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High-Impact Talent Headline / Subhead Vertical / Vertical Headline Subhead Workforce, Capability & Succession Planning

McLean & Company is a research and advisory firm that provides practical solutions to human resources challenges with executable research, tools, and advice that will have a clear and measurable impact on your . © 1997-2016 McLean & Company. McLean & Company is a division of Info-Tech Research Group Inc. McLean & Company 1 V4

Are you confused? I am!

•

◦ People Strategy?

◦ Workforce Planning?

Headline / Subhead Vertical Spacing / Vertical Headline Subhead ◦ Succession Planning?

◦ Capability Development?

◦ Talent Development?

◦ Development?

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Moving Target

• Talent Management was mostly for leaders ◦ There was an abundance of skilled candidates ◦ Begged the question: So are only Leaders “Talent”? ◦ Elitism trumped democratic people practices • Demographics have changed

Headline / Subhead Vertical Spacing / Vertical Headline Subhead ◦ Talent is now scarce, globally ◦ Employees expect development ◦ Certain skilled roles are as important as leaders • Talent Management is now an enterprise function ◦ Focused on leader and difficult-to-fill roles ◦ This could mean most, in today’s environment ◦ Increasingly transparent and “latticed”

How do you think about Talent Management in your organization?

McLean & Company 3

V4 Talent Management by Bersin

Strategy, Workforce Planning and Capability Management Headline / Subhead Vertical Spacing / Vertical Headline Subhead

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Dynamics today require a flexible and simple approach…

Step 1: Establish project rationale Develop a business case for planning.

Step 2: Assess the foundation Establish Assess Align and connect key HR practices to project the support the success of your planning. rationale foundation Step 3: Identify key gaps Headline / Subhead Vertical Spacing / Vertical Headline Subhead Select which key gaps will be incorporated into the plan. Keep the requirements broad enough for diversity Manage Identify in potential successors. succession key gaps Step 4: Identify successors and talent pools Identify Assess internal talent and determine successors who should go where. and talent pools Step 5: Manage succession Plan for ongoing communication, tracking, development, and updates. Step 4 We will call it succession planning but it is workforce and talent planning McLean & Company 5 V4

Step 1: Establish Project Rationale

Spacing Section summary and deliverables:

After completing this section you will have: • A business case for flexible workforce and Establish Assess succession planning. project the rationale foundation Deliverables: • List of your organization’s pain points and flexibility issues from succession planning. Manage Identify Headline / Subhead Vertical / Vertical Headline Subhead succession key gaps Identify successors and talent pools

Step 4

Workshop activities in the step:

1.1 Identify pain points from your current or non-existent succession plan. 1.2 Assess roadblocks to implementing flexible succession planning.

McLean & Company 6 Succession Planning was the least effective Talent Management area in the 2016 Trends and Priorities Survey

Talent Management Area Effectiveness

Succession Planning was tied with Metrics & Analytics as the least effective of all 30 HR areas surveyed. It is

Effectiveness Score also the top priority Talent Management area.

Low Effectiveness (1-2) Moderate Effectiveness (3-4) High Effectiveness (5-6)

McLean & Company, HR Trends & Priorities Note: Results are shown as the percentage of respondents who selected 5 or 6 on a 6-point scale. for 2016, N = 555

McLean & Company 7 Traditional succession plans often fail in high-change environments because they aren’t agile or integrated

Traditional succession plans are…

1 Too focused on the long term 2 Too narrow-sighted The business environment is more dynamic and uncertain than ever and The traditional focus on constantly changing. upper management leaves • Key roles today may not exist tomorrow or may exist in multiples to catch up organizations unprepared with business requirements. when critical turnover happens lower down – • Changes can occur multiple times within the 5-10 year planning time frame. leaving them vulnerable. People don’t stay in jobs 5-10 years anymore. • Millennials don’t stay in jobs for as long as previous generations.

o In a survey conducted by the Bureau of Labor statistics, 91% of Millennials expected to stay in a job for less than 3 years.* Too disconnected • In place of retirement, many Baby Boomers are leaving their full-time jobs for 3 flexible work arrangements that suit their changing lifestyle. Succession planning often • Globalization and technology mean employees have more – and easier – isn’t properly integrated with access to job opportunities. other talent management initiatives, leading to o Example: Pursuing passive candidates through LinkedIn or other social media sites is now commonplace. That means it is much more likely for duplication of effort and lost employees who weren’t looking for another opportunity to be lured away. opportunities.

* Source: Meister, “Job Hopping Is the 'New Normal' for Millennials” (emphasis added)

McLean & Company 8 Rigid succession planning – or no plan – leaves the organization vulnerable

Without responsive succession planning, the organization is too slow to respond to sudden critical vacancies, so there is no ready successor when vacancies occur. This translates into lost knowledge and, often, high costs.

Knowledge loss • Succession planning is critical to ensure that the knowledge held by those in key roles is successfully passed down to successors. • Knowledge loss also: o Creates inefficiency as people duplicate effort to solve problems and find solutions. o Reduces capacity to innovate. o Negatively impacts competitive advantage. o Exposes the organization to the risk of not knowing what to expect.

High recruitment costs Productivity Loss • If an organization has no prepared successors, it must • If an organization has no prepared successors, it must seek outside talent…which can come at a steep cost. spend time finding an external replacement. In the meantime, either the critical role’s work isn’t done and there • According to a study conducted by the Saratoga is a direct vacancy cost; or it is filled by an underqualified Institute*, the cost of an external hire can be 1.7 employee on an interim basis. In either case, productivity times more than that of an internal successor. costs can be high.

* Source: Business Time, “The Power Within” (emphasis added)

McLean & Company 9 V4 Activity: Identify pain points from your current 1.1 or non-existent workforce succession plan Spacing

1.If your organization currently does succession planning, discuss how flexible your process is. Brainstorm and list components of your succession planning process that make it difficult to adapt. Headline / Subhead Vertical / Vertical Headline Subhead

2.Discuss pain points that your organization faces as a result of your succession plan or lack thereof. Start with pain points on the previous slide. Brainstorm and list additional pain points and examples.

McLean & Company 10 V4 Organizations are missing out on the most impactful HR trend

for 2016: Using talent pools for succession planning

Spacing Implemented Talent Management Trends

13th Talent pool succession planning, a flexible th** Headline / Subhead Vertical / Vertical Headline Subhead * 18 and change-oriented approach, scored in the top half of emerging trends. It th * 20 was identified as the “Most Impactful”* trend in 2016 and 2015. 24th

McLean & Company, HR Trends & Priorities for 2016, N = 476 .

**Impact: Denotes a top 10 most impactful trend. Respondents selected which one of the trends they had implemented was the most impactful. A weighted average was then used to rank them. Refer to McLean & Company’s HR Trends & Priorities for 2016 blueprint.

