Group 4 - Succession Planning

GROUP 4 : TALENT MANAGEMENT

PRAVEENKUMAR GUNASEGORAN (PBS1331378)MOHD FITRI BIN MOHAMED RAZALI (PBS1331312)

MOHD ARIEF HAKIM BIN SHAMSUDDIN (PBS1331392)MOHD AINUL SHAH BACHOK (PBS1331421)

SUCCESSION PLANNING

INTRODUCTION

Succession planning is a systematic

approach to:

Building a leadership pipeline/talent pool to ensure leadership

continuity

Identifying the best candidates for categories of

positions

Concentrating resources on the talent

development process yielding a greater return

on investment.

Developing potential successors in ways that best fit their

strengths

TheoriesLavinga

• Planning should be directly linked to the organization’s strategic Goals and objectives, be driven by organizational strategy, and directly involve line managers early and often

Mary Young• Greater aging workforce

challenges to not necessarily require bigger organizational responses .. identifying the most strategic trouble spots and then selectively addressing them appears to be more effective- and certainly more doable- than increasing 9 the scope of the organization’s response in proportion to its aging workforce challenges

Coleman• During 1970 to 1979, the

Coleman’s research- demonstrated the typical approach which discovered in manpower planning, showing similar elements with the Asbury and Chapman “elements among these three studies are: “the definition of organization objectives and plans, determination of gross manpower, requirements for the planning period, assessment of in-house capabilities, determination of net human resource requirements to meet organizational goals, and development of an action plan and program to meet the objectives”

Cheryl• In 2009, she recommended

some strategies for implementing deliberate and systemic succession plans in the academic environment via a research in higher education institutes

Succession Planning Framework

• Step 1: Link Strategic and Workforce Planning Decisions • Step 2: Analyze Gaps • Step 3: Identify Talent Pools • Step 4: Develop Succession Strategies • Step 5: Implement Succession Strategies • Step 6: Monitor and Evaluate

Step 1: Link Strategic and Workforce Planning Decisions

• Identifying the long-term vision and direction

• Analyzing future requirements for products and services

• Using data already collected

• Connecting succession planning to the values of the organization

• Connecting succession planning to the needs and interests of senior leaders.

Step 2: Analyze Gaps

• Identifying core competencies and technical competency requirements

• Determining current supply and anticipated demand

• Determining talents needed for the long term

• Identifying “real” continuity issues

• Developing a business plan based on long-term talent needs, not on position replacement.

Step 3: Identify Talent Pools

• Using pools of candidates vs. development of positions

• Identifying talent with critical competencies from multiple levels—early in careers and often

• Assessing competency and skill levels of current workforce, using assessment instrument(s)

• Using 360° feedback for development purposes

• Analyzing external sources of talent

Step 4: Develop Succession Strategies

• Identifying recruitment strategies: Recruitment and relocation bonuses, Special programs

• Identifying retention strategies: Retention bonuses, Quality of work life programs

• Identifying development/learning strategies: Planned job assignments, Formal development, Coaching and mentoring, Assessment and feedback, Action learning projects, Communities of practice, Shadowing.

Step 5: Implement Succession Strategies

• Implementing recruitment strategies (e.g., recruitment and relocation bonuses)

• Implementing retention strategies (e.g., retention bonuses, quality of work life programs)

• Implementing development/learning strategies (e.g., planned job assignments, formal development, Communities of Practice)

• Communication planning • Determining and applying

measures of success Linking succession planning to HR processes: Performance management, Compensation, Recognition, Recruitment and retention, Workforce planning

• Implementing strategies for maintaining senior level commitment.

Step 6: Monitor and Evaluate

• Tracking selections from talent pools

• Listening to leader feedback on success of internal talent and internal hires

• Analyzing satisfaction surveys from customers, employees, and stakeholders

• Assessing response to changing requirements and needs.

