Career Management. Succession Planning. Dr. Oyewole O. Sarumi

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1 Career Management & Succession Planning Dr. Oyewole O. Sarumi

2 Scope of Discourse Introduction/Background Definitions of Terms: Career, Career Path, Career Planning, Career Management. The Career Development Stages The Need for Career Planning The Career Planning Process The Benefits of Career Planning What is Succession Planning

3 Purpose/Need for Succession Planning Important Considerations for Successive Planning The Successive Planning Process (1-5). Key Issues for Effective Successive Planning Conclusion

4 WHAT IS CAREER PLANNING? Career: Is all the jobs that are held during one s working life. Career Path: Is the sequential pattern of jobs that form a career. Career Planning: Is the process by which one selects career goals and the path to these goals.

5 Career Development: is those personal improvements one undertakes to achieve a personal career plan. Career Management: is the process of designing and implementing goals, plans and strategies to enable the organization to satisfy employee needs while allowing individuals to achieve their career goals.

6 CAREER STAGES: 1. Exploration 2. Establishment 3. Mid-Career stage 4. Late Career 5. Decline

7 P E Establish - ment Late Career R F Exploration Midcareer Decline O R M A N C Transition from college to work Getting first job and being accepted Performance increaseor decrease or maintain The elder states person Retirement E AGE Stages in Career Development 7

8 NEED FOR CAREER PLANNING To attract competent persons and to retain them in the organization To provide suitable promotional opportunities To enable the employees to develop and make them ready to meet future challenges To increase the utilization of managerial reserves To correct employee placement To reduce employee dissatisfaction and turnover To improve motivation & morale. 8

9 The CP PROCESS Individual needs and aspirations Individual strengths and weaknesses Placement on career path Review of career plans Organizational needs and opportunities Career Planning Process 9

10 Benefits of Career Planning to Employees In the present context, because of change in the perspective of criteria for measuring success, the role of career planning for employees has expanded. Career planning benefits employees in following ways:- Explicit career path Focused self-development Increased productivity 10

11 Career Planning Benefits to Organization From an organization s point of view, career planning has a long-term orientation for filling various positions from internal sources. When this practice is followed, the organization derives the following benefits from career planning: Assured availability of talent Attracting and retaining talent Promoting organizational image Protecting Interests of Special Groups of Employees 11

12 SUCCESSION PLANNING

13 Definitions "Succession planning" is a process for identifying and developing internal people with the potential to fill key leadership positions in the company. Succession planning increases the availability of experienced and capable employees that are prepared to assume these roles as they become available.

14 Definitions A succession plan is a plan for identifying who is currently in post and who is available and qualified to take over in the event of retirement, voluntary retirement, or dismissal. 14

15 Succession planning is a means of identifying critical management positions starting at manager and supervisor levels and extending up to the highest position in the organization. William J. Rothwell

16 Definitions Succession planning is a process whereby an organization ensures that employees are recruited and developed to fill each key role within the company. Succession planning ensures you can fill key roles from within your organization.

17 Definitions Succession planning is a conscious decision by an organization to foster and promote the continual development of employees, and ensure that key positions maintain some measure of stability, thus enabling an organization to achieve business objectives.

18 Definitions Succession planning is defined as "any effort designed to ensure the continued effective performance of an organization, division, department, or work group by making provisions for the development and replacement of key people for key positions and work activities over time" (Rothwell, 1994, p. 5).

19 The 3 Elements of Succession Planning The Main Elements are: The purpose of succession planning is to identify and develop people to replace current job holders in key positions. It enables to maintain the steady flow of internal talent to fill important vacancies It emphasizes on hiring from within and creates a healthy environment, where employees have careers and merely job.

20 Need for Succession Planning Organizations exist as on-going concerns while personnel come in and go out on regular basis. Therefore, the continued existence of an organization over time requires a succession of personnel to key positions. So, this basically requires the succession planning:- Identification of right personnel Grooming of successors Boosts the morale of meritorious employees 20

21 Objectives Of Succession Planning Identify those with the potential to assume greater responsibility in the organization. Provide critical development experiences to those that can move into key roles. Engage the leadership in supporting the development of high-potential leaders.

22 Build a data base that can be used to make better staffing decisions for key jobs. Improve employee commitment and retention. Meet the career development expectations of existing employees. Counter the increasing difficulty and costs of recruiting employees externally.

23 Purpose of Succession Planning: Succession planning becomes an important requirement due to the following reasons: Why? -Instances when a key leader of the organization moves without succession planning in place? What? - What is likely to happen to the organization when a key leader moves without succession planning in place?

24 Examples Include A Person Who Is: Suddenly and unexpectedly unable or unwilling to continue their role within the organization. Accepting an approach from another organization or external opportunity which will terminate or lessen their value to the current organization. Indicating the conclusion of a contract or timelimited project or Moving to another position and different set of responsibilities within the organization.

