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

Page 22: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

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

Page 23: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 24: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 25: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 26: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

• 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

Page 27: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 28: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 29: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 30: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

1 2 3 4 5

Performance as Measured by GID/DIR Assessment

Pot

entia

l as

Mea

sure

d by

Man

agem

ent A

ptitu

de1

2

3

4

5

Sanchez

O’Toole

Riviera

ChungSmith

Johnson

Performance vs. Potential

Page 31: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 32: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 33: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 34: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management
Page 35: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

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

Page 36: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

For More Information:

Dr. Leah [email protected]

Dr. Karen [email protected]

1-888-viaPeople

Page 37: Emerging Best Practices in Succession Planning...• Trends influencing Succession Planning practices • Emerging Best Practices in Succession ... Emerging Best Practices 1. Top management

Questions