4 Crisis Background 78 million Baby Boomers turning 65 in 20 years 16% of workforce is over 55.25% over 55 by 2020.Retiring en-masse.Insufficient replacements available.
5 Employees Leave – They always do Preparation for that day is Succession Planning
6 I understand that most of you are from relatively small organizations. I’m going to lay out the “traditional” approach that large organizations typically use and then come at it with a modified approach that tries to account for the needs/constraints of smaller organizations.Disclaimer
7 Succession Planning Introduction/Definitions Context Developing the PlanImplementation
8 Succession PlanThe process of developing a systematic approach to building replacement workers to ensure continuity, by identifying potential successors in critical work processes.
9 Succession Management The integrated approach to workforce recruitment, development, and retention to ensure that the organization has candidates whose present and future potential contribute to their individual success and the success of the organization.
11 Knowledge TransferProcesses and strategies that allow an organization to:Document key data and policies for critical work processesExchange key process data and information from one individual or group to anotherDefine how vital and important information will be retained within the organization despite attrition
12 ContextEmployer – Ensure a sufficient supply of talent for key roles and tasks.Employee – Provide clear opportunity to grow, learn, evolve, advance.Customer – Results. Employees who are reliable, knowledgeable, and meet their expectations.
13 More Context Civil Service Leaders need to prepare in advance to create smoother implementation and more options.Create a partnership with Civil Service in advanceIdentify key personnel who can helpShare your goals with themGet them involved in your planning process.
14 Developing the Plan Basic Steps Institutionalize the process and capture stakeholder supportConduct assessments of organizational needsDevelop the succession planning modelImplement succession planning strategiesContinuously measure, evaluate, and adapt
16 Step 1 Institutionalize the process and capture stakeholder support Gain commitment from decision makersDemonstrate why it’s needed and benefitsGather resourcesSenior leadershipHR/Civil ServiceUnion representativeEmployees groupsIdentify the strategic vision and goals of the organizationMake succession planning a priorityStrategic plan will determine # future employees and skills neededWhat will succession program look like? What will it do for organization?Incorporate succession planning into your organization’s valuesClearly define the objectives for the program
17 Step 2 – Assess Organization’s Needs As isTo BeGap Analysis
18 Step 2A – “As Is” Assessment Collect and analyze organization and demographic dataRetirements?New leaders being developed?Are you identifying new leaders?What is average age and tenure of current employees?What are attrition and vacancy rates?Identity and prioritize key work processes/positionsWhich are most critical?Which have the least amount of resource depth?Which processes are documented?Are future leaders prepared?Identify condition and availability of resources and systemsWhat items are needed to do work? Maps, policies/procedures, training guides?Are they accessible and up to date?What technology systems are currently in use?
19 Step 2B – “To Be” Assessment Analyze future requirements for servicesFuture demandCustomer expectationsRegulationsWhat are the goals of the Strategic PlanDemand placed by SPHow will SP change workforce/leadership requirementsWhat are upcoming changes in the industry?What demands will technology place on organization?
20 Step 2C – Gap AnalysisHow does “as is” organization fall short of “to be”?
21 WorkforceDo current organizational demographics look like the future ones?Are you prepared to handle shifts in demographics?Do we have the people skills to keep up with the change?ProcessesWhich ones are most susceptible to changes in personnel?Where are we most susceptible to losing essential knowledge?Systems/ResourcesWhat info will we need or not need in the future?What information needs to be more accessible?How will technology change our resource needs?Determine the talent needs on the long runIdentify the core leadership KSAs to bridge the gap.What will future leaders look like?What skills and behaviors will make them successful?
22 Step 3 - Develop the Succession Planning Model Determine which employees or levels of employees will be involved in program.Build leadership pipeline.Identify internal talent with critical competencies (KSAs).Analyze external sources of talent.Identify training and development strategies.Formal professional development.Coaching and mentoring.Use cross training/multi-skilling.Job shadowing.Identify career paths.Develop retention strategies.Create knowledge management and transfer strategies.
23 Model Page 28 Model. Step 3 outlines the model. Not one size fits all. Adapt to your organization.
25 Step 4 - Implement Succession Planning Model Determine resource needs for implementation.Identify barriers to implementation.Update or develop job descriptions.Prepare organization for change.Establish communication plan.Connect with stakeholders and get their buy in.Identify and establish peer and leadership champions of change.If needed, implement strategies on pilot basis.Link succession strategies with HR.RecognitionWorkforce planningAssessment strategiesRecruitment strategiesTrain staff as necessary.
