SUCCESSION PLANNING & STRATEGIC DECISION MAKING · Short term – 1 to 5 years ... Succession Planning & Strategic Decision Making Core Competencies ... Strategic Decision Making

SUCCESSION PLANNING& STRATEGIC DECISION

MAKING

Ross Hutchings, CAE

CSDA Executive Director

Succession Planning & Strategic Decision Making

Not Keeping Pace

• Technology advancing unprecedented rate• Growth in business – lowest rate since early 1970’s• Only 12% Fortune 500 co’s from 1955 still in business• 26% of Fortune 500 co’s fell off of list last year

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• Widening gap - technological change & business productivity

• Stress for individuals & organizations –feeling overwhelmed

• Result – inequality, wage stagnation and unrest

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Cause? Human capital strategies –

How businesses organize, mange, develop and align people

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10 Human Capital Trends

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Trend #1:

Organization of future is here• Shift from designing to building• Agility • Replace structural hierarchies • Networks of empowered teams

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Trend #2:

Learning replaces Careers• Real-time, experiential• Always-on

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Trend #4:

Employee experience• Culture, engagement & beyond• Employee journeys• Workplace re-design:

• Well-being, productivity systems

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Trend #6:

Leadership disrupted • Pushing boundaries• Agile, diverse, young leaders • Collaborative leadership model• Thrive in rapidly changing

environment

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Organization

• Relegated to cutting costs• Non acceptance of

“Creative disobedience” • Frustration – trial & error is messy

Re-Design Failure

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• Definition - A process for identifying and developing internal people with the potential to fill key leadership positions

• Key Benefit – increases availability of experienced capable employees prepared to assume various roles

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Goal:

Ensure continuity and successof operations and service

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Why do we need it?

• Turnover – retirements, resignations,terminations

• Generational mix• Attract new civil servants• Ensure smooth transition

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Ensure leadership is developed to meet

existing and future challenges

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If we don’t:• Loss of experience• Increased costs

• Recruitment• Training

• Loss of organizational knowledge• Reduced productivity• Negative impact on services

• Quantity• Quality

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Form a committee – look at the following:

• Recruiting – young, diverse• Employee development plans• Front-line supervision• Position rotation & mentoring programs• Transition management

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Step 1

Determine leadership pipeline

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Forecast potential vacancies Term

• Short term – 1 to 5 years• Long term – 5 + years

Run reports• Retirements• Age & Years of Service

Review Data• Eligible vs. Likely – Immediate?

2 yrs.? 5 yrs., etc.

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Step 2

Identify Core Competencies

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What is a Core Competency?A critical skill or set of skillsnecessary for employees tosucceed in a specific role orassignment

Why are they important?They are the building blocks for employeedevelopment & succession planning

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Core Competencies – Examples

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• Problem Solver• Team Builder • Change Agent • Innovator • Effective Communicator • Planner • Customer-Focused • Adaptable • Resilient • Politically Astute

• Subject Matter Expert • Organizer • Interpersonally Effective • Decision Maker • Flexible • Accountable • Results Focused • Ethical • Strategic Thinker


Step 3

Pinpoint Readiness Gaps

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COMPETENCY LADDERCommander and Above Executive Manager Business Acumen

Political SavvyCaptain Manager Strategic Decision Making

Leading Through Vision and ValuesLieutenant Mid-Level Manager Community Relations

Leadership DispositionDelegating Responsibility

Sergeant First-line Supervisor Building a Successful TeamPlanning and OrganizingSupervision/Developing OthersTechnical/Professional Knowledge

Deputy Line Staff Decision MakingStress ToleranceAdaptabilityBuilding TrustManaging ConflictCommunicationImpactQuality OrientationApplied Learing


Step 4

Link Competencies to Resources

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How will you help develop needed competency?

• Improve gaps in organization• Address gaps in individuals• Link gaps to activities or training

(handout)

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Trend #2:


Trend #4:

Employee experience• Engagement & beyond• Employee journeys

Trend #6:

Leadership disrupted • Agile, diverse, young leaders

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Step 5

Employee Readiness(handout)

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What can employees do?(handout)

1. Take ownership2. Make best of current assignment3. Seek out job related training opportunities 4. Work with other agencies and groups, volunteer5. Make presentations, become mentor/mentee

etc.

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Step 6

Organizational Responsibility(handout)

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What can your organization do?(handout)

1. Attract talent to the organization 2. Ensure leadership is developed 3. Provide a workplace culture that supports employee

engagement & retention 4. Optimize knowledge management 5. Improve individual & organizational effectiveness

etc.

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Trend #1:

Organization of future is here• Replace structural hierarchies • Networks of empowered teams

Trend #2:


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Trend #4:

Employee experience• Employee journeys

Trend #6:

Leadership disrupted • Collaborative leadership model• Thrive in rapidly changing

environment

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DecisionThe act of reaching a conclusion or making

up one’s mind.A position or opinion or judgment reached

after consideration.