Succession Planning Framework

Importance of Succession Planning

Organization

Cost & time savingAlways

prepared

Attract & retain talents

Individual

Value to organization

Personal Development

Problems with Succession Planning

Problems with Succession Planning

Crowned Prince Syndrome

Talent Drain

Managing HR Information

Lesson learned: the SUCCESSGeneral Electric (GE)• adopted succession planning from mid-19th century • Focuses on “Talent Differentiation” approach• the Super Bowl of CEO succession planning; mentioned a lot as a role model in succession planning papers• . "Most companies would be glad to hire anybody in the GE top 10," said Jeff Christian, CEO of Christian & Timbers Inc.

McCormick & Co. (MKC)• succession planning an integral part of CEO job• determined early on succession planning by management team and BoD• have succession plans for all the senior executives• grow the successors and develop them over a period of time • get the full participation from all the parties involved• included an outside corporate psychology firm to be an integral part of the whole process

3M• “…3M rose 97 cents, or 1.1 percent to 87.34 following reports that the company is working with Chief Executive George Buckley on a

succession plan.” (Wayne F. Cascio, 2011)• among the companies that sought after for recruiting leaders

Lesson learned: the SUCCESS (cont.)

McDonald’s• “You can’t figure out how to be a CEO until you are one.” This is a quote from McDonald’s outgoing CEO Jim

Skinner• Lesson learned from McDonald’s• Succession planning is an ongoing process • Internal Promotion of a CEO helps drive a consistent strategy• Development is critical

• McDonald’s has deep leadership bench and an ongoing focus on succession across the organization. • Jim Skinner came into the CEO role after the organization lost two CEOs in six months. • In April 2004 James R. Cantalupo, the chairman and CEO, died suddenly of a heart attack. • Six months later, his successor, Charles H. Bell, resigned after becoming terminally ill with colorectal cancer.

Apple• Carmine Gallo (Robert Strohmeyer, 2011) has listed 5 lessons from Steve Job’s succession at Apple• Focus on the customer, client, and user experience• Build a culture that transcends your leadership• Control the message, stay consistent• Transition proactively• Choose people who can take over your duties, not your personality

Lesson learned: the FAILURE(Bill George, 2007)

Hewlett-Packard• Loss market share• No internal succession plan within HP that resulted to went for

outside hiring and mostly failed to get accustomed with company’s culture

• When Lewis Platt stepped down as HP CEO in 1999, it set of a string of CEO hires from outside that has so far included (The VAR Guy, 2011):• Carly Fiorina (2000 to 2005; the Lucent veteran exited amid a

cloud of controversy)• Robert P. Wayman (interim CEO, February to March 2005)• Mark Hurd (2006 to 2010; the NCR veteran exited amid a cloud

of controversy)• Cathie Lesjak (interim CEO, August to October 2010)• Leo Apotheker (November 2010 to September, 2011; the SAP

veteran exited amid a cloud of controversy)• Meg Whitman (September 2011 - present)

Coca-Cola• Loss market share

Home Depot• Loss market share

Imagine

• Mitch Haws, vice president, global communications and investor relations reported that 20 Freescale employees are among the 239 people on flight MH370, were mostly engineers and experts

• "These were people with a lot of experience and technical background and they were very important people," Haws said. "It's definitely a loss for the company.“

Imagine

• 20 Experts and Engineer

SUCCESSION PIANNING: A NEXGENNER'S PERSPECTIVE

PROBLEM STATEMENTS

POOR HRM PRACTICES LEAD TO POOR SUCCESSION

PLANNING

INFERIORITY COMPLEX AMONG

LEADERS

GENERATION GAP

SUCCESSION PLANNING: A NEXGENNER'S PERSPECTIVE

PROBLEM 1: POOR HRM PRACTICES LEAD TO POOR SUCCESSION PLANNING

SMALL BUSINESSES PAY FAR LESS ATTENTION TO HRM PRACTICES THAN LARGE ENTERPRISES DO.

(DE KOK & UHLANER, 2001)

PERFORM ACTIVITIES OF HRM IN AN INFORMAL AND FLEXIBLE MANNER

FAMILY BUSINESS IT IS ESTIMATED THAT 70% WILL NOT SURVIVE INTO THE 2ND GENERATION AND 90% WILL NOT MAKE IT TO THE 3RD GENERATION.