26 Step 5 - Continuous Measurement, Evaluation, and Adaptation Define measures of program successDetermine how frequently the program will be evaluated.Design the reporting process.Track progress, communicate and celebrate program success.Get stakeholder feedback on strategy success.Adjust or adapt programs based on evaluative results.Ensure top management stays engaged and provides support and attention to program.Make 3 to 5 year succession plans part of organization’s strategic planning process.
27 IMPLEMENTATION Develop pilot program in one department. Track and measure how it’s working:TurnoverEmployee survey resultsParticipant satisfaction# Individuals promoted vs. outside hires# “ready now” candidatesDiversity of talent poolsSize of talent poolsCommunicating ProgramShare with everyone how it’s going.Use multiple methods
28 Costs – highly variable and hard to quantify Employer Benefits Costs/BenefitsCosts – highly variable and hard to quantifyConsultant, in-house time, lost production.Employer BenefitsStabilize performanceEnsure continuity of leadershipDevelops pool of skilled workersMinimizes disruption during changeEnhances knowledge transferMakes “employer of choice” – gets you the better workersEmployee Loyalty/CommitmentOpportunity for skills development/trainingIncreased organizational resiliency/capacityEmployee BenefitsImproves communication and moraleImproved effectivenessImprove working relationshipsPersonal/Professional growthCustomer BenefitsImproved staff knowledgeMore efficient serviceIncreased staff responsiveness/prideBetter run organization
29 Underestimating talent within Common PitfallsKeeping it a secretUnderestimating talent withinNarrow minded thinking – too old/young, rough, differentFocusing exclusively on hard skillsNot offering training/development opportunitiesExpecting employees to self-identify – help them see what they can be.Not holding managers accountable for succession planning.Considering only upward succession. Lateral?One size fits all program.Producing too many candidates for too few spots.
30 Program Participation Recruit and develop bright career minded individuals who appreciate recognition.Voluntary opt-in.Provides self-directed careers.
31 Leadership Competencies Defines attributes desired.What an employee must achieve to show proficiency at each level.Effectiveness, communication, ethics, knowledge, developing people, flexibility/adaptability, strategic initiative, effective decision making, customer orientation, achievement orientation, team orientation.
32 Knowledge Transfer and Retention Strategies Document processes and records.Hire new person before old one leaves.Rehire retirees part time.Make videos of people doing work.SOPs, standardized record keeping formats, archiving and data retrieval systems.Cross training existing staff.
33 What’s a small organization to do? Create organizational chart.List age, years of service.When do you expect people to leave?Where do you expect to get replacements?If they’re abundant and readily available, ok.If not, where will they come from?Need to develop in advance?Recruit for exam?Trade schools, military, minorities?
37 It might be something that’s not readily apparent. Payroll, IT, pesticide applicator’s license, CDL.
38 How many positions/people can perform this task? If only one, “Houston, you have a problem.”You need to plan for back up or when they leave.Try to figure out when they plan to leave.You need to develop a plan for that event.In the meantime, you still need to provide back up for while they’re there.
39 Some Possibilities Cross training Multi-skilling Retiree/Part timer Outside sources of talentContractors
41 Institutional Knowledge SOPs:Have employees write down how to perform MC tasks from the perspective of someone who knows nothing and needs to be able to do it.Have them create a video that demonstrates and it.
42 Case Study – City of Plattsburgh WPCP 16 mgd23 EmployeesCompost Plant140 wtpd7 EmployeesNowNo CompostWPCP – 11 Employees
43 2000 – Many retirements looming Significant system changes
44 Developing the Plan Basic Steps Institutionalize the process and capture stakeholder supportConduct assessments of organizational needsDevelop the succession planning modelImplement succession planning strategiesContinuously measure, evaluate, and adapt
48 Saw retirements coming. Stepped back and looked at the work. Had everyone list what they did all day and how long it took.Evaluated whether all of the work actually needed to be performed.Were able to eliminate much of the work and reorganize how it was done.
49 Don’t have as much work Only needed 8/7. Significant lab reduction. Not as much actual maintenance as we thought.Still needed operators for required certified coverage.Decided to go operator heavy and maint/lab light.
50 PlanKeep operators.Cross train/certify maint/lab staff to transfer as operators retire. Eliminate their old position.Now:6 Operators2 MaintenanceNo lab techsSOPs
51 Act Created draft plan Shared with employees and union Got their feedbackModified planConveyed that plan was dynamicCreated schedule for implementationCreated schedule for review and revision
52 Now Looking at Management All 3 managers plus admin gone in 5 years.140 years of experience.Identified all mission critical tasks and licenses.Scary list.Compliance sampling and reporting.Industrial pretreatment.Decision making.SchedulingPayrollProcess controlData managementComputersProject management, bid specs4A Certification
53 Developed Progression/Succession Program. Staff can volunteer to learn mission critical tasks.Once proficiency developed, recognition and pay bump.Provides:Back up/RedundancyPipelineContinuous learning environmentExcitement/CompetitionOrganizational capacity/resiliency.
