SUCCESSION PLANNING OR ELSE Jim McCarl-President The McCarl Group www.mccarlgroup.com
My Expectations For Today KISS Enjoyable Actionable take home value Beer truck plan in place Start you on a succession planning mission at all levels of your company. Grow the greener grass Opportunity creation makes it happen! Interactive and finish on time
Keys to Succession Planning Beer Truck Plan Proactive Interactive Company-wide Communicated Consistent Flexibility Accountability
What is Succession Planning? The process of determining critical roles within the company, identifying and assessing possible successors and providing them with the tools for present and future opportunities.
Why Bother With Succession? Limiting factors for all companies are: Time Talent Treasure The most important of these is Talent Best of Class companies will have the best talent because: They have a plan They provide for growth They create opportunity
Leadership Three Components To Succession Planning Leadership Development of current and future leaders of the company. All Levels of the Company Match the organization future needs with the aspirations of employees. Emergency Contingency Plan This can be immediate implemented to minimize the negative effect it would have on a company.
What is it???? Beer Truck Plan What if you do not have one?? CHAOS!!!!!!!!!!!!!!!! It is an emergency succession plan that let s those who are left behind keep the business running, because they know what the plan is if something unexpected happens. Let s the designated successor be prepared to step up and step into the new position.
MUST be in writing. Beer Truck Plan Makes you define what the job entails. Develop a training program for the designated individual. Side benefit- makes you more aware of what your job should really be! Communicate the plan to those who need to know. Sets the tone for succession planning at all levels of the company.
Be Proactive Hire The Right People Must get team members who fit into your culture. Mission, Vision and Values must be defined. Must hire people already predisposed to succeed in your culture. The right people mirror the company s core values. Once you get them, plan to keep them. The right people will define success for your company.
Company-Wide Succession 1 Strategic Plans and Future Goals 2 Workforce Requirement 3 Knowledge Retention and Critical Roles 4 Talent Management Strategies
Don t Need A Succession Plan? Key executive or employee is: unwilling to continue the role within the organization. Employee accepts an offer from another organization which will terminate their value to the current organization. Employee will complete a short-term project or task assigned. Employee moves to different position and different set of responsibilities within the organization. Now what????
Great vision without great people is irrelevant. Jim Collins.
Survey Results Question Y N NS Does you company have an organization chart? 60% 40% Does you company have written job descriptions? 70% 30% Do you have a written succession plan for top mgmt? 10% 80% 10% Do you have written plans for other levels of company? 80% 20% Do you have a written emergency succession plan? 80% 20%
SUCCESSION PLANING FLOW CHART Organizational Chart Job Descriptions Performance Appraisals Goal Setting Training Career Path
SAMPLE OF ORGANIZATION CHART President CEO/COO Erie Automation TAS Accounting Operations Sales GM Engineering Controller Dispatching Parts Drivers Techs SPOT Project Sales Maintenance Sales Service Ops Sales AR AP COMP Techs
Job Description People want to do a good job, but can t unless they know what you want them to do! KISS Keep it focused Consistent within the company Updated All positions
Performance Appraisal Need to mirror job description to include key factors to evaluate each employee. Can be done electronically or written. Performance Appraisals help achieve goals. Given annually
Survey Results
Goals Effective goal-setting for employees is one of the most powerful and valuable tools that you have. Starting point for succession planning. Need to determine what career path they are interested in following. Then develop a needs list both training and experience. Can it be accomplished? A goal is a statement of results that are to be achieved.
Goals Be honest and do not mislead them into over dreaming!! Goals should be achievable with realistic timetables Mid-year review Why?? Annual review Key for a successful succession planning effort at your company!!
Be honest- an employee will not be able to change or improve without honest feedback on their strengths and weaknesses.
