Succession Planning:

How do I Train the

Next successor?
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 No one likes thinking about their mortality and some
business founders so closely identify with their
ventures that they can't imagine their business
continuing without them.
However, a well-thought out succession plan is
essential to the continuation of a business, no matter
what its size and structure.

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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

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 Succession Plan…

A systematic approach to building replacement

workers to ensure continuity, by identifying potential
successors in critical work processes.
It is a PROCESS that ensures the continuation of a
business through the generations..

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 Succession planning is not a one-time event. Instead,
it is a process that usually takes several years to do
well.
Nor is it one person’s problem. The whole company
must buy in to ensure a successful management
transition.
A formal succession plan will affect every aspect of
your life: Your family, Employees, Customers
Without the right employees the next generation
can’t buy you out.
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 It is strongly recommended that succession planning
is a collaborative process within your organization
with a broad array of leaders adding input into the
identification, selection, and mentoring process.

“The final test of greatness in a CEO is how well

he
chooses a successor and whether he can step aside
and let his successor run the company.”

Peter Drucker, management expert

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 The CEO is responsible for selecting and training his or
her successor(s). The CEO is also responsible for
establishing a culture that nurtures managers in
training and encourages responsible decision making
and risk taking.
Managers have to be given the chance to try things
based on their own initiative and to even fail
occasionally.
Many CEO’s are their own worst enemies when it comes
to carrying out their responsibilities. Many like being
in control and not sharing that control. These
individuals may be quick to share the responsibilities of
management but not the authority….
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 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 ..

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 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? ???

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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..

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 Steps in Succession Planning Process

1. Understand what succession is

2. Discover expectations
3. Examine options
4. Create a plan
5. Check with experts
6. Finalize the plan
7. Implement the plan

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 Step 1. What Succession Is and Is Not
Succession is: Succession is not:
A process An event
About business, people One person’s problem
and relationships
About ownership, About minimizing taxes
management
About equity
About what is fair
Driven by technical
Driven by the company
issues that are handled by
values, wants and lawyers, accountants,
concerns etc…

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 Step 2: Discovering Expectations
Should involve all company members
Assumptions at any stage about other’s wants or
expectations should not be made
Every member of the business has a vision for himself/
herself and for the business.
The best way to reduce conflict is to talk about the
goals each person has. This is a difficult, and ongoing
process.
Say no to secrecy!!!

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 Step 3: Examine Options
Key Questions:
What role will members play in the
succession plan?
What can we do to treat all fairly?
How can I prepare for either a different
role in the business or for retirement?
How will the successor(s) be trained?
How will the change in roles be
communicated to stakeholders?

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  How can the senior generation prepare for either
retirement or a new and different role in the business?
 Who will the successor(s) be and how will they be
prepared for their new role in the business?
Building alternatives to each of these questions is part
of what building a plan is all about…

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 Step 4: Create a Succession Plan
There are two main parts to the actual plan you
should develop. The first has to do with transferring
the decision making authority and associated
responsibilities to the next manager.
The other part is the transfer of the actual assets in
the business.
These two parts should be backed up by a third – a
contingency plan for managing disruptive events:

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Choosing the Successor
 What specific attributes would you look
for in a successor?
 Education
 Experience
 Personal characteristics
 Skills required
 Job responsibilities…

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 You may find it helpful to have written job
descriptions for each person in the business.
Writing a job description for people already in the
business is similar to writing one for a future manager.
Job descriptions help managers and employees
know exactly what they are responsible for, and
what they have authority to decide.
Developing criteria for what background you think an
able successor should have is part of choosing the
successor.
If the possible successors don’t meet this criteria
then the manager can help the successor develop
those needed qualities:
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 Grooming the Successor
Once you have identified a likely candidate the process
of grooming (training, preparing) the successor can
begin.
How do you provide opportunities to make decisions,
take risks, and develop management skills?
Initial evaluation
Management training
Career growth
Regular feedback

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 The purpose is to provide the successor with formal
training opportunities, on-the-job-experiences, and
involvement in community that will allow the
individual to grow in management skill and experience
and to develop relationships in and out of the business
that will be critical to the persons success.
Making sure that the candidate receives feedback on his
or her performance and coaching when needed are
critically important elements of the grooming process.
But care must also be taken to make sure the successor has
plenty of opportunities to try and fail, since the lessons
learned by making bad decisions and having to deal with
the consequences may be the most valuable of all training
opportunities…
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 Step 5: Check with Experts
Use them to comment on your thinking, not to do
your thinking for you
Should be visited only after you’ve thought about the
process..

