109 - succession planning programs - do they work?

Preeta Philip

Faculty of Business & Economics, University of Melbourne

Succession Planning Programs – do they work?

www.fbe.unimelb.edu.au

Succession planning is a process for identifying and developing internal staff with the potential to fill key leadership positions in the organization.

Succession planning increases the availability of experienced and capable employees that are prepared to take on leadership roles as they become available.

What is Succession Planning?


“Failure to plan for succession is planning to fail.”- J.K. Williams, President, Williams Buggy Whip Co. Inc; 1902

Why Plan for Succession?


1. Accelerate the development and improve the retention of talented people.

2. Add value to the organization’s strategic plan and contribute to ongoing business strategies.

3. Ensure an organization has full access to the intellectual capital of their employees.

4. Improve employee morale and commitment to the organization.

Reasons for having a Succession Plan


1. Develop a Succession Planning Culture

2. Identify key critical roles within the organization and develop a clear understanding of the capabilities required for performing effectively in those roles.

3. Undertake an analysis of those critical roles.

4. Select candidates to participate in the program.

5. Plan and undertake the development in consultation with the candidate.

6. Regularly review and evaluate.

Designing and Implementation


Quantitative measures: ability to fill key jobs with internal candidates, rather than outside hires; ethnic and gender diversity in promotions; retention rates; and positive job evaluations following promotion.

Qualitative measures: the participant’s transition experience into their new role; quality of their preparation beforehand; quality of their development assignments.

Measuring & Evaluating


1. Consider strategies to manage the development needs of those not participating.

2. Recognize that the status of employees not initially considered as being high potential can change.

3. Consider providing career counseling as a general strategy to all employees.

Ethical & Fair Process


Manager identifies the individual(s) who in their view are best qualified to move into their position.

Manager develops a mentor/protégée relationship in which the manager coaches and guides the person who has been identified for their role.

Model 1 Succession Planning by Position


Advantages

- Simplest model

- Least costly and the quickest

Disadvantages

- Risk of ‘cloning’

- Candidates from other areas not considered

- Risk of disinterest by candidate chosen

Succession Planning by Position


High potential candidates are identified within the organization as the senior managers of the future.

Once the pool has been identified, those who make the list enter a program to develop an individual development plan, receive group training; mentoring program, and certain training programs are identified that these people should attend.

Model 2Creating Succession Planning “Pools”


Advantages

- Process fairer

- Provides broader development opportunities

Disadvantages

- Talented employees without a high profile may be overlooked

- Non “anointed” employees discouraged and demoralized

Creating Succession Planning Pools


Senior management as a group determines what competencies are required to enable a person to take on key roles.

All employees at a pre-determined level are provided with information on the program to enable staff to self identify if they wish to be involved in the program.

Interested employees then participate in workshop to determine their strengths and weaknesses; develop their own individual development plan; learn to take responsibility for their own career growth.

Model 3Top-down/bottom-up Succession Planning


Advantages

- Less conflict with equal opportunity principles; greatest potential to be able to deliver improved outcomes for women.

- Program serves to empower employees

- Process is transparent

Disadvantages

- Program may not work if there is no strong commitment to its continuation

Top-down/bottom-up Succession Planning


- University of Melbourne was established in 1853

- University: 47,000 students and 9000 staff. Faculty: 7,600 students and 390 staff.

- University of Melbourne is the No.1 ranked Australian University, No. 36 in the world Times Higher Education World University rankings, 2010-11.

- Only Australian university to rank in the Top 100 of the Business and Economics subject ranking in the Academic Ranking of World Universities, Shanghai Jiao Tong University, 2011.

- University named an Employer of Choice for Women by the Government’s Equal Opportunity for Women in the Workplce Agency (EOWA) 2012.

Quick Facts about us:


Administrators Succession Planning ProgramFaculty of Economics and Commerce


9 participants: 90% women; 80% retention rate; 70% are now in senior positions

- Both managers and participants reported that identification of skill gaps and individualized training/development was of great benefit

- Integration of performance development and workplan

- Faculty looking to implement another program in near future

Summary of Program


109 - succession planning programs - do they work?

Education

succession planning

succession planningadvantages

succession planningprograms

university of melbourne

australian university

key roles

capable employees

anointed employees