Succession Planning:Filling and Developing the Pipeline

Robert L. and Carolyn N. Turknett

Turknett Leadership Group2310 Parklake Drive, Suite 500

Atlanta, GA 30345770.270.1723

www.turknett.com

The Shoemaker … and the Factory

What is Succession Planning?

A systematic process designed to:1. Identify key leadership positions

and hard-to-fill positions 2. Identify the critical

competencies that employees in those positions require

3. Prepare for their replacement to ensure the continued ability of an organization to meet its strategic goals and supporting objectives

Succession Processes

Replacement Planning

Succession Planning

Succession Managemen

tIdentification 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

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?

Key Definitions

Concept DefinitionCritical 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.

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

The Problem of Alignment

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

Perf

orm

ance

Man

agem

ent

Com

pens

atio

n

Lear

ning

Lead

ersh

ip D

evel

opm

ent

Staf

fing

& O

n-B

oard

ing

Tale

nt &

Suc

cess

ion

Plan

ning

Silos in HR

Emphasis on programs vs. outcomesEmphasis on discrete vs. integrated approaches

#1

Define for

Future

Competencies Create Alignment

CareerDevelopment

Selection & Succession

Systems

LeadershipDevelopment

(e.g., 360)

Job Descriptions

StructuredBehavioralInterviews

Training

PerformanceManagement

CORE & FUNC.COMPETENCIES

Define for

Future

Define Strategy and Competencies Needed

Picture the future and define strategy Define values Define competencies needed for the

future Core Leadership Functional

Define for

Future

Competencies

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

Define for

Future

Competencies are Defined Behaviorally

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

#4

Define for

Future

Talent Calibration and Talent Review 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.

Review Talent

AcceleratedGrowth

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.

SolidGrowth

Potential

Monitor Continuing investment High investment, accelerate skill development

StableGrowth

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

9-Box Talent Grid

Needs Improvement Meets Expectations Exceeds Expectations

1/3

1/2

1/1

2/3

2/2

2/1

3/3

3/2

3/1

Past Performance

Gro

wth

Pot

entia

l Review Talent

Must Define Potential:Common Criteria for Potential

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 organization’s 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.

Review Talent

GE Adaptation – Operational Excellence AND Values are Important

Restart (Second Opportunity)

Reward/Promote (Leaders of the

Future)

Remove (Easy) Remove (Sends a message)

Valu

es L

ow to

Hig

h

Results Low to High

Review Talent

Identify High Potentials ID High

Potentials

Charles DarwinJanis JoplinStanley Kubrick

Gene SiskelThomas Jefferson

Albert Einstein

Louis PasteurHenry FordJohn Kennedy

Natalie WoodMarie CurieHelen Keller

Mary CassattNeil Armstrong

James DeanBruce Lee

Marilyn MonroeKatie CouricJohnny Carson

Charlie ChaplinWinston ChurchillNapoleon Bonaparte

Past Performance

Gro

wth

Pot

entia

l

Performance Results

4SR

4MT

3

32

3

4

4

5

High

HighLow

Pote

ntia

l Ass

essm

ent

Johnson & Johnson Folio Map ID High

Potentials

The Four Lenses*

PotentialAssessment

PerformanceResults

Position’s Levelof Accountability

People DevelopmentCodes

Size ofCircle

Low

5 – Outstanding 4 – Superior 3 – Competent 2 – Needs Improvement 1 – Unacceptable

Put CHARACTER at the core.

Turknett Leadership Character Model™

ID High

Potentials

Assessment and Gap Analysis

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

Assess

Plan for Development

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

Develop

Develop

OrganizationCore

Competencies

General Session

Knowing Yourself

Team A

Team B

Team C

Team A

General Session

Knowing Others

(Teamwork)

Team B

Team C

General Session

Leading Effectively

Team C

Team B

Team A

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.

IndividualCoaching Sessions

IndividualCoaching Sessions

Leadership Character and Leader Levels

Continuing Lenses

Sample Leadership Development Process

Examples

Start-up – who will lead? Professional services firm – who

succeeds? Mid-sized company – little

succession management experience

Mid-sized company – advanced systems

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

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

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?

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 – constructionUtility load forecastingGISEtc.

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 Tomorrow’s 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.

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.