SUCCESSION PLANNING 15 TH SACCA LESOTHO CONFERENCE
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1 SUCCESSION PLANNING 15 TH SACCA CONFERENCE LESOTHO OCT. 2014
2 OUTLINE What is Succession Planning? Why is succession planning important? Benefits of Succession Planning Why Succession Planning for the Board The Power of Succession Planning for the Board Key Questions for Board Succession Planning Succession Planning as a Committee Role Succession Planning for the Management Approach to Management Succession Planning 2
3 What is succession Planning? 3
4 What is succession Planning? Process for identifying and developing internal people with the potential to fill key business leadership positions in the CFI 4
5 Why is succession planning important? Ensures that the right members are elected to the board and other committees Increases the availability of experienced and capable employees and directors that are prepared to assume roles as they become available Ensures that employees are recruited and developed to fill each key role within the CFI 5
6 Why is succession planning important? Enables recruitment of superior employees Ensures development of knowledge, skills, and abilities, Enables preparation of employees for advancement or promotion into ever more challenging roles. Guarantees that the CFI has employees and members on hand ready and waiting to fill new roles. 6
7 Why is succession planning important? Vacancies in the board and management are filled with ease CFIs continue to function smoothly irrespective of losing employees and/or board members Makes it easier to handle any unforeseen resignations Prevents the CFI from being greatly impacted by resignations or retirement 7
8 Benefits of Succession Planning 8
9 Benefits of Succession Planning Helps secure the future of the CFI Allows the Board to identify key functions and structures for now and the future Ensures immediate and considered response when a director or key employee leaves suddenly or in a planned way Reduces the anxiety of directors and staff 9
10 Benefits of Succession Planning Helps align strategic goals and human resources to enable the right people in the right place at the right time Provides stability in leadership and ensures uninterrupted delivery of products and services Creates defined career paths Helps with the recruitment and retention of better people 10
11 Benefits of Succession Planning Helps employees realize their career plans and aspirations within the CFI Improves employees ability to respond to changing environmental demands Provides an ongoing supply of well trained, broadly experienced, well motivated employees and members of the CFI who are ready and able to step into key positions as needed 11
12 Benefits of Succession Planning Forces the CFI to conduct an assessment of key positions Leadership positions are assessed for both their business impact and retention risk. The most high risk, high impact roles are the primary focus Provides an increasing reputation as a good, challenging, stimulating place to work. which could result in the ability to hire ever better people. 12
13 Why Succession Planning for the Board To ensure the Board is composed of persons who collectively: are fit and proper to direct the CFI's business with prudence, integrity and professional skills; possess an appropriate range and balance of skills, experience, knowledge and behaviours. 13
14 Why Succession Planning for the Board To ensure that it has the right set of skills, talents and attributes represented in its Board members. Failure to attract these people to the Board can lead to disillusioned Boards, lack of direction and even the demise of the CFI. A conscious Board will develop a succession plan that provides guidance on identifying and sourcing potential board members who can fulfil key requirements. 14
15 The Power of Succession Planning for the Board It evaluates potential new directors. The governance committee considers: professional competence, diversity and cultural fit individuals that will blend into a strong working team. Individuals that are visionary, strategic, accountable, and action oriented rather than risk averse. 15
16 Key Questions for Board Succession Planning Do you have a formal approach to Board succession planning? Have you agreed on your required Board Skills, Talents and Attributes? Do you have agreed strategies for identifying potential directors? What role should your CEO/Managing Director have in Board succession planning? 16
17 Key Questions for Board Succession Planning How do you attract high quality directors to your Board? Best practice involves developing an inventory of current directors' skills, talents and attributes that are then matched against the requirements of the CFI Identifying the requirements of the CFI will involve a mix of the professional skills that make up a high performance Board (accounting, legal, strategic, HR etc.), 17
18 Key Questions for Board Succession Planning Identifying the talents that Directors will be required to use (e.g. networking, questioning skills, resolute, awareness etc.) and; Identifying the attributes that each director represents (male/female, age, ethnicity, geographic location etc.). 18
19 Succession Planning as a Committee Role The responsibility falls to a specific Board committee, often called the nominations committee. The committee is responsible for: Developing a continuous list of eligible board candidates Approaches certain individuals that the committee believes have potential to contribute to the management of the CFI. One option is for members to self select into the process by advertising and letting members apply to become board members. 19
20 Succession Planning as a Committee Role Interviewing potential candidates Recommending candidates to the full board Ensuring each nominated member receives induction and training. If possible: allowing them to attend board meetings and participate in the decision making. allowing them to participate in goal setting activities, such as strategic planning or budgeting 20
21 Management This Way????? 21
22 Or this Way????? Management 22
23 Succession Planning for the Management Reduces the ever increasing difficulty and costs of recruiting employees externally Ensures a continuous supply of highly qualified candidates to fill critical positions. This is done through: 23
24 Succession Planning for the Management Identifying critical positions that are instrumental to achieving strategic and operational goals; Anticipating gaps in those positions due to resignations, retirements and other factors; Defining the qualifications and competencies required to perform successfully in those positions; Enabling individual employees to become the best they can be and helping them to get ready for emerging opportunities; 24
25 Succession Planning for the Management Ensuring that supportive strategies and processes are in place to retain and fully engage employees. Implementing focused strategies to attract qualified candidates who will be ready to compete for critical positions as they become vacant; 25
26 Approach to Management Succession Planning 26
27 Approach to Management Succession Planning Assess key positions Identify key talent Evaluate employees for their potential for advancement. 27
28 Approach to Management Succession Planning Preparation of key talent: Identify primary development needs of staff, Focus on what they require in order to be ready for greater responsibility in the CFI. Meet the career development expectations of existing employees 28
29 Approach to Management Succession Planning Monitoring and review Track the progress of employees on an individual basis Conduct an ongoing organizational reviews 29
30 Approach to Management Succession Planning 30
31 Common reasons for not having a 1. SENSITIVITY ISSUES; Succession Plan Reluctance of key individuals to let go of the reins: Founder members feeling that once on the Board they are on it for life. Moving on or simply facing the prospect of coming to the end of their term in office can be painful. 31
32 Common reasons for not having a 2. SUCCESSOR ISSUES Succession Plan The difficulty of finding an effective successor Finding someone who has worked in the CFI for some time, Finding someone who knows the business well and who has the necessary skills to take on the responsibility. If external appointment, finding someone who already has, or can quickly develop the necessary skills and experience. 32
33 Common reasons for not having a 3. OPERATIONAL ISSUES Succession Plan CFI Board and management feeling far too busy dealing with day to day issues Failing to attach enough importance to the part that succession plays in overall strategy. 33
34 Common reasons for not having a Succession Plan Such strategic issues addresses the following anticipated growth in membership and overall business key skills and competencies that need to be retained and expanded identification of additional skills and competencies that need to be developed expected staff or board retirements and turnover personal development plans for directors, management and staff 34
35 Recommendation Always!!! 35
36 Recommendation Never!!! 36
37 Recommendation succession plan should be completed annually as part of the business planning process. 37
38 Thank You 38
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