Module 4: Succession planning

Module overview
Learning Objectives

• Demonstrate an understanding of the value of

succession planning for successful businesses.
• Demonstrate expertise with the key elements of a
succession plan.
• Create and discuss aspects of a succession plan.
• Discuss the elements of a succession plan in
terms of roles, responsibility, function, scope, and
evaluation.
 A Need for Succession Planning
Replacing vs. Succeeding (I)

• Successful succession planning means

that if someone leaves an organization,
the right person is in place to take their
place.
• Succession plans were first used by
family owned companies to ensure that
the business stayed in the family.
 A Need for Succession Planning
Replacing vs. Succeeding (II)

• Succession planning is an aspect of

workforce planning that concentrates on
key positions.
• Workforce planning involves all positions
within the organization.
• Replacement hiring is a response
to a vacancy.
 A Need for Succession Planning
Replacing vs. Succeeding (III)

͟ Quick answer to immediate need

͟ Long-term commitment
͟ Developing individuals
͟ Based on current job descriptions
͟ Based on new directions and expanded
responsibilities to the job description
 A Need for Succession Planning
Replacing vs. Succeeding (IV)

͟ Uses input from the incumbent and supervisor

͟ Uses input from multiple perspectives and
resources
͟ May offer advancement within the
organization as a reward or result of seniority
͟ Considers whether the right person is in
the right role and merits advancement
 A Need for Succession Planning
Replacing vs. Succeeding (V)

͟ Addresses developmental needs of an

individual to ensure success in current and
future roles
͟ Is integrated with recruiting, training
development, and diversity factors
͟ Must usually be done quickly and is not
consistently coordinated with other
human resources activities
 A Need for Succession Planning
Replacing vs. Succeeding (VI)

͟ Can lead to finding the best person available

at the moment
͟ Focuses on the best candidate for the
position
 A Need for Succession Planning
The Reasons for Supporting Succession Planning (I)

Description SP/RH?
Quick answer to immediate need RH
Long-term commitment SP
Developing individuals SP
Based on current job descriptions RH
Based on new directions and expanded responsibilities SP
to the job description
Uses input from the incumbent and supervisor RH
 A Need for Succession Planning
The Reasons for Supporting Succession Planning (II)
Description SP/RH?
Uses input from multiple perspectives and resources SP
May offer advancement within the organization as a RH
reward or result of seniority
Considers whether right person is in the right role and SP
merits advancement
Addresses developmental needs of an individual to SP
ensure success in current and future roles
 A Need for Succession Planning
The Reasons for Supporting Succession Planning (III)

Description SP/RH?
Is integrated with recruiting, training development, and SP
diversity factors
Must usually be done quickly and is not consistently RH
coordinated with other human resources activities
Can lead to finding the best person available at the RH
moment
Focuses on the best candidate for the position SP
 Defining a Succession Plan
Strong Leaders and a Strong Organization (I)

• An organization can be great because of

great leadership.
• An organization can be great because it is
a great organization.
• Success stems from having both strong
leaders and a strong organization!
 Defining a Succession Plan
Strong Leaders and a Strong Organization (II)

• What type of plans do you commonly

encounter at work?
• Succession planning is just one plan that
requires input and support.
• What are some common elements
to these plans?
• Keep on top of the process.
 Defining a Succession Plan
Components of the Plan (I)

Succession plans must have:

• A mission statement, supported by
defined vision and values
• A dedicated team for planning,
design, implementation, follow-up
 Defining a Succession Plan
Components of the Plan (II)
 Defining a Succession Plan
Setting the Scope (I)

• Identify the critical people for

your succession plan
• Develop progression procedures
• Incorporate top-level support
and buy-in
 Defining a Succession Plan
Setting the Scope (II)

Case Study One

 Defining a Succession Plan
Setting the Scope (III)

Case Study Two

 Identifying Resources and
Analyzing Risks
Identifying Resources (I)
• The marketplace moves in cycles.
• What about loyalty? What about
gratitude?
• The process of developing leaders is a
calculated risk to ensure the success of
your business.
 Identifying Resources and
Analyzing Risks
Identifying Resources (II)
Consider:
• Where are your other resources located?
• Where do the people that you want to
attract actually spend their time?

