1. Developing a Succession Plan

2. Why Do It?
Employees say company leadership is a key contributor to job satisfaction, commitment and intent to stay; especially true for top talent.
Recent surveys state that employees value most the leadership qualities of honesty and integrity.
Only 1% of companies rate their succession management plans as excellent; two-thirds rate them as fair or worse.
McKinsey, The War for Talent, Right’s People Brand Research Report, DDI Exec. Dev. & Succession Management 2011

3. Is this Urgent?
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?

4. Succession Planning – What it IS

5. What is Succession Planning?
A deliberate and systematic effort by an organization to ensure leadership continuity in key positions, retain and develop intellectual and knowledge capital for the future, and encourage individual advancement.

6. Succession Planning
Ensures that employees are recruited and/or developed to fill each key role.!
Ensures that we operate effectively when individuals occupying critical positions depart.
May be used for managerial positions or unique or hard-to fill roles.
Align bench strength for replacing critical positions.

7. What is “Bench Strength”?
An assessment of the organization’s preparedness to replace departing staff in critical positions. Identifying people who are ready to step into someone else’s shoes at the appropriate time under the appropriate circumstances with seamless transition.

8. Succession Planning – What it is Not

9. Succession Planning is NOT
A one time event
Decided by an individual
Used solely for individual career advancement opportunities
Reacting only when a position becomes open
Line mangers relying solely on their own knowledge/comfort with candidates.
succession planning is strategic, both in the investment of resources devoted to it and in the kinds of talent it focuses on. It is not a one time event; rather, it is re-assessed and revised annually through the process

10. Replacement vs. Succession
Reactive
Form of Risk Management
Substituting
Narrow Approach
Restricted
Pro-Active
Planned Future Development
Renewing
Organized Alignment
Flexible

11. Traditional vs. Future Driven by an annual HR procedures
Entitlement focus –bureaucratic/buddy payback system - decided in secret
“The list” and identified development actions, but no accountability for development
Driven by current and future business needs
Successors determined by an open process with multiple inputs and factors
Development plans, development discussions and coaching with both candidate, management, mentors, and others held accountable for progress and monitoring

12. Steps in the process Phase 1: Identify Key/Critical Positions
Phase 2: Conduct Position Analysis
Phase 3: Develop Succession Plan
Phase 4: Monitor, Evaluate, Revise

13. Phase 1: Identify Key/Critical Positions
Key Contributor- in achieving the organization’s mission or would hinder vital functions
Specialized Leadership – The position requires specialized or unique expertise
Geographic – The position is the only one of its kind in a particular location
Vacancy- Position will be vacant due to retirement/advancement in the organization/lateral moves

14. Phase 2: Conduct Position Analysis
What are the external and internal factors affecting this position?
What competencies or skill sets will be required?
What are the gaps (competencies or skill sets not possessed by the current staff)?
What strategies will be used to address the gaps?

15. Phase 3: Develop Succession Plan
The succession plan is the culmination of Phases 1 and 2.
Reviews of the individual positions and high turnover job classes are rolled into one document and gaps and strategies are formulated at an organizational or unit level.
The strategies to overcome the gaps are outlined to include target completion dates, responsible parties and required resources.
Succession plans should cover a 3- 5 year span

16. Phase 4: Monitor, Evaluate, Revise
Select evaluation period-typically reviewed annually
Be prepared to respond rapidly to unforseen changes to the plan
Status/Progress updates should be monitored via the succession planning template and EPA’s (depends what Holly choses here)
(Is this a good point to go into tools and add presentation of strategy?)

17. Overview of Process and Tools
Assess
Organizational
Risks
and Develop
Strategies
Manager
and Self
Evaluations
Org.Strategic
Initiatives, Mission
Vision & Values
Determine Gap
between
Actual Performance
& Behaviors vs.
Required
Competencies
Decision-Making
Matrix
Monitor & Track
Employee’s
Performance
Executive
Profiles &
Organization
Chart
Dev. plans focus
on both strengths
And dev.areas
Determine
For Leadership
Identify
Key Leadership
Candidates &
Assess Against
Process
Design
Process Implementation
Management
Developing and hiring key executive talent is a critical enabler for achieving our strategic initiatives.
The process began with determining which leadership and functional competencies are necessary for success at the executive level.
Our Executive Committee identified key talent to include in the initial phase of this process.
A self-evaluation and manager-evaluation were completed and submitted to the Training & Development group for analysis.
Executive Committee met to discuss candidates from a cross-functional perspective and to determine critical competency gaps across the group.
Development plans were created for the candidates to be more successful in their current positions and potentially move to the next level.
Their performance and development will be monitored on an ongoing basis at the executive level.