25 Succession Planning Supports Workforce Planning

26 Important Considerations for Succession Planning What is the business case for succession planning in the organization? Is planning based on short- and long-term goals and objectives? Have the key stakeholders and decision-makers been consulted? How involved are the leaders? Is succession planning linked with workforce planning? Can succession planning be linked with other HR strategies? Is there accountability at the departmental level? Are HR professionals and departmental planners involved with the planning process?

27 Important Considerations for Succession Planning What are the roles and responsibilities of stakeholders? Is the process, and its expected outcomes, clearly understood by everyone involved? What decisions should be made at the departmental and corporate levels? How will the process demonstrate value for transparency, fairness and accessibility? How will the department ensure that all employees are provided the same Opportunities and are treated without significant bias? Is there a plan or strategy to manage employee expectations? Do employees understand that they are not guaranteed a promotion?

28 Important Considerations for Succession Planning What resources are required to plan effectively and efficiently? How will succession plans be evaluated? How will evaluation results affect decision-making? Do employees understand they are responsible for managing their own career path (s)? Is the department capable of supporting necessary learning and development? Is the work environment supportive of succession planning? How will the collection, retention, use, and protection of personal information be compliant with the Access to Information and Protection of Privacy Act?

29 Succession Planning Process

30 Step 1 Identifying Key Positions or Key Groups Key position or occupational group can be defined in many different ways, but two important criteria that should be considered are criticality and retention risk. A critical position is one that, if it were vacant, would have a significant impact on the organization s ability to conduct normal business. The significance of the impact could be considered in terms of safety, operation of equipment, financial operation, efficiency, public opinion, and so on. Retention risk refers to positions where the departure of an employee is expected (e.g. retirement) or likely (e.g. history of turnover). By examining these criteria on a low-to-high scale, an organization can determine what positions require short- or long-term planning.

31 Information That May Help Identify Key Positions Include: Current and future strategic goals and objectives Retirement forecasts Turnover rates Current and expected vacancies Changes to existing programs and services Highly specialized function

32 Questions That Help In Identifying Key Positions Include: What jobs, if vacant, have the potential to prevent the organization from achieving goals and objectives? What jobs have a direct impact on the public? What jobs would be difficult to fill because of required expertise or because the exiting incumbent possesses a wealth of unique and/or corporate knowledge? Is there a projected labour market shortage for relevant job skills? Is there a need to plan for anticipated positions that do not currently exist?

33 Step 2 Identifying Competencies All positions have a requisite set of knowledge, skills and abilities that are expected of employees who are filling that function. Thus, knowing the competencies of a job is a mandatory component of recruitment, serving as a general baseline to measure against interested potential candidates. However, succession planning provides an opportunity to review the competencies traditionally associated with jobs, particularly with respect to current goals and objectives.

34 Ways to determine and develop required competencies include: Reviewing job descriptions, advertisements, and relevant merit criteria. Interviewing current and former job incumbents. Interviewing supervisors, clients, and other stakeholders. Conducting focus groups or surveys. Reviewing any existing development programs (i.e. leadership competencies). Reviewing organizational values.

35 Valid identification of competencies is necessary for: Establishing minimum requirements for job success. Creating a baseline for assessing interested potential candidates; and Identifying appropriate learning and development opportunities.

36 Some questions to consider might include: What are the specific functional competencies that apply to a key job or group? What competencies apply to all employees and groups? Are these competencies aligned with the organization s vision, mission and values?

37 Step 3 Identifying and Assessing Potential Candidates The key purpose of identifying and assessing employees against core job competencies is to help focus their learning and development opportunities in order to prepare them for future roles in the organization.

38 To Demonstrate These Values, Succession Planning Must Be: Objective and independent of personal bias; Merit-based; Communicated to and understood by all employees; and Transparent at all stages of the process.

39 Ways To Solicit For Self-identification Include: Circulating an expression of interest. Employees discussing career goals and objectives with their supervisor. Developing an inventory of employee skills or competencies and careers interests.

40 Supporting Methods To Identify Potential Candidates Written exams Candidate interviews Review of résumés/cvs Simulated work exercises Performance reviews Reference checks Talent review meetings

41 Some Critical Questions That May Help Departments Prepare For This Step Include: Has there been one-on-one discussion with employees regarding their career goals and interests? Have all employees been made aware of available succession opportunities? Do employees understand the purpose and process of succession planning? Specifically, do they understand that they are not guaranteed a promotion as a result of this process? Do employees who were not considered for a current opportunity understand that they can be considered in the future with further development of their knowledge, skills, and abilities?

42 How will the organization communicate the outcome of a succession-based appointment? Have alternative career paths (i.e., relevant lateral moves) been identified for employees who were not considered for a current opportunity? Will the organization use multiple sources of information when assessing a candidate? How will the organization develop an inventory of employee skills and interests? Are an appropriate number of candidates being developed for a key job? How will the candidate pool demonstrate the organization s value for employment equity and diversity?