McLean & Company 11 Flexible succession planning uses talent pools for a change-oriented focus and broader application

Traditional Flexible Succession Succession Planning Planning What it is: What it is: Flexible succession planning employs • Process for identifying • Identification of at-risk 3 of 4 of the values of Agile* ideology: and developing job pools and selection employees to fill key and development of 1. Adaptability: Run on a short-term timeline for senior leader positions. employee talent pools to developing successors, which allows flexibility progress through pools. for changes as they occur in the organization or in the business environment. Develop a pool- Who it plans for: Who it plans for: based approach to ensure that there is a broad • Key senior leadership • Key senior leadership supply of ready-to-go successors. business positions. business positions, key • 1-2 employees. individuals, job pools. 2. Simplicity: Straightforward process that can be clearly communicated and understood by • Larger employee pools. leaders required to identify and develop talent, as well as employees who are part of the plan. Time frame is: Time frame is: • Long term • Short and long term 3. Unity: Interconnected with components across (3-5 years). (1-3 years and 3+ years). other HR practices, as well as overall strategy of the business, to meet business goals. Successors come from: • Successors come • A level/tier below the from: Transparency is the final agile value. The ideal senior leadership Levels/tiers below and at amount of transparency depends on the culture. position within the same the level of the role, function. across different functions in the organization. * Source: HR Reporter, “What is Agile Human Resources?”

McLean & Company 12 V4 Mitigate pains and create opportunity for positive business

impact with a flexible approach to succession planning Spacing Flexibility allows the organization to have the right people, with the right skills, ready at the right time for key roles.

A WorldatWork • Develop successors for the short and long term. survey on talent management and ◦ Short-term time frames cover the unexpected vacancies, while long-term time frames rewards found that are the well-known and planned departures of individuals from critical roles. 48% of respondents used • Incorporate and streamline other HR practices to reduce duplication of effort and talent pools for Headline / Subhead Vertical / Vertical Headline Subhead minimize administration required to procure information. key organizational roles as a part of • Account for critical roles across all levels of the organization with minimal extra their succession planning and prepare the organization for unexpected vacant positions by addressing planning process. roles or jobs from a “pool perspective.” Source: • Support the creation of better employee development plans which are more focused WorldatWork, on career development – a big employee engagement driver. Leading Through Uncertain Times

Succession planning, by definition, is a long-term process, but rarely stay the same for very long. By the time many succession plans have arrived at a solution, successors have already left, and the organization, positions, and job structures all may have changed in the interim. Therefore, plan for change; in fact, make change a key part of the succession plan. Source: Porr, Agile Succession: HR's Toughest Challenge (emphasis added)

McLean & Company 13 V4 There are barriers that stand in the way of launching a flexible

approach

Spacing Disconnected HR practices Limited potential successors Inaccurate assessment of talent • The shorter term, change-focus of • The use of broad pools requires • In order to develop the right a flexible succession planning that employees be sourced from employees for succession approach requires timely different areas of the organization. planning, you need to first identify information from a variety of HR • If there is no process in place to who they are and what makes them practices. accurately and adequately assess “right” to be included in the plan. • If HR practice areas are not the competencies required to be • If a thorough candidate profile isn’t connected, then more time and successful in a role, it is difficult for created, you risk succession effort will be required to solicit managers to expand their view on planning decision making based on necessary information. who can go where. incomplete talent assessment or

Headline / Subhead Vertical / Vertical Headline Subhead favoritism/bias.

Tracking successors Managing the succession plan • Keeping up-to-date records is vital • As a process with both a short and In the 2016 HR Trends to ensure you can accurately long-term view, flexible succession & Priorities Survey, only predict who goes where when an planning needs to be managed 25% of respondents unexpected vacancy occurs. long after planning and initial rated “Internal Talent • Tools and templates should be implementation; it requires frequent Assessment” as very simple to encourage timely updates, reviews, and changes. effective. updating; if they are cumbersome, • Organizations often think their work McLean & Company, those tasked with updating will is done once the succession plan is 2016, N=555 likely put it off – and succession implemented and do not carry out planning will become stale. the activities necessary to maintain a robust plan.

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Step 2: Assess the foundation

Spacing Section summary and deliverables: After completing this section you will have: a) Learned what HR practices directly support Establish Assess succession planning. project the rationale foundation b) Reviewed your HR practices for basic alignment for succession planning. c) Assembled a succession planning committee. d) Defined metrics to measure project success. Manage Identify Headline / Subhead Vertical / Vertical Headline Subhead succession key Deliverables: gaps • Flexible Succession Planning Key Foundational Identify Practices Guide. successors and talent • Talent Management Cycle Framework. pools • Succession plan committee guidelines.

Step 4 • Flexible Succession Plan Committee Charter. • Project metrics list.

Workshop activities in the step:

2.1 Review key foundational practices. 2.2 Determine which key foundational practices will be built. 2.3 Assemble the succession plan committee. 2.4 Set project metrics to track progress.

McLean & Company 15 V4 Establish key foundational practices to support succession

goals before, during, and after planning

Spacing The Talent Management Cycle shows key Talent Management Cycle practices that support succession planning. 3 Develop Talent Incorporate these key practices into your 2 Review Talent succession planning process: 1 Evaluate Talent Succession • Workforce Planning Planning • Internal Talent Assessment Internal Talent Assessment Review High Potential • Competencies Meeting Development Headline / Subhead Vertical / Vertical Headline Subhead • Leadership Competencies ◦ Performance Appraisal Calibration Development Meeting ◦ Review Meeting and Calibration Meeting Performance Employee • Career Path Planning Appraisal Development

Workforce Planning Where is Career Path Planning? • Career path planning is not included in this diagram because it operates within the other key practice activities. 4 Manage Talent • A career path framework is used to determine Talent Performance Learning & gaps for and focus the = = = workforce planning Management development of talent for employees. Activities Activities Activities

McLean & Company 16 V4 Use the Flexible Succession Plan Key Foundational Practices

Guide to identify what practices you have in place

Spacing Key practices support the successful development and management of flexible succession plans.

This template will help you: • Understand what key foundational practices are recommended for flexible succession planning. • Determine which key foundational practices you currently have in place. Headline / Subhead Vertical / Vertical Headline Subhead • Decide which practices you will implement. • Record a plan of action for how to put practices into place.

Complete this tool with members of the HR team.

Determine what key practices you have by using the Flexible Succession Plan Key Foundational Practices Guide template.