(FAMILY FIRM INSTITUTE, 2004 )

LEAD TO MISTAKES:

NOT PREPARING YOUR SUCCESSOR NOT REALLY GIVING UP CONTROL NOT INCLUDING YOUR SUCCESSORS IN THE PLANNING PROCESS

PROBLEM 2: INFERIORITY COMPLEX AMONG LEADERS

OWN INSECURE FEELING

DEVELOP EITHER SUPERIORITY OR INFERIORITY COMPLEX

DISCOURAGES THEM TO IDENTIFY POTENTIAL SUCCESSORS

INCOMPETENCE LEADERS RUNNING

FIRM MUST BEAR THE CONSEQUENCES

52020

GENERATION WORKING SIDE BY SIDE IN

PROBLEM 3: GENERATION GAP

75%Managers said that managing multi-generational teams is a challenge

77%Said that different work expectations among generations is a leading challenge they face.

PROFILE OF MALAYSIAN ORGANIZATIONS IN 2010

GEN Y

(Born between 1981 - 1995)

Mohd Ainul Shah

Current Age : 8-27

GENERAL DIFFERENCES CHART

WORK ETHIC

TRADITIONALISTS BABY BOOMERS

GEN - X GEN - Y

• Dedicated• Work hard• Respect Authority• Age=seniority• Company first

• Driven• Workaholic-60 hr work weeks• Quality• Work ethic = worth ethicWork long hours to establish self-worth and identity and fulfillment

• Balance• Work smarter and with greater output, not

work longer hours.• Eliminate the task• Self-reliant• Want structure & direction• Skeptical

• Ambitious• Multitasking• Entrepreneurial


VIEW ON TIME AT WORK


GEN - X GEN - Y

• Punch the clock• Get the job done

• Workaholics• Invented 50 hr work week• Visibility is the key

• Project oriented• Get paid to get job done

Effective workers but gone @5PM on dot.


VIEW ON WORK LIFE BALANCE


GEN - X GEN - Y

Work hard to maintain job security

Workaholic. As a result, there is an imbalance between

work and family.

Because of parents who are Boomer workaholics,

they focus on clearer balance between work and family.

Not only balance with work and life, but balance with work, life and community

involvement and self development. Flex time, job sharing, and sabbaticals will be requested

more by this generation.


WORK ETHIC & VALUES


GEN - X GEN - Y

• Adhere to rules• Dedicated work ethic• Duty before fun• Their word is their bond• Like to be respected• Value Honor• Value Loyalty

• Challenge authority• Dislike conformity and rules• Strive to do their very best• Value Equality• Willing to take risks• Work efficiently

• Work/family balance is important to them• Outcome oriented• Output focused• Prefer diversity, technology, informality and fun

• Believe that because of technology, they can work flexibly anytime, anyplace

• High expectations of bosses and managers to assist and mentor them in attainment of professional goals.

• Looking for meaningful work


COMMUNICATION


GEN - X GEN - Y

• Diplomatic• Speak open – direct style• Use body language to communicate• OK to use first names

• Blunt/Direct• Immediate• Use straight talk, present facts• Tie your message to “results”• Has the potential to bridge the generation gap

b/w youngest and oldest workers.

• Use positive, respectful, motivational words• Don’t talk down-they will resent it• Be humorous-show you are human & Be careful

about the words you use• Determine your goals and aspirations

• Present your story in a formal, logical manner

• Show respect for their age/experience (address as Mr, Sir, Mrs)

HOW TO CARE GENERATION X

GEN - X GEN - Y

• Give Awards / Certificates• Be collaborative• Coach and support them• Provide flexibility• Be motivational• Care about their personal goals• Value their technical savvy

• Rewards with free time and opportunities

• Don’t micromanage• Give time, and specific feedback• Make it fun• Provide the latest technology

Documents

Group 4 - Succession Planning