Key Steps to Succession Planning
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1 Key Steps to Succession Planning
2 COPYRIGHT NOTICE PPA Consulting Pty Ltd (ACN ) You may only use this document for your own personal use or the internal use of your employer. Without limiting the foregoing, you may not, without the express written permission of the copyright owner, on-sell or commercialise the whole or any part of this document. Except as expressly authorised, and subject to the conditions prescribed under the Copyright Act 1968 (Cth), you may not, in any form or by any means: (a) copy, adapt, reproduce, store, distribute, print, display, perform, publish, communicate to the public, make available to the public or create derivative works from any part of this document; or (b) commercialise the whole or any part of this document without the express written permission of the copyright owner. Disclaimer THE INFORMATION CONTAINED IN THIS DOCUMENT IS OF A GENERAL NATURE ONLY AND IS NOT INTENDED TO CONSTITUTE ADVICE 2
3 Overview These key steps, with a template Succession Planning Policy and some sample forms, are designed to provide a process for planning future staffing requirements so that each action, related to key staff, moves the organisation towards an overall objective of having enough suitable people to fill key positions now, and at nominated times in the future. If you wish to use this process with a group of your colleagues you may find the workshop manuals, and related materials, available for purchase on our website of interest. Benefits Opportunity to foresee any major difficulties before they occur good risk management. Provides a plan that ensures any investment in recruitment or training and development is made with a long-term objective that will be more cost effective. It will increase the chances of the organisation delivering the desired sustained business results. Scope This process can be applied to all staff and positions in the organisation. However, a start can be made by just addressing the most senior and key positions. Key Steps 1. Collect data Ensure that current and accurate data on performance, potential and aspirations is being collected through the performance management process. Review strategic and HR plans and identify key roles, competencies and numbers of people required. You may find other free downloads such as HR Planning, Writing Job Descriptions, Using Core Competencies, of value in this Step. Use the Template to prepare a policy on Succession Planning. Consider to what extent senior managers will be held accountable for succession planning within the organisation will it be a KPI in their own Performance Management Review? Organise a workshop for line managers and ensure they do the preparatory work. Ask them to prepare drafts of the information for the Working Sheet and Talent Pool Sheet. 2. Discuss and agree Conduct a Succession Planning Workshop with the relevant senior managers. Taking into account the full range of data collected, ensure the Workshop facilitates collaboration on assessment of the Talent Pool Sheets and Working Sheets against the strategic plans etc Consolidate the discussion elements and confirm agreement of Master Sheet outcomes which comprise the preliminary draft plan. 3
4 3. Action Planning Using the Master Sheet to collate the succession planning data, develop action plans for all the issues that have to be addressed to fulfil the Succession Plan. Action planning may include such elements as: Specific learning and development (L&D) plans which may be at Individual Development Plan (IDP) level for nominated employees; for example if an employee needs to develop their management skills before being eligible to be nominated in the plan. L&D Plans which may cover groups of employees; for example if a new line of business has been identified in the Business Plan. Recruitment activity profiling the skills, knowledge and competencies needed in any future recruitment so that the Talent Pool may be expanded. Input to KPIs for job design and/or the performance management process. Changes to reward and recognition programs to recognise, or attract, specific skills, knowledge or competency. Conversations with key employees to better understand their own aspirations/career plans: Does Sally want to become a manager of the team or is her preference to be a highly skilled technician? Projects to be organised to give nominated people the knowledge and experience needed to step in at short notice to cover part of a role or to develop them so that in say, 18 months time they will be able to step into the full role if necessary Ensure plans have clear expected outcomes and timelines with individual responsibilities identified who will do what and when. 4. Record Document and keep all plans with relevant access some plans may have some confidential elements relating to individual performance and potential. After the process has been completed once, it can be recorded for successive years on the Time Series Spread Sheet. If appropriate, the process can be moved to an on-line or web-based system. 5. Implement Follow the plans when recruiting, carrying out training and development, and designing jobs. Hold accountable those managers who were identified as having responsibility for specific elements of the Plan. Revisit regularly and also immediately if an event occurs, such as a resignation, which will activate the plan. 4
5 Template Succession Planning Policy Policy No: Issue Date: Policy To support the development of <Company Name>, the <Board/Senior Management Team> has agreed that succession planning should be managed proactively. The Succession Plan will impact on how we recruit, develop, reward and manage our people and will impact on our business performance. As the Succession Plan will contain individual names and indications of performance levels, it will remain a <Board/Senior Management Team> Confidential document. Scope The principle of the approach is that key positions within the organisation will be identified and a plan will be implemented to provide succession into each of the key positions in two main stages: immediately; and up to three years; A third stage, looking at beyond three years, may be used for a few specific positions. The needs of the company for people and positions will be identified largely from the Business Plan; the needs of individual employees will be identified largely from the Performance Management and Development program. Each senior manager will have a responsibility to review and update information, needs and action plans in his or her own area and the senior management team will have a joint responsibility for implementing the corporate Succession Plan. Objectives To ensure enough suitable people are available to fill key positions necessary to the organisation now and at nominated times in the future. 5
