SUCCESSION PLANNING

Are you ready for this?

 SUCCESSION PLANNING - Are you ready for this?

50 Million!
Why Increased Retirements:
 SUCCESSION PLANNING - Are you ready for this?

70% of companies say they do some form of succession

planning, yet
62% say they have too few internal candidates to meet their
organizational needs.
SUCCESSION PLANNING - Are you ready for this?
What it isn’t and what it is
SUCCESSION PLANNING - Are you ready for this?

Emergency Replacement Planning:

Identification of back-ups for your
critical positions
 SUCCESSION PLANNING - Are you ready for this?

Succession Planning:
Developing the bench strength throughout the organization
so when a vacancy occurs, qualified candidates are available
within the organization.
 SUCCESSION PLANNING - Are you ready for this?

Succession Planning: Knowing where you’re heading and

developing the talent pool to get you there.
 Where is the knowledge?
Paper Documents 7%

Electronic Databases 13%

Email 13%

Electronic Docs
16%

Brains 51%

0% 10% 20% 30% 40% 50% 60%

Many times and at higher-level positions, 80 - 90% of the corporate knowledge

is in peoples’ heads!!
 What’s
Develop
needed for
the talent
future
pipeline
success?

SUCCESSION
MANAGEMENT

What are Assess

the gaps? your talent
SUCCESSION PLANNING - Are you ready for this?

The heart of Succession Planning

is the evaluation of your
employees' performance and
potential!
 SUCCESSION PLANNING - Are you ready for this?

Step 1. What’s needed for future success?

• What are the positions that are mission critical to your

organization’s future?

• What are the competencies needed to be successful in these

roles?
• That is, what are the knowledge, skills, attitudes, and other
abilities that are needed for success in the position.

• “What should be” for success

 SUCCESSION PLANNING - Are you ready for this?
III. COMPETENCIES Competency Definition for an Accountant
Knowledge - Professional
Professional knowledge and skill in accounting and ability to keep current with developments and trends. Knowledge and ability to
use applicable information technology and systems to meet work needs.

Financial Monitoring and Analysis

Ability to monitor and collect data and to assess the accuracy and integrity of data. Ability to analyze data. Ability to ensure
compliance with applicable standards, rules, regulations, and systems of internal control. Ability to interpret and evaluate results,
prepare documentation, and create financial reports and/or presentations.

Decision Making and Problem Solving

Ability to use effective approaches for choosing a course of action or developing appropriate solutions and/or reaching conclusions.
Ability to take action consistent with available facts, constraints, and anticipated consequences.

Communication and Interpersonal Skills

Ability to communicate information to individuals or groups and deliver presentations suited to the characteristics and needs of the
audience. Ability to clearly and concisely convey information orally or in writing to individuals or groups to ensure that they
understand the information and the message. Ability to listen and respond appropriately to others. Ability to establish effective
working relationships that foster organizational success.

Supervision
Ability to recruit, select, counsel, discipline, establish performance standards, and evaluate performance of employees to retain a
diverse workforce. Ability to administer and ensure compliance with human resources policies and procedures. Ability to monitor
and assess work, provide feedback, and provide technical supervision. Ability to develop knowledge, skills, and abilities of employees
and plan for and support employees in career development opportunities.
SUCCESSION PLANNING - Are you ready for this?

Assess your talent

Inventory of your talent pool.

Who are “high potential” people? “HiPo”

Who are the “high performers”? “HiPer”

How do you do that?

Overview of the Performance/Potential Grid -
The Nine-Box Grid
• What - The matrix is used to evaluate an organization’s talent pool to
identify the HiPo’s.
High Performance High Performance High Performance
Low Potential Medium Potential High Potential

Medium Medium Medium

Performance Performance Performance
Low Potential Medium Potential High Potential
Performance

Low Performance Low Performance Low Performance

Low Potential Medium Potential High Potential

Potential
for future success in more senior role 15
 Valued Specialist Emerging Potential STAR – Top Talent
Continue in current role

Prepare for
High Emerging Specialist / future role /
Consistent Contributor Valued Rising Star
Improve in current role Contributor promotion
Performance