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 Step 6: Finalize the Plan
Write it down!
Keep in mind that succession planning is an iterative
process.
You should expect to have to bounce ideas several
times before arriving at a workable plan.
It’s never too early to start planning…

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 Step 7: Implement Plan
How to announce the plan?
Develop program with action plans
Set target dates
Schedule follow up/review of program
Keep everyone informed
Review the plan periodically

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 It may be difficult to overcome the initial skepticism of
the business members.
People may have trouble coming to grips with changes
that are taking place.
A process for implementing the plan and a timetable
that sets target dates help to ensure that the plan
doesn’t collect dust on a shelf somewhere…///

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 (Develop succession Plan…….)
Identify competencies, skills and institutional knowledge
that are critical success factors

Position Title:
Education:
Work Experiences:
CORE COMPETENCIES
TECHNICAL COMPETENCIES

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 Cont.
CORE COMPETENCIES
 Communication
 Strategic Planning
 Building Productive
Relationships
 Continuously Improving Quality
 Developing Self
 Focusing on Customers
 Valuing Cultural Diversity
 Managing Change
 Developing and Coaching Others
 Other skills….
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TECHNICAL COMPETENCIES
 Project Management
 Policy Development and Analysis
 Budget and Fiscal Management
 Human Resources Management
 Legal Compliance
 Computer Systems & Technology
 Program Development
 Data Analysis
 Contract Management …
26
Identify Unique Institutional Knowledge Or
Relationships
What unique institutional knowledge or relationships
are inherent to the success of this position?
Does anyone else have this knowledge in the
organization? If so, who?
How critical is it that this knowledge is documented
and shared?
High : Medium : Low

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 Consider High Potential Employees
After you have evaluated which positions require a
succession plan, the next step is to consider if there are
current staff members ready to successfully assume
the role or have potential to grow into it over time.
If you are conducting this succession planning
exercise as a leadership team, be aware that high
potential employees are often not distributed evenly
within an organization.
Be willing to have honest conversations and remember
that just because an individual is not identified as high
potential doesn’t mean that s/he is not a strong
individual contributor, nor should be denied access to
professional development activities.
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 High Potential Employee Identification

Name:
Position Title:
Unit:
Years in Current Position:
Current Supervisor:
Target Position:
Target Position Key Competencies:
Ready:
now :within 1 year: within 2 years: within 3–5 years

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 Select the competencies individuals will
need to be successful in positions
Preparing an individual to progress in the
organization often takes a combination of formal
training, thoughtful coaching, mentorship, and
key assignments.
Managers and executive leadership play a key role in
creating access/removing barriers to key assignments
and providing honest feedback along the way.
Managers should be having ongoing career
development conversations with all employees in
addition to their annual performance reviews.
Career development conversations with high potential
employees should be focused on closing the gaps
and/or strengthen existing skills and competencies.
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 Career Development Plan Worksheet
Name:
Position Title:
Unit:
Supervisor Name:
Supervisor Title:

LONG TERMGOALS
What are your long term career goals over the next3–
5years? Describe how your long term goals fit in with the
goals and priorities of your department?
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Cont
SHORT TERM GOALS
What are your career goals for the next year or two
(these may or may not be the same as your annual
performance goals)? Describe how your short term
goals fit in with the goals and priorities of your
department.
1.
2.
3.
4.
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 SKILL AND COMPETENCY REQUIREMENTS
What skills or competencies do you need to build to
reach your goals?
Skill or Training Target Dates Associated RESULTS
Competency Activities Costs
to be
Developed

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 The career development plan provides an opportunity
to demonstrate your career potential and is not a
guarantee of a promotion.
The plan should be evaluated at least every six months
and adjusted as needed based on organizational
and/or personal priorities…

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 9 Box Performance-
   
Potential  
Matrix
LEADERSHIP Exceeds
POTENTIAL
Needs Meets
Development Expectations Expectations

  1C 1B 1A
Poor  Good Performance   Outstanding
  Performance High Potential Performance High
High High Potential Potential

  2C 2B 2A
  Poor Good Performance Outstanding
  Performance Moderate Potential Performance
Moderate Moderate Moderate Potential
Potential
(new role)

