Succession Planning: Plan for it before you need it. John Newton, SPHR John Newton and Associates
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1 Succession Planning: Plan for it before you need it. John Newton, SPHR John Newton and Associates
2 Everybody Leaves John Newton and Associates 2
3 John Newton and Associates 3
4 John Newton and Associates 4
5 John Newton and Associates 5
6 John Newton and Associates 6
7 Succession Planning A Definition Succession planning is a talent management strategy to help identify and foster the development of high-potential employees. Succession planning pro-actively addresses the natural churn of employees at all-levels of the organization (including Board Members, Leadership. Management, additional Key Positions). John Newton and Associates 7
8 Replacement Planning A Definition Replacement planning should be considered a component of Succession Planning. It assures a process of finding Superstars to bring to the organization when there is not a viable internal candidate. Replacement planning is a talent management strategy to prepare for sudden, immediate staffing needs focusing on qualified backup for Board Members, Leadership, Management and other Key Positions. John Newton and Associates 8
9 Why Now? STRONG Leaders and STRONG Organizations Insist on Succession Planning Life is Unpredictable: What happens if we have no Succession Plan. Life is Predictable: People plan for futures beyond our organizations. John Newton and Associates 9
10 Why is it Important to Have a Succession Plan? To avoid extended and costly vacancies in key positions and assure the stability of business operations. To provide meaningful developmental opportunities for our organizations and our employees at varying levels. To help develop a diverse workforce by enabling decision makers to look at the future make-up of the organization as a whole. To offer peace-of-mind for the departing employee. John Newton and Associates 10
11 Succession Planning Levels Board of Directors Executive Staff Middle Management Key Performers Business Model For-Profit Non-Profit Paid Staff/Non-Paid Staff John Newton and Associates 11
12 What Makes a Successful Plan People Assess, Design, Develop, Implement, Evaluate Do what we say we are going to do Willingness to modify Simplicity The right tools Part of the culture; part of the Strategic Plan Assign a process owner Transparency versus undercover Build your bench strategically Build your network Kindness and respect John Newton and Associates 12
13 TAKE ACTION #1 STAND UP to the FEAR! STAND UP to the RESISTANCE! Identify any initial concerns/barriers regarding Succession Planning. John Newton and Associates 13
14 Succession Planning The Development John Newton and Associates 14
15 Steps Involved in Succession Planning Recognizing and accepting Succession Planning as a welcome necessity. Identifying legal and diversity issues. Anticipating future business needs. Assessing current and future position success factors. John Newton and Associates 15
16 Steps Involved in Succession Planning Identifying and evaluating Key Positions/Employees. Designing individual development plans for Key Employees. Planning for positions that do not have an immediately recognizable internal candidate pool (Replacement Planning). Keep the plan current; have a schedule/timeline John Newton and Associates 16
17 Identifying Legal and Diversity Issues When positioning employees for succession, avoid like-me approaches. Organizations tend to take comfort in advancing those employees to key positions who closely resemble incumbents in ways such as age, education, leadership style, industry experience, career trajectory and of course, race and gender*. Discrimination laws require inclusion of all qualified employees/candidates regardless of race or gender. John Newton and Associates 17 *Source: Moving past 'Mini-Me': building a diverse succession plan means looking beyond issues of race and gender - Diversity Agenda, HRMagazine 2003
18 Think About Caution: We must be careful not to exclude employees from Succession Plan consideration solely because of the employee s age, current family situation or other protected characteristics. John Newton and Associates 18
19 Assessing Current and Future Position Success Factors What job functions, if any, will be consolidated? Will the projected workload volume increase or decrease? Will org chart/staffing levels change? Competencies Experience Education Industry What skills and abilities will be needed to match these changes? John Newton and Associates 19
20 Designing Individual Development Plans for Key Employees First strengths and weaknesses must be identified Action plans for development of strengths and reduction of weaknesses should be created. Leadership development programs. Skill-specific educational programs. Mentoring program. John Newton and Associates 20
21 TAKE ACTION #2 A STRONG Leader must start with their own role! A)Identify three core competencies of the position. B) What are you seeking from a candidate that might not be found on a job description? Be the EXAMPLE! John Newton and Associates 21
22 Identifying and Evaluating Key Employees The incumbents, along with the Executive Director and HR, identify employees available for succession into their positions. Selection is based on available candidates. Assessment tools help keep the process clean and consistent. One standard method used to chart the available candidates and their readiness level to succeed is the 9-box grid. John Newton and Associates 22
