Enhancing Workforce

Performance Through

Succession Planning

Healthcare Leadership Crisis

• Every day for the next 19 years over 10,000

Baby Boomers will reach age 65

• Projections are that 50% of healthcare

management could be lost over the next 5

years

Healthcare Leadership Crisis

• 56% of executives polled said that they did not know who

would assume leadership should they have a vacant key

executive role

• 59% of executives say they do not feel that their hospital

has a succession plan in place

• 64% say that their hospital is not adequately prepared

should their CEO resign suddenly

• 68% of executives polled said that the departure of their

key executive

Definition of Succession Plan

• The process of identifying, developing, evaluating and

reinforcing and a group of talented employees to assume

key management roles

• The principles of succession management are simple and

flexible. They can be used for every management and

leadership position (CEOs, VPs, Directors, and Managers),

and they can be used to help identify potential board

members.

Develop a Succession Plan

The overall objective of the succession plan

will be to “plan and initiate a program to

ensure leadership continuity for key positions

that will help to guarantee the survival of the

group/community served.”

Rationale for Succession Plans

• Cost Savings

• Continuity

• Loyalty/Morale

• Less Risk

• Contingency Plan “Hit by a Bus” Scenario

• Successful Companies Have Succession Plans

Succession Plan Foundation

• Make the business case

• Define High Potential Leaders

• Evaluate current staff and identify High Potential leaders

• Develop High Potential Leaders

• Evaluate and Reinforce High Potential Leaders

Objectives of a Succession Plan

• Define the Relationship Between the Succession Plan and

your Organization’s Mission

• Establish Key Positions that Should Fall within the Scope

of the Succession Plan

• Identify Which Individuals Can Step into the Key

Positions and What Development Plan Should be Utilized

• Prepare a Curriculum for the Development of Leadership

Talent

• Document the Succession Plan Together with an

Implementation Schedule

Best Practice Model

• Make the business case

• Define High- Potential Leaders

• Identify High-Potential leaders

• Communicate High Potential Status

• Develop High Potential Leaders

• Evaluate, Reinforce , Reward

Make the Business Case

• Analyze Workforce Demographics

• Determine Organizational Strategic

Priorities

• Determine Diversity Goals

Developing a Work Plan

• Prepare your organization-get buy in but do not relent

• Establish key leadership Positions and assess work

requirements- have all key leaders update their job

descriptions (do not rely on human resources for this)

• Bring in outside human capital subject matter experts to

assess current staff for each key role

• Assess Future Work Requirements

Developing a Work Plan

• Review Individual Performance

• Identifying High Potential Leaders

• Construct Leadership Development Program

• Install Evaluation Process for Succession Planning

Program

Fundamentals of Work Plan

• Key leadership roles should have updated job description

• Action to bring individual performance in line with requirements

• Requirements for implementing leadership development program

• Timeline, stakeholders and ownership of results

Identify High Potential Leaders

• Review Performance Score

• Identify Key Success Factors for Advancement

• 360 Degree Review Process

• Solicit Leaders Interest in Advancement

Key Attributes of High Potential

Leaders

• Should know the company and mission knowledge and

lives it

• Demonstrated passion thru measurable career

accomplishments,

• Has exceeded expectations in current role

• Track record of overcoming adversity with clear concise

results

• History of “getting things done through others” , good

relationship building skills

• Community service mix- “it is not all about me”

High Potential Leader

Development

• Experiential Learning- Stretch Assignments

• Cross Functional Teams

• Leadership Academies

• Shedding Silos

Communicate High – Potential Status

• Discuss status with High Potential Leaders

• Assess is interested in Advancing in organization

• Detail Advancement Strategies

• Review resources needed for successful outcomes

Evaluate and Reinforce High Potential

Leaders

• Align Performance Management with Incentive System

• Senior Leadership Engagement

• Support Leaning Culture

• Develop Metrics for Success

Keys to a Successful Plan

• An operating and/or business plan

• Employee engagement and accountability

• Updated detail as to job description of key person(s)

• Involve key stakeholders obtaining buy-in

• Leadership development program-management and

performance focused such as Lean

Impediments to Success

• Cutbacks leave little or no budget for leadership

development

• Formal mentoring programs are virtually non-existent

• Increased workloads to achieve cost savings

• Budget cuts for tuition reimbursements, professional

events etc.

Impediments to Success

• High turnover among top level staff, “leaders firing their

boss”

• Tight talent market-finite number of leaders, highest/best

bidder

• Focus on processes, systems and away from people

• Promotion without training

• Loss in patient continuity-quality and satisfaction suffer

• Strong competition for patients/dollars

Impediments to Success

• Time/procrastination

• Fear of going outside the culture/fishbowl

• Cost-how expensive is it to lose continuity

• Perceived absence of talent-only we/I can do it

• Internal rivalry/ego/politics

• Lack of mentors

Factors to Avoid

• Choice of convenience-someone who you know who

might be able to rise to the occasion

• Choice via internal political pressure for internal candidate

• Choice via pressure from one or more advisors against best

judgment

• Work on weaknesses in a non-fit candidate-don’t talk

yourself into a substandard fit

• No immediate worst case scenario-e.g. death of a key

member/senior leader

The great French Marshall Lyautey once

asked his gardener to plant a tree. The

gardener objected that the tree was slow

growing and would not reach maturity for

100 years. The Marshall replied, 'In that

case, there is no time to lose; plant it this

afternoon!'

John F. Kennedy

35th president of US