Setting Goals Must Meet Criteria 1. Focused on specific results in a specific time frame 2. Significant but realistic 3. Measurable 4. Move the employee out of his or her performance comfort zone 5. Prioritized
Setting Goals Must Meet Criteria 6. Clearly Worded 7. Limited 8. Aligned 9. Agreed Upon
Key Elements For Good Goal Setting S =SPECIFIC M =MEASURABLE A =ATTAINABLE R =RELEVANT T =TIMELY
Training Is an important aspect of the form and helps employees gain more skills for current job or future position. This can be achieved: On-line Through colleges In-house training Seminars and workshops offered locally Contact HR with questions on the training employees need and where to go Training will be based on job descriptions
Career Path COMPANY SUPERVISOR EMPLOYEE
Company Communicates company and department goals Builds stronger working relationships and improves productivity Identifies strong performers for promotion Identifies performers who could improve with added training or coaching Identifies poor or marginal performers who may not have the skills and/or attitude needed to make a contribution
Supervisor Demonstrates their own management skills Develops and improves rapport with employees and builds morale Identifies both strong performers and those who need improvement Identifies general training needs Recognizes employee achievements and demonstrates fairness Improves employee productivity Helps identify goals for employees to meet company/department goals
Employee Recognizes their accomplishments Helps them set goals, improve performance, and build opportunities for career development Provides a chance to communicate with supervisors about their goals and performance Brings to their attention any areas of job performance needing improvement Encourage them to take responsibility for their performance and progress Gives them performance feedback
The Assessment Process Organize the information in accordance with the Performance Review Form structure Complete each section of the assessment form without interruptions using: Documentation or notes or previous discussions. Performance expectations and job duties Goals and objective for the assessment cycle. Letters of recommendation (or complaints) Anything else that is relevant to the employee s performance. Get the Performance Review Form in draft format
Factors to Consider When Reviewing Employees Use specific examples Give both positive and constructive criticism Take into account the number, complexity and value to the organization of the objectives the employee has accomplished Cover all performance issues comprehensively
Typical Activities Covered Determine what roles and skills are critical for the growth of the company Analyze and address the gaps revealed by the planning process Identify and understand the developmental needs of employees to fill those positions Ensure that all key employees understand their career paths and the roles they are being developed to fill
Typical Activities Covered cont. Train people for skills and positions that are not presently existing in the company Understand the timeframe to backfill key roles Enrich succession plans through regular executive discussion of people and posts Identify top performers in all departments and make sure that they are engaged and satisfied to stay with you for a long period Continually review and check the process of succession and whether planned individual development has taken place
Succession Planning 101
Advantages of Succession Planning Improve recruitment process for key positions. Active development of longer-term prospective successors by ensuring their career growth and analyzing work, responsibilities, skills and knowledge required for the future. Audit the talent pool of the organization and that helps in allocation of responsibilities and development strategies and fill the identified talent gaps. Build a key talent resource of employees who share key skills, knowledge, experiences and values seen as important to the future of the organization.
Leadership Recent research has shown that company find more effective leaders by developing from their internal talent. Succession Planning 101 Are you ready to continue business without interruption after losing a strong and effective leader in your organization?
The thing that defines great companies is to get great people. Having the right people for the job. Bad economy is a good time to trade up and get the best talent.
Support for Performance Management: Performance Management software that delivers accurate data Self-service online resumes for employees Recruiting system that ties into succession planning data and job management data Most up to date information can be easily accessed, shared and reviewed Provides your succession plan in any format includes organization charts and any concerns Provides a career path for each employee that managers can specify future jobs and readiness time frame
7 Key Steps to Effective Career and Succession Planning Succession Planning 101 Assess the problem Obtain executive buy-in and create a plan for success Become more strategic Strengthen your employee data Integrate talent management functions Consider integrated systems as part of the solution Don t just diagnose prevent
Keys to Succession Planning Beer Truck Plan Proactive Interactive Company-wide Communicated Consistent Accountability Flexibility
QUESTIONS?????
THANK YOU!! Jim McCarl President The McCarl Group www.mccarlgroup.com