Underperformer - Misspent talent / At-risk New to Role/Unrated

Questionable fit Improve in current role Anticipate high
Low

New role or end performance and

employment in 3 – 6 potential
months

Low High
Potential for future success in more senior role 16
 Talent Review Grid
High Performance Within Role
Descriptor: Valued Specialist
•Exceeds or Outstanding performance
•Role model/SME in their current function
•Not likely to move outside current role (e.g.,
niche job, personal factors, no
demonstration of leadership characteristics,
etc.)
Performance - WHAT
Med. Performance Within Role
Descriptor: Emerging Specialist/
Consistent Contributor
•Meets performance expectations
•Steady, consistently good performance
•May not fit characteristics of leadership or
management model pertaining to upward
mobility
•Not likely to move outside current role (e.g.,
niche job, personal factors, full-time status,
etc.)
Poor Performance Within Role
Descriptor:
Under-Performer/Questionable Fit
•Does not meet/partially meets performance
expectations
•Does not meet Leadership Model criteria in
most if not all areas
•New team, new role, or new organization
decision needs to be made
Potential - Leadership Characteristics -HOW
High Performance/
Med. Demonstrated Leadership
Descriptor: Emerging Potential
•Exceeds or Outstanding performance
•Role model/SME in current function
•Consistently delivers extraordinary results
•The person could advance to the next
level, but may not be mobile, lack desire to
move up, and/or may need coaching in 1 or
2 critical areas
Med. Performance/
Med. Demonstrated Leadership
Descriptor: Valued Contributor
•Meets performance expectations
•Steady, consistently good performance
•Capable of growing into a more complex
role within the same level
•Demonstrates many of the leadership
characteristics
•May be promotable outside of current level
(laterally or upward)
Low Performance/
Med. Demonstrated Leadership
Descriptor: At Risk
•Does not meet/partially meets performance
expectations
•Inconsistent or disappointing performance
in relation to leadership characteristics
exhibited
•Person may be new but isn’t adapting as
well as anticipated
High Performance/
High Demonstrated Leadership
Descriptor: Top Talent
•Exceeds or Outstanding performance
•Role Model across the organization
•Promotable now
•Excellent people manager
•Very best in all Leadership Characteristics
Med. Performance/
High Demonstrated Leadership
Descriptor: Rising Star
•Meets performance expectations
•Steady, consistently good performance
•In new/challenging role that may currently
inhibit ability to exceed performance
•Potential to grow into a role with much
broader responsibilities
•The person likely to advance to next level
•Very best in leadership characteristics
Unrated Performance/
Anticipated High Leadership
Descriptor: New to Role
•Too early to assess performance or
competence… New to the role or the
organization
•Perceived to be able to take on greater
responsibilities/roles and demonstrate all
leadership characteristics
•Anticipate strong, successful results
 Talent Review Grid
High Performance Within Role
Descriptor: Valued Specialist
•Exceeds expectations or outstanding
performance
•Role model/SME in their current function
•Not likely to move outside current role (e.g.,
niche job, personal factors, no
demonstration of leadership characteristics,
etc.)
Performance - WHAT
Contribute
Med. Performance Within Role
In Role
Descriptor: Emerging Specialist/
Consistent Contributor
•Meets performance expectations
•Steady, consistently good performance
•May not fit characteristics of leadership or
management model pertaining to upward
mobility
•Not likely to move outside current role (e.g.,
niche job, personal factors, full-time status,
etc.)
Poor Performance Within Role
Descriptor:
Under-Performer/Questionable Fit
•Does not meet/partially meets performance
expectations
•Does not meet Leadership Model criteria in
most if not all areas
•New team, new role, or new organization
decision needs to be made
Potential - Leadership Characteristics -HOW
High Performance/
Med. Demonstrated Leadership
Descriptor: Emerging Potential
•Exceeds or Outstanding performance
•Role model/SME in current function
•Consistently delivers extraordinary results
•The person could advance to the next
level, but may not be mobile, lack desire to
move up, and/or may need coaching in 1 or
2-5 Years to
2 critical areas
Next Step
Med. Performance/
Med. Demonstrated Leadership
(lateral or up)
Descriptor: Valued Contributor
•Meets performance expectations
•Steady, consistently good performance
•Capable of growing into a more complex
role within the same level
•Demonstrates many of the leadership
characteristics
•May be promotable outside of current level
(laterally or upward)
Low Performance/
Med. Demonstrated Leadership
Descriptor: At Risk
•Does not meet/partially meets performance
expectations
•Inconsistent or disappointing performance
in relation to leadership characteristics
exhibited
•Person may be new but isn’t adapting as
well as anticipated
High Performance/
High Demonstrated Leadership
Descriptor: Top Talent
Ready for
•Exceeds or Outstanding performance
next Step
•Role Model across the organization
•Promotable now
•Excellent people manager
•Very best in all Leadership Characteristics
Med. Performance/
High Demonstrated Leadership
Descriptor: Rising Star
1-2 Years to
•Meets performance expectations
Next Step
•Steady, consistently good performance
•In new/challenging role that may currently
(lateral or up)
inhibit ability to exceed performance
•Potential to grow into a role with much
broader responsibilities
•The person likely to advance to next level
•Very best in leadership characteristics
Unrated Performance/
Anticipated High Leadership
Descriptor: New to Role
New
•Too early to assess performance or
(Six months or less)
competence… New to the role or the
organization
in the role
•Perceived to be able to take on greater
responsibilities/roles and demonstrate all
leadership characteristics
•Anticipate strong, successful results
 Overview of the Performance/Potential Grid -
The Nine-Box Grid
Why
1. It’s a simple and cost-effective way to assess any population on two important
dimensions
2. It’s a great catalyst for robust dialogue
3. Used in a group setting, it promotes good open debate. The multiple perspectives
provide for a much more accurate assessment
4. The process can facilitate a shared sense of ownership for the organizations talent pool
5. It’s a great way to identify development needs and transition to development planning

