SUCCESSION PLANNING

Presented by: Cheryl Zimmerman, SPHR U.S. Office of Personnel Management Denver Service Center

AGENDA
Putting the Pieces Together
External Scan The What and Why of Succession Planning Human Capital Succession Planning Steps and Models OPMs Partnership and Services Keys to Success

The Aging of the Workforce

(September 30, 1998)
Age 31-40 402,304 (25%)
Age 30 or Less 112,229 (7%) Age 60 or Over 93,189 (6%)

Age 41-44

229,680 (14%)
Age 55-59

159,588 (10%)

Age 45-49

Age 50-54

330,958 (20%)
Source: U.S. OPM's Central Personnel Data File

300,820 (18%)

Fewer Federal Employees

430,000 fewer employees since 1990
23.6% reduction overall More than 300,000 fewer FTE work years Clerical jobs cut 31% Blue collar down 25% 30,000 fewer mgrs / sups SES goes from 8200 to 6985 -14.8% DC area jobs down 51,000 -16%

Trends Affecting Employee Recruitment & Retention

Faster! Global Competition Entrepreneurs & Free Agents Options Mass Customization The Office: Home Sweet Home

CHALLENGE: How will your agency meet these challenges?

High quality leadership

Career Development / Training

Exciting, meaningful assignments

Contribution to the organization

Challenge

Cutting edge
Upward Mobility Quality of Life

RETENTION MANAGERS

WHAT IS SUCCESSION PLANNING?

Getting the right number of people with the
right skills, experiences, and competencies in the right jobs at the right time.

Why Succession Planning?

How Succession Planning Helps Organizations
Engages senior management in a disciplined review of organizational talent Guides development activities of staff Brings HR systems into alignment Assures continuity of key positions / Avoids transition problems Assures new managers are prepared for their jobs Government Performance and Results Act (GPRA) Focus on Organizational Effectiveness

Investment in Human Capital

Leading organizations understand that effectively managing employees, or human capital, is essential to achieving results. Only when the right people are on board and provided the training, tools, structures, incentives, and accountability to work effectively is organizational success possible.
Quote from GAO report: Addressing High Risk and Improving Performance and Accountability

RISK of not having a succession plan

Business Concept

Will your agency have the right skill mix for the future? Human Capital Challenge!
If not, what will the cost to your agency be?

Will your agency have the right leaders to accomplish the mission?
Visionary, creative, risk-taking, initiative, technologically advanced

CHALLENGE: What is your Agencys Plan to meet the needs of the future?

THE SUCCESSION PLAN

1. Workforce analysis and forecasting 2. Communications strategy 3. ID positions targeted for growth and attrition 4. ID current and future competencies 5. ID and assess high potential employees 6. Conduct competency gap analysis

THE SUCCESSION PLAN

7. Establish recruitment strategy and assessment / selection tools 8. Institute formal coaching and mentoring (training and development) 9. Select for positions 10. Establish a retention plan 11. Evaluation / Measurement

Succession Planning Illustration

Supply Analysis Workforce analysis and trends Employee competencies Workforce demographics Current workload analysis

Demand Analysis Workforce knowledges, skills and abilities to meet projected need Staffing patterns Anticipated programs and workload changes

GAP Analysis Comparison of future workforce competencies with future needs Analysis of how workforce demographics will change ID of areas in which management action will be needed to reach workforce objectives

Solution Analysis Planning workforce transition Employee development and retraining Changes in staffing patterns

Consultants?
Do I need outside assistance? Human Capital, Key Principles from Private Sector Organizations -GAO report to Congress, January 2000

Why OPM can Help

Leader in Human Resources Programs
Responsible for over 3 million employees Leader in Quality of Life initiatives which improve retention Variety of partnerships with government entities.

OPM Services for Succession Planning

Organizational assessment survey/focus groups Preliminary data analysis/determine metrics Corporate image enhancement Recruitment strategies and training (pay flexibilities) Organizational design and re-engineering Develop retention plan

..And Yet More OPM Services for Succession Planning

Conduct competency gap analysis Develop and pilot entrance and post-exit surveys. Performance management advice and expertise. Design of training and development strategies. Review position descriptions, functional statements, and crediting plans.

Management Competency Development

Customized services to meet your needs Executive coaching on career exploration and planning, resume preparation, ECQs. Develop strategies to identify high performing leaders using a competencybased approach, structured interviews, and other customized HR products. Creation of leadership development / mentoring programs.

Other OPM Services

Organizational Design and Reengineering Job Analysis & Examining HR Manager USA Careers Reduction-In-Force (RIF) Assistance Customized HR expertise based on your needs, including personnel research psychologists.

Keys to Success
Laying out a detailed implementation plan from the beginning (ID budget and resources required. START TODAY!) Involvement and buy-in from top management, program managers, and human resource managers. Availability of accurate input data Good communication and marketing Employee Involvement Linkage of plan to other planning processes HR serves in a consulting role but management owns the process

Choosing to be