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Key Practice: Workforce Planning

Spacing What it is: Required elements: Systematic process designed to identify and address gaps in • Competencies the organization today’s workforce and the human capital needs of the future. It needs to meet business goals is the cornerstone for all strategic HR decisions. • Critical gaps in the organization

Workforce planning is a high-level planning process which does not take individual employees into consideration. Succession If you don’t have the required elements: planning looks at individuals and will be discussed in the next • The process of succession planning described section. in this project will guide you through how to get the elements defined above. Why you need it for flexible succession planning: Headline / Subhead Vertical / Vertical Headline Subhead Strategic workforce plans give you a narrow basis of gaps to determine which ones are critical and should be addressed Workforce planning and succession through succession planning. planning are closely related. Workforce planning focuses on changing the size, See McLean & Company’s Develop a Departmental distribution, and composition of the Strategic Workforce Plan to meet future talent workforce to meet future needs in an requirements by taking action now. orderly, controlled, and efficient manner. It focuses on the workforce as a whole. When you need them during the project: Succession planning focuses on people, Step 2: Identify key gaps to be planned for. including the replacement of individuals or To determine what key roles, individuals, or job pools need groups of people in the workforce. planning and help narrow down the list of jobs that will ultimately be put into the succession plan. Source: State of Delaware Office of Management & Budget/Human Resources Management, Workforce and Succession Planning FAQ

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Key Practice: Internal talent assessment or 9-box

Spacing What it is: Required elements: • 9-box talent grid (recommended) A process used to identify where employees stand on a talent • Talent Review meetings spectrum of performance and potential. Ideally, it incorporates • Talent Calibration meetings information from a 9-box talent grid assessment.

Why you need it for flexible succession planning: If you don’t have the required elements: • Identify how you will define talent in your Results of the talent assessment – alone or coupled with a 9- organization. box talent grid – are used to determine which employees should o Note: The 9-box talent grid uses High, be placed into the succession plan. Medium, and Low levels of Performance Headline / Subhead Vertical / Vertical Headline Subhead and Potential to define talent. See McLean & Company’s Build & Implement a 9-Box Talent Grid to Assess Employee Talent for help setting • Run review meetings for managers to share up your own talent review process. where their employees lie on the talent spectrum and calibrate placements. Use When you need it during the project: results to determine suitable candidates for succession planning. Step 3: Identify successors and talent pools. Assign employees to appropriate talent pools. Note: These will be your organization’s best talent; the 9-box talent grid identifies them as “Top Talent.” In a survey done on 43 organizations around the world, 86% of respondents indicated that Step 4: Put the plan into action. an effective system for assessing talent was Ensure talent pools always contain top talent by annually essential for conducting their succession reviewing 9-box talent grid / talent review results. planning. Source: Right Management, Managing Succession

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Key Practice: Competencies

Spacing What they are: Required elements: The critical behaviors for roles within the organization which aid • Core Competencies in a range of HR practices including recruiting, performance • Leadership Competencies management, development, and succession planning. • Functional Competencies Why you need it for flexible succession planning: If you don’t have the required elements: To determine what criteria employees need to meet in order to be a part of the plan, as well as what criteria they will need to • Use our Comprehensive Competency Library develop in order to eventually become a successor. to pick: o 3-5 core competencies that apply to

Headline / Subhead Vertical / Vertical Headline Subhead See McLean & Company’s Develop a Comprehensive everyone in the organization. Competency Framework blueprint to help you identify o 3-5 leadership competencies that reflect the competencies that make sense for your organization. top tier in your organization. 3-5 functional competencies for each job When you need them during the project: o function.  Step 2: Identify key gaps to be planned for. • Assign different levels to each competency and Determine role requirements for each key gap. use those as requirements and development Step 3: Identify successors and talent pools. objectives for succession planning. Establish required competencies to qualify for a pool. In many instances [succession] “grooming” Step 4: Put the plan into action. focuses on the technical/professional parts Focus employee development planning around competency of the higher-level job with little effort being and pool requirements. made to develop the competencies that are so critical to successful performance. Source: CPS HR Services, Competency-Based Succession Planning

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Key Practice: Performance Management

Spacing What it is: Required elements: A process of reviewing and managing an employee’s • Clear performance expectations performance and contributions within the role and the • Identification of high performers organization at large. • Performance calibration Why you need it for flexible succession planning: If you don’t have the required elements: To determine the strength of an employee’s performance, to set criteria for who can be placed into the succession plan process, • Start by getting managers and employees to and to assess if an employee should be placed into or removed meet quarterly to discuss: from a talent pool. o Expectations and goal setting. Headline / Subhead Vertical / Vertical Headline Subhead o Feedback and coaching. See McLean & Company’s Modernize the Performance o Assessment and self-assessment Appraisal to develop effective performance management results. processes. • Continuously compile employee results and When you need it during the project: discuss with managers to calibrate and ensure  that results accurately reflect employee Step 3: Identify successors and talent pools. performance. To select candidates for talent pools based on their performance level; typically high performer employees. You need to have a robust performance Step 4: Put the plan into action. management program and well-trained To frequently assess employees in the succession plan, help managers for succession planning to work. If them develop required competencies, and manage their you have a large organization, the leadership performance accordingly to help them progress. team needs to be able to trust those managers’ assessment of employees so that the right employees make it into the plan. – Senior HR Leader, Research Industry

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Key Practice: Career Path Planning

Spacing What it is: Required elements: Framework with consistently defined career tiers, • Competencies identified for competencies, and proficiency levels and potential career path each tier in the organization opportunities. The framework should move beyond traditional career ladders to career lattices that introduce lateral career moves, or non-promotion moves, into the career path model. If you don’t have the required elements: Why you need it for flexible succession planning: • Identify ideal number of tiers (no more than ten) A career framework helps identify transferrable skills for for your framework using existing organizational movement into both horizontal and lateral career moves which programs and goals.

Headline / Subhead Vertical / Vertical Headline Subhead reduces linear thinking of which employees can move into • Select core and common competencies and which roles. It also enables employee development and builds assign proficiency levels of each for each tier. the talent pipeline – a business necessity in the face of skills • Select job family specific competencies for each gaps. tier as they apply to benchmark roles within job families. See McLean & Company’s Establish an Enterprise-Wide • Use the results to develop profiles for key gaps Career Path Framework for more information on career and talent pools. path planning.

When you need it during the project: Having a career framework can help organizations understand where their talent Step 2: Identify key gaps to be planned for. is concentrated; how prepared or ill- Use the competencies for each key gap to create profiles prepared they are to meet future human that will ultimately be used to understand which employees resources challenges… can be developed to succeed into the gap. Source: Belcom & Kegerise, Establishing a Career Framework to Maximize Employee Potential and Support Business Needs

McLean & Company 22 V4 Assemble a steering committee of key organizational

stakeholders to govern and manage the succession plan

Spacing HR should not run succession planning alone, because the plan encompasses critical roles that have an impact across all functions and levels of the organization; senior leaders need to take ownership of planning.