43 Step 4 Learning and Development Plans Once the relevant candidates have been identified, based on their interest and potential for success in a key position, the organization must ensure that these employees have access to focused learning and development opportunities.

44 Some key points to remember when developing learning and development plans are: Plans should focus on decreasing or removing the gap between expected competencies and the current knowledge, skills and abilities of candidates. Manage expectations modern succession planning is based on learning and development to fulfill employee potential, rather than merely filling a vacancy. There are a wide range of learning and development opportunities to consider, which can include: o Job assignments that develop and/or improve a candidate s competencies; o Job rotations; and o Formal training.

45 Ensure appropriate strategies are in place to support the transfer of corporate knowledge to candidates for key jobs, which can include: o Mentoring, coaching. o Documenting critical knowledge; o Exit interviews; and o Establishing communities of practice.

46 Step 5 Implementation and Evaluation Evaluating succession planning efforts will help to ensure the effectiveness of the process by providing information regarding: How the process operates the relationship between inputs, activities, outputs, and outcomes Impact of the process relative to stated goals and objectives Functional strengths and weaknesses Potential gaps in planning and assumptions Cost-effectiveness and cost-benefit

47 Evaluative Questions For Departments To Consider Might Include: Have all key jobs been identified and do they have succession plans? What is the impact of succession plans on business continuity in key positions? Are successful candidates performing well in their new roles? What is the impact of learning and development efforts? Are employees ready to compete for a vacant key position? Is the candidate pool diverse and reflective of employment equity values? What are the areas for improvement in the succession planning process?

48 Key Issues That Need To Be Considered For An Effective Succession Plan : The succession planning program must have the support and backing of the company's senior level management. Succession planning must be part of an integrated HR process that includes training, development and performance appraisal. Identify what skills the organization will need in 5, 10 or 15 years.

49 Critical positions must be identified and included in the Company's succession planning program. Identify high-performers that are almost ready to step into those critical positions. Analyze the workforce and identify who will be eligible for retirement within the next five years.

50 Effective Succession plan : contd. Managers need to identify the responsibilities, skills and competencies that will be needed by their replacements A system for communicating succession planning information to managers must be established. A systematic approach for identifying, nominating and selecting potential successors must be established. Background information on potential successors, such as education, experience, skills, appraisals and potential should be reviewed. The training and development requirements of potential successors needs to be determined.

51 Effective Succession Plan :..cont d The skills of potential successors must be developed through work experiences, job rotation, projects and other challenging assignments. A system for monitoring candidate's development plan progress by senior management should be established. Succession planning must include a system for providing feedback and encouragement to potential successors. Succession planning is basically a "numbers game" that requires good organizational skills and the ability to pay attention to details. Finally, the succession plan must belong "to the organization" and not to the HR department in order to make sure it has the attention it deserves.

52 Measures for effective Succession Planning Since succession planning is essential for every large organization but obstacles generate due to faulty organizational practices, some measures are needed to make succession planning effective: Involvement of Supervisory Board Driven by CEO Procedural Consistency External benchmarking Pool of Successors Objectivity Application of emotional intelligence 52

53 Some Of The Current Practices In Succession Planning Include The Following: Knowing what jobs at various levels, if removed, would cause a significant loss to the organization, and which of these jobs represent the greatest retention risk. Knowing which employees are both interested in, and demonstrate short- and/or long-term potential for, succession into key positions. Significant investment to ensure that employees have appropriate and structured learning, development and training opportunities to fulfill their potential. Aligning succession planning with current and anticipated business goals and objectives.

54 "Every company has a succession planning document," says David Larcker, a professor in the graduate school of business at Stanford University. "The question you have to ask is, 'Will it be operational?"

55 Conclusion There is no one model for succession planning, as its contours are likely to be quite different in small and large organisations - although it can be equally vital in both - and there are no hard-and-fast rules. What is indisputable is that all organisations need leaders and managers with a range of experience.

56 A s a complex and time-consuming process, if carried out properly, may absorb substantial time and expenditure, succession planning is an important way to manage the delivery of that experience, complemented by management training and development activities, and align it with business needs..

57 Organisations need to ensure that they continually review and develop their succession plans to meet current and future skills, capability and behavioural needs and to ensure that succession planning is closely aligned with evolving business priorities

58 References Used SUFF, R. (2011) Informal versus formal succession planning strategies. IRS Employment Review, 21 March. 8pp. EQUALITY AND HUMAN RIGHTS COMMISSION. (2009) Working better: the managers guide to flexible working. London. Available at: HIRSH, W. (2000) Succession planning demystified. Brighton: Institute for Employment Studies. ROTHWELL, W.J. (2010) Effective succession planning: ensuring leadership continuity and building talent from within. 4th ed. New York: American Management Association.

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