1. What We Don’t Think About When We Think About Succession Planning
Presented by:
Jim Struck, President
Leadership Vision, LLC
for
Indiana Pressler Memorial HFMA Winter Institute
January 25, 2018

2. What We Will Learn An understanding of succession planning
Why it is vital to the health of an organization
What are the crucial components of a succession plan

3. Background Jim’s work: 40 years in leadership
CEO of a healthcare collection agency for 21 years
Specialized work in coaching, strategic thinking, leadership development and execution
Mission: to work with individuals and organizations to help them be the highest version of themselves possible

4. There are almost 80,000 baby boomers who will leave the work force over the next 20 years. That is roughly 10,000/day. What will we do to fill the brain drain on our organizations over that time?

5. The genesis for succession planning…
In the aftermath of the financial crisis there were numerous CEO departures (with no apparent ready replacements).

6. Succession Planning…the benefits
Improved understanding of the purpose of each role within the organization
Knowledge of the key attributes desired for each position
Knowledge of core competencies in each role
Know how to observe, shape, and reinforce the right behaviors in others to insure they achieve/sustain success

7. Succession Planning…the who
CEO and all other C-level positions
Functional department heads
Key middle management positions
High Potentials: individual contributors not ready to move into one of the above positions but having the long-term potential to do so.
* After individuals are identified, they should be notified, and a plan for
their development shared.

8. Succession Planning…the what
What/who will be the scope of our Succession Plan
Clear understanding of purpose, key attributes, core competencies for each position selected
Performance ratings, rating of potential, rating of readiness to move up, rating of long-term commitment (that is, vulnerability to leave), strengths, development needs and development plan summaries.

9. Record Design of Participants in Succession Plan
For all those included in the scope of the Succession Plan, have a core record of their name, position tenure in job and with organization, compensation, supervisor, and relevant work history.
Last 2-3 (at least) performance reviews – these should include how they did against measurables, subjective ratings against core competencies, and culture-specific behavioral qualities critical for success for that organization;
Current rating of potential for promotion in the organization (e.g., unlimited potential, potential to move up 1 level but likely not beyond, no potential beyond current level);
Current rating of readiness to move up (e.g., ready now, ready within 12 months, ready in 1-2 years, likely potential further out, not ready in the future);
Current potential for losing this employee (e.g., high - appears to be actively looking outside, some- not actively looking but could be recruited away, low - appears to be committed for the long-term);
Narrative of the employee's strengths, development needs and overall business capabilities;
Development Plan - for those with potential to move up, the Plan should indicate how the identified development needs will be addressed in order to help enhance the employee's readiness.
This document should be prepared by the individual responsible for the level being summarized. HR should be available to assist in the preparation, and should also review the documents, for quality control purposes, prior to their being presented to the CEO or Board.

10. Succession Planning…what we miss
An opportunity to impact culture…it’s about behavior
Demonstrating proficiency about behavior means: • Pinpointing the appropriate results and behaviors for employees at every level • Measuring progress frequently • Providing regular progress data to each performer while arranging consequences that maintain, redirect or accelerate behavior change • Evaluating progress and celebrating accomplishment

11. Succession Planning… building readiness
Building a culture of succession readiness means learning how to observe, shape and reinforce the right behaviors for all employees to achieve and sustain success. What are their strengths?
Find exemplary performers – capture what happens; which activities to teach, practice and reinforce
A succession-ready culture will create more capable performers as talent managers take on their most important role — developer-coach

12. Succession Planning… final keys
Teach or cross-train employees, providing multiple skill sets
Learn to ask simple and clear question of your top performers (how did you do that?) Document what they tell you
Learn how to support behavior change in yourself and others - will open the door to achieving a culture of flexible succession

13. Thank you. Questions/Comments Jim Struck Leadership Vision, LLC