Here are the following recommended stakeholders and the role they should play in the succession planning process:

Stakeholders Role Why they are essential players

Headline / Subhead Vertical / Vertical Headline Subhead Human Program facilitators who They are responsible for keeping the program on track and Resources are the central point of supplementing the planning process with information from HR contact for succession practices such as performance management, internal talent planning and tracking. assessment, and others. They are the subject-matter experts and need to provide other committee members with pointers on the topic. Senior Program owners who Their input is required for determining which roles and develop the succession plan corresponding employees will be critical to achieving strategic Leadership/ and have a hand in Board of Directors objectives and goals. Include the Board of Directors, if you have managing the roll out and one, as the decision makers for CEO and executive/senior employee development. placements.

Senior Managers Program liaisons who They have more direct contact with the managers of employees (or one level up enforce the succession plan and can get information on how they perform, how to develop from the succession with employees and provide them, and what an employee’s overall talent level is. They may candidates being information for developing not be included in all committee meetings, but will be required to assessed) the plan. source information for the process.

McLean & Company 23 V4 Establish committee guidelines to engage members in

planning and set governance for the process going forward

Spacing Engaging in group brainstorming and coming to a consensus on committee governance will fast track the group from forming to performing, ready to engage in the succession planning process to come. Have HR work with the Senior Managers and/or the Board of Directors to finalize governance.

Decide on the following items of information: • Purpose o The high-level reasoning for wanting to do succession planning. • Stakeholders involved and their role o Refer to the stakeholder chart on the previous slide. • Responsibilities Headline / Subhead Vertical / Vertical Headline Subhead o The activities that the committee will carry out in order to achieve the goals of the purpose, including: selecting roles to plan for, selecting employees, generating development initiatives to keep employees on Record this information in a track, and managing the plan once it has been implemented. document that will serve as the • Frequency of meeting Succession Planning Steering o How often and when the committee will meet to carry out their Committee’s Charter. responsibilities. We recommend large amounts of time be set aside upfront for the first round of planning and that the committee meet on a biannual basis afterwards. • Reporting measures o The results of the activities that the committee carries out and how they will be tracked. This includes the succession plan in itself as well as any metrics used to measure project success. • Confidentiality requirements o Who is privy to which information.

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Set project metrics to determine success after implementation

Spacing Select metrics based on the outcomes that you want to drive.

Improved Efficiency Cost Savings

Increased number of internal promotions/movement Decreased unnecessary recruitment costs Measure from: The number of lateral and horizontal Measure from: The cost of recruiting for positions that movements of employees from succession talent pools could be filled internally before and after project before and after the project. implementation.

Increased readiness of successors Consulting costs versus using McLean’s & Headline / Subhead Vertical / Vertical Headline Subhead Measure from: The percent of employees in succession Company resources talent pools that are ready to succeed the incumbent. Compare the cost of an onsite consultant walking you through the project against the cost of using this Increased succession pool Blueprint to implement your project either on your own, Measure from: The number of employees in the pool with Guided Implementations, or with a workshop. before and after the project.

Success rate of employees moving up from the succession pool Measure from: The average ratings/scores/talent review placements of employees who have moved into a role from succession planning.

Increased pools/positions with ready successors Measure from: Number of positions with successors before and after project.

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Step 3: Identify key gaps

Spacing Section summary and deliverables:

After completing this section you will have: Establish Assess a) Identified key gaps. project the Skills profiles for each key gap. rationale foundation b) c) Determined which key gaps will be included in the succession plan.

Manage Identify

Headline / Subhead Vertical / Vertical Headline Subhead Deliverables: succession key gaps • Flexible Succession Plan Tracking Tool. Identify successors and talent pools

Step 4

Workshop activities in the step:

3.1 Identify business strategy and initiatives that key gaps will be determined from. 3.2 Identify key gaps from business initiatives. 3.3 Develop profiles for key gaps. 3.4 Assess the risk of departure for each key gap.

3.5 Select key gaps to be placed into succession planning.

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What is a key gap?

Spacing Definition: A key gap is a current or future vacancy that, if left open, would negatively impact the organization’s ability to function towards achieving its main objectives. Key gaps are planned for by using succession planning, talent acquisition, retention strategies, or general talent development.

Key gaps include: • Strategic Roles: Roles that give the greatest competitive advantage. Often these are roles that involve decision-making responsibility. • Core Roles: Roles that must provide consistent results to achieve business goals. Key Roles • Proprietary Roles: Roles that are tied closely to unique or proprietary internal processes or knowledge that cannot be procured externally. These are often Headline / Subhead Vertical / Vertical Headline Subhead highly technical or specialized. • Required Roles: Roles that support the department and are required to keep it moving forward day to day. • These individuals are the backbone of the organization and the go-to people Key who form the corporate culture. Individuals • It is their skills, knowledge, and experience that makes them critical to your organization and not necessarily the role that they currently inhabit.

• Groupings of similar key roles that can be filled by employees from varying backgrounds. Key Job • Roles that have similar skills and competencies. • May not be comprised of current key roles or roles that currently exist, but Pools cover expectancies for the creation of future vacancies. • Job pools make your succession plan more flexible to anticipate needs and roles not yet created.

McLean & Company 27 V4 Begin the process of identifying key gaps by reviewing

business strategy and initiatives

Spacing 1. Identify business strategy 2. Determine initiatives 3. Select key gaps

Work with the committee in the process of identifying key gaps. Identify strategy and initiatives with the support of senior leadership and the Board of Directors. 1 2 Identify business strategy Determine initiatives Headline / Subhead Vertical / Vertical Headline Subhead

Develop desired state: Assess current state: Conduct a gap analysis: • Describe the organization you wish • Review where the organization • Initiatives guide how the to have by identifying the ideal currently stands in terms of its organization will get from the Culture, People, Processes, and Culture, People, Processes, and current state to the future state. Technology (CPPT). Technology (CPPT). • For each factor of CPPT, • Develop the ideal state for a short- • Brutal honesty when assessing the determine whether: term time frame, between 3-5 years. current state will result in better o You need to take action. This is short enough to account for initiatives, as more accuracy can be o What kind of change you major changes, but cover a placed on what needs to get done to need to make. significant enough amount of time close the gap. o Workforce implications of the for them to be achieved. change.

McLean & Company 28 V4 Map roles, individuals, and job pools that support initiatives to

determine what the organization’s key gaps are

Spacing 1. Identify business strategy 2. Determine initiatives 3. Select key gaps

Bring in the help of senior managers on the committee to define key gaps. Senior managers will understand the majority of roles, individuals, and job pools better than the rest of committee. Their input will be vital to selection. 3 Select key gaps

Headline / Subhead Vertical / Vertical Headline Subhead Map key gaps back to your initiatives • Determine criticality by reviewing which key gaps: • Work your way through initiatives from most important to o Generate business results that directly impact an least important. initiative. • Assessing senior leadership roles first will reveal the most o Are unique to the organization. obvious key gaps. o Have a specialized skill set. o Start with the top ranks of the organization and work o Are needed for meeting compliance requirements. your way down and across the organization to cover all o Would create process failure if absent from the possibilities for key gaps. organization. o Have a direct impact on the customer base.

