1. The Keys to Succession Planning
Kelly Halcon, Director of Human Resources/Risk
Monterey-Salinas Transit District
The Keys to Succession Planning

2. Outline of Presentation
Facts about MST
Define Succession planning
Statistics
Urgency of the Matter
Developing a plan for succession
10 Commandments of succession
planning

3. MST Fast Facts
Provides public transportation for Monterey County residents.
Service area stretches up to San Jose all the way down to Templeton serving a vast area within Central Coast California.
Fleet size: 170
Operating budget FY2016: $37 Million
Capital Budget FY2016: $4 Million
Passengers carried: 4.2 million
Revenue Miles Traveled: 4.5 million
Employees: 246

4. Defining Succession Planning
Many define succession planning as….
“Systematic process where by organizations identify, assess and develop their employees to ensure they are ready to take on key role within the organization”

5. Concerning Statistics…
79% of businesses recognize that succession planning will be a major issue for organizations in the next 5-10 years.
62% of employees surveyed say they would be “significantly more engaged” at work if their company had a succession plan.
94% of employers surveyed report that having a succession plan positively impacts their employees’ engagement levels.
Only 1% of companies rate their succession management plans as excellent; two- thirds rate them as fair or worse.
Over 90% of younger workers (age 18 to 34) say that working at a company with a clear succession plan would “improve” their level of engagement.
79% of employers surveyed note they have succession plans in place for mid-level manager positions.
81% of employers report using some form of software to organize the process of succession planning.

6. The urgency of the matter….
Think about these questions:
Have you lost high potential talent because they didn’t know they were on the succession list?
If your executive team “got run over by a bus,” would their replacements be able to step right in and be productive?
Is anyone on the “top floors” or in the Boardroom worried about the status of your “talent bench?”
What lost opportunity costs has your organization incurred because it took a long time to replace a key leader?

7. Developing a Plan…. Identify Key/Critical Positions
Conduct Position Analysis
Develop Succession Plan
Monitor, Evaluate, and Revise

8. Identify Key/Critical Positions
Key to the organization: key in achieving the organization’s mission or would hinder vital functions.
Critical Leadership: The position requires critical, specialized or unique expertise.
Vacancy: Position will be vacant due to retirement/promotion/lateral moves in the organization in the next 1-5 years.

9. Position Analysis
What knowledge, skills or abilities are needed for the position
What are the gaps (analyze competencies or skill sets not possessed by the current staff)?

10. Hard Skills vs. Soft Skills
“The balance between them is the key for success”

11. Hard Skills
By definition: Hard skills include the specific knowledge and abilities required for success in a job
Measurable or not? Hard skills are teachable abilities that can be defined and measured much more than soft skills. Hard abilities are easy to quantify.
How to prove them? Hard skills are easy to prove with certificates, education degree, awards and etc.
Examples: basic computer skills, data analysis skills, and math skills.
Particular example: An accountant needs to know math in order to balance a general ledger.

12. Soft Skills
Be definition: Soft skills characterize your relationships with other people, or are about how you approach life and work.
Measurable or not? Soft abilities are personal-driven and subjective skills. They are really hard to measure.
How to prove them? Soft skills relate to your personal characteristics and traits are difficult to prove.
Examples: communication skills, leadership skills, adapting skills, decision-making skills and creativity.
Particular example: Accountant is able to communicate with clients about their findings and explain the results.

13. Develop a plan
The first part of the plan is to identify key positions and then conduct a position analysis.
Set a plan of how your agency would overcome the gaps:
Training plans for hard skills
Mentoring and coaching- pair employees who are struggling with soft skills with those individuals who are struggling with hard skills.
Identify exit strategies for staff.

14. A Plan is fluid Remember to review plans on an annual basis
Adapt plan to unforeseen changes
Communicate the action plan
Conduct succession planning meetings at leadership level initially.
Training on Succession Planning.

15. 10 Commandments of Succession Planning
Succession planning should align with long-term business strategy.
Process is managed by HR but supported and driven by upper management.
Look internally and externally to identify talent and potential talent.
It isn’t about promoting talent, sideways movement is okay too!
“Failing to prepare, is preparing to fail” Recognize the skills, knowledge and abilities of your talent pool.
Remember that an individual’s performance is not always indicative of their true potential.
When looking internally do not be afraid to look into other departments for potential talent.
Ensure that the plan is clear, visible and communicated.
HR should align succession plan with recruitment, training and in developing performance reviews.
Succession plan is part of your organization’s continuity of business plan.

16. QUESTIONS?