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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Succession Planning & Strategic Decision Making
• 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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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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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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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
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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
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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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Succession Planning & Strategic Decision Making
Trend #2:
Learning replaces Careers• Real-time, experiential• Always-on
Trend #4:
Employee experience• Engagement & beyond• Employee journeys
Trend #6:
Leadership disrupted • Agile, diverse, young leaders
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Succession Planning & Strategic Decision Making
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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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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Succession Planning & Strategic Decision Making
Trend #1:
Organization of future is here• Replace structural hierarchies • Networks of empowered teams
Trend #2:
Learning replaces Careers• Real-time, experiential• Always-on
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Succession Planning & Strategic Decision Making
Trend #4:
Employee experience• Employee journeys
Trend #6:
Leadership disrupted • Collaborative leadership model• Thrive in rapidly changing
environment
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Succession Planning & Strategic Decision Making
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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Succession Planning & Strategic Decision Making
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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Succession Planning & Strategic Decision Making
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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Succession Planning & Strategic Decision Making
Difference between:
Strategic Decisions
Administrative Decisions
Operational Decisions
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Succession Planning & Strategic Decision Making
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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Succession Planning & Strategic Decision Making
Types/Traits of Strategic Decisions
• Pro-Active vs. Reactive• Optimal Alternatives• Classic vs. Adaptive• Behavioral• Rational• Intuition
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Succession Planning & Strategic Decision Making
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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Succession Planning & Strategic Decision Making
Types/Traits of Strategic Decisions
• Optimal Alternatives
Taking time to consider all issues when making a strategic decision
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Succession Planning & Strategic Decision Making
Types of Strategic Decisions
• 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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Succession Planning & Strategic Decision Making
Types/Traits of Strategic Decisions
“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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Succession Planning & Strategic Decision Making
Types of Strategic Decisions
• Rational – structured process• Rely heavily on facts and analysis• Uses step-by-step process • Logic, discipline, consistency
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Types/Traits of Strategic Decisions
• 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?
Four Elements to Visioning
• Core Values• Core Purpose• BHAG (10 to 30 year goal)• Vivid Description of Success
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
Succession Planning & Strategic Decision Making
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)
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
Succession Planning & Strategic Decision Making
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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Succession Planning & Strategic Decision Making
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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Succession Planning & Strategic Decision Making
1. Determine leadership pipeline2. Develop core competencies3. Identify readiness gap4. Link competencies with resources5. Employee readiness6. Organizational responsibility
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Succession Planning & Strategic Decision Making
Ross Hutchings CAE
Executive DirectorChild Support Directors [email protected]
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