Succession Planning. Passing The Torch To Our Future Leaders. Gary Milewski Perkins+Will, Inc

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1 Succession Planning Passing The Torch To Our Future Leaders Gary Milewski Perkins+Will, Inc

2 There are two kinds of people in organizations: Those with 20 years experience and those with one year experience repeated 20 times. Gene Dalton, BYU

3

4 Are We in Crisis? 78 million Baby Boomers turning 65 in 20 years 16% of workforce is over % over 55 by Retiring en-masses. Insufficient replacements available. People just leave They always do

5 What is Succession Planning? Systematic process for identifying, assessing, and developing staff Strategic planning for Human Capital An investment in future leaders Proactive versus reactive Sustainability that creates motivated and capable staff Awareness, Connection, Commitment, Action

6 Underlying Core Principles Leaders really do matter. Performance is what counts. Today s top leaders may not be tomorrow s. Talent is an enterprise resource. A broad set of experience & assignments is the best classroom. Top 100 to leave a legacy of future talent. Invest in the best.

7 Recruiting C0st Ratio (RCR) For every dollar of first-year compensation, the organization spends approximately 10 cents on activities related to acquiring the talent.

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9 A Successful Succession Program Senior Management support Part of an integrated HR process Needed skills within the organization Identification of critical skills Identification of high performers Identification of soon to be retirees Identification of skills, responsibilities, and competencies Establishment of a communication system

10 Key Elements Assessment of key Positions: What are the competencies and experiences needed to qualify for each key position? Identification of Key Talent: Typically people at the top two levels of the organization and high potential employees one level below. Identified by their management s assessment of their performance and potential for advancement

11 Key Elements Assessment of Key Talent Each person on the radar screen, primary development needs are identified focusing on what is needed for the next level Development Plans: The plan is designed to help the person develop over the next year Monitoring and Review The plan is reviewed with the key talent annually or semiannually. The purpose is to refresh or revise the plan.

12 Assessment of Key Positions Key Elements Identification of Key Talent Development Monitoring & Review Key Elements Assessment of Key Talent Generation of Development Plans

13 Leadership Development = V+C+L Variety of Experience Challenging Assignments Ability & Willingness to Learn - Center for Creative Leadership

14 Succession Development On The Job Job Enrichment Special Projects Committee Assignments Task Force Participation Lead Person Responsibilities Giving Presentations Preparing Proposals Leading A New Program Temporary Job Assignments Full Job Change Learning From Others Working With a Mentor Teaming with an Expert 360 Feedback Focused Interviews Training & Education Seminars & Conferences Continuing Education E Learning Cross Training

15 Development Tool Box Highest Return.. Full Job Change Focused on Development Needs Job Restructuring Based on Development Needs Mini Assignments Cross Divisional Project Leadership or Assignment Focused Coaching & Counseling Industry Representation Visits Accompanying Senior Executives Formalized Education Programs Full 360 Degree Feedback and Evaluation Motivated Self Development Seminars and Conferences Lowest Return..

16 How Do We Learn On-The-Job 25% to 30% 55% to 65% Mentoring or Coaching Training or Continuing Education Motivated Self- Development

17 Institutionalize the Process Capture Stakeholder Support Commitment from Leadership Gather Resources Identify the strategic vision and goals of the organization Succession planning as part of the organization s values Objectives of the program

18 Organizational Assessment of Needs Currently, where is the organization What is it that the organization is wanting to accomplish What are the identified gaps

19 Current Organization Assessment Collect and analyze organization and demographic data Identify and prioritize key work processes/positions Identify condition and availability of resources

20 Future Organization Assessment Analyze future requirements for service What are the goals of the strategic plan (SP) What are upcoming changes in the industry? What demands will technology place on the organization?

21 Gap Analysis What are the differences between today and tomorrow Workforce Processes System/Resources Determination of talent needed for the long run Identification of the core leadership KSA s (Knowledge, Skills, Abilities) to bridge the gap

22 Succession Planning Model Determine which employees will be involved in the program Build leadership pipeline Identify training and development strategies Develop retention strategies Create knowledge management and transfer strategies

23 Succession Planning Model Element Objectives Tools Build a Leadership Pipeline Develop Critical Function Successors Staff Development and Training Develop Protection Strategies 1. Ensure the sustainability of organizational leadership 2. Mitigate impact of attrition and employee mobility on the utility s critical functions 3. Develop layers of depth to perform organizational functions 4. Increase ability to retain key staff 1. Leadership competency development plan 2. Leadership talent pool development 3. Leadership mentoring 1. Recent retiree consulting 2. Mentoring 3. Apprenticeship/shadowing 4. Job function performance aids 1. Staff development plans 2. Cross-training and work rotation 3. Job function certification 1. Update and modify compensation and classification system 2. Career path planning 3. Cross-training and work rotation Knowledge Management and Transfer 5. Ensure the accessibility of critical organizational knowledge despite staff attrition. Source: The Changing Workforce Seizing the Opportunity 1. Update and maintain key organizational knowledge resources 2. Document and codify key processes and functions 3. Expert interviews 4. Job function performance aids 5. Knowledge maps and inventories

24 Implementation of Plan Determine resource needs for implementation. Identify barriers to implementation. Update or develop job descriptions. Prepare organization for change. If needed, implement strategies on pilot basis. Link succession strategies with HR. Train staff as necessary

25 Evaluation and Continuous Assessment Define measure of success Determine frequency for program evaluation Development of a reporting process Track progress, communicate, and celebrate successes Adjust or adapt programs based on evaluations Ensure that top management remains engaged and provides support and attention to program Make 3 to 5 year succession plans part of the organization s strategic planning process.

26 Program Implementation Develop pilot program in one department Track and measure how it is working Communicating program

27 Succession Planning Benefits Costs highly variable and hard to quantify Employer Benefits Employee Benefits Customer Benefits

28 Succession Planning Pitfalls Underestimating or overlooking employees No consideration to lateral movement Lack of training and development opportunities No development plan tailored to the position Not holding the management team accountable Not sharing data with employees

29 "The domain of leaders is the future. The leader's unique legacy is the creation of valued institutions that survive over time. The most significant contribution leaders make is not simply to today's bottom line; it is to the long-term development of people and institutions so they can adapt, change, prosper, and grow." Source: The Leadership Challenge, Kouzes & Posner (4th ed. 2007)

30 Questions and Discussion Gary Milewski President office mobile

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