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Succession
Planning
Passing The Torch To Our Future
Leaders
Gary Milewski
Perkins+Will, Inc
“There are two kinds of people in
organizations: Those with 20 years
experience and those with one year
experience repeated 20 times.”
—Gene Dalton, BYU
Managed Risk Prevention, LLC
Managed Risk Prevention, LLC
Are We in Crisis?
• 78 million Baby Boomers turning 65 in 20 years
• 16% of workforce is over 55.
• 25% over 55 by 2020.
• Retiring en-masses.
• Insufficient replacements available.
• People just leave – They always do
Managed Risk Prevention, LLC
What is Succession Planning?
• Systematic process for identifying, assessing, and developing staff
• Strategic planning for Human Capital
• An investment in future leaders
• Proactive versus reactive
• Sustainability that creates motivated and capable staff
•
Awareness, Connection, Commitment, Action
Managed Risk Prevention, LLC
Underlying Core Principles
• Leaders really do matter….
• Performance is what counts….
• Today’s top leaders may not be tomorrow’s….
• Talent is an enterprise resource….
• A broad set of experience & assignments is the best classroom….
• Top 100 to leave a legacy of future talent….
• Invest in the best….
Managed Risk Prevention, LLC
Recruiting C0st Ratio (RCR)
• For every dollar of first-year compensation, the
organization spends approximately 10 cents on activities
related to acquiring the talent.
Managed Risk Prevention, LLC
Managed Risk Prevention, LLC
A Successful Succession Program
• Senior Management support
• Part of an integrated HR process
• Needed skills within the organization
• Identification of critical skills
• Identification of high performers
• Identification of soon to be retirees
• Identification of skills, responsibilities, and competencies
• Establishment of a communication system
Managed Risk Prevention, LLC
Key Elements
• Assessment of key Positions:
•
What are the competencies and experiences needed to qualify
for each key position?
• Identification of Key Talent:
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Typically people at the top two levels of the organization and
high potential employees one level below.
Identified by their management’s assessment of their
performance and potential for advancement
Managed Risk Prevention, LLC
Key Elements
• Assessment of Key Talent
•
Each person on the radar screen, primary development needs
are identified focusing on what is needed for the next level
• Development Plans:
•
The plan is designed to help the person develop over the next
year
• Monitoring and Review
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The plan is reviewed with the key talent annually or semiannually. The purpose is to refresh or revise the plan.
Managed Risk Prevention, LLC
Key Elements
Assessment of
Key Positions
Identification of
Key Talent
Development
Monitoring & Review
Key
Elements
Assessment of
Key Talent
Generation of
Development Plans
Managed Risk Prevention, LLC
Leadership Development = V+C+L
Variety of Experience
Challenging Assignments
Ability & Willingness to Learn
- Center for Creative Leadership
Managed Risk Prevention, LLC
Succession Development
On The Job
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Job Enrichment
Special Projects
Committee Assignments
Task Force Participation
Lead Person Responsibilities
Giving Presentations
Preparing Proposals
Leading A New Program
Temporary Job Assignments
Full Job Change
Learning From Others
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Working With a Mentor
Teaming with an Expert
360 Feedback
Focused Interviews
Training & Education
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Seminars & Conferences
Continuing Education
E Learning
Cross Training
Managed Risk Prevention, LLC
Development Tool Box
Highest Return…..
 Full Job Change Focused on Development Needs
 Job Restructuring Based on Development Needs
 Mini Assignments
 Cross Divisional Project Leadership or Assignment
 Focused Coaching & Counseling
 Industry Representation
 Visits Accompanying Senior Executives
 Formalized Education Programs
 Full 360 Degree Feedback and Evaluation
 Motivated Self Development
 Seminars and Conferences
Lowest Return…..
