Succession Planning in the Government Sector

8/9/2019 Succession Planning in the Government Sector

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Lovely Professional

University

TERM PAPEROf

Human Resource Management

TOPIC: -Succession Planning in the Government Sector

Submitted to: Submitted by:

Mr. Sunil Budhiraja Pramod Ku. TiwariLecturer, LSM Roll no. - B44LPU Reg.No-

10901147 Sec. -S1906

MBA-


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Index

1. Declaration Page no: 3

2. Acknowledgement Page no: 4

3. Introduction Page no: 5

4. Why succession planning Page no: 6

5. Executive summary Page no: 8

6. Models of succession planning Page no: 9

7. Literature review Page no: 11

8. Succession planning methodology Page no: 13

9. Advantages of Succession Planning Page no: 14

10. Results Page no: 15

11. Conclusion Page no: 16

12. References Page no: 17

13. Bibliography Page no: 17


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DECLARATION-

I, Pramod Kumar Tiwari student of Lovely Professional University have completed the

Project on:

SUCCESSION PLANNINGIN GOVERNMENT SECTOR.

The information given in this project is true to the best of my knowledge.


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(PRAMOD KU. TIWARI)

ACKNOWLEDGEMENT-

First of all I would like to thank the Lovely Professional University and take the opportunity

to do this project as a part of the MBA-IT.

Many people have influenced the shape and content of this project, and many supported me

through it. I express my sincere gratitude to Mr. Sunil Budhiraja for assigning me a project

on HRM, which is an interesting and exhaustive subject.

He has been an inspiration and role model for this topic. His guidance and active support hasmade it possible to complete the assignment.

Last but not the least I would like to thank the Almighty for always helping me.


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INTRODUCTION-

What is Succession Planning?

Succession planning is a process of determining critical roles within the company, identifying

and assessing possible successors, and providing them with the appropriate skills and

experience for present and future

opportunities.

In other words succession planning

comprises of these important steps -

Recruitment and staffing - you

recruit superior and right

employees

Training and development -

you train the employees to

develop their knowledge, skills

and abilities

Performance andCompensation management -

prepare them for advancement

or promotion into ever more

challenging roles

Other (in which talent

management plays a role) - you are prepared to retain or replace superior

employees

Typical activities covered by succession planning include -

Determine what roles and skills are critical for the growth of the company.


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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.

Train people for skills and positions that are not presently existing in the company

Understand the time needed 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 is a process by which successors are identified for key

positions throughout an organization including vital roles in each department of the

organization. It should take into account the strategic vision and objectives of the

organization. With good succession planning in place, employees are ready for new

leadership roles so when someone leaves the company, another is skilled and ready to

step-up to that position. Succession planning can also help develop a diverse workforce,

by enabling senior management to look at the future goals of the organization as a whole.

So the key issues the HR professionals should consider while developing a succession

plan are

Strategic plans and future goals

Workforce requirement

Knowledge retention and critical roles

Talent management strategies

Why Succession Planning?

Are you ready to continue business without interruption after losing a strong and effective

leader in your organization? Leadership is and has always been a relatively scarce commodity

within companies. First, you need to analyze what has made the business successful. Does

that success rely on skills or knowledge of the leader that could leave? Next, you need to lookat the future of the company. Where are you going and what skills do you need to get there

and once you are there? Is that talent currently in your leadership team?


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Other important questions to consider are - existing and future market competition, required

technology know-how, talent pool of existing employees, and management hierarchy and

reporting structure.

Answers to these questions can provide the basis for decisions on whether the business can

continue without the leader, how it would continue without the leader, who would lead and

how ready they are.

The recruitment of top talent is too expensive due to the rising executive search costs and

increased hiring contract requirements, not to mention the lack of knowledge about company

culture and inner workings. Recent research has shown that company find more effective

leaders by developing from their internal talent.

A careful and considered plan of succession ensures the least possible disruption to the

successors responsibilities and therefore the organizations business and efficiency.

