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WhatisSuccessionPlanning?Successionplanningisadeliberativeandsystematiceffortbyanorganizationtoensureleadershipcontinuityinkeypositions,retainanddevelopintellectualandknowledgecapitalforthefuture,andencourageindividualadvancement.

Systematicsuccessionplanningoccurswhenanorganizationadaptsspecificprocedurestoinsuretheidentification,development,andlongtermretentionoftalentedindividuals.

It’sallaboutreadiness:therightpeople,fortherightjobs,attherighttime.1BusinessDriversofSuccessionManagementProgramsLabormarketrealitiesRetirementofBabyBoomersThefirstBabyBoomers(1946-1964)willbeeligibleforearlySocialSecuritypaymentsin2008.TighteningoflabormarketTheU.S.BureauofLaborStatistics(BLS)projectsalaborforceof162.3millionindividualsin2012andexpectsthattheeconomywillrequire165.3millionjobstobefilled.IncreasedglobalcompetitionImprovetheorganization’sbenchstrengthinkeypositionsIdentifyhighpotentialsearlyanddevisestrategiestoretaintalentPeoplewhoareperceivedtobepotentialsuccessorstothoseathigherorganizationlevelsDifficultyfindingcandidatesoutsidetheorganizationanddesiretopromotefromwithinUnexpectedlossofkeyleaders/talentReducingthecostofreplacingemployees2

TheFourSuccessionRisksVacancyRisk:WhenacriticalleadershippositionisnotfilledReadinessRisk:UnderdevelopedsuccessorsTransitionRisk:PoorassimilationofexecutivetalentPortfolioRisk:PoordeploymentoftalentagainstbusinessgoalsCorporateLeadershipCouncil,20033

SuccessionManagementBestPracticesAligningsuccessionmanagementwithorganizationalstrategyHavingleadershipsupportandinvolvementHiringpotentialsuccessorsfororganizationalcompatibilityHoldingleadersaccountablefordevelopingtheirtalentBuildingaclearandrobustprocessaheadoftime;avoidmultipleadhocprocessesacrossanorganizationEnsuringdata-drivendecision-makingAutomatingthesuccessionplanningprocessReducinglaboriousadministrativetasks,cuttingcosts,easeofdataanalysisBuildingadevelopmentmindsetintheorganization4

SuccessionManagementBestPracticesIntegratingprogramwithothertalentmanagementprocessesTalentAcquisitionPerformanceManagementTrainingandDevelopmentCompensationandRewardsUsingacoresetofcompetenciesorbehaviorsAsatemplatefordevelopmentToestablishastandardofcomparisonforassessmentDrivingtheprocessdownintheorganization,notjustexecutivelevelIncludingawiderangeofsignificantdevelopmentalactivitiestoextendtalentcapabilitiesBeingopenwithemployees-informingtheiremployeesabouttheprogram,process,andwheretheystand5SuccessionManagementObstaclesandPitfallsLackofleadershipsupportOfficepoliticsFailuretoalignsuccessionmanagementgoalswithorganizationalgoalsLackofaneffectiveperformancemanagementsystemApoorlydefinedandoverlycomplicatedprocessCostorlackofdedicatedresourcesLackofmetricsIgnoringdatawhenmakingpromotiondecisions(e.g.,promotingfriendsinsteadofthebestcandidate)FailuretoholdleadershipandtalentaccountableToomuchfocusonafewhi-potentialsversusgrowingarobustpooloftalentBeingreactiveversusproactive:notdoingit!65RulesforSettingupaSuccessionPlanningSystemFocusonaflexiblesystemorientedtowarddevelopmentandnotjusttraditionalreplacementplanning.Focusonpositionsthatareessentialtothelong-termhealthoftheorganization,andmanagethepipelinetoensuredevelopmentopportunities.Haveatransparentsystem–ensurethatemployeesknowhowtheyaredoingandwhattheyneedtodotoreachthenextstep.Regularlyevaluatethesystem.Aretherightpeoplebeingdeveloped?Isthetalentpoollargeenough?Bewillingtochangethesystemasneededinresponsetofeedback.Conger&Fulmer,2003.

7BestPracticeSuccessionManagementCycleSuccession

ManagementEstablishBusinessCaseAdaptedfromSobol,Harkins,&Conley(2007).BestPracticesforSuccessionPlanning.8EstablishingaBusinessCase*Describethetalentimplicationsofinternalandexternaltrends.Describetheorganization’scurrentstate.AbilitytoacquireandretaintalentTalentgapsAdequacyofsystemsandprocessesCulturalfitReadinessassessmentDescribethecostsandrisksinherentinthecurrentstate.Describeapreferredfuturestate.Describebenefitsofthefuturestate.Finally,listtheinitialstepstoclosingthegapbetweenthecurrentandfuturestates.Stressinvolvement/commitmentofaudience*AdaptedfromBestPracticesforSuccessionPlanning(2007)bySobol,Harkins,andConley.9BestPracticeSuccessionManagementCycleSuccession

ManagementEstablishBusinessCaseDevelopStructureDesignSystemsPlanImplementationAssessBenchStrengthAdaptedfromSobol,Harkins,&Conley(2007).BestPracticesforSuccessionPlanning.10GrowthPotentialPerformanceLowMediumHigh

LowMediumHigh9-HiPotentialFutureLeaderSuperiorperformer.Strongpossibilityofpromotiontonextlevelorbeyondwithin12months.8-HiPotentialFutureLeaderSuperiorperformerwithmoderatepossibilityofpromotiontonextlevelorexpandedlateralmovewithinorganizationwithin1-3years.6-HiPotentialFutureLeaderSolidperformerwithstrongpossibilityofpromotiontonextlevelwithin1-3yearsbasedonincreasedjobperformanceincurrentrole.5-HoldforDevelopment

Solidperformerincurrentrole.Mayberelativelynewinpositionandstillgrowingintojob.Promotionlikelyin2-3years.2-

WatchList

Performancenotgood.Maybeduetochangeinjobscopeorwrongjob.Duetorecentperformancetrend,potentialmaybequestionable.3-

UnusualCase

Currentperformanceisnotgoodbutpastperformancehasbeenstrong(couldbeshorttermissueorwrongjob,etc.).7-ProinPositionSeasonedProfessional.Consistentlysuperiorperformer,difficulttoreplacebutnotlikelytobepromotedwithin12months.4-SolidPerformerPerformancehasbeensolid.Unclearwhetherindividualcangrowwiththejob.Unlikelytobereadyforpromotioninforeseeablefuture.1-WatchList

Performanceisweakincurrentrole.Individualisdoingjustenoughtogetby.Chancesoffixingareremote.Considerationshouldbegiventoreplacingtheindividual.BestPracticeSuccessionManagementTool:GE*NineBoxModel*Crotonville’sManagementTrainingCenter11KeyStepstoAnalyzingBenchStrengthBeforetheSPmeeting:Leadersassesstheirteamsusingthe9-boxtool,theorganization’scompetencymodel,andothertoolsasappropriateDuringthemeeting:Leadershipteamdiscusses

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