Succession Planning

Deepti Sangra 47 B.Meenakshi 08 Rajalakshmi R 38 Rohita Salvi 45 Ompal Singh Arya 29

BUSINESS STRATEGY BUSINESS STRATEGY BUSINESS RESULTS BUSINESS RESULTS Integrated Approach Performance Management Talent Management Rewards Management Recruitment & Selection Career Management Succession Planning Senior Management Development Training & Development Why study Succession Planning ?

Here’s a scary thought… What would happen to your business if you suddenly couldn’t function?

Reasons for Succession Programs To identify replacement needs To provide opportunities for high potential employees (retention) To increase pool of promotable employees To support implementation of a strategic business plan To guide individuals in their career paths To improve ability to respond to changing environmental demands To improve employee morale To cope with the effects of downsizing and attrition Individual Contributors ManagersLeaders Succession planning accelerates the transition of qualified employees from…..

Strategic, systematic and deliberate effort to develop competencies in potential leaders through proposed learning experiences such as targeted rotations and educational training in order to fill high-level positions without favoritism. (Mathew Tropiano, 2004) Deliberate and systematic effort by an organization to ensure leadership continuity in key positions and encourage individual advancement. (St-Onge, Mercer) A structured process involving the identification and preparation of potential successors to assume a new roles. Succession Planning -Definition

Explanation Succession planning is a process for identifying and developing internal personnel with the potential to fill key or critical organizational positions. Succession planning ensures the availability of experienced and capable employees that are prepared to assume these roles as they become available Please Note:  Constant change (Planning)  An organizational journey, not a project  Ensuring continuity of leadership  Identifying gaps in existing talent pool  Identifying and nurturing future leaders

Reality Bytes Sports Anil Kumble at the nets as Mahendra Singh Dhoni looks on during a training session in New Delhi. Succession management on the field and in corporate India aren’t so very different. (AFP) POLITICS Leadership by Absence

Public Service Opportunity Deprived

CAUTION!!  Aging Workforce In 2001, one of six workers was 55 or over 45% of today’s workforce is between the ages of 40 and 57 Over the next decade, the 55-and-older age group will rise from 13 to 20 percent of the total workforce Fewer people work longer  Low birth rate 76 million Baby Boomers in workplace 10 million fewer Gen-Xers to replace them upon retirement

 Widespread retirement of baby boomer’s generation  Impatience of Gen X & Gen Y ers’  Resurgence of the “War on talent”  Seller’s market for skills  Need for Speed (Who are you trying to hire?)

Succession Planning Process

Identify long term & Short term Objectives Identify Key Position and their Competencies Analysis of demand for managers & professionals Planning for Career paths Career Counseling Training & Development Control & Evaluation Actual Recruitment process Succession Planning

Example – Dow Chemical Company's Acquiring Applying Leveraging Visioning

General Electric Inc. ( )  A multinational American Technology and services conglomerate incorporated in the State of New York. In 2009, Forbes ranked GE as the world's largest company. The company has 323,000 employees around the world. process BY Jack Welch  Succession Planning applied across all tiers of management  With the use of various analytical tools and the involvement of the top management in succession planning

 Annual Human Resource Reviews -Session C  Every employee's assessment Continues……  The succession planning by Welch for his post had started way back in 1994  Developed a list of qualities, skills and characteristics which an "ideal CEO" should posses “You don't get succession candidates if you don't start with a pipeline.” - Jack Welch, April 2002

CHALLENGES  Emphasis on Planning  Involvement & Support  Distance from Business  Resources  Accountability

CURRENT TRENDS  Demography  Economy  Loyalty  Recognition

CURRENT TRENDS Practices  Top Management Participation  Rigorous & Comprehensive Assessment  Identification of Future Talent Requirements

CURRENT TRENDS Practices  Structured & Individualized Developmental Programs  Creation of Talent Database  Open Communication

Succession Planning Thank You “ There is no success without a successor.”