  3C 3B 3A
Limited Poor Good Performance Outstanding
Performance Limited Potential Performance
Limited Limited Potential
Potential
PERFORMAN POOR GOOD OUTSTANDING
CE PM
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 1A : Outstanding Performance/ High
Potential
Definition: Individual is developing faster than the
demands of his/her current position and/or division.
Individual has been given additional assignments and
has demonstrated high-level commitment/achieved
significant results.
Individual is ready to broaden his/her skill set and
take on significantly greater scope and responsibility.
How do I know?
Consistently performs above and beyond the current
scope of his/her job; excels when given additional
assignments

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1A: cont.
How do I know?
Consistently integrates and demonstrates behaviors
associated with company’s values and core
competencies
Consistently seeks new opportunities for learning,
leadership development, and advanced experience
Independently researches solutions to problems and
makes recommendations for improvement toward
organizational excellence
Demonstrates systems thinking …
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 2A: Outstanding Performance/
Moderate Potential:
Definition: Individual performs well in his/her current job, makes
valuable contributions and consistently demonstrates competencies
required.
May be ready to take on greater scope and responsibility in the next
12 months.
How do I know?
Performing above expectations; however, manager is not certain
about his/her capability to handle increased scope and complexity
Demonstrated capability to take on more work or additional
projects; willingly accepts new assignments of increasing difficulty
level
Seeks opportunities to improve both self and organization
Shows understanding of organizational mission, values, and core
competencies through demonstrated behaviors; seeks to integrate
them into daily work

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 3A: Outstanding
Performance/Limited Potential:
Definition: Individual is performing well in his/her current job
but needs to continue development in current role, or may have
valuable technical skills but has not exhibited leadership potential.
Individual has not demonstrated willingness to take on
significantly greater scope and responsibility in the next 12 months.
How do I know?
Performing at or above expectations
Has not outgrown his/her current job and has growth
opportunities within his/her role
Seasoned professional with technical skills who does not currently
exhibit capacity/desire for continued leadership development
Understands that organizational mission, values, and core
competencies are important but is still inconsistent in
demonstration of behaviors and integration into daily work

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 1B: Good Performance/High Potential:
Definition: Individual is contributing as expected and is
meeting performance expectations. Individual may be
ready to take on greater technical and/or leadership
responsibility in the next 12-24 months.
How do I know?
Solid performer; meets expectations
A valued contributor to the team
Demonstrates capacity for advancement
Frequently demonstrates behaviors associated with values
and core competencies
Frequently seeks out new tasks, projects and other
opportunities for growth
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 2B: Good Performance/Moderate
Potential:
Definition: Individual is currently meeting expectations
but may not be willing or able to advance; may not be
ready to absorb additional scope or complexity in the
next 12-24 months.
How do I know?
Individual is currently meeting expectations; Solid,
consistent technical performance
May lack demonstrated strategic thinking or relationship
skills, may need additional time in current role
Minimally expresses interest in expanded opportunities
Demonstrated behaviors associated with values and core
competencies are not consistent
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 3B: Good Performance/Limited
Potential/ Improve in current Role
Definition: Individual is currently meeting the expectations
of his/her role.
Individual is not prepared to absorb additional scope or
complexity in the next 12-24 months.
How do I know?
Currently meeting expectations; steady, dependable
Currently performing up to his/her potential
If current role changed or expanded in scope, responsibilities
may exceed this individual’s capability at this time
Demonstrated behaviors associated with values and core
competencies are not consistent
Does not exhibit interest in additional responsibility or
leadership role

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 1C: Poor Performance/High Potential:
Definition: Individual is not meeting the requirements
in his/her current role.
It is possible that individual could be more successful in
the current role with more direction or in another role or
division that more appropriately suits his/her skill set.
How do I know?
Does not consistently perform to technical expectations
Beginning to demonstrate understanding of how the
organization operates
Seeks opportunities for improvement
May be new in role or new to organization

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 2C: Poor Performance/Moderate
Potential:
Definition: Individual has not been the position long
enough to adequately demonstrate his/her technical
abilities, or may have lost pace with changes in the
organization.
How do I know?
Less than 6 months in position
Longer term employee who has not progressed or
adapted to changes within the organization
Demonstrates understanding of how the division
operates

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 3C: Poor Performance/Limited
Potential:
Definition: Individual is not meeting performance
expectations and there is still more to learn in the current
position.
There are questions about his/her ability to succeed in
the current role long-term.
How do I know?
Consistently underperforms in his/her role
Having trouble keeping up with the demands of the
current role
Infrequently demonstrates the behaviors of values and
core competencies
Unwilling to take on additional responsibility… !!!
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