Succession Planning –
High Stakes, High
Rewards
September 9, 2016
Great Employee - NOTES
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Leadership Development and
Succession Planning
Executive Development & Succession:
Separating Position and Person
POSITION
PERSON
Succession
Plan
Development
Plan
Definitions
• Critical Jobs are jobs that if left vacant:
• Jeopardize sustainability of business
• Create risk, e.g.,
• Decision making delays
• Quality/Compliance
• Customer Service
• Are difficult to fill in reasonable timeframe (< 60 days)
• Key Individuals are:
• Ready Now, Ready 1-2 years, Ready 3-5 years
• Contribute significantly to the organization, i.e., compliance, quality, cost,
customer service
• Persons, if they left the company, we would have a difficult gap to fill
• High Potentials
• Possess the capacity to develop into larger role with significantly
greater responsibility
• 2+ levels above their current role
• Example: Outstanding Performer (Performance Rating of ‘4’ or ‘5’)
with demonstrated high potential
Definitions
• Retention Risk
• High Potentials who are at risk of leaving their role and/or Charles River
• Employees in hard-to-fill positions
• Employees in positions with no successor being developed
• Ready to Move
• Hi Potential or Retention Risk employee who is ready to take on a new role
• Has demonstrated mastery of current role
• Needs to diversify background in order to be able to move 2+ levels in the
organization
• Blocker
• Individuals in key jobs who do not want to move from current position or do not
have the skills for another role
NOTES
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The Performance/Potential Grid (9-Box)
A tool to:
• Identify high performers and their potential
• Evaluate the short and long term value of employees to
the company
• Inventory and calibrate talent bench strength
• Identify low performers and interventions to manage
them
• Limit the impact of inappropriate placement decisions
• Become more aware of strengths and development
gaps, organizationally and individually
Performance Versus Potential (9-Box)
High Potential
(Demonstrates capacity to
P
o
t
e
n
t
i
a
l
develop/grow into larger roles,
with significantly greater
responsibility, at 2+ levels
above current role. Expresses
desire to assume expanded
responsibility)
(Monitor Performance
Closely…Develop to Meet
Standards/Assess Fit)
(Accelerate Development for
Current/Next Role)
(Accelerate Movement to Next
Role)
(Monitor Performance
Closely…Develop to Meet
Standards/Assess Fit)
(Develop in Role)
(Accelerate Development for
Current/Next Role)
(Develop to Meet
Standards/Make Decision on
Fit/Take Appropriate Actions)
(Develop in Role)
(Develop In Role To Take
Performance To An Even Higher
Level)
Low (PA Rating: 2-3)
Solid (PA Rating: 3-4)
High (PA Rating: 4-5)
Expandable
(Demonstrates capacity to
develop/grow and assume
greater responsibility either
within current role or at a
position 1 level above current
role. Expresses desire to
assume expanded
responsibility)
Appropriate in Role
(Does not demonstrate the
capacity to develop/grow into
larger roles with significantly
greater responsibility… and/or
does not have the desire to
assume such larger
responsibility)
Unsatisfactory (Does not
accomplish most objectives,
responsibilities and expectations
Behavior not in support of our
values. Needs significant
improvement.)
Solid Performer (Meets
objectives, responsibilities and
expectations. Consistently
demonstrates most of the
behaviors in support of our
values – skilled)
Performance
Outstanding (Exceeds
objectives, responsibilities,
expectations. Consistently
demonstrates behaviors in support
of our values – accomplished; a
10
role model.)
The Performance/Potential Grid (9-Box)
LONG TERM VALUE
TO THE ORGANIZATION
Hi
Promotable
Within & Across
Too soon to tell
(< 6 mo.)
High Potential 2
Promotable
Within
POTENTIAL
4
Mid
Not performing in
line
with potential
2
High Potential 1
The
“Strategic Few”
1
Competent
Solid asset
The
“Leadership Pipeline”
7
5
Mismatch to
company or position
Average
3
Lo
Appropriately
Placed
9
Lo
SME player
8
Medium
6
Hi
PERFORMANCE
Green is top third; red is bottom third
Boxes 1 and 2 and your true High Potentials; Boxes 3, 4, and 5 are key feeder pools into the High Potential pool
The
“Core Performers”
The Performance/Potential Grid (9-Box)
LONG TERM VALUE
TO THE ORGANIZATION
Too soon to tell
High Potential 2
High Potential 1
(< 6 mo.)