Working with recruiting specialists can

open you up to more resources.
 Identifying Resources and
Analyzing Risks
Identifying Resources (III)
• Don’t be offended by changes in the way
people are approaching work.
• We cannot treat employees as
commodities; they will not stand for it.
• The strengths of the people who work for
your organization are what can make or
break you.
 Identifying Resources and
Analyzing Risks
Identifying Resources (IV)
• So far we have focused on developing
internal people as the most appropriate
successors.
• In some positions, however, that will not
always be possible.
• Developing relationships externally to
your organization can be important.
 Identifying Resources and
Analyzing Risks
Risk Assessment (I)
Factors
• Our compensation differs from competition by
>10%?
• Are we offering fewer benefits than
competitors?
• EE not satisfied with position title
• EE not satisfied with position
• Work hours not consistent with life needs
• Location not consistent with life needs
 Identifying Resources and
Analyzing Risks
Risk Assessment (II)
Factors ctd.
• Is EE receiving enough mentoring?
• Is boss supportive of work habits and
results?
• Friend in the workplace?
• Team or friend including EE in activities?
• Not learning anything new
• Not receiving developmental opportunities
 Defining Roles, Responsibilities,
and Functions
Individualized Engagement Plans (I)
• A succession plan can be a partly creative
and partly scientific process.
• Flexibility will allow the plan to evolve
and grow as business needs are
identified and change.
• Part of succession planning is finding
and attracting the right people.
 Defining Roles, Responsibilities,
and Functions
Individualized Engagement Plans (II)

• Engagement refers to the level of

commitment that people have.
• Engagement plans are a key
component in succession planning.
• Each critical employee must be
described within an individual profile.
 Defining Roles, Responsibilities,
and Functions
Individualized Engagement Plans (III)
Succession Plan Profile
1. Basic Information, including biography
2. Current status
3. Individual engagement plan
4. Risk assessment
5. Career management plan
6. Action plan with follow-up dates
 Defining Roles, Responsibilities,
and Functions
Working the Plan

• Assignment #1: Complete a Risk

Assessment.
• Assignment #2: Complete a first draft of
an IEP.
• Assignment #3: Create a biography of up
to 250 words.
 Gathering Information (I)
It is very important to know:
• What information you need
• Where to gather the information
• What methods to use
 Gathering Information (II)
How many critical positions do you see in the
chart below?
 Forecasting Needs
Key Ingredients of a Successful Plan (I)

Why is succession planning important?

• We need a work-ready pool of people.
• Our organization must understand that
a succession plan impacts long-term
sustainability.
 Forecasting Needs
Key Ingredients of a Successful Plan (II)

Key Ingredients
• We must be a part of a learning organization.
• Succession planning does not exist in a
vacuum.
• Develop reliable data gathering.
• Have senior level support.
• Continually assess your results.
• You do not have to do it all at once.
 Forecasting Needs
Coaching and Mentoring (I)

• Mentoring means actually teaching

someone a particular skill.
• Coaches lead; they do not teach.
• A coach approaches something in a way
to help someone discover, explore, and
ask their own questions.
 Forecasting Needs
Coaching and Mentoring (II)

• Good coaches take the time and effort to

learn how to coach.
• Coaching is available with specialties in
certain areas that can really help with
succession planning.
 Forecasting Needs

Coaching and Mentoring (III)

• Has anyone here worked with a coach?

• What results did you seek when you
started?
• Did you successfully reach your goals?
9 Box Model
 Putting the Plan Together
Using Appreciative Inquiry (I)

• Should we really be asking how

successful businesses flourish where
others fail?
• Appreciative inquiry is about
acknowledging what is working.
• Succession planning may require full-
scale change.
 Putting the Plan Together
Using Appreciative Inquiry (II)

• AI actually means to “ask questions

about things that are worth
appreciating.”
• AI focuses on what is going well, who
people are, and what their strengths are.
• AI is a natural fit for succession planning.
 Putting the Plan Together
Using Appreciative Inquiry (III)

The 4 D’s
• Discover the processes that work well.
• Dream about what will work in the
future.
• Design a process that is going to
get us through this.
• Deliver (execute) the design.
 Putting the Plan Together
Using Appreciative Inquiry (IV)

A Permanent Vacation
• The CEO of the Acme Shoe Company visits
the Easter Island and decides to stay there.
• The board of directors sets up an
emergency meeting to look at their options.
• Director Kim steers them towards an
AI approach.
 Putting the Plan Together
Using Appreciative Inquiry (V)

Tough Choices
• Another example of AI is during a reorganization.
• The city:
– Reviewed processes and practices to discover
what they were already doing well.
– Proposed different ideas.
– Designed a process to save money, improve
results, and save jobs.
– Implemented the changes over a gradual period.
 Putting the Plan Together
How to Choose the Leader (I)

• In order to have a meaningful assessment,

some employers are making the move to
work portfolios rather than resumes, and
multi-rater performance assessments.
• Whichever system you use, you can create a
quick reference that will assist you in
objectively identifying up-and-coming
leaders.
 Putting the Plan Together
How to Choose the Leader (II)

• What do you perceive as the benefits to AI and

multi-rater performance review in support of a
succession plan process?
• Are there drawbacks to using some kind of
leadership quality assessment, and if so, how
would you improve it?
• How could you sell the potential of AI and multi-
rater performance reviews to your organization?
 Putting the Plan into Action
Phased Implementation (I)

• Succession planning is really a process.

