Succession Planning 2/7/2016. Then vs Now. Have you thought about how quickly you could replace certain positions at your company?

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1 2016 PASAE Educational Summit and Expo Succession Planning Then vs Now It s Time to [Bleep] or Get Off the Pot Presented by Ira S Wolfe Have you thought about how quickly you could replace certain positions at your company? Have you thought about what skills your employees and managers will need in the future? 6 1

2 What is Succession Planning? What Succession Planning Isn t A deliberate and systematic effort by an organization to ensure leadership continuity in key positions, retain and develop intellectual and knowledge capital for the future, and encourage individual advancement. Succession planning isn't just naming the new CEO. About putting a name behind a title at all. Just replacement planning. A one time event. A reaction when a position suddenly opens Decided by an individual manager or executive. 7 8 What Succession Planning Is A subset of workforce planning. Recruiting and Developing employees to fill each key role. Ensuring that an organization operates effectively when individuals occupying critical positions depart. Used for managerial positions as well as unique or hard to fill roles. Building and aligning bench strength for critical roles and positions. An ongoing process where players and the environment will change continuously. WHY IS SUCCESSION PLANNING HOT NOW? 9 Why Is Succession Planning Hot Now? Perfect Labor Storm Aging workforce Generation X Millennials Generation Z Structural Job Disruption 11 2

3 Why Is Succession Planning Hot Now? Why Most Succession Plans Fail Perfect Labor Storm Aging workforce Generation X Millennials Generation Z Structural Job Disruption VUCA Environment Volatile Uncertain Complex Ambiguous Technology Accelerating Disruptive Pervasive Successors leave. Incumbents don t leave. Successor doesn t meet expectations. Fixed mindset cripples future success. Considered an HR function. Too complicated and time-intensive. Rewarded for past experience, not future skills Trends for 2016 and beyond 1. Longer time to fill positions (DHI) 2. Pay to play (CEB) 3. Mismatch between company and jobseekers 4. SoMoLo Utilization 5. Candidate Experience Rules 6. Millennials Are Game Changers Current Systems Broken! Old recruiting and succession processes don t work Attract too few qualified candidates Too many unqualified applicants Poor or no pipeline Sourcing out of sync with applicants and talent Process overwhelms HR and managers Lack of good metrics Copyright Ira S Wolfe. Success 15 Performance Solutions Copyright Ira S Wolfe. Success Performance Solutions WHAT THIS MEANS FOR EMPLOYERS 1997 CALLED AND IT WANTS ITS RECRUITING AND SUCCESSION PLANNING MODEL BACK

4 More than half (52 percent) of business leaders indicate they do not have confidence in their direct reports ability to become part of the C-suite 72 percent of organizations say the most important activity for succession management is the ability to identify a supply of available talent to fill key positions. Yet only 32 percent of organizations believe that they are ready to employ this capability effectively today. Source: Deloitte Business Confidence Report Succession Planning Starts Here What are your workforce demographics? What are your workforce demographics for key roles? How prepared are successors for each key role? [Bleep] happens! What plans are in place to replace key players who leave unexpectedly? 60 and over 50 to to to 39 Under 30 Workforce Demographics Executive Management Sales Operations Finance Associate Staff Who is ready? Who needs training? Who is engaged? Who is looking elsewhere? Nine Cell Matrix 1. Identify a position or role 2. List 3 essential goals or responsibilities 3. Identify no more than 7 essential core competencies 4. Prioritize the competencies 5. How will you assess competence?

5 What s Next Workforce Demographic Analysis Age Position and/or Role Identify high potentials and high performers Evaluate competencies current and future Design recruitment and development strategy Don t hesitate The ability to make good decisions regarding people remains one of the last reliable sources of competitive advantage, since very few organizations are good at it. Peter Drucker Ira S Wolfe Success Performance Solutions O: M: E: W: Connect with me on LinkedIn Follow me on Twitter Like Success Performance Solutions on Facebook Subscribe to my blog and newsletter

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