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Strategic DecisionChosen alternatives that affects key factors

which determine the success of an organization’s strategy.

Decisions concerned with the entire organization, and the interface between resources and people.

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Characteristics/Features of Strategic Decisions

• Major resource propositions for organization• Harmonizing organizational resource capabilities

with opportunities and threats• Organizational activities that define its purpose• Supports major changes in fluid enviornment• Complex in nature• Involve top level of organization• Deals with future• Involves risk

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Difference between:

Strategic Decisions

Administrative Decisions

Operational Decisions

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Steps for Strategic Decision Making• Clearly identify the objectives or outcomes• Gather as much information as possible• Elaborate several possible choices in accordance

with values, mission and organizational goals• Reflect on possible outcomes of each course of

action – eliminate some, if possible • Make brief list of pros and cons or remaining

possible choices – rate by importance• Learn from previous experience, ask for options

from those who faced similar situations• Make decision – monitor results – modify as

needed

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Types/Traits of Strategic Decisions

• Pro-Active vs. Reactive• Optimal Alternatives• Classic vs. Adaptive• Behavioral• Rational• Intuition

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Types of Strategic Decisions

• Pro-Active – if strategic plans exist• Consider prior to necessity• Use strat plan as litmus test• Consider long-term effects

• Reactive – simple goals & objectives• Forced, due to situation• Rely on past decisions• Typically short-term effects

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• Optimal Alternatives

Taking time to consider all issues when making a strategic decision

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• Classic – uses strategic plans • Based on historic trends• Gathering all available data• Top-down management

• Adaptive – no static goals• “Real time” options• Access and shift• Pattern recognition

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“The capacity of human mind for solving problems is small compared to the size of the problem.”

• Behavioral Theory• In response to a problem• SOP• Level of alternatives fits goal

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• Rational – structured process• Rely heavily on facts and analysis• Uses step-by-step process • Logic, discipline, consistency

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• Intuition• Non-sequential processing mode• Anonymous input & ideas• Unconsciously access stored info

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What do you think would help make Strategic Decisions easier?


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•Vision•Mission•Brand

Vision

Embodies values and beliefs, motivations and inspirations

of an organization

Four Elements to Visioning

• Core Values• Core Purpose• BHAG (10 to 30 year goal)• Vivid Description of Success

Mission

What needs to be accomplished: where, why, for whom and how

A Brand is…

A promise to a consumer, built over time and subject to the same rules as a relationship

Brands have both functional and emotional benefits for the consumer which adds value to their lives


H Strategic Decision Making Tools

• SWOT Exercise• Market Research• Cost-Benefit Analysis• Feasibility Study• Flow of Strategic Choices

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SWOT AnalysisIdentify:

• Strengths (present advantages)

• Weakness (present disadvantages)

• Opportunities (potential advantages)

• Threats (potential disadvantages)


Market Research

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Cost-Benefit Analysis


7 Steps of Feasibility Study

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Flow of Strategic Choices

What Social Challenge are we working to

address?How do we believe we can make a difference?

What is our vision &theory of Change?

Where will we play?

How will we succeed?

What capabilities will we need?

What part of the problem should we work on? What role should we plan?Where will we focus our efforts?

What actions, adaptions, and economic model is required?

How will we measure our success?

What skills and abilities will we need, collectively & individually to create the impact we want to achieve?

Establish Goals

1 2Identify

Resources

3Assign & Prioritize

Tasks

4Create Assignments & Timelines5

Set up Evaluation Methods

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Modify Existing or

Adopt Alternatives

ManagementImplementation


What kind of resources should weconsider?

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PrioritizeTasks

Align to Goals

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Assignments

Timeline

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RepeatCheckpoint

Timeline

Check-In

SuccessesChallenges

Direction/Alternatives

ContinousEvaluation


Alternatives

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Scenario planning (sometimes called “scenario and contingency planning”) is a structured way for organizations to think about the future. A group of executives sets out to develop a small number of scenarios—stories about how the future might unfold and how this might affect an issue that confronts them.

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Successful Future Organizations• Agility • Networks of empowered teams• Learning replaces career • Employee experience –

engagement, culture, well-being• Push boundaries• Thrive in rapidly changing

environment

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1. Determine leadership pipeline2. Develop core competencies3. Identify readiness gap4. Link competencies with resources5. Employee readiness6. Organizational responsibility

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Ross Hutchings CAE

Executive DirectorChild Support Directors [email protected]

Please fill out your evaluation on this session.

Thank you!

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SUCCESSION PLANNING & STRATEGIC DECISION MAKING · Short term – 1 to 5 years ... Succession Planning & Strategic Decision Making Core Competencies ... Strategic Decision Making