54 Step 1 Institutionalize the process and capture stakeholder support Gain commitment from decision makers – ME!Demonstrate why it’s needed and benefits – less$Gather resources – CPO, Lab Manager, ME!Senior leadership – CPO/Lab ManagerHR/Civil Service – Talked to bothUnion representative – Pulled in shop steward/PrezEmployees groupsIdentify the strategic vision and goals of the organizationMake succession planning a priority – Yes.Strategic plan will determine # future employees and skills needed – Looked at actual work.What will succession program look like? What will it do for organization? More cross trained operators, less maint/labIncorporate succession planning into your organization’s values – Imposed.Clearly define the objectives for the program – fit # workers to actual work.
55 Step 2A – “As Is” Assessment Collect and analyze organization and demographic dataRetirements? Many coming, across titles.New leaders being developed? Huh?Are you identifying new leaders? Round 2/3.What is average age and tenure of current employees? Old/Forever.What are attrition and vacancy rates? Nil.Identity and prioritize key work processes/positionsWhich are most critical? Operators.Which have the least amount of resource depth?Which processes are documented? None.Are future leaders prepared? No, round 2/3.Identify condition and availability of resources and systemsWhat items are needed to do work? Maps, policies/procedures, training guides? All.Are they accessible and up to date? Some accessible, not up to date.What technology systems are currently in use? Old ones.
56 Step 2B – “To Be” Assessment Analyze future requirements for servicesFuture demand - LowerCustomer expectations – Controlled costsRegulations – always getting stricterWhat are the goals of the Strategic PlanDemand placed by SP – less staff, 8/7, cross trainHow will SP change workforce/leadership requirements – move to ops, develop decisionsWhat are upcoming changes in the industry? - ?What demands will technology place on organization? More computer savvy, IT
57 Step 2C – Gap AnalysisHow does “as is” organization fall short of “to be”?Wanted mostly operators. Progress from Lab/maintenance to operations.Develop critical thinking/decision making skills.Develop Lead Operator training.Cross train Ops to maintenance and lab.Develop technology skills.
58 Step 3.1 - Develop the Succession Planning Model Determine which employees or levels of employees will be involved in program.Lab/MaintBuild leadership pipeline.Identify internal talent with critical competencies (KSAs).ID’s specific people with promise.All ops got turns as Lead OperatorAnalyze external sources of talent.Reviewed Civil Service lists in advance.Recruit for exams.
59 Step 3.2 - Develop the Succession Planning Model Identify training and development strategies.Formal professional development. Certification classes, in-house, proficiency program, NYWEA.Coaching and mentoring. Trainees teamed up.Use cross training/multi-skilling. Lab/maint, project management, decision making.Job shadowing. Interns.Identify career paths. In progress.
60 Step 3.3 - Develop the Succession Planning Model Develop retention strategies.Not an issue.Create knowledge management and transfer strategies.Inventory documents, plans, reports.Develop/Update SOPs.Some videos.
61 Step 4 - Implement Succession Planning Model Determine resource needs for implementation. Managers.Identify barriers to implementation. Staff/Union, Civil Service, DEC, MUs, alarms.Develop or update job descriptions. Reviewed. Ok.Prepare organization for change.Establish communication plan. Meetings to explain what/why.Connect with stakeholders and get their buy in. DEC, MUs, EOs.Identify and establish peer and leadership champions of change.ID’d ambitious employees, existing leaders and did one on one.
62 If needed, implement strategies on pilot basis. Too small. Link succession strategies with HR.Recognition – Stars, acknowledgement at staff meetings, personal thanks.Workforce planning – Looked at actual work, what can we reduce/eliminate, practice/dry runs on tasks.Assessment strategiesRecruitment strategiesTrain staff as necessary.
63 Step 5 - Continuous Measurement, Evaluation, and Adaptation Define measures of program success. Compliance/safetyDetermine how frequently the program will be evaluated. Routine staff meetings.Design the reporting process. Informal.Track progress, communicate and celebrate program success. Monthly.Get stakeholder feedback on strategy success. ?Adjust or adapt programs based on evaluative results. Yes!Ensure top management stays engaged and provides support and attention to program. Managers.Make 3 to 5 year succession plans part of organization’s strategic planning process.
64 Questions/Comments? Jonathan P. Ruff, P.E. Environmental Manager City of Plattsburgh, NY