FIFTH EDITION. Ensuring Leadership Continuity and. Building Talent from Within. William J. Rothwell
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1 Effective Succession Flanning FIFTH EDITION Ensuring Leadership Continuity and Building Talent from Within William J. Rothwell AMACOM American Management Association New York Atlanta Brüssels Chicago Mexico City San Francisco Shanghai Tokyo Toronto Washington, D.C.
2 Contents List of Exhibits xiii Preface to the Fifth Edition XVÜ Acknowledgments xxxi Advance Organizer for This Book xxxiii Quick Start Guide xxxvii PART I THE ESSENTIALS OF SUCCESSION PLANNING AND MANAGEMENT i Chapter 1 What Is Succession Planning and Management? 3 Six Ministudies: Can You Solve These Succession Problems? 3 Defining Succession Planning and Management 6 Distinguishing Succession Planning and Management from Replacement Planning, Workforce Planning, Talent Management, and Human Capital Management 9 Making the Business Gase for Succession Planning and Management 12 Which Comes First, Talent or Strategy? 14 Reasons for a Succession Planning and Management Program 15 Different Reasons to Launch Succession Planning and Management Depending on Global Location 22 The Current Status of Succession Planning: What Research Shows 23 The Most Famous Question in Succession: To Teil or Not to Teil? 25 Management Succession Planning, Technical Succession Planning, or Social Network Succession Planning: What Are You Planning For? 25 Best Practices and Approaches 26 Ensuring Leadership Continuity in Organizations 31 Summary 35 Chapter 2 Trends Influencing Succession Planning and Management 37 The Ten Key Trends 38 What Does All This Mean for Succession Planning and Management? 51 Summary 52 vii
3 viii Contents Chapter 3 Moving to a State-of-the-Art Approach 53 Chapter 4 The Present Status of Succession Flanning Programs 53 Characteristics of Effective Succession Flanning Programs 57 Common Mistakes and Missteps to Avoid 62 The Life Cycle of Succession Flanning and Management Programs: Five Generations 68 Integrating Whole Systems Transformational Change and Appreciative Inquiry into Succession: What Are These Topics, and What Added Value Do They Bring? 71 Requirements for a New Approach 73 Key Steps in a New Approach 74 A Second Dimension: Technical Succession Flanning 81 A Third Dimension: Social Relationship Succession Flanning 83 Transition Management and Mergers, Acquisitions, and Takeovers 86 Summary 88 Competency Identification, Values Clarification, and Ethics: Keys to Succession Flanning and Management 89 What Are Competencies? 89 How Are Competencies Used in Succession Flanning and Management? 90 Conducting Competency Identification Studies 91 Using Competency Models 92 Newest Developments in Competency Identification, Modeling, and Assessment 92 What's the Focus: Management or Technical Competencies? 93 Identifying and Using "Generic" and "Culture-Specific" Competency Development Strategies to Build Bench Strength 94 What Are Values, and What Is Values Clarification? 96 How Are Values Used in Succession Flanning and Management? 96 Conducting Values Clarification Studies 98 Using Values Clarification 99 What Are Ethics, and How Are Ethics Used in SP&M? 100 ing It All Together: Competencies, Values, and Ethics 102 Summary 103 PART II LAYING THE FOUNDATION FOR A SUCCESSION FLANNING AND MANAGEMENT PROGRAM 105 Chapter 5 Making the Case for Major Change 107 Assessing Current Problems and Practices 107
4 Contents ix Demonstrating the Need 111 Determining Organizational Requirements 117 Linking Succession Planning and Management Activities to Organizational and Human Resource Strategy 118 Benchmarking Best Practices and Common Business Practices in Other Organizations 122 Obtaining and Building Management Commitment 124 The Key Role of the CEO in the Succession Effort 129 The Key Daily Role of Managers in the Succession Effort 131 Sustaining Support for the Succession Effort 131 Summary 133 Chapter 6 Starting a Systematic Program 134 Strategie Choices of Where to Start and How to Start 134 Conducting a Risk Analysis and Building a Commitment to Change 135 Clarifying Program Roles 137 Formulating a Mission Statement 140 Writing Policy and Procedures 146 Identifying Target Croups 147 Clarifying the Roles of the CEO, Senior Managers, and Others 152 Setting Program Priorities 153 Addressing the Legal Framework 155 Establishing Strategies for Rolling Out the Program 157 Summary 164 Chapter 7 Refining the Program 166 Preparing a Program Action Plan 166 Communicating the Action Plan 167 Conducting Succession Planning and Management Meetings 170 Training on Succession Planning and Management 174 Counseling Managers About Succession Planning Problems in Their Areas 182 Common SP&M Problems and Possible Solutions 183 Summary 185 PART III ASSESSING THE PRESENT AND THE FUTURE-187 Chapter 8 Assessing Present Work Requirements and Individual Job Performance 189 Identifying Key Positions 190 Three Approaches for Determining Work Requirements in Key Positions 194
