Practical Resources for Recruiting Minorities for Chief Executive Officers at Public Transportation Agencies (2011)

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39 Leadership succession management is a process of prepar- ing leaders to meet an organization’s 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 1—Strategy, Values, Culture Align the Succession Management System with organiza- tional strategy, values, and culture. • Assess/evaluate the organization’s structure, culture, cli- mate, work context (determine what those are currently, how they are changing, and what the desired future state may be). • 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?). • Determine what external/environment factors exist (indus- try, economics, leadership talent landscape, etc.) that may influence leadership needs. • 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. • Determine who is accountable for successful leadership succession. Step 2—Assess Organizational Readiness Clarify organizational needs/objectives and assess organi- zational readiness through interviews, focus groups, or sur- veys of key stakeholders at multiple levels. • Build executive commitment/alignment to succession planning. – Develop shared understanding, – Determine talent management needs based on business strategy, and – Link succession management to achievement of busi- ness success. • Create a steering committee. – Determine criteria for steering committee members (leadership levels, cross-functional teams, etc.), and – Invite identified executives and facilitate steering com- mittee on-boarding. • Create a succession management communication plan (process/methods/content). – Communicate Succession Management System (useful for creating transparency and guiding overall succession plan buy-in and leadership development); – 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 – Clarify that participation is not a guarantee of advance- ment, however, it could increase one’s chances of advancement. – 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. – 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 3—Define Success Factors Create a Leadership Competency Model (confirm and/or enhance framework of leadership behaviors and performance criteria). • Ensure a functional leadership competency model consists of the behaviors, knowledge, skills, and capabilities required for success in the leadership role (at all levels). • Leadership competency model will inform: – Succession management nomination criteria, – Assessment of high potential readiness, – Leadership development focus, and – Leadership performance criteria. • Analyze targeted leadership positions by performing the following: – Make the links between the organization’s mission, vision, values, strategic goals and the leadership role(s) explicit. – Determine future staffing needs for senior leadership positions. Identify the timeframe for when leadership roles will be open—consider “horizon mapping.” – Restructure roles as needed. – Examine total rewards for each role. Step 4—Position Analysis Map the existing pool of leaders against business strategy and identify specific positions critical for succession manage- ment and business success. • Determine key positions for a strategic leadership succes- sion plan. – Identify critical positions with likely vacancies and – Consider new positions that will be required in the future. • Create talent map of all stakeholder groups. – Outline key job families/roles throughout the organiza- tion, link to strategic horizons. – Articulate talent objectives for each stakeholder group. – Develop high-level talent management plans for each stakeholder group. Step 5—Identify 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 • Assess general capabilities/potential (utilize perfor- mance reviews, existing 360 feedback, recommenda- tions, etc.). • Assess participant interest, values, career directions, etc. • Nominate and verify successor candidates. • Hold talent review sessions to calibrate succession manage- ment activities across the organization. • Create succession maps and identify gaps in succession pool. • Manage information (track succession pools/maps using succession management software applications, spread- sheet, etc.). Step 6—Conduct Individual Assessment and Feedback Gain additional insights into participants’ leadership strengths and development needs (assess leaders’ current skills, capabilities, and future potential). • Utilize the following recommended assessments/processes to better assess and develop potential: – Standardized leadership capabilities inventories; – Structured interviews and situational judgment exercises; – Multi-rater (360) assessments; – Leadership development profile/plan/goals/feedback metrics; and – Ongoing one-on-one, peer and group feedback to suc- cession participants. • Integrate information from assessments into overall pro- files and classify leaders relative to readiness for next- level roles (e.g., “ready,” “near-ready,” and “long-term potential”). • Conduct group-level analysis to determine organization- level leadership strengths and deficits. Step 7—Development Planning and Implementation Guide high-potential development based on priority needs for the individual and the organization. • Create development plans that link current role, aspired role, and leadership development content. • 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.).

• Track development progress (with mentor and manager— individually and as a group). – Utilize 360-degree feedback system and other assess- ments to guide development. – Prepare an individual development plan that outlines specific activities to develop needed competencies; include a timetable with milestones to assess progress. – Track individual progress over time for use with rep- orting and determining adding or changing develop- mental opportunities (provide individuals with regular feedback). • Modify leadership development plans as needed. • Integrate succession management efforts with other HR/ TM systems. • Create/maintain candidate profiles in succession plan tracker. – Build a database of participants based on leadership potential for “next level,” – Regularly monitor skills and needs to determine any gaps and develop plans to meet deficiencies, and – Inventory current and future leadership needs and maintain that information for individual and group development. • Develop staffing plans to fill gaps in succession pool. • Place individuals into appropriate positions as openings arise. Step 8—Monitor Progress & Measure Results Create a transparent and measurable succession management process and conduct ongoing assessments of bench strength. • Monitor talent readiness and movement (update organi- zationwide succession map periodically). • Regularly communicate changes, updates, and organiza- tion implications to key stakeholders. • Measure business return derived from leadership develop- ment investments and movement decisions. • Determine key talent metrics that directly impact and ful- fill the business strategy; potential metrics include: – Retention statistics of key talent, – Advancement of succession participants (percentage of senior roles filled by succession participants), – Perceived value of development/succession initiatives by key stakeholders, – Levels of organization engagement/conduct all-employee engagement survey, – Increased innovation (i.e., creation of new business models and products), and – Enhanced productivity and cross-functional collaboration. • Collect/analyze/interpret relevant data to guide ongoing succession management. 41