Cultivating Succession: Where Is Your Organization on the Curve?

1. IBA Human Resources Conference April 17, 2013 Deb Schultz, GPHR, SPHRDirector-Strategic HR Services Cultivating Succession: Where Is Your Organization on the Curve?

3. Succession Management • Where is your organization? • Yet to hit the radar • Thinking but no action • Initial steps of planning • Well on our way • Established program(s) • The essence: • Good succession management = business success • Business continuity • Sustainable growth

4. Succession Management • The importance: • Organizational success is dependent on managers and employees effectively defining and executing strategy, objectives and tactics • Critical positions have significant impact on organizational success • Qualified individuals in critical positions are essential to success • Among the challenges: • Increased business complexity • Employee availability/readiness • Restructured organizations • Grooming reduced • Gap between one job and next increased • Requirement: active, dynamic, engaging & ongoing

5. Succession Management • The definition: • The process of ensuring the right person is in the right position at the right time with the right skills and abilities. • Key considerations: • Owned by the line and facilitated by HR • Integral business process/core organization process to address talent-related business risks • Proactive linkage to vision, values and strategy of the organization; planning before crisis to minimize business disruption .

6. Succession Management Process • Create strategy and business plan • Determine talent requirements based on business plan • Anticipate turnover, plot organizational changes and design system • Identify critical positions; review risk and supply • Determine role requirements • Identify high potentials and select most qualified candidates • Assess against requirements – current & future • Build and execute development plans • Track, measure, monitor, update and adjust as needed

8. Best Practices • Identification of core strategy – development or replacement strategy; buy or build, which may not be the same across the whole organization • Enterprise-wide strategy – strengthens opportunities • Senior management involvement and ownership • Viewed as critical component of business plan

9. Best Practices • Built on business plan with focus on future • Framed and developed through a robust performance based management system – competencies, feedback, development, measurement, accountability, training • Incorporation of job rotations, special projects, on the job experiences, learning assignments, mentoring, and outside of work experiences - all in addition to courses, readings, etc. • Succeed with succession – it’s a mindset • active, engaging, ongoing process

10. Strategic Considerations • Overarch: What bench-strength exists; what is needed, and by when? • Every employee is being developed based on interest, ability and potential • A pool of high potential candidates has been identified and is being developed for critical positions • A pool of candidates has been identified and is being prepared for management positions • Development resources are being allocated based on criticality of role/position

11. More Considerations • Vulnerability – positions and people • Managed turnover/retention • Metrics • Competencies • High potentials and high performers; potential and realized potential

12. Outcomes • Accelerated identification of issues & creation of action plans concerning the mix of talent against current & strategic issues: leadership talent, functional depth • Increased ability – high potentials and diverse talent • Increased ability and timeliness regarding readiness • Catalyst – organizational change • Excellent in-depth view of key talent – builds common framework • Opportunity to communicate strong signals about leadership • Continuity – competitive pace • Enhance understanding of issues that have leadership implications and opportunities • Broaden base of information about talent within the organization • Ensure quality successor candidates and strategies for each critical position

13. Align

14. Knowledge Management/ Transfer Strategy Alignment • Growing/ongoing trend and business opportunity • Preponderance of organizations do not incorporate retirement forecasts into knowledge transfer practices • Many do not incorporate skills gap analysis into their retirement forecasts • Gaps exist; experienced professionals, managers & executives could fill or provide support in temporary projects, interim management assignments, gaps in succession planning strategies, open opportunities for critical skills jobs, mentoring programs, communities of practice leaders or participants, and more • Demographics are in favor of this type of people/business strategy • Talent availability • Business continuity/retention strategies • Facilitating succession and/or incorporating mentorship

15. Strategic Considerations • Workforce and demographic assessment • Methods for capturing implicit knowledge and expertise of experienced employees and top performers • How the knowledge can be stored in a useful and accessible way • How to transfer the knowledge and experience to new and existing employees – utility of social web tools • Phased retirement, flexible work arrangement, or contingent pool of experienced resources – options; viability going forward?

17. Final Thoughts • Where is your organization on the continuum of succession management? • Yet to hit the radar • Thinking but no action • Initial steps of planning • Well on our way • Established program(s) • What successes have you had? • What challenges have you encountered? • What lessons have you learned?

18. At the end of the day… • Companies need to closely review their current succession planning processes and make necessary changes that will ensure they have strong leadership pipelines ready to take on critical positions within the company. • Succession planning has become, or needs to become, a strategic vehicle that enables your organization to create a competitive advantage through talent.

19. Additional Resources • Advance your plan and your involvement by using spring/ summer to zero in on your business knowledge, inside-out connect & relationships • Watch for, or ask for, the offering of strategic workforce management/organizational effectiveness courses (OD certification, coaching certification) to round out the current year, plan for the next, or align with your HR certification renewal requirements • Listen in on current or past free webinars for additional insights via your benefits of MRA membership • Stay current on research or trends!

20. Our Thanks • MRA is honored to be in the business of connecting people strategies to business strategies with you! • We value the privilege to be your partner. • Let us know how we can explore new horizons or affirm your current landscape with you, tap our wealth of experience, and offer further insight. • Your outstanding local contact: Becky Cruise 319-899-8381 or becky.cruise@mranet.org