Succession Planning: There is No Me Without You.

Lepora Menefee, PhD, SHRM- SCP, Prosci, PMP, SSBB

HR & Strategy Innovation Summit

January 22-24, 2017

GOALS FOR TODAY’S JOURNEY

The

Burning

Platform

Past

Practices

Present

Practices

Next

Practices

2

What Looks like the Ideal Picture…

3

Unexpected Attrition

Overestimated

Supply

Ignored, so not ready

often is not…

4

Why the Urgency?

10,000

Baby Boomers

Turn 65

everyday

GLOBAL SKILL SHORTAGE

36% of U.S.

Companies

34% of

Companies

in EMEA

29% of

Companies

in Asia

Pacific

CEO Average

Tenure has

decreased from

10 to 8 years

since 2000

75 million Baby

Boomers will be eligible

to retire this year. Only

45 million workers will

be available to enter

the workforce5

96

96

100

96

84

73

76

78

75

41

0 20 40 60 80 100

Identification of a leader's currentperformance v. future potential

Assessment of Potential for advancement

Assessment of Leadership skill gaps

Development of Successors for specificpositions

Workforce Plan (3-5 years)

Global Top Companies are Serious About Succession Planning

All Others Global Top CompaniesAon 2013 6

Are You Experiencing Pain in Your Succession Planning Process?

Dissatisfaction with the status quo

Too much bought vs. built

Confusion about Potential vs. Performance

Not Enough Ready Now Talent

1

2

3

4

7

The

New Era

Of

Succession

Planning

Fluid

Flexible

Fast

8

Present Practices Next Practices

Select, develop, assess,

reward and retain leaders who have competencies to deliver

the short & long- term

Business Strategy

Make Succession

Planning a key business

strategic priority

Past Practices

Limited to who

”thought” like the CEO.

Skill replacement for the

CEO.

Alignment with Business Strategy is key.

Replacement of current

competencies of CEO &

SLT

Select leaders who

have competencies to

deliver the short- term Business Strategy

9

Practices are more linked to Business Strategy among Global High Performing Companies…

68

84

80

76

72

36

42

42

42

41

0 20 40 60 80 100

Retaining Leaders

Rewarding Leaders

Developing Leaders

Assessing Leaders

Selecting Leaders from within your organization

All Others Global Top Performing CompaniesAon 201310

Present Practices

Leaders are

encouraged to build

healthy succession

pipelines for their top

pleaders

HR owns the Succession Planning Process

Next Practices

Leaders are held

accountable for healthy

succession pipelines

MBOs on Performance

Reviews and recognition and rewards are linked

to leadership and

succession planning

HR defines the

Succession Planning

process in collaboration

with Leaders who own

it.

Past Practices

CEO/ Board was

accountable for

choosing CEO

replacement

Leadership Accountability: Who is the Last Throat to Choke?

11

Present Practices

Once a year, companies refresh their

leadership slate with HiPos for VPs and up.

Next Practices

Potential is continuously

assessed.

Leaders provide

feedback to employees

regularly.

Development is

regularly tracked.

Talent Review

discussions take place on quarterly basis or

more.

Past Practices

Once a year, the slate

for the CEO was

refreshed.

What is the Timing of your Succession Planning?

12

Present Practices

Most major companies will focus on senior

leadership roles (eg., VP) up to CEO/ Layer 1

Next Practices

Succession Pipelines will

need to be applied to

all of the generations of

the organization

Segmentation is

important beyond

hierarchical layer, but

apply to critical of roles.

Precedence should be

placed on the most pivotal/ critical roles

Past Practices

There was a slate for the

CEO/ Layer 1 only..

At what Position Layers do you Focus?

13

How are you defining High Potential?

14

Present Practices

Ability

Aspiration

Engagement

Experience

Competencies

Next Practices

Agility

Aspiration/ Drive

Influencing Change

Values

Calibration/

Collaboration

Assessments &

Simulations

Past Practices

You’re smart and we

like you.

How do you Assess Potential?

15

Present Practices

Leadership

Competencies

General Leadership

Competencies Training

Exposures to Senior

Leaders

Stretch Assignments

Next Practices

Targeted Role

Development/ Feeder

Roles

Strategic Cross- Training

Expedite Development/

Bootcamps

Simulation

Mentoring & Sponsoring

360; Crowd Sharing

Past Practices

No direct alignment to

specific roles

General Leadership

Training provided

General Organization Cross- Training

Development is an essential key for effective Succession Planning

16

Have you ever been Sponsored?

What did it do for your Career?

17

Present Practices

On the radar of most

large organizations

A stated desire for most major organizations

Next Practices

Mentorships

Sponsorships

Targeted development

programs

What gets measured,

gets done

Require diverse slates

Objective assessments

Past Practices

Is Diversity a Targeted element of Your Succession Planning?

Good ol’ boy network

Skills + Relationship

18

Present Practices

Some transparency of

good news only to

direct recipients

Next Practices

Clear Career Paths

Transparent Potential

Feedback regarding

good and bad

Development needed

for next step

Frequent feedback

Past Practices

Zero Transparency

How Transparent is your Succession Planning process?

19

Top Companies are more likely to communicate to an individual when he or she is no longer considered high potential (71% versus 33%).

Aon, 2013

Transparency is Ultimately Healthy for Your Organization

TRUSTCLARITY

FOCUS BRAND

20

Present Practices

Hi- Potential Employees are informed of their Hi-

Potential status

Hi- Potentials are

assigned to developmental tasks

Next Practices

Collaborate with

employees through

regular conversations

Collaborate regarding

Engagement

Collaborate regarding

developmental paths

Collaborate regarding

assignments

Past Practices

No conversation with

employees regarding

potential

Are You Collaborating with Your Employees?

21

Present Practices

What has already been

done on the leadership

level, eg.,

% of Internal Hires for

the year

% of Diversity

Leaders

Next Practices

Also, forecast what we

are likely to accomplish

# of Unique

candidates per

succession position

% of Diverse

Candidates per

Successor Role

Retention Risk of

HiPos

Past Practices

Are you best utilizing Metrics in your Succession Planning?

No measurement

22

Present Practices

Some targeted development toward

Succession Planning

Some Performance

Management ratings

are incorporated into

Succession Planning decisions

Next Practices

Integration with:

Talent Acquisition

Onboarding &

Engagement

Development

Retention

Performance

Management

Past Practices

No Integration

Is Your Succession Planning integrated into the rest of your Talent Management?

23

Is Your Succession Planning Processseamlessly integrated into Talent Management?

Succession

Planning

RetentionDo we know why our

best people leave or

stay?

Talent

AcquisitionAre we hiring and

building external

pools that align with

future needs?

Workforce

PlanningAre we identifying

successors who align

with future business

requirements, values

& vision?

Performance

ManagementAre our managers

held accountable for

developing our

leaders?

DevelopmentAre we developing

our employees to be

successors?

Onboarding &

EngagementAre we facilitating

relationship- building

on the onset of our

employee tenures?

24

Strong Leaders

Re- Hire Cost Savings

Business Growth

ROI/

Increased Profits

Happy Employees

= Retention

Business

Continuity

=Increased

Productivity

Rigorous Succession Planning is worth it.

25