Promotable
Within & Across
Hi
Provide support &
feedback; Monitor
performance; Pay
attention to derailment
Promotable
Within
POTENTIAL
4
Mid
Monitor closely; Carefully
select next assignment to
increase performance
7
Lo
Appropriately
Placed
Not performing in
line
with potential
Accelerate development;
Challenge with successive
Give diverse, developmental
diverse assignments;
assignments; Retention plan
Retention plan
1
2
Competent
Solid asset
Develop deeper specialty
skill/knowledge; Increase
learning ability; Use in
temporary and key roles
Accelerate development;
Can serve as back-ups to
1’s and 2’s; Place in
critical jobs; Focus on
learning retention
5
Average
Performer
SME player
Take action:
Move out of organization or
better fit in position
Permeate in key
Technology; Monitor;
Could become 5 or 6
Keep current in specialty;
Retention plan
Lo
6
8
Medium
The
“Leadership Pipeline”
3
Mismatch to
company or position
9
The
“Strategic Few”
Hi
PERFORMANCE
Green is top third; red is bottom third
Boxes 1 and 2 and your true High Potentials; Boxes 3, 4, and 5 are key feeder pools into the High Potential pool
The
“Core Performers”
Next Steps
• Identify critical positions in your group
• Use the 9-Box Model to select high-potential successors
• Create and implement development plan for each
successor
• Revisit at minimum twice annually
• Cascade to the next level
• Other…
Definition of “High Potential”
• Is highly “learning agile”
Has willingness and ability to learn new competencies to perform
better in first time, tough, or varied conditions; learns from
experience; has broad perspective
• Deals well with ambiguity
Displays consistent effective behavior in ambiguous situations;
effective in tasks requiring risk taking, creativity and decisiveness;
copes with uncertainty in the face of ambiguity and assesses the
behaviors and skills to be effective
• Has high potential for growth
Demonstrates capacity and motivation to develop and assume
greater responsibility at 2+ levels above current role or lateral role,
within or across business functions/units in 3-5 years; consistently
demonstrates leadership competencies; limitations can be addressed
by experience or targeted development
Typically, high potentials get bored easily and will seek a new assignment every 18 – 24 months
if the company doesn’t do it for them.
Definition of “Expandable” or
“Medium Potential”
•
•
•
•
•
Moderate learning agility and adaptability to new or changing situations
Demonstrates many leadership competencies; though, may have some
limitations in leadership style to be addressed
May demonstrate difficulty in maintaining a broad perspective
Demonstrates the capacity and motivation to develop/assume greater
responsibility either within current role, or at a position 1-2 levels above
current role or new lateral roles, within their business function/unit in 3-5
years
People in this category could be promoted within their specialty area and
with further development into first time assignments
Definition of “Appropriate in Role” or “Low
Potential”
• Does not demonstrate capacity to grow into larger role with significantly
greater responsibility…may be inappropriately placed, a blocker; may selfselect out (no desire to advance or take on greater responsibility)
• If not an issue of motivation:
• Indicates significant limitations in leadership style and competencies
• Not an agile learner
• Has difficulty in new, first time or changing conditions
• Typically can’t maintain a broad perspective
• People who fall within the low range are usually appropriately placed,
though they could still be promoted a level within their specialty
The P/P Grid (9-Box): Typical Distribution
LONG TERM VALUE
TO THE ORGANIZATION
Hi
Promotable
Within & Across
15%
Too soon to tell
(< 6 mo.)