Succession planning plays a vital role and is necessary when a key executive or employee is:

unwilling to continue the role within the organization

accepting an offer from another organization which will terminate or lessen their

value to the current organization

Indicating the completion of a short-term project or task assigned or moving to

different position and different set of responsibilities within the organization

A succession plan clearly sets out the factors to be taken into account and the process to be

followed in relation to retaining or replacing the person. Succession management systems

provide an enabling solution for the planning and process going through all possible

scenarios and providing the best solutions and shortest paths to succession.

Having a decision making body and succession planning process is critical. However,software can help make this process consistent, automated and fair. Succession planning


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teams can play what if scenarios to ensure that they are thinking of all possibilities. They

can search for talent throughout the organization in different organizations and countries.

They can also ensure a continual and full pipeline of talent.

Overview of issue: Government sector needs a effective succession planning

Need

Government sector is effected most by baby-boomer retirement wave than any other

organizations. For example , BHEL, government organization has faced a recent problem

when his chairman has resigned from the post but the organization has noone to feel the post .

organization was running for 3 months without chairman and they encurred loss of crores. So

this ensuring retirement wave and the goal of achieving greater organizational efficiency ,

makes succession planning a top priority for government organizations.

Finding and Solving barriers to success

Many government organization does not know how to approach the succession planning

process. Most of the senior executive is influenced by the political leader and challenges in

implementing an effective successor selection process that abides by the merit system

principles. Government can learn from their peers in private sector can apply the same

technique in government agency.

Government can be transformed by the succession planning

EXECUTIVE SUMMARY:

This report discusses the bodies and structures responsible for succession planning at profiled

organizations and how these ensure leaders involvement in and support of succession

planning. Leadership talent identification and selection, leadership development programs,

and methods for measuring and improving succession planning process effectiveness are also

discussed, as summarized below.

I- Succession Planning II- Leadership TalentStructure Identification

Succession Planning Structure Identifying Candidates Interest in

& Responsibilities Participation

Succession planning is a component of Identifying employees interest inlarger strategic human capital management participating in succession planning-

initiatives. Therefore, profiled organizations focused development programs is the

task different groups within HR with first step in candidate identification,

succession planning responsibilities such as gleaned via the followingthe following: strategies:


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- HR department as a whole - Mandatory performance review

- Specific HR functions, such as leadership component, stating or denying

development interest in positions of greater

- One central succession planning team leadership.within HR - Voluntary application process.

- HR staff on corporate HCM Project

Team.

Ensuring Leaders Involvement Succession Planning

Participant

Ensuring leaders involvement and support Succession planning program

is vital to succession planning program participants are assessed and

success. Profiled organizations use the selected by such methods

following tactics to ensure their leaders as the following:

involvement in succession planning:

Open enrollment

Indirect or direct succession planning Supervisors selections

accountability via performance appraisal Leadership development

Succession planning training for professionals selections

organizations leaders. Cross-departmental group of

selectors.

III- Leadership Development IV- Succession Planning

Results

Leadership Development Programs Tracking Program Results

Overview

After interested and qualified succession Continuous evaluation and

planning candidates are selected, they are improvement is vital to succession

enrolled in development programs planning effectiveness. Profiled

appropriate to their job level. organizations commonly

Leadership programs developed by profiled track the quantitative and qualitative

companies target wide array of employee succession planning program

populations, including the following: measures including:

Non-supervisory employees Program participation rate

Middle management Participants, mentors and

Senior managers and executives feedback.

Participants post-program progress.

Post-program participant promotion

Rate.


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MODELS OF SUCCESSION PLANNING:

There are three main models that companies use to implement succession planning:

Short-term planning or emergency replacements

Long-term planning or managing talent

Combination of above plans

Organizations should take a close look at their goals and levels of commitment before

choosing a model that best suits their needs.

Short-term or emergency replacements:

This is the most common model of succession planning and serves as a crucial point for all

types of businesses. Short-term replacement planning is focused on an urgent need caused by

a sudden development within the organization skilled employee leaving the company,

expansion or contraction of business. Sometimes, emergency replacement planning must

work to retain knowledge that is about to be lost. Emergency knowledge retention is an option

to consider if the organization is about to lose specialized knowledge and does not have a

successor to take the knowledge.

Emergency succession planning can come into play any time the organization expands in a

new direction or discovers the talent gaps to fill the required managerial position. Generally,human resources will try to fill the role from within the organization, but often go outside, if

no one has been trained for the job in the organization.

