Leading the Way Up:
Succession Planning from
the Front Line to CEO
Jack Middleton
Bob Turknett
Lyn Turknett
The Shoemaker … and the Factory
Agenda Today
• Overview of succession today
– The succession management cycle
– Best practices
– Biggest challenges
• CEO Succession Case Discussion with:
– Jack Middleton
– Bob Turknett
Where are we now?
• Current State:
– If you had to grow your leadership team by
50% in 60 days, could you?
– Would 75% answer yes to this question: “I
know exactly what it takes to be promoted
in this company”?
• Demographic Challenges – do you know?
– The average age is ____ .; ____ percent are
over 59 years of age.
– The average length of service is ____ .
Where are we now?
How many candidates from the internal talent pool are
“ready now” to immediately assume the CEO position?
0
5
10
15
20
25
30
35
40
45
Zero
One
Two
Three
Four
2014 Report on Senior Executive Succession Planning and Talent Development,
Stanford Business School.
Where are we now?
The CEO and executive team are actively Involved in
succession planning and talent reviews
0
10
20
30
40
50
Strongly Agree
Agree
Neither agree nor disagree
Disagree
2014 Report on Senior Executive Succession Planning and Talent Development,
Stanford Business School.
60
Confidence in Pipeline
“My direct reports have the skills to be part of
the C-Suite.”
CXOs
CXOWs
Percent Answering YES
48%
41%
Bersin, Josh, “Executive Confidence Hurt by Lack of
Leadership Development, www.bersin.com/blog,
October 31, 2014
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 people in
those positions require
3. Identify new critical competencies required by
strategic and business plans
4. Prepare pool of talent and key replacements to
ensure the continued ability of an organization to
meet its strategic goals and supporting objectives
ROI of Top Talent Focus
Market Cap Growth 20042014
140
120
100
80
60
40
20
0
Top 15 Percent
Bottom 15
Percent
Companies scored on
these criteria:
• Formal leadership
identification and
development process in
place
• Commitment of CEO
• Depth of leadership funnel
• Number of other companies
that recruit from company
Beyond “Hit by a bus…”
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
Linkage to
Strategy
Little
Some
Robust
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
Succession Management Cycle
Define
for
Future
Develop
Assess
Review
Talent
ID Top
Talent
Define
for
Future
Talent for the FUTURE
Review
Talent
9-Box Talent Grid
Continuing investment
Growth Potential
Accelerated
Growth
Potential
(May be recently promoted)
High investment, help improve
2/3
performance
High investment and/or
promote/give more
responsibility

Monitor
Solid
Growth
Potential
Monitor
Stable
Growth
Potential
1/3


1/2
1/1
Need to demand performance
improvements
May be in wrong job or at wrong level.
Consider reassignment.
Needs Improvement
Continuing investment
Continuing investment
3/3
These “stars” are ready for an assignment
at a higher organizational level –
challenge them.
2/2
High investment, accelerate skill
3/2
development
2/1
Minimal investment but continue
3/1
to reward, retain
Meets Expectations
Past Performance
Exceeds Expectations
Identify High Potentials
Growth Potential
ID Top
Talent
Charles Darwin
Janis Joplin
Stanley Kubrick
Ruth Ginsberg
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
Past Performance
Assess
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
Life History/Leader Level interview
Structured Behavioral Interview
• Assessment Center may be included
Develop
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
Top Methods of Development
TYPE OF DEVELOPMENT
% USING
Coaching and Feedback
57%
Developmental Assignments/ Action
Learning
Informal Information-Exchange Sessions
49%
Mentoring One-on-one
43%
Exposure to Senior Executives
34%
48%
From “2015 Best Companies for Leaders,” Chief Executive, January/February, 2015.
Top Five Challenges
1. Succession not well connected to strategy
2. Executive team not closely involved, or
focused only on risk reduction
3. Potential not well defined, and not well
differentiated from performance or readiness
4. Culture doesn’t support open and honest
feedback
5. Development plans not well executed
Top Five Challenges - Do you have…
• Solid linkage between strategy and talent
planning?
• Ownership by senior executive team?
• Good definition of potential?
• A climate that supports developmental
feedback and open discussion?
• Great follow-through on development
plans?
Challenge #1: Strategic Alignment
COMPETENCIES LINKED
TO STRATEGY
Job
Descriptions
Career
Development
Structured
Behavioral
Interviews
Selection &
Succession
Systems
Training
Leadership
Development
(e.g., 360)
Performance
Management
Challenge #3: Distinguish between
Performance, Potential, Readiness
Challenge #3: Specifying 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.
Development Plan – Last Updated Jan 2015
Current Position: Business Development
Development Activities
Core Competency Development
Competency and Goal
Leverage strong interpersonal skills to increase business
acumen
Improve openness to change and change leadership
Increase influence/negotiation skills
Key Steps/Actions
Identify key leader to build a relationship with; request quarterly meeting with him/her to learn
more about their area of the business
Identify a suboptimal Bus Dev approach/process; recommend a way to improve it; develop and
implement a plan to make the change
Read a book on effective influence tactics/strategy. Select 2-3 tips and adapt them to current job.
