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39 Leadership succession management is a process of prepar- ing leaders to meet an organizationâs leadership needs over time and is part of a larger strategic talent management approach intended to engage and develop key people through targeted leadership assessments and development efforts. The process outlined in this appendix can be used as a general guide. Step 1âStrategy, Values, Culture Align the Succession Management System with organiza- tional strategy, values, and culture. â¢ Assess/evaluate the organizationâs structure, culture, cli- mate, work context (determine what those are currently, how they are changing, and what the desired future state may be). â¢ Consider the importance of effective leadership at all lev- els and potential succession planning implications (e.g., is there a need to create a culture of shared leadership?). â¢ Determine what external/environment factors exist (indus- try, economics, leadership talent landscape, etc.) that may influence leadership needs. â¢ Ensure that succession management will be integrated with hiring, performance management, leadership develop- ment, total rewards, job design, and other elements of tal- ent management. â¢ Determine who is accountable for successful leadership succession. Step 2âAssess Organizational Readiness Clarify organizational needs/objectives and assess organi- zational readiness through interviews, focus groups, or sur- veys of key stakeholders at multiple levels. â¢ Build executive commitment/alignment to succession planning. â Develop shared understanding, â Determine talent management needs based on business strategy, and â Link succession management to achievement of busi- ness success. â¢ Create a steering committee. â Determine criteria for steering committee members (leadership levels, cross-functional teams, etc.), and â Invite identified executives and facilitate steering com- mittee on-boarding. â¢ Create a succession management communication plan (process/methods/content). â Communicate Succession Management System (useful for creating transparency and guiding overall succession plan buy-in and leadership development); â Inform all employees of the succession management process (e.g., purpose[s], the steps in this model, crite- ria for inclusion, participant responsibilities, benefits, etc.); and â Clarify that participation is not a guarantee of advance- ment, however, it could increase oneâs chances of advancement. â Advantages: If people know they are in the succession plan, they are more likely to be committed to the organization; Transparency builds trust in management, the process, etc.; Leaders initially excluded may perform better in order to gain entry; and Development can be tailored to the exact needs and interests of the participant. â Disadvantages: Some excluded leaders might become disengaged and There may be unhealthy competition among leaders to get into the succession plan. A P P E N D I X J Sample Leadership Succession Management Process
Step 3âDefine Success Factors Create a Leadership Competency Model (confirm and/or enhance framework of leadership behaviors and performance criteria). â¢ Ensure a functional leadership competency model consists of the behaviors, knowledge, skills, and capabilities required for success in the leadership role (at all levels). â¢ Leadership competency model will inform: â Succession management nomination criteria, â Assessment of high potential readiness, â Leadership development focus, and â Leadership performance criteria. â¢ Analyze targeted leadership positions by performing the following: â Make the links between the organizationâs mission, vision, values, strategic goals and the leadership role(s) explicit. â Determine future staffing needs for senior leadership positions. Identify the timeframe for when leadership roles will be openâconsider âhorizon mapping.â â Restructure roles as needed. â Examine total rewards for each role. Step 4âPosition Analysis Map the existing pool of leaders against business strategy and identify specific positions critical for succession manage- ment and business success. â¢ Determine key positions for a strategic leadership succes- sion plan. â Identify critical positions with likely vacancies and â Consider new positions that will be required in the future. â¢ Create talent map of all stakeholder groups. â Outline key job families/roles throughout the organiza- tion, link to strategic horizons. â Articulate talent objectives for each stakeholder group. â Develop high-level talent management plans for each stakeholder group. Step 5âIdentify High-Potential Talent Pool and Succession Mapping Identify individuals who possess the interest and thresh- old skills/capabilities for performance at the target level of leadership. 40 â¢ Assess general capabilities/potential (utilize perfor- mance reviews, existing 360 feedback, recommenda- tions, etc.). â¢ Assess participant interest, values, career directions, etc. â¢ Nominate and verify successor candidates. â¢ Hold talent review sessions to calibrate succession manage- ment activities across the organization. â¢ Create succession maps and identify gaps in succession pool. â¢ Manage information (track succession pools/maps using succession management software applications, spread- sheet, etc.). Step 6âConduct Individual Assessment and Feedback Gain additional insights into participantsâ leadership strengths and development needs (assess leadersâ current skills, capabilities, and future potential). â¢ Utilize the following recommended assessments/processes to better assess and develop potential: â Standardized leadership capabilities inventories; â Structured interviews and situational judgment exercises; â Multi-rater (360) assessments; â Leadership development profile/plan/goals/feedback metrics; and â Ongoing one-on-one, peer and group feedback to suc- cession participants. â¢ Integrate information from assessments into overall pro- files and classify leaders relative to readiness for next- level roles (e.g., âready,â ânear-ready,â and âlong-term potentialâ). â¢ Conduct group-level analysis to determine organization- level leadership strengths and deficits. Step 7âDevelopment Planning and Implementation Guide high-potential development based on priority needs for the individual and the organization. â¢ Create development plans that link current role, aspired role, and leadership development content. â¢ Engage participants in development activities (such as action learning, mentoring, coaching, job shadowing, time-limited job rotations, task force participation, spe- cial projects/assignments, committee participation, con- ferences) and promote external training opportunities (certificates, etc.).
â¢ Track development progress (with mentor and managerâ individually and as a group). â Utilize 360-degree feedback system and other assess- ments to guide development. â Prepare an individual development plan that outlines specific activities to develop needed competencies; include a timetable with milestones to assess progress. â Track individual progress over time for use with rep- orting and determining adding or changing develop- mental opportunities (provide individuals with regular feedback). â¢ Modify leadership development plans as needed. â¢ Integrate succession management efforts with other HR/ TM systems. â¢ Create/maintain candidate profiles in succession plan tracker. â Build a database of participants based on leadership potential for ânext level,â â Regularly monitor skills and needs to determine any gaps and develop plans to meet deficiencies, and â Inventory current and future leadership needs and maintain that information for individual and group development. â¢ Develop staffing plans to fill gaps in succession pool. â¢ Place individuals into appropriate positions as openings arise. Step 8âMonitor Progress & Measure Results Create a transparent and measurable succession management process and conduct ongoing assessments of bench strength. â¢ Monitor talent readiness and movement (update organi- zationwide succession map periodically). â¢ Regularly communicate changes, updates, and organiza- tion implications to key stakeholders. â¢ Measure business return derived from leadership develop- ment investments and movement decisions. â¢ Determine key talent metrics that directly impact and ful- fill the business strategy; potential metrics include: â Retention statistics of key talent, â Advancement of succession participants (percentage of senior roles filled by succession participants), â Perceived value of development/succession initiatives by key stakeholders, â Levels of organization engagement/conduct all-employee engagement survey, â Increased innovation (i.e., creation of new business models and products), and â Enhanced productivity and cross-functional collaboration. â¢ Collect/analyze/interpret relevant data to guide ongoing succession management. 41