Long-term planning or managing talent :

Talent management focuses on the future needs of the organization. Working within the

strategic framework for the companys future goals, senior management identifies the

positions necessary for growth and the best candidates to fill those roles. Some organizations

invite all employees to take part in an assessment process, while others have managers

identify leadership candidates.If companies wish to grow leaders from within their existing talent pool and have the time and

resources to develop a useful program, effective talent management will become a key

component of its long-term human capital strategy.

The advantages of this model include:

Identifies a specialized talent pool.

Defines and builds future skills required for the success of the organization

Motivates and retains employees by involvement in their career growth

Some of the disadvantages of this type of model include:


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Expensive and time consuming

Existing employee-base may not have required skills and experience for key

posts and outside hiring can lead to resentment

Managers may be frustrated by not being allowed to choose a successor

Combination of both the plans :

This model allows senior management to plan for the long-term growth of both the

organization and employees within the organization and prepare for emergency replacements

to ensure that business is not affected by knowledge loss or lack of skilled employees.

HR professionals will find that the advantages of succession planning greatly outweigh the

disadvantages, which can be overcome by proper planning and communication within the

employees and senior management.

LITERATURE REVIEW:

1. John Beeson (2000), of Beeson Consulting, acknowledges that specific succession

practices and plans differ from one organization to another, yet he identifies two emerging

themes. The first is that priorities have been placed on retaining top talent, and second, is a

desire to allow for succession planning to become more flexible and action-oriented

(Beeson, 2000). Beeson identifies a correlation between succession planning and retention

of highly valued talent, and describes how this has caused these efforts to be pushed down

to lower levels within the organization (Beeson, 2000). To address the desire for

succession planning to become more flexible and action-oriented organizations are

emphasizing that these plans contain simplicity; focus; open communication; be driven by

line managers; require executive involvement; consist of leadership success profiles; utilize

rigorous assessment and talent pools; involve individual development planning; create

linkages to staffing, diversity, and reward systems; and finally, established measurement of

effectiveness of these efforts.

2. James Caudron ( 1999) These similarities are: forecast business and leadership needs;

create a list of necessary competencies; assess the internal talent and identify gaps; provide

developmental opportunities; hold employees accountable for their own development; and

make succession planning an integral part of business planning (Caudron, 1999). Caudron

(1999) offers these six similarities of succession planning efforts of successful

organizations; however, it is important to note from other works that measuring the

effectiveness of the plan should be included as a seventh step .

3. Randall R. Richards(1997) As stated, it is important to forecast or assess future

business, organizational, and leadership needs. Randall R. Richards, speaker, board


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governance facilitator, and author of How to Build and Effective Board, indicates that an

organization may begin to identify future leaders by assessing future agency needs before

selection occurs (Richards, 1997). Organizations should decide if they desire a fresh

thinker, generalist, specialist, leadership qualities and experience specific to keyareas, or a leader with prestige or significant contacts valuable for opening doors to

advancement (Richards, 1997). Motorolas method of assessing organizational needs is a

three-phase annual strategic planning process. Motorola assesses a long-range planning

effort, conducts a technology review, and conducts an organization and management

development review . Once completed, Motorola ensures that the organizational structure,

and the current and future leadership needs are aligned.

4. Stephen L. Guinn (2000) , of PSP Human Resource Development, describes creating a

list of necessary competencies by developing a competency model that defines specific,

observable behaviors that illustrate each identified competency (Guinn, 2000). American

Express Financial Services uses three kinds of competencies to create leadership profiles .

These three kinds of competencies are leadership competencies such as the ability to lead

change, functional competencies that include technical knowledge about concepts such as

recruitment and marketing, and personal competencies like resilience and achievement

drive . Beeson reports that Dell identified characteristics of its own most successful

managers, and factors that cause people to fail within the organization (Beeson, 2000).

From this research Dell listed critical management competencies like priority setting,

customer focus, problem solving, drive for results, and effective team building .

5. Sidney kess(2006),Two recent court decisions (Estate of True and Estate of Blount)

involving buy-sell agreements highlight the importance of informed succession planning.