Key Foundational Practice: A strategic workforce plan provides you with the information necessary to understand what your key gaps are.

McLean & Company 29 V4 Example: Identify key gaps by reviewing strategy, setting

initiatives, mapping key gaps from initiatives

Spacing 1 2 Identify business strategy Determine initiatives Develop desired state: Conduct a gap analysis: Employees who want to continually improve their skills. HR will also have to develop and standardize a learning & development program for Assess current state: employees at different levels. Highly intelligent, committed people who care about the organization and its mission and want

Headline / Subhead Vertical / Vertical Headline Subhead to learn more. 3 Select key gaps Map key gaps back to your initiatives

Key roles •Director of Learning: Critical to setting the strategy for and overseeing the L&D function. •Systems Administrator: Directly manages the learning .

Key individuals Ally A. is the Instructional Designer for learning programs, and has a rare knowledge of all functions across the organization for developing programs.

Job pools The training delivery job pool, made up of training managers that train and interact with participants.

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V4 Case Study: This organization failed to realize they had a key

gap with an important individual

Spacing Low-level roles can become critical to business continuation if they’re occupied by only one person, creating a “single point of failure” if they become vacant.

Source: Large Provincial Hospital Key Gap: Payroll Manager

Situation Action Results Lessons learned

Headline / Subhead Vertical / Vertical Headline Subhead • The Payroll Manager of • Little time or effort was • It wasn’t until after she • At first glance, this role a large Provincial placed on fully left that it became may not seem like a “key hospital, with a 20-year understanding what she obvious how much extra role,” but the incumbent tenure, announced her did day to day. work she was doing, turned it into one. retirement. which made it nearly • Furthermore, the search impossible to find a • Do not forget to include • Throughout her tenure, for a replacement was replacement. those individuals that this employee took on left far too late, which carry a unique skillset or many tasks outside the meant that she vacated • Her manager found a experience within the scope of her role, the role without training replacement to take the organization so that you including pension a replacement. payroll duties, but had to can start building up calculations/filings and distribute the other employees in talent other finance-related duties to colleagues pools to develop similar tasks that required a (who were very unhappy traits. high level of specialized about the extra tasks). knowledge of internal systems.

McLean & Company 31 V4

Create profiles for each key gap to document requirements

Spacing Work with senior managers to compile requirements for each Document key gap profiles in McLean & key gap. In most cases they will have the most knowledge on the key Company’s Flexible Succession Tracking gap and will be most familiar with the sources that they can draw the Tool. requirements from.

Start with the incumbents: Profiles for each key gap will: Interview them and those who work closely with them. • Determine what competencies they use on the job and what levels. • Outline what competencies and knowledge • Identify specific credentials employees uses on the job. are required to be successful in the key gap. Then assess the key gap that the fill objectively: Determine what development is necessary

Headline / Subhead Vertical / Vertical Headline Subhead • Use job descriptions, observations, and/or focus groups to determine to build up required competencies and what it takes to be successful in the key role. Ensure that you can knowledge. answer to the following questions: • Clarify what next steps should be taken to • What competencies are required to do the job? address the key gap; whether it should be • What proficiency level of the competencies are required? in the succession plan or not. • What credentials, designations, or education are required? • What special or unique experiences are required? • Are there any new competencies that may be required in the future to increase the effectiveness of the job?

Key Foundational Practice: Use your organization’s core, leadership, and functional competencies to build requirements.

McLean & Company 32 V4

Assess risk of departure for each key gap in succession plan

Spacing Understanding the risk of departure of the Work with senior managers to gather incumbent current incumbent in a key gap will help: information and get an idea for their risk of departure • Identify timelines for selecting a successor. with the following guidelines.

o A high risk of departure means you should There is a high risk of departure if: start the process now, whereas a lower risk The employee is nearing retirement, means that you still have time to build and actively job searching, disengaged, or train up candidates. faces dismissal. • Determine the type and pace of development that should be provided for potential There is a medium risk of departure if: Headline / Subhead Vertical / Vertical Headline Subhead successors. The employee is sending mixed • Finalize which key gaps should be included in messages about happiness at work or the succession plan and which ones can wait. sending no messages; it may be difficult to guess. o The risk of their departure will help you prioritize which ones should be included in There is a low risk of departure if: succession planning, especially if you have The employee is new to the role, highly capacity constraints on the number of key engaged, a high potential, in their mid to gaps in the plan. late 50s.

• Senior managers can gather this info from the incumbents profile. Seek out: performance appraisal results, engagement with the organization, next steps in their career path, and tenure. • Contrast this information against demographic trends of the key gap including historical turnover and retirement rates.

McLean & Company 33 V4 Use results from key gap profiles and risk assessment to

determine which ones should be put into your succession plan

Spacing Not all key gaps belong in succession plans. Don’t forget to plan for key gaps that don’t make Ensure that they are • Some gaps may already have individuals ready. it into the succession plan. included in talent acquisition plans, retention • Others require different HR processes and approaches. initiatives, and knowledge transfer programs.

Involve all committee members, senior leaders, senior managers, and the Board for final input into which key gaps should be in the succession plan. Have senior leader(s) make the final decisions. Headline / Subhead Vertical / Vertical Headline Subhead

Place key gaps into the succession plan that: Do not place key gaps into the succession plan that: • Require learning & development opportunities and • Have many employees in the job market that can be resources that your organization can provide. easily and quickly hired for it. o If they require development beyond what your o In this situation, a cost-benefit analysis can organization can offer, then it may be more cost determine that it is more profitable to recruit effective to recruit externally for the position. externally than develop internally. • Have a medium to high risk of departure. • Are so high risk that there is no time at all to develop the skills required for the key gap in an employee in the These are red flags for the organization and o organization. should start having successors developed for them immediately. • May have a need for a unique perspective and fresh approach that can only be brought in externally from an • Can be filled more cost effectively internally than individual with diversity of thought. externally.

McLean & Company 34 V4

Step 4: Identify successors and talent pools

Spacing Section summary and deliverables:

Establish Assess After completing this section you will have: project the rationale foundation a) Well-defined succession talent pools. b) Employee placements in succession talent pools. c) Development initiatives for each talent pool. Manage Identify Headline / Subhead Vertical / Vertical Headline Subhead succession key gaps Deliverables: Identify • Flexible Succession Plan Tracking Tool successors and talent pools

Step 4

Workshop activities in the step:

4.1 Create talent pools and define requirements for membership in the pool. 4.2 Create high-level development objectives for succession talent pools.

4.3 Populate talent pools and assess employee readiness.

McLean & Company 35 V4

What is a talent pool?

Spacing Definition: Talent pools consist of employees that are chosen and developed based on specific key gap(s). When the key gap(s) becomes vacant, the successor will be selected from the talent pool.

Talent pools should map back to the key gaps they are developed for. This ensures that those included in the pool and the development that they receive reflects the key gaps for a successful transition.

