How to Succeed with Succession Planning

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1 How to Succeed with Succession Planning June Presented by: Christine Ball and Garth Johns

2 What does Succession Planning and/or Succession Management mean to you? Why is it important?

3 Succession Planning A Textbook Definition Succession planning and management is a deliberate and systematic effort by an organization to ensure the continued long-term effective performance of an organization, division, department or work group by: Identifying, developing, retaining and replacing talented individuals in key positions over time Retaining and developing intellectual and knowledge capital for the future Encouraging individual learning, growth and advancement Source: Rothwell, William J., Effective Succession Planning (2 nd edition), American Management Association, 2001

4 Succession Management Policy Definition The primary focus of Succession Management is to support the achievement of strategic goals and to ensure the continued effective performance of the organization by planning and supporting the development and replacement of key people and positions over time.

5 Why is it Important for Successful, Effective Organizations? Ensure Business Continuity Benchstrength Replace future Vacancies and meet future Skill and Talent Needs Address skill shortages & upcoming vacancies ahead of time Retain Institutional Memory Knowledge Management Maximize Competitiveness as an Employer and ability to Attract and Retain talented staff Enhance ability to promote from within Provide a supportive growth environment Focus learning and development efforts and $ s Focus external recruitment campaigns and efforts and $ s

6 Succession Management is akin to Capital Infrastructure Management Succession Focuses on People Infrastructure within a Municipal Organization Risk Analysis and Management Planning for New Jobs/Positions Development of Current Staff Replacement Planning Short Term and Long Term Plans Requires Financial Investment Need to Prioritize To have the right people with the right skills available at the right time to continue to provide excellent municipal programs and services Capital Infrastructure Focuses on Physical Infrastructure within a Municipality Risk Analysis and Management Planning for New Infrastructure Maintenance of Existing Replacement Planning Short Term and Long Term Plans Requires Financial Investment Need to Prioritize To have the right physical infrastructure to continue to provide excellent municipal programs and services that maintain and improve quality of life and economic prosperity within the community Our Workforce is Aging! Our Capital Infrastructure is Aging!

7 This document is intended to assist OMHRA and other related organizations with high-level succession planning analysis. Any questions, please contact Michael Robinson at OMERS Primary Pension Plan Scatter Chart of Active Members (Based on Results of Actuarial Valuation as at December 31, 2012) Number of Active Members Credited Service Age Total Up to 25 2, , ,430 2, , ,980 10,860 2,130 24, ,590 10,800 8, , ,210 9,460 9,820 4,190 2, , ,110 9,620 8,670 4,930 8,990 3, , ,780 9,300 9,310 4,430 8,440 7,240 3, , ,630 6,490 7,770 3,930 6,070 4,780 3,320 1,300 38, ,080 3,360 4,480 2,640 4,100 2,560 1, , ,000 1, ,620 Total 69,900 63,550 52,320 21,530 30,970 18,670 8,110 2, ,700

8 MROO Retirement Planning Seminars OMERS PROJECTED NEW RETIREES ANNUALLY 2014 to

9 Characteristics of Today s Workforce 4 generations are in the workplace at the same time now (1 st time ever!) The Traditionalists/ Veterans 1900/22 to The Baby Boomers to Generation X to 1980 Generation Y/Millennials 1981 to 1999/2000 Less than ½ the size of the Boomer generation

10 Link Between Generational Identities & Workplace Behaviour Generational identities translate into distinct workplace behaviours as they relate to: Relationship with authority Relationship with the organization Relationship with colleagues Work styles Management styles Learning styles Source: The Conference Board of Canada & n-gen People Performance Inc., March 2007

11 Managing the Diverse Generations Source: Lancaster and Stillman, When Generations Collide Traditionalists/ Veterans Use them as mentors, coaches, trainers Recognize: their reward and recognition comes from the satisfaction of a job well done That no news is good news is preferred feedback motto they feel that changing jobs carries a stigma Help them get ready for retirement Phased retirement, value their contributions, help them shift the balance If there is high turnover in this group, who tend to be the most loyal, there may be real problems

12 Managing the Diverse Generations Source: Lancaster and Stillman, When Generations Collide Boomers Help them to understand the value of their work, lend an ear, listen to them, give them projects that allow them to showcase their skills and knowledge Recognize: their reward and recognition comes from money, title and the corner office that feedback once a year with lots of supporting documents is enough they feel that changing jobs puts you behind in career Help them balance work and home life Look at chances for development, advancement and mentoring of high profile boomers