18. What tools will we use?

19. Insert Laura or Holly’s Talent Profile or readiness Assessment

20. Decision Making Matrix
SOLID CITIZEN PERFORMER
(High Performance/Low Potential)
Gets all important things done
Is a pro in his/her position
Is seen as a leader in his/her area
Has reached potential
Action Required:
Continue developing in current position; is in the right job
STRONG PERFORMER
(High Performance/Med Potential)
May act at level of capability of one level above current position
Acts as leader and role model
Exhibits many strengths or competencies beyond current role
Some leadership development issues
Look for opportunity to display leadership in current job
STAR PERFORMER
(High Performance/High Potential)
Acts at a level of capability of at least one level above current position
Acknowledged as a skilled leader and role model
Has wide spread influence beyond current role
Stretch assignments to prepare for larger role
QUESTIONABLE PERFORMER
(Medium Performance/Low Potential)
Gets most important things done
Is very proficient in his/her current position
Is not seen as a leader in his/her area
Work on improving performance in current job; may be candidate for lateral move
(Medium Performance/Medium Potential)
Shows signs of leadership and role modeling
Exhibits many FCC executive competencies
May be new in position
Leave in current job; continue developing skills and improving performance
(Medium Performance/High Potential)
Acknowledged as a leader and role model
Exemplifies FCC executive competencies
Acts at level of capability of next level in the organization
Focus on performance short term and development opportunities long term
LOW PERFORMER
(Low Performance/Low Potential)
Isn’t getting most important things done
Difficulty performing to standards in his/her current position
Consider reassignment to more appropriate position; including lower level or exit option
(Low Performance/Medium Potential)
Capable of making higher contribution
May be in wrong job or occupied with non-work distraction
Focus on improving performance
(Low Performance/High Potential)
Has been acknowledged as a team player and role model
Has exemplified FCC executive competencies
Address root cause performance issue; worthy of investment in development
Performance
The Executive Committee met and used this Decision Making Matrix to place candidates into one of the nine categories based on their performance and potential.
Performance x Potential = Promotability
Background:
Cataline, Lou. The Matrix: A Tool for Succession Management, American Productivity and Quality Center, September, 2001.
This articles talks in detail about the nine-box decision matrix. Originally developed in 1991, the model was popularized by GE in a 1999 case study by Harvard Business School. Since then, many best-practice organizations have adopted the matrix.
The primary benefit of the nine box matrix is that it enables decision-makers to uniformly review organizational talent.
This matrix assesses individuals on the basis of their performance and perceived potential. Performance and potential (often called promotability) are placed on two axes. With three degrees of promise on each axis, participants fall into one of the nine possible layers, which we have color coded to indicate where the strong performers lie. As a result, promotability can be revealed. (can call them A, B, C Players)
The primary benefit of the nine box matrix is that it enables decision-makers to uniformly review organizational talent. This matrix assesses individuals on the basis of their performance and perceived potential. Performance and potential (often called promotability) are placed on two axes. With three degrees of promise on each axis, participants fall into one of the nine possible layers, which we have color coded to indicate where the strong performers lie. As a result, promotability can be revealed.
Potential

21. Decision Making Matrix
SOLID CITIZEN PERFORMER-B
(High Performance/Low Potential) JF
STRONG PERFORMER-A
(High Performance/Med Potential) LA EB
STAR PERFORMER-A
(High Performance/High Potential) BR TO EK
QUESTIONABLE PERFORMER-C
(Medium Performance/Low Potential) DS
(Medium Performance/Medium Potential) EH LG TW KS
(Medium Performance/High Potential) TK AG
LOW PERFORMER-Mange up or out
(Low Performance/Low Potential)
(Low Performance/Medium Potential)
(Low Performance/High Potential)
Performance
Here are the results of the decision making matrix discussion.
Potential

22. Chart Results: Talent Summary
Functional Competencies
Leadership Competencies
Boundary
Cross
Perspective
Results
Drive for
Adaptability
Alignment
Organization
Influence
Communi
and
action
Others
Self and
Develops
Participants
and Balance
Integration
of Budget
Manage-
ment
Knowledge
Market
Methods
Business
Technology
and
Strategy
Planning
Participant 1
Participant 2
Participant 3
Participant 4
Participant 5
Participant 6
Participant 7
Participant 8
Participant 9
Participant 10
Participant 11
Participant 12
Participant 13
Several candidates sit firmly in the Needs Development area (Use EPA standards and Empire core Values). Their managers will be working closely with them to determine whether or not they can succeed where they are and/or be promotable.
If these candidates cannot be “A players”, we will redeploy them internally or outside the company and replace them with “A players”.
If we consider yellow our “B players”, the same decisions need to be made there. We will work to develop them and fairly quickly determine whether or not they can be “A players”.
Executive Committee met and has completed and approved the development plans for each of these candidates. We will track their progress on a quarterly basis.
This graphical representation is a comparison of each individual’s performance by competency (each row on the vertical axis represents an individual's score).
- Exceeds Standards - At Standard - Needs Development

23. For thought
It is an ongoing process where the players will change continuously
It is a strategic effort that utilizes inputs from multiple sources
The organizational direction may also change, so be flexible
Competencies need to be constantly monitored to ensure they are measuring what you want to measure

24. Refining the Program Prepare a program action plan
Communicate the action plan
Conduct Succession Planning meetings at leadership level initially
Training on Succession Planning