Talent Talent pools may address more than one key gap. Headline / Subhead Vertical / Vertical Headline Subhead pool Key roles, and individuals that were not previously grouped together in the previous section as job pools, may finally be lumped together as one talent pool develops employees for several positions throughout the organization.

Talent pools should have their own requirements. Final Criteria for who can be placed into the talent pool reduces the successor pre-screening required on candidates who eventually are selected to succeed into key gaps.

Talent pools should have their own development. Key gap they This will guide what activities, programs, and initiatives are ready to employees in that group should be working towards. fill Development should be based on the competencies that were identified for the key gaps that the pool is designed to source.

McLean & Company 36 V4 Example: Identify successors and talent pools by mapping to

key gaps, setting requirements, and building development Spacing Key Gap: Director of Learning

Talent Pool: Director Pool

• The talent pool also covers other key gaps,

Headline / Subhead Vertical / Vertical Headline Subhead including the Director of Planning and the Director of Marketing. • Requirements to be in the pool include leadership- level competencies and core competencies. • Development for the pool includes attending leadership coaching sessions, support from a director-level mentor, and formal training. • Employees who met the requirements come from different silos and levels within the organization.

McLean & Co. Insight Keep your talent pools diverse. If you find that after placing employees in talent pools the profile for each employee is very similar, you should investigate to see if there is bias in your evaluation or selection process.

McLean & Company 37 V4 Set the minimum requirements for each talent pool to

determine which employees are suitable for placement in them

Spacing The minimum talent level The minimum competency level This should be whatever your talent assessment The competencies required should be derived from process calls the organization’s best talent. the profiles created for the key gaps that the talent • If you use a 9-box Talent Grid, the minimum level pool is being designed to address. will be those in the Top Talent grouping: • The minimum level for each competency o Medium Performance/High Potential required should be below the actual level employees. required for success. o High Performance/Medium Potential • Development opportunities provided should be employees. able to improve the competency level from the o High Performance/High Potential employees. minimum to the desired state.

Headline / Subhead Vertical / Vertical Headline Subhead The minimum job tier or level The baseline credentials • Refer to your career path framework or O • Include these if it is absolutely critical for the key organization chart to determine how may tiers gaps that the talent pool is being designed for below the key gap that the pool is planning to P AND if it is unlikely for employees to gain these address is suitable for employees in the pool. T credentials within the recommended short-term • In some cases this may be up to two tiers below I time frame. the intended gaps, as employees who are rising O stars can make the progression rapidly within a Membership in a specific job function shorter time frame when given the right N • Some situations may require specific development opportunities. A experiences within a job function or family if the L key gap is highly specialized and unique.

Key Foundational Practices: Competencies, internal talent assessment, and a career path framework help determine talent pool criteria.

McLean & Company 38 V4 Create high-level objectives for what development should be

provided to move employees from their pool into the key gap

Spacing Development covers a variety of Use a 70-20-10 model to determine Relational Learning approaches: how much of each type of supports knowledge development should be planned for. transfer between those Formal Training employees in key gaps and Learning from planned training materials. those in talent pools who • Lecture, seminar, workshops. 10% may one day replace them, • Group discussions. a crucial aspect of • Role playing. Formal managing the departure of • Live webinars and video Training retiring employees. conferences. • E-learning. Headline / Subhead Vertical / Vertical Headline Subhead Experiential Learning Relational Development for Relational Learning Learning Learning from other people. succession plan employees • Coaching. should include a • Mentoring. 20% Experiential component in which the • Peer mentoring. Learning employees are presented with real life business Experiential Learning issues and have to deliver Learning from on-the-job experiences. 70% on them, proving their • On-the-job short-term assignments. abilities. Major line assignments. • Source: Senior HR Leader, • Special projects. Research Industry

McLean & Co. Insight Setting high-level development objectives beforehand ensures that the employee will receive the development that they need and that the development is relevant to the organization’s needs as well.

McLean & Company 39 V4 Populate your talent pools by gathering and analyzing

employee information

Spacing Gather information on potential talent pool Create talent profiles for each candidate to compile candidates. information. 1. Review talent in your organization. After you compile a list of employees for each desired talent level, • Use review tools, such as performance create a detailed profile for each qualifying employee. Be sure to appraisals, competencies, and internal include: talent assessment. • Current position. 2. Evaluate talent. • Tenure with the company. • Get managers to evaluate their employees’ • Competencies and associated proficiency levels. talent and calibrate amongst themselves. • Qualifications and credentials. This will help to minimize bias. *Note: If employee records are not up to date, update them • If you use the 9-box talent grid, employee by interviewing the employee and their manager. Headline / Subhead Vertical / Vertical Headline Subhead talent levels are defined by grid placement. 3. Develop talent. • Employees with the highest “talent level” are candidates for the talent pool. • In the case of the 9-box talent grid, you Select employees to be placed in talent pools. use employees identified as “Top Talent.” • Placements in the pools should be based primarily on how well their profile aligns with minimum talent pool requirements. • Placements should be reviewed by a committee to calibrate and discuss suitability. McLean & Co. Insight • You may also want to conduct further assessments including: job simulations (on the job); competency-based aptitude tests Don’t duplicate your efforts; the review of talent for (objective data); HR-led interviews (objectivity and succession planning should align with your confirmation); and stretch assignments (challenge comfort standard annual talent review process. zones).

McLean & Company 40 V4 Assess the readiness of employees placed in the pool to

understand who the most prepared successors are

Readiness not only helps define development needs, but also assesses any risks around the Spacing organization’s ability to fill a key gap, i.e. will a successor be ready to take on a key gap prior to it being vacated or will there be a shortfall.

Collect information from managers on how Don’t assume that all employees want a effectively the potential successor would career change today or in the future: serve in the gap today. Have managers: • Career conversations with managers will • Review the competencies for the key gap based on determine their career aspirations. HR needs to the profile created for it. provide supervisors with guidelines on how to do this effectively and set appropriate expectations.

Headline / Subhead Vertical / Vertical Headline Subhead • Determine what competencies the succession candidate currently has based on their talent pool • If the potential successor isn’t interested in the profile and what must be learned. key gap you have in mind, remove them from your list of potential successors. • Determine how difficult it will be for the successor to acquire missing skills or knowledge, whether the • Be very cautious about making promises. The resources are available to provide the required fact is that a key gap may not become available development, and how long it will take to provide it. immediately or it could be offered to a more qualified successor. See this upcoming slide for more information on how to handle this situation.

McLean & Co. Insight In a situation where nobody in the talent pool is ready now, identify an emergency successor plan just in case something happens before an employee is ready. This successor can be an employee that would be able to carry out the basic functionality for the role on a short-term basis until a member from the talent pool can be developed or an external hire is brought in as a solution. They can also be a contractor or consultant hired on a temporary basis.