Critical Business Experiences
1. More exposure to crisis management
2. Attend meetings that are highly financially oriented to learn more about Finance function of the company
3. Assign to team involved in a cross-functional or cross-company project
Education: Attend Influence/Negotiation program at local university business school (Emory, Univ of GA, GA Tech, GA State)
Networking: Join and be active in one new community or professional organization
Assessment
Mentoring: Interested in a mentor, but does not currently have one
Business Experiences
Other: Attend professional conferences 1-2 times per year
Competency Development - Business
Strategic planning/taskforce
Budget planning/management
Competencies
Score
Leadership
Lead major/complex initiative or project
Leadership
Significant customer interface
Openness to Change; Adaptability/Agility
Lead cross-functional initiative/project
Influence and Negotiation
Drive/Lead major organizational change
Results
Represent Colonial externally
Business Acumen
Rightsizing and/or restructuring
Execution; Drives & Delivers Results
Crisis management
Accountability
Merger/Acquisition
Customer Driven
Business turnaround
Critical Thinking and Decision Making
Competency Development - People
Problem Solving
Influence/manage w/o formal authority
Sound Judgment/Decision Making
Recruit/ hire team members
Strategic Thinking
Supervise/Manage small team
Innovation
Supervise/Manage large team
People
Manage significant subordinate performance problems
Interpersonal Skills & Team Building
Lead highly diverse team
Developing People
Lead in an extreme adversity
Values and Personal Characteristics
Skill/Expertise/Learn Business
Transparency
Operations
Values and Character
Finance
Business Development
Projects
HR
Compliance
Not Yet
Timeframe
Q1 and thru year
By Q3
Read by Q1; Use tips thru
yr
Some
Challenges 2 and 5
Name: Pat Leader
Past Positions: Engineer, Associate Projects Manager, Field Project Manager
Possible Next Position: Recently moved to Bus Dev role; next move TBD
Obtained
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2
5
Challenge s 2 & 5: Sample Leadership Development Process
Organization
Core
Competencies
Leadership
Character and
Leader Levels
Continuing Lenses
Team A
Team A
General Session
General Session
Team B
Knowing
Yourself
Team C
Individual
Coaching Sessions
Knowing Others
(Teamwork)
Team A
General Session
Team B
Team C
Leading
Effectively
Team B
Team C
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.
Challenge 4
• Create a DDO – Andy Fleming, Robert Kegan,
Lisa Lahey
• Train for forthright, respectful conversation
with Crucial Conversations
• Study Jack Middleton…
General CEO Succession Cycle
• Board and executive team agree on strategy
for the future and on skills, competencies,
attributes needed by new CEO
• Internal candidates selected and assessed
• If needed, external candidates sourced and
assessed
Put CHARACTER at the core.
Turknett Leadership
Character Model™
“Middleton’s values-based leadership has been of paramount
importance to the organization’s success over this time.”
The SMC3 Story
• About SMC3
• Laying the groundwork: succession
management at SMC3
• CEO Succession – informing the board
• Profiling the position
• Internal Candidates
• The broader pool
• Making the decision
• Making the transition
The Assessment Phase
• Create a Competency Profile
– List of important competencies
– Ranking competencies based on importance
• Design Assessment Protocol
–
–
–
–
–
Occupational Personality Questionnaire (OPQ)
Universal Competency Report (UCR)
Hogan Motives, Values, Preferences Inventory (MVPI)
Hogan Development Survey (HDS)
Watson Glaser
• Structured interview based on most important
competencies
Competency Rating Sample
Competency Importance
and Ratings
Importance
0=Not Important
1=Minor Importance
2=Important
3=Critical
Points
Total must equal 100
Leading and Deciding
Deciding and Initiating
Action
3
6
Leading and Supervising
3
6
Writing and Reporting
1
3
Applying Expertise and
Technology
3
5
Analyzing
3
5
Analyzing and
Interpreting
Competency Comparison Sample
Values Comparison Sample
Comparison of top-rated competencies
CommunicaBuilding
tion
Relationships
Judgment
Leadership
Candidate A
Strong Fit
Moderate Fit Strong Fit
Moderate
Fit
Candidate B
Strong Fit
Moderate Fit Weaker Fit
Strong Fit
Candidate C
Weak Fit
Strong Fit
Strong Fit
Strong Fit
Candidate D
Strong Fit
Moderate Fit
Moderate
Fit
Strong Fit
Based on Hogan Assessments and Watson-Glaser.
Putting it in practice: 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?
Thank You!
Contact us for more
information:
770.270.1723
2310 Parklake Drive
Suite 500
Atlanta, GA 30345