23 Solution John Newton and Associates 23
24 Leadership Potential Performance Grid P O T E N T I A L HIGH High Potential/Low Performance Newly hired or promoted Focus on upgrading performance Individual should not be in this category for more than 1-2 years Retention important Mid Potential/Low Performance Focus on reasons for lack of performance Set short term goals for performance improvement 6 8 High Potential/Medium Performance Key in talent pipeline Valuable future asset 1-2 years away from next role Focus on maximizing performance Retention critical Mid Potential/Medium Performance Focus on performance and skill gaps Assess future potential 2 5 High Potential/High Performance Highly valuable asset Successor potential Ready for promotion to position with stretch responsibilities Retention critical Mid Potential/High Performance Key in talent pipeline 1-2 years away from next role Focus on training and development opportunities to eliminate skill gaps Retention critical 1 3 LOW 6 Low Potential/Low Performance May present an upgrade opportunity 9 Low Potential/Medium Performance Focus on performance improvement PERFORMANCE 7 Low Potential/High Performance. Subject matter expert May have reached maximum potential Mentor for others Retention important Note: Leadership potential should be assessed over a 2-5 year time span and not be just a reflection of the annual performance appraisal. 4 HIGH 24
25 Solution John Newton and Associates 25
26 Position Candidate Readiness Level YOUR ORGANIZATION Area/Department Name Key Position Succession Candidate Name Leadership Potential Score Open in < 1 Yr. Position Vulnerability Open in 1 3 Yrs. Open in 3 + Yrs. Ready in < 1 Yr. Candidate Readiness Ready in 1 3 Yrs. Ready in 3 + Yrs. 26
27 TAKE ACTION #3 LOOK at your team! LOOK at your network! When will you be handing off the baton? Who could be your successor? When will they be ready? Do you need to look externally? (If so, why?) John Newton and Associates 27
28 Succession Planning The Maintenance and Nurturing John Newton and Associates 28
29 Keeping the Plan Current Develop a recurring timeframe, whether quarterly, semi-annually or annually. Determine effectiveness of existing Plan. Determine whether the current Plan still meets the organizational strategies. Determine whether the candidates have changed and make necessary adjustments to the Plan. Assess and develop new candidates as prudent. John Newton and Associates 29
30 Replacement Planning Freedom of Choice John Newton and Associates 30
31 Planning for Positions That Do Not Have An Immediately Recognizable Internal Candidate Pool Re-assess if indeed there is truly no successor available with developmental potential. The organizational operations may be at risk in the event of a departure. Recruitment plans for the future organizational health. Networking The right person is out there. This situation can be beneficial in that it presents the opportunity for the organization to bring fresh and diverse talent into the organization. John Newton and Associates 31
32 A Timeline of Succession Planning Milestones John Newton and Associates 32
33 Solution John Newton and Associates 33
34 Suggested Milestones End of Third Quarter 2014 First Positions Assign owner of SP oversight. Identify internal candidates and complete initial assessment(s). Identify external RP as warranted. Fourth Quarter 2014 Launch SP initiatives. Communicate with designated individuals. Train-the-Trainer How to Succession Plan to next level of reports SP/RP in place for 1)Your Role and 2)Your Senior Staff 3)Additional Key Employees/Positions 4)Board First Quarter 2015 Evaluate progress on actionable goals. Introduce How to Succession Plan to Next/Second Level of Reports John Newton and Associates 34
35 Suggested Milestones Second Quarter 2015 Evaluate immediate SP results. Second Level SP in full-speed. Third Quarter 2015 Evaluate SP participants. See if names should be added/deleted or expectations of role(s) have been modified. Ongoing Help each other drive our Plans and keep us on track! Quarterly meetings with (HR/SP Owner/Executive/Management Team) during launch year to review progress and support the progress. John Newton and Associates 35
36 Solution John Newton and Associates 36
37 Rules to Avoid Roadblocks Avoid just HR thinking Be flexible Avoid too much too fast Eliminate the nothing will happen to our people attitude Create clarity around what defines high-quality Do not neglect the individual development plan(s) Stay on plan *Bob Edwards, Linkage John Newton and Associates 37
38 What Makes a Successful Plan-A Revisit People Assess, Design, Develop, Implement, Evaluate Do what we say we are going to do Willingness to modify Simplicity The right tools Part of the culture; part of the Strategic Plan Assign a process owner Transparency versus undercover Build your bench strategically Build your network Kindness and respect John Newton and Associates 38
39 Thank You! Questions? Please feel free to contact for support with your Succession Planning needs. Phone: Kindness is the bottom line. John Newton and Associates 5329 Main Street, Suite 409 Downers Grove, Illinois John Newton and Associates 39
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