planning to succeed march 2011

Planning to succeed

by Toronto Training and HR

March 2011

Contents3-4 Introduction to Toronto

Training and HR5-6 Definition7-8 Components of succession

planning9-11 Preparing for succession

planning12-18Steps to effective succession

planning19-22Succession management23-28Formal succession planning

systems29-36CEO succession37-46Talent and succession planning47-48Common planning pitfalls49-50Case study51-52Conclusion and questions

Introduction

Introduction to Toronto Training and HR

• Toronto Training and HR is a specialist training and human resources consultancy headed by Timothy Holden

• 10 years in banking• 10 years in training and human resources• Freelance practitioner since 2006• The core services provided by Toronto Training and HR

are:- Training course design- Training course delivery- Reducing costs- Saving time- Improving employee engagement &

morale- Services for job seekers

Definition

DefinitionWhat is succession planning?

Formal succession planningInformal succession planning

Components of succession planning

Components of succession planning

Recruitment of new people into the organizationCreating the next generation of managersIdentifying subject matter experts and creating knowledge transfer plans and processes

Preparing for succession planning

Preparing for succession planning 1 of 2

Determine trends, attrition rates, high risk departures to make a planGet the numbers and understand themTarget efforts to areas where the lack of competent employees will hurt you the mostUndertaking an environmental scan

Preparing for succession planning 2 of 2

RecruitmentKnowledge transfer planCriteria for identifying subject matter expertsHow to identify subject matter expertsLessons learned in knowledge transferCommunities of practiceManagement development

General managers/specialists

Steps to effective succession planning

systems

Steps to effective succession planning systems 1 of 6

SUCCESSION PLANNING MODELIdentify key positionsBuild job profiles for each positionCompetency gap analysisDevelopment opportunitiesPersonal development plansMaintain skills inventory


INTEGRATED SUCCESSION MANAGEMENTThe CEO and executive team engage in succession managementHR develops tools, structures discussions,facilitates the process, and assists in identifying and assessing high performers and high potentialsLeaders have an enterprise view of talent, and do not limit replacements by function, business, or geography


INTEGRATED SUCCESSION MANAGEMENTSuccession management is highly aligned with the business strategyTalent in professional and management tracks is highly valued; high performers in key positions who may have “topped out” are also highly valuedThese companies prepare for future needs while considering future changes, such as the restructuring, growth and development of new product lines


INTEGRATED SUCCESSION MANAGEMENTManagers are held accountable for carrying out action items from talent review sessionsThese companies are more transparent about thesuccession process and provide more focused development opportunitiesSuccession management processes are linked toother talent management activities, including a strong integrated development component


They have smooth transitionsThey are able to identify the right developmental assignmentsThey provide meaningful appraisals and feedbackThey use appropriate selection criteriaThey have a number of candidates for each position


Determining job requirementsDetermining high potentialsGap analysisExecuting a development plan

Succession management

Succession management 1 of 3

BENCHMARKING THE BEST IN CLASSQuality and quantityTalent realities are driving succession management adoptionThe maturity class frameworkInternal challengesPressure, Actions, Capabilities, EnablersBest in class strategiesMaking succession management more strategic


BENCHMARKING REQUIREMENTS FOR SUCCESSCompetitive assessmentCapabilities and enablers


REQUIRED ACTIONSFor all organizationsSteps to success

Formal succession planning systems

Formal succession planning systems 1 of 5

REASONS FOR ADOPTINGIdentify and prepare future leadersAssure business continuityCreate opportunities for internal advancementRetentionFill future vacancies created through retirementPrepare for business growth/expansionAddress projected talent shortages


REASONS FOR ADOPTINGDeal with a skills gap among employeesAddress change effectivelyHandle emergencies or threats effectivelyReduce financial and operational costs for external recruitment


BENEFITSProvides a specific connection to business and strategic planningProvides a more systematic basis to judge the risk of making particular succession and developmental movesAssists in developing systematized succession plans that fit with a distinct trend to codify, whatever possible, more general and comprehensive corporate palling actionsImproves the identification of high potential and future leaders, whereby the organization can engage with them for leadership development initiatives


BENEFITSReduces randomness of managerial development movementsHelps anticipate problems before they get started – and thereby avoid awkward or dysfunctional situationsProvides logical approach for locking succession planning into the process of human resource planning – connecting formats (data, timing) with process (judgement, discussions, analyses)


BENEFITSFacilitate integration of the many components of human’s resources planning after having done many of these separately in the past Improves internal promotion opportunityProvides early warning if succession does not exist for a position allowing for lateral hiring from the market.