5 X Contents Using Full-Circle, Multi-Rater Assessments 199 Appraising Performance and Applying Performance Management 202 Creating Talent Pools: Techniques and Approaches 209 Thinking Beyond Talent Pools 210 Summary 211 Chapter 9 Assessing Future Work Requirements and Individual Potential 213 Identifying Key Positions and Talent Requirements for the Future 213 Three Approaches for Determining Future Work Requirements in Key Positions 216 Assessing Individual Potential: The Traditional Approach 222 A List of Potential Assessment Approaches 230 Are There Other Ways to Think of Potential Assessment? 245 Other Issues in Potential Assessment 246 Summary 251 PART IV CLOSING THE "DEVELOPMENTAL GAP": OPERATING AND EVALUATING A SUCCESSION FLANNING AND MANAGEMENT PROGRAM 253 Chapter 10 Developing Internal Successors 255 Using Grids to Guide Management Decision Making 256 Testing Bench Strength 270 Talent Review Meetings 271 Formulating Internal Promotion Policy 279 Preparing Individual Development Plans 284 Evaluating Individual Development Plans 292 Developing Successors Internally 294 The Importance of an Inventory of Developmental Experiences 299 Formal, Social, and Informal Learning Experiences to Build Competence 300 Relating Engagement to Succession Flanning and Talent Management 306 Relating Deployment to Succession Flanning and Talent Management 308 The Role of Leadership Development Programs 309 The Role of Coaching 310 The Role of Executive Coaching 311 The Role of Mentoring 312 The Role of Action Learning 314 The Role of Acceleration Pools 314 Summary 315
6 Contents xi Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Assessing Alternatives to Internal Development 316 The Need to Manage for "Getting the Work Done" Rather Than "Managing Succession" 316 Innovative Approaches to Tapping the Retiree Base 325 Deciding What to Do 328 Summary 330 Integrating Recruitment with Succession Planning 331 What Is Recruitment? 331 When Should Recruitment Be Used to Source Talent? 332 Internal vs. Externa! Recruitment: Integrating Job Posting with Succession Planning 333 Recruiting Talented People from Outside 334 Innovative Approaches to Recruitment 337 Summary 340 Integrating Retention with Succession Planning 341 What Is Retention, and Why Is It Important? 341 Who Should Be Retained? 342 What Common Misconceptions Exist in Managing Retention Issues? 346 Why Onboarding Is Important to Retention 348 Using a Systematic Approach to Increase the Retention of Talented People 350 Summary 353 Using Technology to Support Succession Planning and Management Programs 354 Defining Online and High-Tech Methods 354 Where to Apply Technology Methods 359 How to Use and Evaluate Technology Applications 360 What Specialized Competencies Do Succession Planning and Management Coordinators Need to Use These Applications? 371 Summary 372 Evaluating Succession Planning and Management Programs 373 What Is Evaluation? 373 What Metrics Should Be Used to Evaluate Succession Planning and Management Programs? 374 What Should Be Evaluated? 375 How Should Evaluation Be Conducted? 381 How Can Succession Planning and Talent Management Be Evaluated with the Balanced Scorecard and HR Dashboards? 383 Summary 391
7 xii Contents Chapter 16 The Future of Succession Flanning and Management 392 The 15 Predictions 393 Summary 415 Appendix I: Selected Websites 417 Appendix II: A Guide for Replacement Flanning 421 Appendix III: Frequently Asked Ouestions (FAOs) About Succession Flanning and Management 427 Notes 433 Index 455 About the Author 473 Ready-to-use training guides, slides, and materials to help implement succession planning in your Organization are available to purchasers of this book at:
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