SUCCESSION MANAGEME

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What is Succession Management?

Succession management is the process of ensuring that pools of skilled employees are trained and available to meet the strategic objectives of the

organization. It is a tool to identify employees who have the

potential to assume key positions in an organization and to prepare them for the future.

Importance of Succession Management Ensure continuity in leadership by developing

the next generation of leaders.

Increase the talent pool of promotable employees and provide increased opportunities for high-potential workers.

Identify replacement needs for targeting necessary training, employee education and employee development.

Importance of Succession Management Contribute to implementing the

organization’s strategic business plans.

Help individuals realize their career plans within the

organization.

Encourage the advancement of diverse groups.

Improves employee’s ability to respond to changing

environmental demands.

Importance of Succession Management Improve employee morale.

Cope with the effects of voluntary separation

programs.

Decide which workers can be terminated without

damage to the organization.

Reduce headcount to essential workers only.

Cope with the effects of downsizing.

Evolution of Succession ManagementReplacement planning has evolved into succession management by broadening the focus expanding the time horizon creating a talent pool of replacements and improving the evolution system.

Evolution of Succession Management

Broader Focus• Updated

table of employee who might be nominated if a need arose

• Focused on the high potential candidates

• Stable future & long-term goal

Time Horizon

• Traditional approach; short-term

• Long-term• Focuses on

future

Talent Pools

• Pool of talents

• Flexible job skills and competencies

• Corporate resource

• Internal & external candidates

Rating System

• Traditional; single rater

• Succession management several raters

Evolution of Succession Management

Differences Between Succession and Replacement

Replacement planning is the process of finding replacement employees for key managerial positions.

Factors Replacement Planning Succession Management

Environment Stable Dynamic

Focus Jobs Strategy

Time Frame 6-12 months 2+ years

Selection Criteria Job experience Competencies

Appraiser Immediate manager 360 degree feedback

Swlection Pool Internal Internal and external

Successors Stated individuals Talent tools

Development Limited Flexible, multiple

Succession Management Process

1Align Plans

with Strategy

2Identify Skills

and Competencies

3Identify High-

Potential Employees

4Provide

Developmental Opportunities

and Experiences

5Monitor

Succession Management

Step 1: Align Succession Management Plans with Strategy• Organizations must start with the business plan• Using environmental scanning, managers try to predict where the organization will be in three to five to ten years

Step 2: Identify the Skills and Competencies Needed1. Job‐Based Approach2. Competency‐Based Approach

Job‐Based and Competency‐Based ApproachesJob Based Approach –• focus on duties, skills, job experience, and responsibilities required to perform the job• Not adequate since jobs change rapidlyCompetency‐Based Approach – • focus on measurable attributes that differentiate successful employees from those who are not• Hard and soft skills• Produces more flexible individuals

Types of Competencies

1. Core competencies2. Role or specific competencies3. Unique or distinctive competencies

Step 3: Identify High‐ Potential EmployeesOrganizations use several approaches to identify managerial talent, including the following:• Temporary replacements• Replacement charts• Strategic replacement• Talent management culture

Step 4: Provide DevelopmentalOpportunities and Experiences• Peter Drucker states that: “Most managers are made, not born. There has to be systematic work on the supply, the development, and the skills of tomorrow’s management. It cannot be left to chance.”

Management DevelopmentMethods

• Promotions• Job Rotations• Special Assignments• Formal Training and Development• Mentoring and Coaching

Promotion• Promotion – an employee’s upward advancement in the hierarchy of an organization

Job Rotations• Job rotations – a process whereby an employee’s upward advancement in the hierarchy of an organization is achieved by lateral as well as vertical moves

Mentors• Mentors – executives who coach, advise, and encourage junior employees

Step 5: Monitor SuccessionManagement• Corporations with strong succession management programs are higher performers in revenue growth, profitability and market share• HR metrics can be used to help monitor succession management

Approaches to the identification of managerial talent

Employee Role in SuccessionManagement