Managed Risk Prevention, LLC
How Do We Learn
On-The-Job
Mentoring or Coaching
25% to 30%
55% to 65%
Training or Continuing
Education
Motivated SelfDevelopment
Managed Risk Prevention, LLC
Institutionalize the Process
Capture Stakeholder Support
• Commitment from Leadership
• Gather Resources
• Identify the strategic vision and goals of the organization
• Succession planning as part of the organization’s values
• Objectives of the program
Managed Risk Prevention, LLC
Organizational Assessment
of Needs
• Currently, where is the organization
• What is it that the organization is wanting to accomplish
• What are the identified gaps
Managed Risk Prevention, LLC
Current Organization Assessment
• Collect and analyze organization and demographic data
• Identify and prioritize key work processes/positions
• Identify condition and availability of resources
Managed Risk Prevention, LLC
Future Organization Assessment
• Analyze future requirements for service
• What are the goals of the strategic plan (SP)
• What are upcoming changes in the industry?
• What demands will technology place on the organization?
Managed Risk Prevention, LLC
Gap Analysis
• What are the differences between “today” and “tomorrow”
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Workforce
Processes
System/Resources
Determination of talent needed for the long run
Identification of the core leadership KSA’s (Knowledge, Skills,
Abilities) to bridge the gap
Managed Risk Prevention, LLC
Succession Planning Model
• Determine which employees will be involved in the program
• Build leadership pipeline
• Identify training and development strategies
• Develop retention strategies
• Create knowledge management and transfer strategies
Managed Risk Prevention, LLC
Succession Planning Model
Element
Objectives
Tools
Build a Leadership
Pipeline
1. Ensure the sustainability of
organizational leadership
1. Leadership competency development plan
2. Leadership talent pool development
3. Leadership mentoring
Develop Critical Function
Successors
2. Mitigate impact of attrition and
employee mobility on the
utility’s critical functions
1.
2.
3.
4.
Staff Development and
Training
3. Develop layers of depth to
perform organizational
functions
1. Staff development plans
2. Cross-training and work rotation
3. Job function certification
Develop Protection
Strategies
4. Increase ability to retain key
staff
1. Update and modify compensation and classification system
2. Career path planning
3. Cross-training and work rotation
Knowledge
Management and
Transfer
5. Ensure the accessibility of critical
organizational knowledge
despite staff attrition.
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2.
3.
4.
5.
Source: The Changing Workforce…Seizing the Opportunity
Recent retiree consulting
Mentoring
Apprenticeship/shadowing
Job function performance aids
Update and maintain key organizational knowledge resources
Document and codify key processes and functions
Expert interviews
Job function performance aids
Knowledge maps and inventories
Managed Risk Prevention, LLC
Implementation of Plan
• Determine resource needs for implementation.
• Identify barriers to implementation.
• Update or develop job descriptions.
• Prepare organization for change.
• If needed, implement strategies on pilot basis.
• Link succession strategies with HR.
• Train staff as necessary
Managed Risk Prevention, LLC
Evaluation and Continuous Assessment
• Define measure of success
• Determine frequency for program evaluation
• Development of a reporting process
• Track progress , communicate, and celebrate successes
• Adjust or adapt programs based on evaluations
• Ensure that top management remains engaged and provides
support and attention to program
• Make 3 to 5 year succession plans part of the organization’s
strategic planning process.
Managed Risk Prevention, LLC
Program Implementation
• Develop pilot program in one department
• Track and measure how it is working
• Communicating program
Managed Risk Prevention, LLC
Succession Planning Benefits
• Costs – highly variable and hard to quantify
• Employer Benefits
• Employee Benefits
• Customer Benefits
Managed Risk Prevention, LLC
Succession Planning Pitfalls
• Underestimating or overlooking employees
• No consideration to lateral movement
• Lack of training and development opportunities
• No development plan tailored to the position
• Not holding the management team accountable
• Not sharing data with employees
Managed Risk Prevention, LLC
"The domain of leaders is the future. The leader's
unique legacy is the creation of valued institutions that
survive over time. The most significant contribution
leaders make is not simply to today's bottom line; it is
to the long-term development of people and
institutions so they can adapt, change, prosper, and
grow."
Source: The Leadership Challenge, Kouzes & Posner (4th ed. 2007)
Managed Risk Prevention, LLC
Questions and Discussion
Gary Milewski
President
Managed Risk Prevention, LLC
919.758-8623 office
919-817-6823 mobile
[email protected]
Managed Risk Prevention, LLC