19
SUCCESSION PLANNING - Are you ready for this?

What are the Gaps?

• What are the gaps between what’s needed for each job
and the current competencies of the team member.

• What’s needed to move the talent to the next level?

• Create the development plans for your HiPo and Hi Per

staff members.
 Talent Review Follow-up Plan
Action:
• Affirm their role model/SME function
• Assess if could move outside
of current role (e.g., desire to move)
Performance - WHAT
Action:
• Challenge to reach “Outstanding”
• Assess if could move outside
of current role (e.g., desire to move)
Action:
• Confirm and document assessment
of performance and demonstrated
leadership characteristics
• Plan to have person in
new role or new company
within 3 months
Demonstrated Leadership Characteristics - HOW
Action:
• Assess mobility
• Further assessment on demonstrated
leadership characteristics
• Perhaps a coach if 1 or 2
potential areas are “derailers”
• Communicate path… might influence
mobility or desire to move.
•Recognize the exceptional performance
• Delineate next career possibilities
.
Action:
• Make a point to recognize
their specific, valued contributions
•Action plan to ensure they are growing
within their role/potentially outside of it •
• Action plan for enhancing
demonstrated leadership characteristics
Action:
• 3 month performance plan
• Ensure focus is on performance
(e.g., no extra teams or assignments)
• Make sure person has
tools/information/resources
to be a success
Action:
• Development plan and accelerated
career path firmly in place.
• Know their next two career steps.
• Identify specifically
when they will move and why
• Celebrate with them and challenge
them. They are our future!
Action:
• Set clear and specific performance
criteria
• Assure person has tools, resources,
and information to be a success
Delineate next career steps given that
certain perf. criteria are met.
Action:
• Set clear and specific
performance criteria.
•Ensure person has tools, resources,
and information to be a success
• Ensure successful
on-boarding process
SUCCESSION PLANNING - Are you ready for this?

Develop the Talent Pipeline.

• Build new skills

• Development plans for targeted staff members

• Transfer the knowledge

How do we get that knowledge?
Types of Knowledge
• Explicit knowledge - Knowledge that has been articulated, captured,
or codified –“Written down”.

• Implicit knowledge - Knowledge that can be articulated or captured

but has not been codified.

• Tacit Knowledge is inside of peoples’ heads or in the “Brains of

Employees”. It has not been captured, so it has not been formalized
or organized. This knowledge can not be easily accessed by other
employees.
How do we transfer the knowledge?
KTM
• Desk Manuals
• Procedures
Transfer
• Documentation
Explicit Knowledge • Training
• Formal • Meetings
• Structured • Cross Train
• Unstructured

Identify Implicit KTM

Knowledge
Knowledge Capture and
Knowledge • Unstructured Codify Retained
Type

Tacit Knowledge
• Informal Transfer
• Unstructured Face-to-face
KTM Individual and
• Personal • Job Shadow group
• Interview
• Mentor
• Story-telling
 What’s
Develop
needed for
the talent
future
pipeline
success?
Bench
Strength
Ready

What are Assess

the gaps? your talent
SUCCESSION PLANNING - Are you ready for this?
SUCCESSION PLANNING - Are you ready for this?

?????

Thanks!