Succession Planning

1. Succession Planning Organizations that will thrive in America’s future are those that are best equipped and able to attract, develop, and retain their most valuable assets – their employees.

2. Objectives • Answer the “why” is succession planning important question • Identify the components of succession planning • Identify the barriers to succession planning and ways to resolve these

3. Talent Management • Assessment and Performance Feedback • Assess the requirements of the position, assess candidates • Provide on-going feedback and coaching • Leadership Development • Uses current leaders to teach candidates • Build relationship with executives • Use Action Learning – solve current challenges • Customize training • Succession Planning (Management Development)

4. Succession Planning Answers This Question “If something happened to a key person in your organization, what would you do?”

5. What is Succession Planning? • Succession Planning (bench strength) • Holistic system that targets in on mission critical positions • Ensures that talent is identified, developed, and coached • Opportunities to interact with executives • Available, and ready to step into leadership roles when the need arises.

6. Why is Succession Planning Important? • Critical for the success of the business • Estimated 75 million US baby boomers will become eligible to retire this year • Talent to replace these boomers will come from the next generation of only 45 million available workers • Global companies and global competition

7. Does your organization have a formal succession plan in place? Yes, my organization does. No, my organization has an informal succession plan or process. No, but my organization intends to develop a plan in the future. No, and my organization has no intentions to develop a plan.

8. Does your organization have a formal succession plan in place? 2011 SHRM Poll: Succession Planning

9. What is the primary reason your organization has not developed a formal succession plan? More immediate organization requests take precedence. My organization has not yet given it consideration. The leadership team feels there is not value (or need) in developing a plan. Lack of staff/financial resources.

10. What is the primary reason your organization has not developed a formal succession plan? 43% - More immediate organization requests take precedent. 24% - Lack of staff/financial resources. 16% - My organization has not yet given it consideration. 13% - The leadership team feels there is not value (or need) in developing a plan. 2011 SHRM Poll: Succession Planning

11. Assumptions that No Longer Apply • Supply – Plenty of people in the pipeline from which to choose. • Loyalty – Assumption that the people being groomed were going to remain with the company in the interim. • Time – Plenty of time to develop successors. • Status Quo – Positions with stay the same.

12. New Assumptions that Now Apply • Question Your Supply Line – Don’t assume that the people in the pipeline will be there or will have the ability when the time comes. • Be Aware of Transience – Assume that the people may not remain with the company in the interim. • Time is in Short Supply – Fast changing pace of today’s organizations. • Replacements May Look Different – Different criteria.

13. Succession Planning - Importance • Business continuity • Development & retention • Creates a powerful differentiator – becomes part of the employer’s brand • Companies known for developing their employees show significant bottom-line advantages, including reduced costs associated with turnover & executive recruitment

14. Video Overview • Hosted by Wayne Cascio, Ph.D. • SHRM Foundation’s DVD Program • Filmed at 3M Headquarters, St. Paul, MN • Comprehensive interviews • Officers, Managers, and Employees

15. DiscussionQuestions

16. Identify Leadership Attributes Most Important • Thinks from outside in • Drives innovation and growth • Develops, teaches, and engages others • Makes courageous decisions • Leads with energy, passion, and urgency • Lives 3M values

17. In Leadership Development, what is most successful in helping leaders develop? • Leaders teaching leaders • Focus on business needs • Build relationships with executives • Use action learning • Customized development and training

18. How does coaching help identify and prepare up-and- coming leaders? • Coaching the people • Coaching colleagues and peers • Upward coaching

19. How does “Action Learning” help 3M identify future leaders? • Small projects • Freedom to succeed • Presentation of findings

20. How does innovation affect leadership development and succession planning? • Allows ideas to bubble-up • Allow people to be themselves • Innovative employees are often strong leaders

21. How does an organization incorporate its strategy into the succession planning process? • Align key management roles with elements of the organization’s strategy • Focus on those jobs that are directly related to the long-term strategy of the company • Avoid diluting the process

22. What are the key objectives of human capital planning as they pertain to succession planning? • Align knowledge, skills, and abilities with strategy • Identify talent earlier and deeper • Leverage talent • Drive diversity • Balance internal development and outside hiring

23. What are some barriers to succession planning that an organization may encounter? • Managers lacking time and effort • Differences in operating procedures among business divisions • Managers hoarding star employees

24. According to 3M, what is an innovative company’s most important asset? • Find the right people • Set them in the right direction • Lead them to success

25. Six Important Lessons • Begin with commitment from the top • Identify and communicate a common set of leadership attributes • Provide customized, relevant development • Use candid, comprehensive performance reviews • Keep to a regular schedule for performance reviews and identification of talent pools • Link all decisions about talent to the long-term strategy of the organization

26. Succession Development Program • One-year commitment • Identify attributes needed and what they will look like • Partner with vendor to co-design and develop the curriculum • Various delivery methods: • Pre-work • Classroom training • Personal coaching • Distance learning • Learning teams • Capstone project

27. Thank You! Cindy Allen-Stuckey Making Performance Matter (812) 343-4366 www.makingperformancematter.com