CEO succession

CEO succession 1 of 7

The goal of CEO succession is finding the right leader at the right timeCEO succession is a board-driven, collaborative processCEO succession is a continuous processThe board should ensure that the CEO builds a talent-rich organization by attracting and developing the right peopleSuccession planning should be driven by corporate strategy


SYSTEMIC STRATEGIC CHANGEYou’re always in CEO successionCreate a valid CEO modelEvaluate both competencies and characterCreate a culture of leadership development at the topAssess top internal candidates against the CEO Model and create enterprise/CEO leadership development plans


SYSTEMIC STRATEGIC CHANGEGet key candidates exposed to the boardConsider benchmarking the external marketNo halos allowed!Develop the new senior teamCascade leadership development to support strategic change


BEST PRACTICEUsing an experienced third party to assess external and internal candidates in order to bring the requisite objectivity and uniformityGiving the third party extensive exposure to the organization, its structure, culture, and aspirationsDefining the job specifications for the CEO in terms of the company's future strategy and the competencies that will be required to achieve it


BEST PRACTICEEnsuring that the third party evaluates all internal and external candidates using proven, quantitative and qualitative methods of assessmentUsing the results to guide development activities for internal candidates


Addressing the disconnectStart with a visionStrategic alignmentAddressing human naturePull and push


GETTING IT RIGHTEstablish a succession committeeReview succession plans early and oftenIdentify your gapsBuild a strong candidate listKnow your strategyLearn from best practiceEvaluate the process often and make changes when appropriate

Talent and succession planning

Talent and succession planning 1 of 9

Critical conversation oneCritical conversation twoCritical conversation threeCritical conversation four


Internal dialogue of employeeSystematic dialogue of employee with immediate stakeholdersEmployee/organization dialogueSocial networking dialogue


ROUTE TO THE TOPInsidersOutsiderInsider-outsidersBoard membersFormer executives


IDENTIFYING HIGH POTENTIAL LEADERSStrong track record of performance, proven results, and success in past or current rolesStrong interpersonal skills—understanding the people-side of businessStrong verbal and written communication skillsDrive, initiative, or an ambition to increase level of responsibility or readily accept new challengesAn ability to create and articulate company vision and strategy, set direction, execute objectives, and understand the total business


DEVELOPING LEADERSHIP TALENTExposure (to peers, executives, board members, decision makers, different levels of the organization, or the global business).Increased responsibilities.Special assignments/projects (including stretch assignments).Job rotation.Coaching, feedback, mentoring, and development planning.


PREVENTING DERAILMENTIncrease feedback and communication.Develop an action plan.Minimize the impact of stressors and personal problems.Improve levels of maturity.Offer coaching.Provide new opportunities or challenges.


PROMOTING PEOPLE WHEN THEY ARE NOT SUITED TO THE NEW ROLEAn underdeveloped or non-existent leadershipstrategy.Lack of a leadership model.Inability to be honest, authentic, and transparent with high-performers.No common definition of high potentialand high performer.


EVALUATING BOARD DIRECTORSIt is imperative for boards to have standards ofperformance metrics. Without these, the board cannot assess its own successes and failuresDirectors should be held accountable for theresponsibilities for which they are paid. Evaluations make them aware of this accountabilityOne size does not fit all. Good governance is anorganic process, and evaluations should relate to theunique situation of a particular company


EVALUATING BOARD DIRECTORSAs an evaluation progresses, it must serve one clear objective: to provide guidance that will create superior long-term shareholder valueThe development of an evaluation process often occurs in stages, building from CEO evaluation to full board evaluation to individual director self-assessment and, finally, to peer evaluationsTo evaluate itself, a board should compose a description of its specific duties/goals/objectives, and then set about measuring its performance against those responsibilities

Common planning pitfalls

Common planning pitfalls

Concentrating on a succession plan for the senior leadership team onlyAttempting to “clone” the incumbentAssuming that good performance at one level will guarantee good performance at the nextViewing a succession plan as merely a replacementprogram

Case study

Conclusion & Questions

Conclusion

SummaryQuestions

planning to succeed march 2011

Business

specialist training

hrtoronto training

training course delivery

training course design

succession management23

succession planning47

succession planning12

common planning pitfalls49