McLean & Company 41 V4

Step 5: Manage succession

Spacing Section summary and deliverables:

Establish Assess After completing this section you will have: project the rationale foundation a) Well-defined succession talent pools. b) Employee placements in succession talent pools. c) Development initiatives for each talent pool. Manage Identify Headline / Subhead Vertical / Vertical Headline Subhead succession key gaps Deliverables: Identify • Flexible Succession Plan Tracking Tool. successors and talent pools

Step 4

Workshop activities in the step:

5.1 Document your succession plan. 5.2 Plan your communication strategy.

McLean & Company 42 V4 Finalize your succession planning process with documentation

and timelines

Spacing Include the following items of information in your written record to outline what your succession plan entails.

Purpose: Process: • The organization’s reasoning for doing • Development of the plan from the succession planning. identification of key gaps to the identification of talent pools, to the Scope: Headline / Subhead Vertical / Vertical Headline Subhead management of the plan. • Whom the plan applies to.

Tracking: Committee: How the plan will be tracked and where Whom is currently involved in the plan • • to find the most up-to-date information. process of the plan, including committee members. Selection process: • How employees will be selected from the Definitions: talent pool into a key gap when a Any terminology within the project or • vacancy opens. coined by your committee for the project.

Frequency of review: See the next slides for more • How often the record will be reviewed for information on tracking and updates and the date of the last update. the selection process.

McLean & Company 43 V4

Identify technology to track the flexible succession plan

Spacing The flexible succession planning process developed in this blueprint has been designed to be tracked with the Flexible Succession Plan Tracking Tool.

However, if you feel that you need a system with a larger capacity, consider an integrative software system.

Vendor sampling: Headline / Subhead Vertical / Vertical Headline Subhead There are a number of vendors in the succession planning space. Here are a few of the most widely known:

• PeopleFluent • Oracle

• Halogen Software • Workday

• SuccessFactors • ADP

• Cornerstone OnDemand

McLean & Company 44 V4 Set the process for selecting a final successor from the talent

pools to move into a key gap Spacing Frequently updating First, identify top contenders within your talent pool by frequently reviewing and employees’ succession- updating employee profiles. Top contenders are candidates who: focused development on a • Fit the talent pool target profile the best. quarterly basis makes this • Have the highest readiness level. information more readily available for when the need • If possible, have a replacement ready to fill their role once they move into a key gap. arises to use it, enhancing flexibility.

Headline / Subhead Vertical / Vertical Headline Subhead Then, once you have your top contenders, determine:

When to start the How these What application Who will make the process of selecting a employees will be process will be used. final decision on the successor. made aware of the Options can include: successor. When: vacancy. • Resume application. Decision making can • The risk of departure Communicated via: • Committee-led come from: of a key gap reaches • Posting created for interview. • The vote of an extreme level. the key gap. • Psychometric testing committee members. • An employee gives • One-on-one currently used by the • The final decision sudden notice of discussions with the organization. from the direct retirement, most ready • Direct selection of supervisor for the resignation, or is successors within the only candidate key gap OR from terminated from the the relevant talent that is ready if no senior leaders/Board organization. pool. others are. of Directors.

McLean & Company 45 Determine the degree of transparency you will have with sharing components of your flexible succession plan

Most organizations fall somewhere between the extremes of secrecy and transparency when it comes to discussing succession The amount of secrecy or transparency you have with your planning outside of the committee. communication will reflect your organizational culture. T Determine the level of transparency for these components: r a n Process overview s • Letting employees know whether or not the organization is engaging in succession planning. p Secrecy a What key gaps are being planned for r • Disclosing the key gaps that a succession plan is being e developed for. n c Which employees are in talent pools y • Informing employees on whether they are in the succession Succession plan plan, what talent pool they are a part of, and what key gap the process, key gaps, talent pool is being developed to close. and employees in talent pools are not y All components of shared with flexible succession Communicating succession planning halfway employees outside of planning are widely can create questions, awkwardness, and an steering committee. known and shared air of mistrust. with all employees. – Senior HR Leader, Formerly in the Hospitality Industry

McLean & Company 46 Present an inclusive communication if you want transparency

Process overview Employees in talent pools • Share the process with all employees so that everyone • Let employees know they are part of is aware that succession planning is occurring. the succession plan. • Explain why succession planning is done: • Clarify that their placement in the pool does not necessarily o The benefits to different groups in the organization as well as how it aligns with objectives. guarantee their succession into a • Provide a high-level overview of what the process is: new role now or in the future. Stress that the talent pool o High-level summary of activities that the committee o carried out to get to the final plan. development will make them stronger performers regardless. o Dates and timelines for when planning, selection, and development will occur. Pros: • Keep the identified audience informed as major updates • Everyone is aware of the process and or changes are made to the succession plan. can focus their performance accordingly to stay or be placed in plans. Key gaps to be planned for • Employees identified as successors will be more inclined to stay at the • Let incumbents of key gaps know that talent pools are being organization, boosting retention rates. developed. • Employees who decide they aren't • Ensure that these incumbents know you still value them in their interested can back out of the pool role (if applicable) and that the succession plan is a backup immediately so time is not wasted. measure just in case they decide to leave. Cons: Pros: • Employees who don’t eventually fill key • Incumbents can be actively involved in the development of pools gaps may feel left out. and in the provision of information for succession planning. • An ego problem may arise from Cons: employees who are told. • Incumbents may become paranoid about their standing in the organization if the message isn't communicated well.

McLean & Company 47 Deliver a more guarded communication if you opt for secrecy

Process overview Employees in talent pools • Share the process with senior leaders, senior managers, and other senior stakeholders outside of the committee. • Do not share with employees that they are in the succession plan. • Have your senior leaders present the program to the • Make it very apparent to employees that intended audience to enhance buy-in and demonstrate they are valued and demonstrate this support from the top for the program. through communicating that they will • Explain why succession planning is done: receive special development as a o The benefits to different groups in the organization reward. as well as how it aligns with objectives. • Ensure that senior managers are aware • Provide a high-level overview of what the process is: that their own employees are in talent o High-level summary of activities that the committee pools so that they can guide their carried out to get to the final plan. development accordingly. • Keep the identified audience informed as major updates or changes are made to the succession plan. Pros: • Employees who are not specifically a Key gaps to be planned for part of the plan won’t have a basis to feel disengaged. • Do not inform incumbents of key gaps that their roles are key • Employees who no longer fit pool gaps. requirements can be removed with little Pros: fuss. • Incumbents will not feel insecure about their status if they Cons: don’t know that you are developing successors. • Employees that don’t specifically know Cons: they are a part of the succession plan • Can be more difficult to get incumbents to help develop may leave. employees in talent pools if they don't have a defined purpose for doing so.

McLean & Company 48 V4

Managers work with employees in pools to plan development

Managers and employees should integrate the

Spacing For more information on employee development planning development required for each talent pool into each see Implement Effective Employee Development employee’s personal development plan. Planning.

