Succession planning: Purpose, focus and process trends Wendy Hirsh wh@ringmer.demon.co.uk 1

Where the research started We clearly need succession management, but do we need succession plans? Are succession plans worth the effort? Do jobs change too fast? Will people hang around? Doesn’t ‘talent management’ do the trick? Won’t the open job market find you the best person for the post? Against business authors’ predictions, succession planning hasn’t gone away – WHY?

Process alone is not enough

Business drivers and shifts in focus More specific skills and faster response required Succession planning still covers most senior, ‘strategic’ roles – increasingly global approach Business vulnerability right at the top Over half plan for ‘critical’ roles – key to (operational) performance and hard to fill Key professional groups and top experts more essential to strategy - over 40% plan for these Familiar mix of short (1-2 yr) and longer term (3-5 yr) focus but also interest in ‘ready now’ and ‘emergency’

Combining ‘talent’ and ‘succession’ Managing short term business risk Developing longer term pipelines & diagnosing gaps Development and career opportunities for best people

Communicating talent and succession – Twinings Ovo Focus on key people Focus on key posts Our plan of action Insights from our plans Key actions to develop key people and build capability within and across the business Do we need to plan for additional skills/ capabilities critical to future success ?

SP process - old trends continue Pro-active development of successors, especially career experiences Planning for pools, not just posts Mostly devolved Functional as well as general management skills Aimed at future skills Objective assessments of people Collective management process Increasing transparency for the individual – SP combines with responsibility for own career Emphasis on dialogue Line owned, CEO led, active HR support

The HR love affair with the 9 box grid Sustained performance? Confusing potential with readiness? Different levels (eg Charan) and functions of jobs/ people? Where does it take the individual?

Some crucial links

Evolution of succession/talent reviews eg Talent review roadmap – GSK

How are CRF members doing? Positive views on: Extra skill development offered to high potentials Good information (at centre) on potential internal candidates for senior roles (*) SPs do influence senior appointments Alignment with business needs Not so confident about: Career development and career conversations Training managers to identify and develop talent Monitoring/ tracking Not complacent about Ability to fill senior positions (*) Top level commitment (*) * = weaker in non-adopters of formal succession planning

Group Work What is the purpose of succession planning in your organisation and how does it relate to talent management? Which jobs do you focus on for succession planning purposes and why? What are your tips and challenges in process design for succession planning?

Succession planning: Practical use, effective implementation and future directions Wendy Hirsh 13

Pragmatic approaches to vacancy filling Succession plan discussion – Rolls-Royce

Tracking and monitoring Vacancy analysis – Rolls-Royce

Varied links with development Leadership programmes Individualised skill and career development Talent pools Programmes for successors for specific job types Does the delivery actually happen and meet the real need? Appropriate mix of general and selective development interventions?

So what does succession planning bring? A tougher, more practical question Stronger link with shifting demand and resourcing strategies Explicit about readiness and timeframe Options to inform career discussions Leads to more focused development, especially career development Can accommodate diverse types of job

Choosing the appropriate level of detail

Implementation issues and challenges Balancing simplicity with robustness… and local freedom with consistency Designing in the links with workforce planning and other HR processes and frameworks Communication and explanation Implementing at the right pace Information handling Adjusting approaches to meet management needs The interface with individual development More effective deployment Sustained HR attention and support – and memory

Towards Agile Succession Planning More flexible and context specific in: Which pipelines and career transitions are prioritised Appropriate levels of detail and timeframes Really understanding potential external supply Methods for knowing about your people Balance between organisational and individual lead in deployment and development action Combining succession plans and open job market in filling jobs

Group Work How does succession planning influence job filling and development? What are your tips and challenges in implementing succession planning and engaging managers and employees?