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Building Succession Planning Capabilities
NOHRC 2016Marian Wright
Succession Planning is…
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Succession Planning is…
identifying and developing people with potential to fill key positions.
Right people, right place, right time
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Why is it so important? Do any of these sound familiar?
Org so flat that leaders are not getting experiences to be effective higher up
The Senior Leader is the brand, or the sole revenue driver.
Long-term employee has everything “in their head”.
Senior leader suddenly gone.
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A wave of retirements is coming soon
When left to chance, incumbents groom successors who are like them in
appearance, background and values.
When left to chance, incumbents groom successors who are like them in
appearance, background and values.
Proactive succession planning
˃ Ensure a steady, reliable pipeline to
mitigate risk
˃ Develop stronger leaders
˃ Establish and communicate career path
options
˃ Increase diversity in leadership
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Succession Planning ≠ Replacement
Proactive talent development--Pool of talent ready
Key components of succession planning
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Succession Planning
Inventory positions
Evaluate Talent
Identify plans
Follow through
Succession Planning
Inventory positions
Evaluate Talent
Identify plans
Follow through
Inventory Key positions
Prioritize:
˃ Difficult to fill—leadership or experience.
˃ Competitive advantage.
˃ Strategic significance.
˃ Large risk if left vacant.
˃ Newly created.
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What will be needed in the role in the future?What will be needed in the role in the future?
SizeComplexity
Overall orgLeadership capabilities
Succession Planning
Inventory positions
Evaluate Talent
Identify plans
Follow through
Performance and Potential
• How do you currently define performance?
• Align with performance evaluation criteria
• What differentiates your highest performers?
Performance
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• Invest in own learning and development
• Self-awareness
• Track record of developing others
• High motivation
Potential
Potential
Performance
DNM
Low
Meets
Exceeds
Medium High
Talent Review Grid
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High ProfessionalHigh Professional
PlusConsistent Star
Solid Professional Key Performer Future Star
Lower PerformerInconsistentPerformer
Diamond in the Rough
Potential
Performance
DNM
Low
Meets
Exceeds
Medium High
Talent Review Grid
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Talent Review Grid
High ProfessionalPlus
Adaptable, strong in one or more areas, functions. Variety
of promotion options.
Consistent StarPerforms well in most areas.
Can take on major stretch assignments. Can be
successful nearly anywhere.
Future StarCan take on new challenges
quickly. Variety of promotion options.
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Succession Plan Summary
Timeframe
PositionReady Now
Ready 1-3 years
Ready 3-5 years Ready 5+
EllenCEO Tom
Mark Ben Matthew LennyVP of Sales David August
Jeffrey Brian Chris Maxine
VP of Ops Sharon
Barb Mark CarsonVP of HR Christine Jason Denise
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Succession Plan Summary
CEO
Tom-10 years
VP Sales
Bob-1 year
Greg-4 years
VP OperationsMary-Ready Now
Pete-2 years
Elizabeth-3 years
VP HR
Linda-Ready Now
Fred-4 years
Pete- 5 years
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Succession Planning
Inventory positions
Evaluate Talent
Identify plans
Follow through
Development Planning
Development Goal
Identify 1-3 areas of focus.
Development Actions
Identify the steps you will
take.
ImpactDefine the impact on
you and the organization.
TimelineDefine key milestones with dates.
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Purposeful development opportunities
˃Exposure to key executives
˃Exposure to strategy planning process
˃Cross-functional rotation
˃Cross-functional project
˃Action learning programs
˃Global rotation
˃International project work
˃Coaching (internal or external)
˃Mentoring (informal or formal)
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Succession Planning
Inventory positions
Evaluate Talent
Identify plans
Follow through
“Best in Class”
Succession Planning Effectiveness reviewed
regularly
360 Reviews used to provide holistic view of
talent
Leaders held responsible for developing talent
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Role of Management and HR
Management
HR
Champion
Advocate
Drive Accountability
Know the talent
Influence
Facilitate
Bring new ideas
Provide data
Metrics
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Sample metrics
• Number of candidates each in ready now and future categories.
• Percentage of key jobs filled internally.
• Ready now total includes multiple individuals.
• Retention rate of high-potentials.
Bench Depth
Sample metrics
•Percentage of women and minority promotions vs. percentage in pool.
•Percentage of women and minority successors.
Diversity
Sample metrics
• Promotion rate of successors.
• Success rate of those promoted as identified successors. What is the % that got high ratings in their new role?
• Time to fill open positions.
• In what % of promotions/moves was the succession planning process used.
Effectiveness
Sample metrics
•Every person identified as a successor or as high-po has a development plan that is supported by the organization.
•Quality and success of development plans.
Development Plans
Challenges
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Lack of support from senior management
Limitations in small organizations
The Learning Curve
The “blockers”
Lack of internal talent
Where can you start?
Build Business Case
Identify Key Roles
Understand Talent
Get Advocates
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