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.

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

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) Talent Management

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

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. What is Succession Planning?

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 Why is Succession Planning Important?

1.Yes, my organization does. 2.No, my organization has an informal succession plan or process. 3.No, but my organization intends to develop a plan in the future. 4.No, and my organization has no intentions to develop a plan. Does your organization have a formal succession plan in place?

Does your organization have a formal succession plan in place? 2011 SHRM Poll: Succession Planning 2006 (n = 385) 2011 (n = 426) Yes29%23% No, my organization has an informal succession plan or process 29%38% No, but my organization intends to develop a plan in the near future 26%22% No, and my organization has no intentions to develop a plan 16%17%

What is the primary reason your organization has not developed a formal succession plan? 1.More immediate organization requests take precedence. 2.My organization has not yet given it consideration. 3.The leadership team feels there is not value (or need) in developing a plan. 4.Lack of staff/financial resources.

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 SHRM Poll: Succession Planning

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.

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.

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

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

Discussion Questions

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

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

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

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

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

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

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

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

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

Six Important Lessons 1. Begin with commitment from the top 2. Identify and communicate a common set of leadership attributes 3. Provide customized, relevant development 4. Use candid, comprehensive performance reviews 5. Keep to a regular schedule for performance reviews and identification of talent pools 6. Link all decisions about talent to the long-term strategy of the organization

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

Thank You! Cindy Allen-Stuckey Making Performance Matter (812)