Succession Planning:

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Succession Planning

• Filling and Developing the Pipeline

Robert L. and Carolyn N. Turknett Turknett
Leadership Group 2310 Parklake Drive, Suite
500 Atlanta, GA 30345 770.270.1723 www.turknett.c
om
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The Shoemaker and the Factory
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What is Succession Planning?

• A systematic process designed to
• Identify key leadership positions and
  hard-to-fill positions
• Identify the critical competencies that employees
  in those positions require
• Prepare for their replacement to ensure the
  continued ability of an organization to meet its
  strategic goals and supporting objectives

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Succession Processes
Replacement Planning Succession Planning Succession Management
Identification of Successors Yes Yes Yes
Development of Successors Little or none Yes Yes (often Talent Pools)
Managerial Levels Top two or three Top two or three All, including any key positions
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Where are we now?

• Current State
• If you had to grow your leadership team by 50 in
  60 days, could you?
• I know exactly what it takes to be promoted in
  this company. Would 75 answer yes?
• Demographic Challenges
• The average age is ____ .
• ____ percent are over 59 years of age.
• The average length of service is ____ .
• What worries you
• Knowledge loss?
• Hard to fill positions?
• Current practices
• Using Nine-box?
• Talent review discussions?
• Clear development plans for high potentials?

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Key Definitions
Concept Definition
Critical or Feeder Roles Roles that require planning because they feed into senior management or are critical to organization success
Developmental Roles Roles that provide excellent developmental experience
High Potential Someone who has been identified as having the ability to advance
Nine-Box (9-Box) Grid Tool used to plot current performance and future potential of a segment of the workforce
Talent Pool A group of people being prepared for higher-level roles
Talent Review Broad review of talent to identify candidates for development to higher levels. Usually involves group discussion at multiple levels.
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Basic Succession Management Cycle

• Definition of Strategy and Competencies needed
  for the Future
• Talent Review
• High Potential Identification
• Assessment and Gap Analysis
• Development Planning and Leadership Development

Define for Future
Review Talent
ID High Potentials
Assess
Develop
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The Problem of Alignment
Define for Future

• In many organizations, each HR service area
  operates in its own silo

Silos in HR
Emphasis on programs vs. outcomes Emphasis on
discrete vs. integrated approaches
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Competencies Create Alignment
Define for Future
CORE FUNC. COMPETENCIES
Career Development
Job Descriptions
Selection Succession Systems
Structured Behavioral Interviews
Leadership Development (e.g., 360)
Training
Performance Management
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Define Strategy and Competencies Needed
Define for Future

• Picture the future and define strategy
• Define values
• Define competencies needed for the future
• Core
• Leadership
• Functional

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Competencies
Define for Future

• Competencies are important knowledge, skills,
  abilities, behaviors, and other characteristics
  required to perform a job successfully
• Core Competencies are relevant to the entire
  organization, and
• Align with the values of the organization
• Align with the strategy of the organization
• Functional Competencies are specific to a
  position
• Leadership Competencies are the competencies
  specific to leaders in the organization
• All Competencies are
• aligned to the specific requirements of the job
• customized by organization level

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Competencies are Defined Behaviorally
Define for Future

• Defined via behavioral anchors
• Describe expected performance at various levels
  of position
• Focus on observable/verifiable behavior
• Set a standard of effectiveness
• Help calibrate ratings of performance across
  raters
• Ensure alignment and accountability

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Talent Calibration and Talent Review
Review Talent

• A bottoms up approach each manager completes
  potential and performance assessment of each
  direct report (feeds 9-box)
• Must have already clearly defined performance
  standards and markers of potential specific to
  the organization
• In calibration meetings groups of managers
  discuss ratings and come to consensus on
  individuals must cite specific behavioral
  evidence
• In the Talent Review meetings senior leaders
  discuss organization direction, the identified
  high potential talent, diversity, and development
  plans. Some assessment may occur between
  calibration meetings and review.

