Succession Planning

Decoding Succession Planning

Cris Wildermuth, Ed.D., SPHR The Effectiveness Group [email protected] www.TheEffectivenessGroup.com

© Cris Wildermuth, 2011. All rights reserved. Linked:HR members may make a copy for their own use. For all other permissions, please contact the author.

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An airplane crashes in the desert, a nd no one aboard survives. Among the victims are the top managers of Acme Engineering, a successful consulting firm. When Acme’s Vice President of Human Resources receives the news, she gasps, turns pale, looks blankly at her secretary, and voices the first question that comes to her mind: Now, who’s in charge?

From Effective Succession Planning, William Rothwell (p. 1)


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Why are you interested in succession planning? Why does it matter to you and to your organization? Top executives about to retire ! Talent recruitment concerns ! Need to prepare for future trends in my industry ! Need to avoid discriminatory practices ! Want to communicate clear career paths for high potential employees ! Want to retain high potential employees ! Other? _______________________________________________ ! Other? _______________________________________________ ! Other? _______________________________________________ ! Other? _______________________________________________ ! Other? _______________________________________________ !


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" A “deliberate and

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systematic effort” “designed to ensure the continued effective performance of an organization, division, department, or work group by making provision for the development and replacement of key people over time.” Preservation of “institutional memory. William Rothwell, Effective Succession Planning ”


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1. What are your company’s core values?

2. What is your main business mission(s)?

3. What is your business vision?

4. What are some future trends impacting your business?


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5. Considering these trends, what are your long term (10 years +) goals?

6. How will these goals impact your organizational structure? (i.e. could you need different positions? Could the general reporting structure change?)

7. Pick one position that could be impacted by your long-term goals (i.e. a position that will change or a position that must be created ). What are some key competencies needed for this position?

8. Can you develop these companies in-house? If so, how? If not, how can you find employees who already have these competencies?


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Know your core values Get commitment of support/participation from decision makers. Establish responsibility for process (identify major positions). Define needs (skills, personality) for major positions. Identify key people (in all major positions) & create a talent pool Provide for training and coaching programs for the pool. Evaluate the pool on a yearly basis in connection with the major positions. Evaluate changes (skills & personality) in the major positions Evaluate the SP program each year.


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Do #

#

# #

# # #

Make it broad Go beyond “replacement grids” Might even have a two path advancement Consider all major (key) positions (not just the CEO) Consider a general “leadership pool” Beware of biases – careful with: Recency bias: Who did well last? Are you focusing only on recent successes? Pygmalion effect: Are people following your expectations (good or bad)? Similarity bias: Do you prefer people whom you perceive to be like you? Run periodic discrimination testing Make it transparent & fluid keep written records remove sub par members, accept new ones do not make the process “impenetrable” Run the “KISS” test Is the process simple and easy to understand? Integrate Succession Planning with vision, mission, and future trends Ensure CEO and top leadership support

Don’t # # # #

Make performance reviews and management nominations determinative Management performance reviews are often biased Close program to anyone (regardless of age, ethnicity, etc.) Precondition advancement to leadership to participation in the program Remember to keep the program flexible and fluid Assume mentors are “automatically” ready for their tasks Instead have a mentorship preparation program


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" " " " " "

“Quick fix” attitudes Lack of urgency Lack of corporate support Rapid pace of organizational change Too much paperwork Too many meetings

What are your road blocks? How can you weaken them?


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References

Anonymous. (2005). Succession Planning Facts and Fantasies. The Journal for Quality & Participation, 28(3), 4-6. Beeson, J. (1998). Succession Planning: Building the Management Corps. Business Horizons, 41, 61-66. Collins, James C., & Porras, Jerry I. (1994). Built To Last, Successful Habits of Visionary Companies, New York, NY: HarperBusiness Gaffney, S. (2005). Career Development as a Retention and Succession Planning Tool. The Journal for Quality & Participation, 28(3), 7-10. Haworth, M. (2005). Tips for Better Succession Planning. The Journal for Quality & Participation, 28(3), 13-15. Howard, P., & Howard, J. (2001a). The owner’s manual for personality at work. Marietta, GA: Bard Press. Howard, P., & Howard, J. (2001b). WorkPlace BigFive ProFile™ . Charlotte, NC: CentACS. Redker, J. R. (2004). The Legal Overlay to Succession Planning. Employee Relations Law Journal, 30 (2), 23-29. Rothwell, W. (1994). Effective Succession Planning. New York, NY: Amacom. Rowe, T. (2004). Succession Planning & Management. Retrieved on 03-20-06 from http://www.charityvillage.com/cv/research/rhr12.html. Wolfe, Rebecca Luhn (1996). Systematic Succession Planning, Building Leadership from Within. Boston, MA: Course Technology


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Succession Planning

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