13 Managing the Diverse Generations Source: Lancaster and Stillman, When Generations Collide Gen X Invest in them, give them career development, resume builders Recognize: their reward and recognition comes from freedom and security that they want immediate feedback they feel that changing jobs is necessary it happens Give them balance now! Have policies and practices that focus on lifestyle Communicate to these employees

14 Managing the Diverse Generations Source: Lancaster and Stillman, When Generations Collide Gen Y/Millenials Recognize: idea of boomerang employee their reward and recognition comes from work that has meaning for them Work isn t everything; it is just one of the activities they spend their time on they want immediate feedback yesterday! And they ll give the manager feedback they need flexibility to balance their activities they feel that changing jobs is routine it is what I expect to do many times Allow them to multi-task, multi-skill Look at the work is it stimulating? is there a chance to learn? is it collaborative?

15 Critical HR Management Tools to be a Competitive Employer Competitive Remuneration Work-Life Balance/Flexibility Work Arrangements Benefits out of the ordinary, customized requests Career Development Including Performance and Succession Management Engagement

16 Succession Planning is a Top Priority for Municipalities and Municipal Associations Municipal Partnering with Post-Secondary Educational Institutions for Learning and Development AMCTO and OMHRA Continually 1 of the most requested topics for learning & best practice sharing HR needs support of municipal senior management and Council for effective succession management: Interest Resources Accountability This will be an issue for years to come (demographics) Many municipalities partnering with local education institutions and each other to provide leadership and other skill development programs

17 Succession Planning is a Top Priority for Municipalities and Municipal Associations Top priority also for AMO, OMAA, AMCTO, MFAO, MMAH and individual organizations e.g. AMCTO Intern Program Articles in Municipal Monitor, Municipal World, etc. Succession Planning part of AMCTO Executive Diploma in Municipal Management and other Learning Events AMO has had workshops on Succession Planning at its conferences Leadership Initiative (formerly LEAPP)

18 Best Practices in Succession Management A process that allows both management identification and self-identification of those with interest and potential to be a successor Incorporated into Performance Management Decisions based on objective, consistent performance criteria A pool of candidates with interest and potential, ideally Valuing and development of both those identified as potential successors as well as those who aren t interested in being a successor Continuous learning and improvement A work environment and human resources management policies and procedures that contribute to effective recruitment, retention, management and motivation of quality, engaged employees

19 Best Practices in Succession Management Most organizations focus on management/leadership positions Should do for all key, critical positions Important to document what position and potential successors have been identified and how the potentials are progressing Have a process that is transparent and based on performance criteria Can be formal or more informal doesn t matter as long as documented Should share this information at the right level for development opportunities

20 Succession Planning Process at Durham and Niagara Falls Corporate Policy, Process, Guidelines and Form Templates Customized for Departments Annual cycle, tied to: The Performance Management (PDR) Process The annual Business Planning and Budget setting process Also have Career Management resources and support available (through HR and EAP) Annual reporting of Performance and Succession Management status to Council

21 Planning For Succession or How We Get From Here to There

22 Succession Roles This is an investment in the future and needs to be supported by Leadership Team and Council Everyone has a role to play HR, Manager and employee

23 It Starts With Recruitment We need to get the right people on the bus, the right people in the right seats on the bus and the wrong people off the bus Jim Collins Good to Great Hire for attitude and fit we can train for skills later

24 Are Your Staff Engaged? Do they know what is expected of them day to day? Do they have the right tools, equipment and communications? Do they have the opportunity to do what they like and do best? Are they properly placed? Do they feel recognized and appreciated? Does my opinion count? Am I just another Human Resource or does my boss know me as an individual?

25 Organizational Culture Do we want to keep the best and brightest? If the answer is yes, focus on training and succession planning How do we do that? Communication 2-way, ask and listen Open door and open dialogue Make it regular

26 Ways to Develop Employees with Potential Traditional Ways Classroom Training Mentoring On-the-Job Training Sink or Swim Job Shadowing Apprenticeships Conferences Non-Traditional Ways Secondments Job Exchanges Back up for Vacations and other Leaves or Absences Projects Coaching Create Transitional Positions Elearning

27 What About Those With No Potential or Interest?

28 Succession Planning Barriers $$$$$$$$ Time Staffing levels Collective agreements attitude

29 Considerations For Success Willingness, enthusiasm and attitude of everyone involved Be creative Take advantage of opportunities Learn from successes and failures

30 Its All Part of Talent Management Starts with recruitment goes to reward and recognition performance management coaching training/development succession planning Succession planning cannot be taken in isolation of everything else What will you do to get the ball rolling?

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