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Review Talent
9-Box Talent Grid
Accelerated Growth Potential Continuing investment (May be recently promoted) High investment, help improve performance High investment and/or promote/give more responsibility These stars are ready for an assignment at a higher organizational level challenge them.
Solid Growth Potential Monitor Continuing investment High investment, accelerate skill development
Stable Growth Potential Monitor Need to demand performance improvements May be in wrong job or at wrong level. Consider reassignment. Continuing investment Minimal investment but continue to reward, retain
1/3
2/3
3/3
1/2
2/2
3/2
Growth Potential
1/1
2/1
3/1
Needs Improvement Meets
Expectations Exceeds
Expectations
Past Performance
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Must Define PotentialCommon Criteria for
Potential
Review Talent
Potential Criteria Description
Learning Agility Ability to learn from experience, self-reflect and grow, adapt to change, etc.
Social Skills Basic social ability emotional intelligence
Demonstration of Values/ Character Demonstration of the organizations values integrity and character
Motivation to Advance High energy, wants to move to higher levels
Likelihood to Advance Ability to succeed at higher positions within a specified amount of time
Markers of potential are essential for senior
leadership but more difficult to develop.
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GE Adaptation Operational Excellence AND Values
are Important
Review Talent
Restart (Second Opportunity) Reward/Promote (Leaders of the Future)
Remove (Easy) Remove (Sends a message)
Values Low to High
Results Low to High
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Identify High Potentials
ID High Potentials
Charles Darwin Janis Joplin Stanley Kubrick Gene Siskel Thomas Jefferson Albert Einstein
Louis Pasteur Henry Ford John Kennedy Natalie Wood Marie Curie Helen Keller Mary Cassatt Neil Armstrong
James Dean Bruce Lee Marilyn Monroe Katie Couric Johnny Carson Charlie Chaplin Winston Churchill Napoleon Bonaparte
Growth Potential
Past Performance
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ID High Potentials
Johnson Johnson Folio Map
The Four Lenses Potential Assessment Performa
nce Results Positions Level of
Accountability People Development Codes
High
4 MT
4 SR
3
5
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Potential Assessment
Size of Circle
3
4
2
3
Low
Performance Results
Low
High
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Put CHARACTER at the core.
ID High Potentials
Turknett Leadership Character Model
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Assessment and Gap Analysis
Assess

• Assessment against core, leadership and
  functional competencies
• Gap Analysis for each person and for each
  position
• Sample Assessment tools
• 360 Degree Feedback
• Hogan Leadership Potential
• Hogan Leadership Challenges
• Hogan Values Preferences
• Watson Glaser Critical Thinking
• Turknett Leadership Level interview
• Structured Behavioral Interview
• Assessment Center may be included

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Plan for Development
Develop

• Create a specific developmental plan for each
  high potential
• Can include
• Movement to a developmental role
• Cross-functional projects or teams
• Stretch assignments
• Mentors
• Executive Coaching
• Action learning projects
• University programs, etc.
• Inclusion in special leadership development
  processes

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Sample Leadership Development Process
Develop
Organization Core Competencies
Leadership Character and Leader Levels
Continuing Lenses
Team A
Team A
Team A
General Session Knowing Yourself
General Session Knowing Others (Teamwork)
General Session Leading Effectively
Team B
Team B
Team B
Team C
Team C
Team C
Individual Coaching Sessions
Individual Coaching Sessions
General Sessions - conducted with entire group in
one location. The focus is on character as the
foundation of leadership, and on Leader Level
development using constructive-developmental
theory, reinforcing the key organizational
messages and developing the particular critical
competencies essential to successful leadership
in the organization. Senior leaders can serve as
teachers or providers of content and
values. Individual Coaching - Focused on feedback
and real learning and growth from assessment.
Includes 360-degree feedback, personality
assessment feedback, and work on development
plans, with character and level of development as
a continuing lens. Action Learning Teams Small
groups focus on projects identified as useful to
the business. Teams learn about the business and
also focus on working effectively together.
Results are usually presented to senior
leadership.
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Examples

• Start-up who will lead?
• Professional services firm who succeeds?
• Mid-sized company little succession management
  experience
• Mid-sized company advanced systems

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Mid-sized Company New to succession planning

• Informal nomination of high potentials
• Assignment of mentors
• Discussions with senior leaders
• One-day training programs
• Minimal assessment