Have the employee develop drafts of their development 1 goals prior to their development meeting. 1 • Employees who know what pools they’re in are able to draft relevant development goals beforehand. 4 2 Headline / Subhead Vertical / Vertical Headline Subhead Get managers and employees to meet together to 2 discuss development goals. • Managers should review employee goals and 3 align them with the high-level development activities designated for the employee’s respective talent pool.

Have managers provide feedback and coaching. Managers should check-in and review goals with 3 • Managers should provide employees with 4 employees on a regularly scheduled basis to update, constructive feedback on their progress adjust, and provide feedback. throughout development initiatives. • Results from check-ins on employees in talent • Committee members involved in the development pools should be relayed back to the committee to of talent pools should also provide employees update employee profiles and readiness level for with feedback to reinforce the support of the key gaps. business towards their development.

McLean & Company 49 V4 Frequently assess and update employee profiles in the

succession plan to determine readiness to succeed into gaps

Spacing As employees progress through their talent pool development ensure that their profiles are up to date.

Frequent updates enhance the responsiveness of your plan to change as the information is always as up to date as possible within the time and resource limitations of your organization.

Frequency: Because the majority of information used to assess readiness will come from managers, try to align the frequency of

Headline / Subhead Vertical / Vertical Headline Subhead updating to your organization’s regular review cycles.

Readiness can be determined by assessing an employee’s: • Competencies, talent level, and other credentials as they relate to the talent pool target. • Desire to progress into a new role.

This information should be collected from managers by collecting: • Employee progress in their development plan. • Results of career discussions. • Updated performance appraisal ratings. • Results from employee talent reviews or employee placements in the 9-box talent grid.

Key Foundational Practices: Competencies, performance management, and internal talent assessment will help you assess employee readiness and update their profiles.

McLean & Company 50 V4 Be prepared to update employees accordingly as results from

frequent assessment require the succession plan to change

Spacing Take the appropriate actions when different situations occur to mitigate negative impact or use the situation to bolster success of planning.

Situation: Employees need to be Situation: Employees are not Situation: Employees need to be removed from the talent pool and selected for a key gap when one added to a talent pool and the succession plan. arises. succession plan.

Occurs because: Occurs because: Occurs because: • Assessments reveal that • Several ready candidates are • After initial planning has been set employees no longer meet the viable for the gap, but only one up, subsequent talent reviews Headline / Subhead Vertical / Vertical Headline Subhead requirements of the pool; the pool can be selected. reveal newly designated Top may cease to exist as key gaps Action to take: Talent that can be placed into change or the employee voluntary • Employees who applied for the pools. withdraws. gap need to be informed that they Action to take: Action to take: were not selected. • Proceed with informing the relative • Proceed with a delicate approach • Engage them with development audience that you communicated if they have been told they are in a and the concept of the pool itself to for the initial communication. pool to reduce the potential for by informing them that you still hurt feelings. value their talent. • Ensure that employees • Consider job enrichment, job understand the reasoning. enlargement, or a rotation into the • Clarify what will happen with the successor’s role to provide other development opportunities that the mobility options. employee was provided with. • Let employees know how they can See the next slide for actions to take when an employee is selected return back into the pool.

McLean & Company 51 V4

Manage the movement of identified successors into key gaps

Spacing Use the selection methods identified earlier in the section and recorded in your written documentation of the succession plan.

Manage the transition of successors for a smooth Plan to manage the ripples. A is the gaps created by an employee when changeover: ripple effect they leave their current role for another. When a successor • Ensure that there is enough time for them to moves into a key gap, they leave behind their role, which close loose ends in their role. requires another employee to leave their role to fill it and so ◦ Avoid a sudden departure that leaves their on and so forth. previous responsibilities and duties in limbo due • In certain cases where the succession talent pool to a ripple effect. employee is leaving a less critical role, basic replacement Headline / Subhead Vertical / Vertical Headline Subhead planning is enough to backfill their vacant position. Work with them to determine who will take over ◦ • Consider using the gap as a development tool for other what duties until there is a replacement. employees in the talent pool to take on, either temporarily • Ramp them up into the key gap for a smooth or on a more permanent basis. transition. • This may be the time to use the emergency successor ◦ If they haven’t yet been mentored by the identified beforehand to temporarily plug the gap until a departing employee in the key gap, work in some replacement is found. time for the two to meet. ◦ Have the employee start to take on some of the Filling one position typically creates a cascading departing employee’s duties if appropriate. effect that involves a number of employee moves. The • Communicate the new successor to employees. company must be ready to act in order to keep ◦ Ensure that the relevant employees understand positions filled and employees moving properly on the transition is already in place so no doubt is their development path. left as to what happens when the employee in the key gap leaves. Source: PwC, Succession planning: What is the cost of doing it poorly…or not at all?

McLean & Company 52

V4 Measure the success of your planning and update accordingly

to continuously enhance the results

Spacing Review metrics Metrics should be reviewed and updated as necessary as frequently as the succession plan is reviewed and updated. Refer back to the metrics that you selected at the beginning of the project

Collect feedback Collect feedback from all groups involved in the succession planning. Focus on soliciting info on: The key foundational practices. Headline / Subhead Vertical / Vertical Headline Subhead • • The key gaps that have been identified. • The talent pools that have been developed. • The employee placements in talent pools. • Employee development. Succession planning does • Success of final successors. not stop with nominating successors: it should be Update the process continuously realigned Make changes to the plan based on feedback and metrics to ensure with market trends, that it adapts to better suit organizational needs. business strategy, and • Communicate changes to stakeholders involved. talent developments.

• Assign responsibilities for changes. Source: HReonline • Update documentation.

McLean & Company 53 V4

Summary

Key takeaways: • Flexible succession planning makes the organization more agile and adaptable to providing successors in Establish Assess a high-change environment. project the • Key gaps, the roles, individuals, and rationale foundation job pools that are planned for should

Headline / Subhead Vertical Spacing / Vertical Headline Subhead be identified based on how well they support organizational objectives. • Talent pools should map back to the Manage Identify key gaps they were created to close succession key and be comprised of employees that gaps meet the minimum competency, Identify talent, and job tier required. successors • Manage the plan by frequently and talent assessing employees in the talent pools pool to ensure readiness for expected and unexpected vacancies. Step 4

McLean & Company 54

Actionable Business Strategy

Culture People Strategy Capabilities

Learning Organization

Programs

Leadership and Key Business Technical and Sales and Compliance Management Skills Process Skills Service and Safety

Application and Support

Pre and Post Coaching and Online Teams and PM and Comp Discussions Recognition Support Communities (PDPs)

Measurements and Impact

Commitment to Behavioral Employee Customer Business Key Behaviors Measures Surveys Satisfaction Impacts

For Additional Talent Information, contact: Ed Holinski American Society of Employers Talent Development Director [email protected] 313.737.8305