1. Succession Planning: The Elephant in the Conference Room Phyllis Weiss Haserot Practice Development Counsel pwhaserot@pdcounsel.com 212-593-1549 Kathleen Lucey Montague Technology Management, Inc. kalucey@montaguetm.com 516-676-9234

2. How NOT to do Succession Planning….

8. Today’s Objectives Part I: Recognizing different kinds of elephants Part II: Group Exercise: what YOUR elephant looks like Part lll: Learn how to train your elephant

9. Identifying Your Elephant Focus to get a clear image:  Susceptible positions  Unique contributors  Potential loss or additional expense

10. Questions to Get Started... WHY ? WHO ? WHAT ? WHERE ? WHEN ?

11. √ WHY ?

12. Is This a Continuity Issue? YES! Unexpected departures may cause process disruptions, revenue losses, and/or require unanticipated expenses.

13. Can This Be an Enterprise Survival Issue? YES! Sufficient losses and extra expenses may lead to company failure. OR Loss of key leader / designer / salesperson may cause fatal erosion of competitive position.

14. Very High Probability APPROACHES 1.0! Much higher probability than other business interruption events that BC commonly plans for.

15. Who: Positions Provider of critical services Revenue generator: “rainmaker” Office managers Design or other creative talent Executive management, sometimes Administrative assistants, sometimes Others? Who in your organization fits this profile?

16. Who: Unique Contributors Warning Signs: Single-person functions Outsourced functions Function stops when person is away Sketchy or missing process documentation Repeated refusal to train or work with another staff member

17. What √ Establish the type and size of vulnerability. √ Measure impact in time and loss type. –Revenue loss –Extra expense –Erosion of competitive position –Loss of business leadership

18. Where √ In all the usual places √ In many other environments –Technology –Design –External specialists –Personal support –Facilities and Operations IN ALL ORGANIZATIONS...including yours.

19. What’s Going on in Your Organization? PART II: GROUP EXERCISE First as individuals, then as a small group: List the most critical persons in your organization: position; department – choose one. Why so valuable? Importance of contribution, time and cost to replace. Estimate potential loss types. Report to large group; discussion.

20. Part III: Training Your Elephant

21. Why Don’t Organizations Plan for Succession? Denial Large initial time investment Internal dynamics – behavioral issues

22. What Are the Tough Behavioral Issues? Lack of openness and information sharing Control – people who won’t let go Non-collaborative cultures No one takes ownership Quick to deflect and assign blame Territoriality – people and departments Involuntary succession

23. The Successful Elephant Trainer Will... Own the issue, take charge, raise awareness. Include HR, relevant others on your team. Analyze lost revenues/extra expense; make the business case. Anticipate individual behavioral issues. Get an internal champion; get training or specialized external expertise. Make successes visible.

24. Publicize early successes Golden Boy I Golden Boy II

25. Resistant cultures can CHANGE with time and successes!

26. PLEASE REMEMBER TO: Fill out and turn in your evaluation form. Leave a business card: To receive an electronic copy of this presentation: write “PPT” To receive a summary of the exercise results: write “RESULTS” Get some peanuts for your elephant from the Certified Elephant Trainer on your way out!

27. Questions ?? Phyllis Weiss Haserot Practice Development Counsel pwhaserot@pdcounsel.com 212-593-1549 Kathleen Lucey Montague Technology Management, Inc. kalucey@montaguetm.com 516-676-9234