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Mid-sized Company Advanced HR practices

• Identification of high potentials through a
  rigorous talent review
• Extensive specification of competencies
• Complete assessment on all competencies (360,
  personality assessment, structured interviews)
• Planning for each senior management position
• Tailored development plans for each person

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Some questions to be answered

• Who will lead the succession planning initiative
  at your organization?
• How will the process be linked to strategy? What
  are your core competencies?
• How is management involved in succession
  planning?
• What are your critical positions? Key
  developmental positions?
• How is high potential defined?
• What is your talent review process for
  identifying employees with strong potential and
  for identifying organization gaps? How will
  calibration occur?
• How will high potential employees be assessed?
• How will hi-pos receive developmental feedback?
• How will development planning be done?
• Will the process be open? Will high potentials
  know they have been identified?

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Additional Tool - Capability Grid
Critical Skills /Task/ Knowledge Ready Now Ready 6-18 months
Site design Jan S., Bill M. Susan F., Marshall T.
Project Management construction
Utility load forecasting
GIS
Etc.
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Suggested Reading
Berger, Lance A. and Berger, Dorothy R. The
Talent Management Handbook Creating
Organizational Excellence by Identifying,
Developing, and Promoting Your Best People.
Columbus, Ohio McGraw Hill, 2003. Berke, David.
Succession Planning and Management A Guide to
Organizational Systems and Practices. New York
Center for Creative Leadership, 2005. Bower,
Joseph L. Solve the Succession Crisis by Growing
Inside-Outside Leaders, Harvard Business Review,
Nov 2007. Byham, William C., Matthew J. Paese,
and Audrey B. Smith. Grow Your Own Leaders How
to Identify, Develop, and Retain Leadership
Talent. New York FT Press, 2002. Charan, Ram.
Ending the CEO succession crisis, Harvard
Business Review, Nov 2007. Charan, Ram, Stehpen
Drotter, and James Noel. The Leadership Pipeline
How to Build the Leadership Powered Company. New
York Jossey-Bass, 2000. Cohn, Jeffrey, Rakesh
Khurana, and Laura Reeves. Growing Talent as if
Your Business Depended On It, Harvard Business
Review, October 2005. Fulmer, Robert F. Choose
Tomorrows Leaders Today Succession Planning
Grooms Firms for Success, Graziadio Business
Report , Vol. 5, Issue 1, 2002. Karaevli, Ayse,
and Hall, Douglas Tim. Growing Leadership for
Turbulent Times Is Succession Planning up to the
Challenge?, Organizational Dynamics, Vol. 32,
2003. Krishnan, Ravi. Easing the Exodus
Innovative personnel strategies can combat the
loss of technical skills, Power Engineering,
June 2006. Ready, Douglas A. How to Grow Great
Leaders. Harvard Business Review, Dec 2004.
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• Lyn Turknett
• Carolyn (Lyn) Turknett is President and
  Co-founder of Turknett Leadership Group. She
  earned a BS in mathematics and an MA in
  sociology, with special emphasis in
  organizational sociology, from the University of
  Georgia. Her specialty is organizational
  assessment and change, executive team
  development, and ethical leadership in rapidly
  changing environments. Lyn is an active member of
  several professional associations, including the
  Society for Human Resource Management, and is an
  active community volunteer. She serves on the
  board of United Way of Metropolitan Atlanta, is
  an elder in the Presbyterian Church, and enjoys
  grandmothering in any spare time.

• Bob Turknett
• Dr. Robert (Bob) Turknett is the CEO and
  co-founder of Turknett Leadership Group, a 22
  year-old consulting firm specializing in
  succession planning, CEO consulting, executive
  development, talent management and organization
  effectiveness. Best known for their work in
  character-based leadership, Bob and Lyn Turknett
  are co-authors of Decent People Decent Company,"
  creators of the Leadership Character Model, and
  hosts of the annual Leadership Character Awards.
  Along with a staff of business and IO
  psychologists, they help companies build cultures
  of character and accountability and prepare for
  long-term success. Bob is a member of Atlanta
  Rotary, a strong supporter of United Way, an avid
  golfer, and the proud grandfather of Jules and
  Tucker.