Business Succession Planning

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1 Business Succession Planning Dr. Younes Khataybeh President of Arab Trainers Union

2 ! what is succession planning and how will it address these human resource i s s u e s?! How does succession planning differ from replacement planning?! When do leaders know that their organization needs a succession planning and management program?! What are talent pools, and how are they u s e d?

3 ! Demonstrate an understanding of the value of succession planning for successful businesses.! Develop expertise with the key elements of a succession plan.! Create and discuss aspects of a s u c c e s s i o n p l a n.! Discuss the elements of a succession plan in terms of roles, responsibility, function, scope, and evaluation.

4 ! Demonstrate an understanding of the value of succession planning for successful businesses.! Develop expertise with the key elements of a succession plan.! Create and discuss aspects of a s u c c e s s i o n p l a n.! Discuss the elements of a succession plan in terms of roles, responsibility, function, scope, and evaluation.

5 Defining a Succession Plan Any effort designed to ensure the continued effective performance of an organization, division, department, or work group by making provision for the development, replacement, and strategic application of key people over t i m e.

6 Defining a Succession Plan succession planning means that businesses provide developmental, support, and search activities to ensure that the organization continues effectively when people who occupy key roles leave or are promoted

7 How Does Succession Planning Differ from Replacement Planning?

8 Succession planning, in contrast, focuses on developing people rather than merely naming them as replacements. Its goal is to build deep bench strength throughout the organization so that, whenever a vacancy occurs, the organization has many qualified candidates internally that may be considered for advancement. Replacement planning assumes that the organization chart will remain unchanged over time

9 What Are Talent Pools, and How Are They Used?

10 A talent pool is a group of people being prepared for more challenging responsibilities

11 succession planning encourages managers at all levels to regard talent in any part of the organization as a possible successor for positions immediately above them. Hence, talent pools may be identified underneath each level on the organization chart but are not tied to specific positions at the next higher levels. In replacement planning, individuals are usually identified as backups for specific positions.

12 Components of the Plan

13 Components of the Plan! A mission statement, supported by defined v i s i o n a n d v a l u e s! A dedicated team for planning, design, implementation and follow-up (although the same people need not be involved at each stage)

14 Components of the Plan SUCCESS results from Succession Planning System Designing a system, determining resources, and setting up progression pathways. Understanding resources Identify key positions, analyze the environment, and establish individualized engagement plan Creating risk assessments is a leader s very honest attempt to address the risks of continuing with a particular plan

15 Components of the Plan SUCCESS results from Crafting an action plan Defining Roles, Responsibilities, and Functions Evaluating the plan evolution of individualized engagement plans (IEP) Setting the plan in motion We have said several times that succession planning is really a process. It involves a commitment to several different transitions rather than one significant shift

16 Components of the Plan SUCCESS results from Selling the plan and creating reinforcement. The succession program planners and those responsible for implementation must be able to sell the value of the plan to many individuals involved in the organization, not the least of which would include the CEO and perhaps a board celebrating success and continually reminding the board and members of the succession team of its value

17 Setting the Scope! This includes determining the resources that we need and setting up what we will call progression c h a i n s! A dedicated team for planning, design, implementation and follow-up (although the same people need not be involved at each stage)

18 Setting the Scope This includes determining the resources that we need and setting up what we will call progression c h a i n s

19 Setting the Scope The first step includes the system itself, and this involves three main components. 1. Identify the critical people for our succession p l a n ( S P ) 2. Develop progression procedures 3. Incorporate top level support and buy-in

20 R i s k A s s e s s m e n t The leader s role is to complete the analysis honestly and with feedback from the individual as well as the leader s observations

21 Individualized Engagement Plans Establish competency models by talent pool considering the positions that will be fed by that pool. A competency model is a narrative description of the knowledge, skills, attitudes, and other abilities that lead to exemplary performance

22 Individualized Engagement Plans Engagement plans are a key component in the succession planning process. Each person that you identify ANYWHERE in a succession plan as being either a critical link or a potential leader must have an IEP. The IEP is developed in consultation between the leaders and their staff. Critical elements of an IEP include developmental needs as well as a career plan.

23 Key Ingredients of a Successful Plan To conduct individualized multi-rater, full-circle assessment We must be a part of a learning organization Succession planning does not exist in a vacuum Develop reliable data gathering

24 Key Ingredients of a Successful Plan Have senior level support Continually assess your results You do not have to do it all at once Establish (or reengineer) an organizational performance management system

25 Key Ingredients of a Successful Plan Assess individual potential for success at higher levels of responsibility Establish a means of regular, ongoing individual development planning Coaching and Mentoring

26 Evaluation Challenges

27 N e x t S t e p s

28 ATU s succession planning organizational assessment.

29 ATU s succession planning organizational assessment.

30 ATU s succession planning organizational assessment. Talent is more readily available for sourcing inside the organization when needed Better decisions are made about who to promote Enhanced competitive advantage by focusing promotion decisions on issues more effectively linked to the organization's competitive advantage Better decisions are made about who to promote Enhanced competitive advantage by focusing promotion decisions on issues more effectively linked to the organization's competitive advantage

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