This article focuses on recent developments and practical tips for family and non-familybusiness planning. For example, it is not a good idea for a client to have the buy-sell

agreement drawn up by his real estate lawyer. Asking a client for a copy of the buy-sell

agreement (assuming one exists) and all the insurance policies is a great way to start the

engagement. A buy-sell/insurance check-up often uncovers costly errors that can be

corrected.

6. Deborah B.Balser(2009),Leadership succession, and the associated changes that new

leaders make, can have profound impacts on nonprofit organizations. Despite its

importance, there is limited research that examines succession from the point of view of

employees and considers how their interpretations of organizational identity and proposed

change shape their responses to leadership transitions. In this article, we examine the

dynamics that ensued when the founder of Friends of the Earth, a nonprofit environmental

organization, stepped down. The case shows how the succession process can expose latent

disagreement about an organization's identity and give rise to internal conflict. These

patterns suggest that leaders must be attentive to different and often conflicting

interpretations of an organization's identity.

7. Paul Byham (1999) , Use of talent pools or acceleration pools are common methods in

success planning. These are described as pools of employees that are highly talented andpossess the leadership competencies identified by the organization (Byham, 1999). Those


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candidates can then be placed in stretch positions for accelerated development. Stretch

positions are described as those offering the best learning and highest-visibility

opportunities (Byham, 2000). Colgate-Palmolive describe stretch assignments as those

that build new skills and abilities by taking the individual out of his comfort zone.

8. Joseph S.Bower(2007) ,In his analysis of 1,800 successions, Harvard Business School

professor Bower found that companies performed significantly better when they appointed

insiders to the job of CEO. Yet Bower finds far too many companies have no succession

plans; as a result, when the time comes to name a new chief executive, more firms turn to

outsiders. Both insider and outsider CEOs have strengths and weaknesses at the start.

What companies must do is find a way to nurture what Bower calls inside-outsiders -

internal candidates who have outside perspective. Often such executives have spent much

of their time away from the mainstream of the organization, and away from headquarters,

living with new opportunities and threats. Nascent inside-outsiders should enter the CEO-

training process by the time they are 30 and be given the opportunity to manage a whole

business, so that they become good insiders. But they also need to be mentored with an

eye toward preserving their outsider perspective, so they learn how to turn their new ideas

into great businesses and are protected from old-timers who might be inclined to teach

them a lesson.

9. Mark Angott(2009), It is estimated that 60 percent of today's CEOs in the banking

industry will be retired by the year 2016, and there aren't enough candidates in the

leadership pipeline to handle the demand. The competitive advantage in the years ahead

will go to those banking institutions that have the foresight to plan for their future talent

needs. In order to avert a crisis in leadership, management must seriously consider theircurrent mission plans - one year out, five years out, ten years out - and determine whether

they have the people in place to achieve those goals and objectives. A formal evaluation

process should reveal areas in the organization that require bolstering. The benefits of

thoughtful succession planning are many, and they go beyond finding replacements for

departing management. It reduces the likelihood of crisis if a key employee leaves and

keeps the mission of the bank on track. Perhaps just as importantly, it forces accountability

and talent assessment at least once or twice a year.

10. Marshall Goldsmith(2009)There are many reasons, both personal and professional, to

invest in developing successors from internal candidates. Many executives say that

succession planning "feels like a waste of time" and yet they acknowledge a lack of bench

strength. As a result, the continuity and performance of the business are at risk. When the

author discussed these challenges with his friend Jim Moore, former CLO of three

companies, they came up with four ways for making leadership succession more effective.

These are: 1. Change the name of the process from Succession Planning to Succession

Development. 2. Measure outcomes, not process. 3. Keep it simple. 4. Stay realistic. These

four suggestions help shift your focus from planning to development -- and achieve bench

strength.


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SUCCESSION PLANNING METHODOLOGY:

Succession planning starts when you can accurately measure the performance of the

employees assess skills and career growth information. Succession planning tools need tohave extensive integration and customization options to support all of your talent management

efforts.

To identify a correct succession planning and talent management system you need to have a

software that

Has a performance management system that delivers accurate data.

Self-service online resumes for employees.