POTENTIAL
4
Promotable
Within
Mid
5%
High Potential 1
10%
High Potential 2
1%
Not performing in
line
with potential
2
1
25%
Competent
7
5
5%
Mismatch to
company or position
4%
Average
The
“Strategic Few”
20%
Solid asset
The
“Leadership Pipeline”
3
Lo
Appropriately
Placed
9
Lo
15%
SME Player
8
Medium
6
Hi
PERFORMANCE
Green is top third; red is bottom third
Boxes 1 and 2 and your true High Potentials; Boxes 3, 4, and 5 are key feeder pools into the High Potential pool
The
“Core Performers”
Performance vs. Potential Matrix
High
Potential
P
o
t
e
n
t
i
a
l
•
Capacity to grow
2+ levels within or
across functions/
divisions, or
capacity to fill a
management
committee
position
Capacity to grow
1-2 levels within
current division /
function
•
•
4
Not Performing In Line w/
Potential/Expectations
•
•
•
•
Appropriate
in Role or
Move
Appropriately
placed, may be
considered for
promotion within
their specialty, or
may need to
move out of
current role
•
•
•
In transition -- Either new to the
company or to a particular position
•
Expandable
Produces somewhat acceptable
results
Demonstrates some learning ability
and adaptability to new or difficult
situations
May have some limitations in
leadership style/approach to be
addressed
May demonstrate difficulty in
maintaining a broad perspective
•
•
•
•
•
7
Does not produce acceptable results
Does not demonstrate the capacity to
grow into larger roles
Skills are not currently matched to the
position or company requirements
9
PARTIALLY MEETS
EXPECTATIONS
(~ 2-3 PA)
The “rising” stars
Produces strong performance results
Has strong drive and high ability to
learn from experience
Performs well under first-time and/or
difficult conditions
Broad and strategic perspective
Limitations can be addressed by
targeted development
•
•
•
•
•
•
2
•
Produces good to strong performance
results
Can probably fill a number of roles at a
reasonable level of performance
Demonstrates some learning ability
and adaptability to new or difficult
situations
May have some limitations in
leadership style/approach to be
addressed
May have difficulty in maintaining a
broad and/or strategic perspective
Seasoned Professionals
•
•
•
•
•
•
•
3
Subject Matter Experts
Produces acceptable performance
results – solid in current role
Does not demonstrate sufficient
capability to learn/grow into larger roles
with greater responsibility – may be a
blocker or has no desire to advance
Could progress higher within specialty,
but may have limits in leadership role
8
MEETS EXPECTATIONS
(~ 3-4 PA)
Produces exceptional performance results
Has potential to do more
Demonstrates some learning ability and
adaptability to new, difficult situations
May have some limitations in leadership
style/approach to be addressed
May have difficulty in maintaining a broad
and/or strategic perspective
5
Solid Performers
•
The proven stars
Produces exceptional performance results
Has strong drive and high ability to learn
from experience
Performs well under first-time and/or difficult
conditions
Broad and strategic perspective
Limitations can be addressed by targeted
development
1
Competent
Mismatch with Company or
Position
•
•
High Growth Potential
Growth Potential
Too Soon To Tell
•
•
•
•
Produces exceptional performance results
Technical expertise is deep and critical;
provides continuity to the company
No desire to advance or does not
demonstrate capability to learn/grow into
larger roles with greater responsibility
May have significant limitations in
leadership style or approach
6
EXCEEDS EXPECTATIONS
(~ 4-5 PA)
18
Performance
Ideas for Hi-Pot Development
•
•
•
•
•
•
•
•
•
•
Planning, planning, planning
Communicate
Stay Interviews (tool kit)
Cross-training
Assign a mentor
Job rotation
Special projects
Task forces especially “stretchers”
Competency development
Exposure to senior people e.g. executives, Board
members
• Group meetings
• Other?
NOTES
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Leadership Development and
Succession Planning
Organization Design
• Are we organized to:
• Be successful?
• Achieve our strategy?
• Can we organize more effectively today?
• What does tomorrow’s organization look like?
• Are we effective with “sub-chart” systems?
Integrating Strategy with Succession
Corporate
Business
Strategy
What business
are we in? How
do we attain and
sustain competitive
advantage?
Business
Business
Unit
Strategy
Executive
OrganizaOrganizaExecutive
Position
Position
Position
tion
Position
Success
Success
Design
Design
Design
Profile
Profile
How to organize
to attain our
strategy?
What is required
To be
successful?
Executive
DevelopDevelopment
ment
Who
should
succeed
whom, and
when?
Org.
Succession
Leadership Development and
Succession Planning
Executive Position Success Profiles
What does it take to be a leader in our
organization?
What characteristics and competencies will
we need in future?
How does this vary by position?
Leadership Development and
Succession Planning
Executive Development & Succession:
Separating Position and Person
POSITION
PERSON
Succession
Plan
Development
Plan
Leadership Development and
Succession Planning
Executive Development & Succession:
EXAMPLE
Corp VP, Corp.
Controller
Pat Jones
Succession
Plan:
-Internal
candidate(s) (ID) then
dev. plans for that
person (people) or
- External person
Development
Plan:
- ID next steps for Dave
- Put together plan
- Discuss and update
regularly
Leadership Development and Succession Planning
Top Ten Factors for Success
1. The active involvement of top management is a necessity.
2. Tie succession planning to the business vision and strategy.
3. Link talent management and mentoring to managers’ goals.
4. Hold a yearly talent audit which has candid discussion and
development outcomes.
clear
5. Develop clear, openly communicated criteria to create a common language
and understanding about how to move to the next level.
6. Always have a home for those on job rotations or international assignment.
7. Review the talent pipeline periodically so that succession management is not a
yearly event.
8. Match the organization’s needs with individual interest and aspirations.
9. Hold honest development discussions with straight talk and give feedback
often.
10. Provide role models for others to learn from.
What do I take away from this session that will help me?
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