• It involves a commitment to several different
transitions rather than one significant shift.
• Those responsible for it must be able to “sell”
the value of the plan.
• To do this, you must know your plan
intimately.
 Putting the Plan into Action
Phased Implementation (II)
Changes in thinking and attitude that are a part of
succession planning:
• Considering staffing as a continuous process rather
than an annual undertaking
• Making the shift from a reactive replacement strategy
to a long-term retention and development strategy
• Evolving from a culture of lack, to a culture with a pool
of talent at the ready
• Shifting from subjective or creative non-measurement
strategies to an emphasis on meaningful data
 Putting the Plan into Action
Phased Implementation (III)

Succession Plan Organizational Chart

 Putting the Plan into Action
Technology (I)

• Technology can be discussed in both online

and high-tech approaches to succession
planning.
• What are some similarities and differences
between online and high-technology
methods?
• The best methods will depend on your
organization.
 Putting the Plan into Action
Technology (II)

How would you rate your current organization on its

technological savvy, on a scale of one to ten?
 Putting the Plan into Action
Technology (III)

What does your organization’s commitment to

technology say to you about their commitment to an
undertaking like succession planning?
 Evaluating and Reviewing the
Plan
Evaluation Challenges (I)
• Every succession plan requires a system of
evaluation.
• You can adapt your evaluation model from
others.
• If you cannot validate your program, chances
are the program will not survive.
 Evaluating and Reviewing the
Plan
Evaluation Challenges (II)

• Our goal is to provide you with a simple,

straightforward tool that measures
information in objective ways.
• Your evaluation needs to encompass the
entire business succession program.
• Formal evaluation needs to take place
each quarter.
 Evaluating and Reviewing the
Plan
Evaluation Challenges (III)
Evaluation Process
 Evaluating and Reviewing the
Sample Evaluation (I) Plan

• Through the life of a program, shorter

quarterly meetings should be
supplemented by longer annual or
semiannual meetings.
• Your evaluation program will be unique.
• The following list of questions can be
shortened and revised.
 Evaluating and Reviewing the
Sample Evaluation (II)
Plan
Succession Program Evaluation Checklist
Succession plan is coordinated w/organizational
strategic plans.
All succession incumbents have been identified.
All potential incumbents are identified at least 2
layers deep.
Succession plan is linked to internal training and
development programs.
Potential incumbents have a completed profile.
 Evaluating and Reviewing the
Plan
Sample Evaluation (III)
Succession Program Evaluation Checklist ctd.
There is a written mission, vision, and values
statement specific to succession program.
There is a written action plan that is being
followed.
We have developed a budget and resources.
We have designed a method to record/develop
individuals who are designated successors.
 Evaluating and Reviewing the
Plan
Sample Evaluation (IV)
Succession Program Evaluation Checklist ctd.
Management employees have attended up-to-
date workshops/training about the program.
Career development workshops have been
provided to employees.
We have established a method to compare
individual skills with potential future positions.
 Evaluating and Reviewing the
Plan
Sample Evaluation (V)
Succession Program Evaluation Checklist ctd.
A method is in place to forecast future talent
needs.
A method is in place to meet succession demands
by utilizing profiles and the IEP.
A tracking system is in place to record
development activity and prepare successors for
advancement.
 Evaluating and Reviewing the
Sample Evaluation (VI)
Plan

Action Steps That Result From This

Assessment
• List goal statements and a review
date.
• Each step should be written in
the form of a SPIRIT goal.
 Evaluating and Reviewing the
Plan
Check Out the Checklist

• Is 80% an acceptable target?

• Is deciding to Exclude or Keep a reasonable
way to decide on an element?
• Are there different elements that you
would include in the list?
• What wording would you change to make
the list fit your organization?
 Your Action Plan
Plan and Then Do (I)

• Succession planning, as we have seen, is

a large undertaking.
• Creating a plan involves:
– Access to people at different levels of the
organization.
– Access and coordination with functions of
Human Resources.
 Your Action Plan
Plan and Then Do (II)

• To keep your list from getting too

long, try to restrict yourself to five
items.
• Write them as a SPIRIT goal and be
sure to put your follow-up date
directly into your calendar.
 Your Action Plan
Plan and Then Do (III)

If you’re having difficulty choosing where to start:

• Do you know the extent of progress the current
succession plan in your workplace has made?
• Who are the members of the committee?
• Who is coordinating development of the plan?
• Who is responsible for following up on
benchmarks?
 Your Action Plan
Next Steps

When you find yourself getting in over your

head, or need some way to ground yourself,
imagine your organization chart.