Has a recruiting system that enables to transfer information on new hires.directly to your succession planning analysis and data.

Integrates with your HRIS position/job management data with links to .

competencies and other qualifications.

Is a powerful bench strength assessment tool that can share, review and .

analyze data to provide latest and updated information.

Uses easy interactive tools or matrices for assessing employee potential, flight

risk and impact of loss.

Provides the needed framework for effective gap analysis.

Has a search capability based on multiple filters and employee characteristics.

Provides a view of your succession plan in any format, includingorganizational charts with concern areas highlighted.

Provides with a complete career inventory data for each employee readily at

hand, managers can specify targeted future jobs for colleagues and indicate a

readiness timeframe.

Customizable email reminders.

Informative visual reports and dashboard.

ADVANTAGES OF SUCCESSION PLANNING:We are currently witnessing the impact of an emerging and dire necessity of the new trend of

succession planning and talent management systems. HR professionals no longer think just

about the replacement of talent, but also focus on development of skills sets and knowledge of

employees within the organization and how they can cope-up to the wider roles and

responsibilities which are in-line with the companys goals.Succession planning helps you take a more strategic approach to leadership development,

employee skill assessment and perhaps even more important as baby boomers retire

preserving critical organizational knowledge. With incumbents ready to go any time an

expected or unexpected change occurs in your organization, you can ensure businesscontinuity at all levels of the organization.


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Organizations use succession planning to achieve a number of objectives like:

1. Improve recruitment process for key positions2. Active development of longer-term prospective successors by ensuring their

career growth and analyzing work, responsibilities, skills and knowledge

required for the future

3. Audit the talent pool of the organization and that helps in allocation of

responsibilities and development strategies and fill the identified talent gaps

4. Build a key talent resource of employees who share key skills, knowledge,

experiences and values seen as important to the future of the organization

To summarize, the main advantage of succession planning in an organization is the active

development of a strong talent resource for the future which is vital to attract and retain the

best and key people which will help in present and more for the future growth of the

organization. Have the right people with right skills in the right jobs doing the right things. If

they people are doing wrong things then you are right back where you started.

The key is to match the needs of the organization to the goals of the individual. Keeping

talented people in place by providing them with opportunities they may not receive elsewhere

will create a stronger and more loyal group of future managers and executives thus saving the

companys recruiting and hiring costs over the long-term.

RESULT:

From the above discussion we can say that Effective succession planning plays an importantrole in organization growth. Every organization should have succession planning programme

so that they can remove future contingency . It is good to have succession planning than

depending on the outside source. Because depending on the outside source can cost you much

more than succession planning cost. That is the same happened in case of BHEL a public

sector organization.


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CONCLUSION :

From the above discussion we come to conclusion that the government sector needs an

effective succession planning. Otherwise they can suffer the problem same faced by BHEL

during last year 2009, mainly the NAVRATNA companies of INDIA needs to havesuccession planning. Because most of the companies in NAVRATNA are the core sector of

INDIA which effects GDP of INDIA, and can effect the economy of INDIA. So effective

succession planning will be very helpful to INDIA SUCCESS.


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REFERENCES :

Ray Blunt, "Organizations Growing Leaders,"IBM Center for the Business of

Government(2001).

General Accounting Office, "Succession Planning and Management Is Critical

Driver of Organizational Transformation."

Corporate Leadership Council, Hallmarks of Leadership Success, Washington:

Corporate Executive Board (November 2003).

Ray Blunt, "Organizations Growing Leaders."

Corporate Leadership Council, Hallmarks of Leadership Success (Presentation

Materials), Washington: Corporate Executive Board (November 2003).

BIBLIOGRAPHY:

http://economictimes.indiatimes.com/news/international-business/JPMorgan-

Chases-CEO-mulls-succession-plan-

http://www.wapa.gov/newsroom/pdf/success.pdf

http://www.4cleanair.org/chicago/EffectiveSuccessionPlanningforPublic.pdf

http://www.pwc.com/us/en/public-sector/publications/federal-government-

succession-planning.jhtml
http://www.wapa.gov/newsroom/pdf/success.pdfhttp://www.wapa.gov/newsroom/pdf/success.pdf

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Succession Planning in the Government Sector

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