6 Procedure Overview Requirements for jobs and people will be addressed regularly as part of the strategic planning process for the organisation In addition, on a regular basis, each senior manager will be requested to review their <Division, Department or Business Unit> structure and staff and make recommendations for input into the corporate Succession Plan. This exercise will take place in say, <Month 1>, and be reviewed in say, <Month 2>, each year. That is, at approximately six monthly intervals and in line with our Strategic Planning cycle Managers may identify high potential individuals for positions which are not in their area of responsibility. For example, an employee in one <Business Unit/Department> may be a potential candidate for a different role in another <Business Unit/Department> Main Stages Succession for each key position should be approached in two main stages. Immediate A "best fit" candidate, based on performance, should be identified who could fill the position now. In some cases this may involve splitting the job and the responsibilities between more than one person. This is where we consider staffing the role for say three months if the current incumbent is suddenly unavailable. Medium Term Up to three years Potential candidates who can be developed up to the necessary performance standard within three years should be identified. The scope needs to widen when viewing the longer term candidates. The likely needs of the organisation, changes to the job design and general competency levels, need to be taken into account and a "talent pool" identified, rather than specific individuals for specific jobs Long Term Three plus years In rare circumstances a third stage may be necessary for some positions. If it is felt the "talent pool" and associated development of candidates within that pool, may not be deep enough, then specific recruitment targets may need to be identified within the agreed time frame to supplement the pool. 6
7 Consolidation The senior management team will consolidate and analyse the Divisional/Departmental/Business Unit plans and produce a Corporate Succession Plan showing gaps, development needs and recommendations. Identification of Talent Pool The Talent Pool will be identified using the model below. Talent Pool Potential Performance Performance Performance is identified using a combination of manager comments and output from the Performance Management and Development process. As a guide the following performance levels can be used: 1. Significantly Exceeds Expectations: A rare achievement. Implies a very high level of performance standard characterised by the job being developed to the full. Objectives are consistently met and performance is always well beyond expectations and is well integrated with the Department's total activities and no direct assistance is necessary. Unexpected changes are handled flexibly and imaginatively. A confident reaction under stress and sureness of approach is consistently demonstrated. 2. Exceeds Expectations: Implies a contribution exceeding job requirement. This is only attained when there is high accomplishment in all aspects of the job. Pressure is coped with effectively. Objectives are consistently met and performance is well integrated. 3. Meets Expectations: Doing what is expected of the occupant of the post. This means meeting the requirements of the job. 4. Marginally Meets Expectations: This could be a new appointment who is not yet competent in the role. Alternatively this could be an established employee who is not achieving an acceptable level of performance. 5. Unacceptable Performance: Not meeting the basic requirements of the post. 7
8 Note: Levels 4 & 5 may be black holes and require other appropriate action. Potential Potential will be rated by taking into account the individual's ability to advance to a higher level within the organisation. This is very much a subjective judgement. As a guide the following levels may be used: 1. High Potential: The individual has potential for substantial advancement above the present position. Has potential to move at least two levels above present position. 2. Promotable: The individual shows potential for moderate advancement above present position. Has potential to move one level above current position. 3. Advanceable: The individual shows potential to expand own scope at current level. 4. Limited: The individual is limited to present level. 5. Unsatisfactory: The individual needs counselling and/or is in a position beyond own level of competence. Note: Level 5 may be a black hole and require other appropriate action. Development of Talent Pool The development of the Talent Pool will be an ongoing exercise based on key competencies identified by the senior management team. Performance Management and Development Program The first step in developing talent is the effective use of the Performance Management and Development. program which can be used to identify both performance and talent, and continually improve our standards (and individual employee satisfaction/performance). This can be done by initiating Personal Development Plans and taking into account individual aspirations. Frequent Review Once potential talent has been identified, the individual should be frequently reviewed to ensure development plans are progressing. If the progress of talented employees are not continually monitored, there is a risk of losing them or having them lose their momentum. 8
9 Employees need to understand the balance between the organisation responsibilities and the individual responsibilities, of managing career progression. Recruitment of High Potential Employees To continually increase our standards we need to recruit high potential employees: that is, recruit for the future, not for the current vacancy. This may well lead to an increase in staff turnover if all ambitious employees cannot be accommodated with promotions, but it will serve to continually lift the general standard. Lateral Entry Where gaps in the succession plan occur, or are forecast to occur, recruitment of individuals to move into that level should take place. Management Development A continual review of management development needs in conjunction with the Succession Plan should provide a platform for effective management development programs and hence individual employee career development plans. Succession Planning Workshop A workshop with systems and templates has been designed to help facilitate the Succession Planning Process. You will find this at as a workshop available for sale. 9
10 Forms V3.0 Succession Planning: Talent Pool Sheet Division/Department: Date: Name: Current Position: Grade: Performance : Potential : PPA Consulting Pty Ltd
11 Forms V3.0 Succession Planning: Working Sheet Job Title: Current Incumbent: Division/Department: Date: Name and Current Position: Comments: Immediate Replacement: Medium Term Replacement: DIRECT REPORTS: Job Title: Job Title: Job Title: Job Title: Job Title: Current Incumbent: Current Incumbent: Current Incumbent: Current Incumbent: Current Incumbent: Immediate: Immediate: Immediate: Immediate: Immediate: Medium Term Medium Term Medium Term Medium Term Medium Term PPA Consulting Pty Ltd
12 Forms V3.0 Succession Planning: Master Sheet Date: Name/Position: Immediate Replacement: Medium Term Replacement: Action Plan: ` PPA Consulting Pty Ltd
13 Forms V3.0 Available as an Excel spread sheet in the Succession Planning Workshop package Succession Planning: Talent Pool Sheet Name Dept Grade 20xx Position 20xx Perf 20xx Pot'l 20xx Grade 20yy Position 20yy Perf 20yy Pot'l 200y Grade 20zz Position 20zz Perf 20zz Pot'l 20zz Grade 200zz Position 20zz Perf 20zz Pot'l 20zz Comments PPA Consulting Pty Ltd
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