Embed Size (px)
Citation preview
Developing aSuccession Planning
Program
www.hrvaluepartners.com
Developing a Succession PlanningProgram
The business climate today is fluid. The speed of change is accelerating which meanswe always need to consider the future, identify where our customers are going and setourselves on a trajectory which ensures we beat them there and are able to meet theirneeds.
This process occurs in our long term business planning sessions and requiresthat we prepare our employees to accomplish the work of tomorrow.
www.hrvaluepartners.com
Developing a Succession PlanningProgram
Accomplishing the work of today is also increasingly challenging given thedemographic changes which are tilting the field in favor of employees, leavingour businesses vulnerable to increasing turnover and the costs associatedwith that. That is why it’s so important to identify and keep your topperformers
No matter how hard you try, there will be some turnover in your organizationbut this doesn’t have to be a disruption. In fact, if managed properly turnovercan present opportunities for you to engage your remaining employees anddemonstrate your commitment to help them develop their career.
With proper planning you can minimize the impact of changing marketdemands and turnover in key positions. Consider the following proactivesteps which will position you to weather the storm.
Phase 1: Evaluate Current State
Succession planning requires an additional level of analysis, evaluation ofyour employee’s competencies and skill sets and how those align with theneeds of your business.
Step One: Define the competencies/skill sets required for each position onthe organizational chart.
Step Two: Evaluate the competencies/skill sets of each employee.
Step Three: Conduct a gap analysis for each employee (Note: you shouldgather data on competencies/skill sets which employees have but are notusing as well. This information will be useful in Phase 2).
www.hrvaluepartners.com
Developing a Succession PlanningProgram
Step Four: Create individual development plans to address competency/skillset gaps.
It is worth noting that in a static environment you would expect very few gapsin step three. Presumably employees are screened for required competenciesand skill sets before they are hired or promoted. Over time, however, giventhe fluidity of the business climate gaps may develop. Phases two and threewill help minimize this occurrence.
Phase 2: Analyze the Future State
Again, the succession plan requires an additional level of analysis, evaluationof the competencies and skill sets which will be required in the future stateand how those compare to those of the current organization.
Step One: Develop a future state organizational chart, identify positionswhich will go away and positions which will be added.
Step Two: Evaluate the competencies/skill sets which will be impacted bythese organizational changes.
Step Three: Conduct an organizational gap analysis, which skill sets are nolonger required and which must be developed or acquired (Note: in step threeabove you may have identified employees with future statecompetencies/skill sets. Make note of that here.)
Step Four: Create an organizational development plan to ensurecompetencies/skill sets are developed/acquired in the time frame required bythe business plan.
www.hrvaluepartners.com
Developing a Succession PlanningProgram
Of course any attempt to look into the future will not be a perfect science. Asthe analysis is repeated year after year though, patterns will emerge andconfidence will grow. This is the nature of every aspect of business and itmakes the process of evaluation and the discipline of preparation even moreimportant. Phase three will help you implement the organizationaldevelopment plan and prepare your business for the challenges of the future.
Phase 3: Develop Succession Plan
With phases 1 and 2 complete you are prepared to develop your successionplan.
Step One: Identify current positions which are critical to the success of yourcurrent operation.
Step Two: Identify positions which will be eliminated and those which will beadded in the future state.
Step Three: Evaluate incumbents* of positions which will be eliminated todetermine if they have the competencies/skill sets required to fill the newpositions, or to back fill for others who can.
Step Four: Evaluate all employees* to determine if anyone has thecompetencies/skill sets required to fill the future positions, or if they havethe ability to acquire them.
Step Five: Construct succession planning maps** for all key positions, newpositions on the future state organizational chart and positions likely to bevacated by promotions, retirement and/or turnover.
www.hrvaluepartners.com
Developing a Succession PlanningProgram
*Competency/Skill Set Analysis
When evaluating employees to determine if they are a potential fit forpromotional opportunities or likely future positions you should use a “5block” analysis based on each employee’s level of Execution and Elasticity.
Execution refers to an employee’s performance against current jobrequirements and goals/objectives established in the performance reviewprocess.
Elasticity refers to an employee’s ability to move up in a standard careerladder or pick up new skills to meet future needs of the business (this couldbe in a new position or back filling for someone who moves). Keep in mindthat your evaluation of their ability is only half of the equation. You alsoneed to determine the employee’s interest. Someone with the ability butlacking desire is not very elastic.
The graph below is a tool for evaluating your employees based on thesecriteria. Relative placement in each quadrant is important as you attempt todifferentiate between individuals. Those in the “Elevate” quadrant should beall over your succession plan and in many cases they may be back filled bythose in the “leverage” quadrant. The shaded section in the middle, quadrant5, will require your attention. I recommend that any employee placed inquadrant 5 be evaluated to ensure they are in the right quadrant. Onceconfirmed, move one direction or another to make their quadrant placementclear.
www.hrvaluepartners.com
Developing a Succession PlanningProgram
**Succession Planning Maps
When constructing succession planning maps you will need to includeseveral components. First, who is the incumbent and when do you anticipatethe position becoming available for a successor. Then you will need toidentify potential successors and sort based on availability (ready now, readyin 1 to 3 years or ready in more than three years). Below is the format for thissort of map in Excel.
www.hrvaluepartners.com
Developing a Succession PlanningProgram
Once the maps are complete then you will do an analysis of each person onyour succession plan. Evaluate how many positions they are listed under,discuss the options with them to determine interest and for anyone who isnot “ready now”, you will need to put a development plan together toadequately prepare them for the role in the selected time frame.
www.hrvaluepartners.com
Developing a Succession PlanningProgram
HR Value Partners is available to answer any questions you may have on thisprocess and would be happy to assist you as you implement successionplanning in your business.
What's Next?HR Value Partners offers project based assistance with allphases of HR Management and Consulting Services. Let us
know how we can help you.
Learn more
www.hrvaluepartners.com
