William J. Rothwell - Effective Succession Planning (2005)(3-e)(en)

accompany the proposal submitted to executives. If a ‘‘Recommend and listen’’ approach was chosen, then draft an SP&M policy and procedures to accompany the mission statement in the initial proposal to management. If the approach chosen was to ‘‘Facilitate an interactive debate,’’ then committees in the organization will usually be the means by which to draft policy and procedures, oversee refinements, and issue updates or modifications to policy and procedures.

Identifying Target Groups

Who should be the focus of the SP&M program? Should the program be geared to top-level executive ranks only? Should it encompass other groups, levels, or parts of the organization? Answering these questions requires decision-makers to identify target groups.

Most of what has been written about SP&M programs has directed attention to replacing top-level executive positions. Substantial research has been conducted on SP&M for the CEO3; other writings have focused on the CEO’s immediate reports. Relatively little has been written about SP&M for other groups, though many experts on the subject concede that the need has never been greater for effective SP&M efforts at lower levels. Indeed, interest in multiskilled, team-based management and cross-training stems from the recognition that more time, resources, and attention must be focused on systematically developing human capabilities at all levels and across all groups.

The results of my 2004 survey on SP&M practices revealed that the respondents’ organizations are not consistently identifying and developing successors. (See Exhibit 6-5.)

Establishing Initial Targets

Where exactly is the organization weakest in bench strength? The answer to that question should provide a clue about where to establish initial targets for the SP&M program. (See the activity in Exhibit 6-6. If necessary, circulate it to top managers or ask them to complete it in an initial program kickoff meeting or mission statement retreat.)

Direct attention to three specific areas first, since they are a common source of problems: successors for top management positions; successors for first-line supervisory positions; and successors for unique, tough-to-fill technical or professional positions.

Top management positions are fewest in absolute numbers, but they are often critically important for formulating and implementing organizational strategy. They may grow weak in bench strength in organizations that experience significant employee reductions in the middle management ranks as a result of forced layoffs, employee buyouts, or early retirement offers.

Exhibit 6-5. Targeted Groups for Succession Planning and Management

Succession planning may not be carried out with all groups in an organization. For each group listed below, indicate whether your organization makes a deliberate effort to identify and develop successors.

ETechnical Workers (Engineers, Computer

Source: William J. Rothwell, Results of a 2004 Survey on Succession Planning and Management Practices. Unpublished survey results (University Park, Penn.: The Pennsylvania State University, 2004).

Supervisory positions are largest in absolute numbers, so continuing turnover and other personnel movements leave these ranks subject to the greatest need for replacements. As a port of entry to the management ranks, supervision is also critically important because many middle managers and executives start out in the supervisory ranks. Supervisors are often promoted from the hourly ranks, lacking management experience, or are hired from outside the organization. They are areas of weakness in organizations that have not planned management-development programs or that provide little or no incentive for movement into supervision—such as organizations in which unionized hourly workers earn substantially more than supervisors, who are ineligible for overtime pay but must work overtime anyway.

Exhibit 6-6. An Activity for Identifying Initial Targets for Succession Planning and Management Activities

Directions: Use this activity to identify initial target groups for the SP&M program in an organization. For each job category listed in the left column below, list the priority (1 highest priority) order in the center column. Then, in the right column, briefly explain why the job category was assigned that level of priority. Circulate this activity to decision-makers and ask them to complete it. Compile the results and feed them back to decision-makers to emphasize what job categories were generally perceived to be the rightful target for the SP&M program. Add paper as necessary. (If appropriate, modify the list of job categories so they coincide precisely with any special labels/titles associated with them in the organization.)

1.Executives

2.Individuals Preparing for Executive Positions

3.Middle Managers

4.Individuals Preparing for Middle Management

5.Supervisors

6.Individuals Preparing for Supervision

7.Professional Workers

8.Individuals Preparing to Be Professional Workers

9.Technical Workers

10.Individuals Preparing to Become Technical Workers

11.Sales Workers

12.Individuals Preparing to Become Sales Workers

13.Clerical Workers

strength at that level. While continuing efforts at that level, gradually extend the effort to include other groups.

Clarifying the Roles of the CEO, Senior Managers, and

Others

What roles should be played in the SP&M program by the CEO, senior managers, the HR program, individuals, and other groups?

The Roles of the CEO and Other Senior Managers

As noted in Chapter 5, the CEO’s role in the success of an effective SP&M program is a make-or-break proposition. If he or she is willing to provide hands-on involvement, the program begins with an excellent chance of success. On the other hand, if he or she classifies SP&M as something that everyone else should do, then the program begins with the hallmarks of a disaster in the making. This is because only the CEO can hold other senior executives accountable for grooming talent, and only he or she can reward or punish them for their results. The VP of HR cannot do that.

An excellent starting point is to sit down with the CEO and ask, ‘‘What role do you want to play in SP&M, and why do you want to play that role?’’ It also helps to ask, ‘‘What results do you want to see from the SP&M program, and what role do you think you should play in helping to achieve those results?’’ From the answers to that, HR staff or others may prepare a role description of what part the CEO wants to play. The same approach may be used with other senior managers. By clarifying expected roles—and the actions associated with them—accountability is being established.

The Role of the HR Department

What should be the role of the HR department in the SP&M effort? The reality is that many roles are possible. And if the role of HR is not clarified, it can wreak havoc on the effort as expectations clash with realities.

In most organizations, including best-practice firms, HR’s role is a coordinative one. While that term coordinative may be a mouthful, it basically means that: (1) someone within HR is given responsibility for collecting information and following up to gather information for the SP&M effort; (2) the HR function must supply the technology to support data gathering about individuals, organizational needs, present and future competencies, present performance and future potential, individual development plans, competency development strategies, and so on.

A common problem in starting SP&M programs is that HR has no staff available, or at least staff with sufficient credibility, to assign. Another problem

sion-makers, a full-time or part-time SP&M coordinator, or a committee representing different groups or functions within the organization.

Initial priorities should be set to address the organization’s most pressing problems—and to rectify the most serious weaknesses in bench strength. Subsequent priorities should be set to reflect a long-term plan for systematic SP&M in the organization.

In addition to the activities already described in this chapter—such as clarifying roles, formulating a mission statement, writing a program policy, clarifying program procedures, and identifying the program’s targeted groups—other actions will have to be undertaken. Priorities should be established on what actions to take—and when—depending on the organization’s needs. These activities include:

▲Preparing an action plan to guide program start-up

▲Communicating the action plan

▲Training managers and employees for their roles in the systematic SP&M program

▲Organizing kickoff meetings and periodic briefing meetings to discuss the program

▲Counseling managers on handling unique succession planning problems, such as dealing with poor performers, managing high performers, grooming and coaching high-potentials, addressing the special problems of plateaued workers, and managing workplace diversity

▲Defining present and future work requirements, processes, activities, responsibilities, success factors, and competence

▲Appraising present individual performance

▲Assessing future individual potential

▲Providing individuals with the means by which to carry out career planning within the organization

▲Tracking performance and potential

▲Preparing and following through on individual development plans (IDPs) to help close gaps between what people know or do and what they must know or do in the future to qualify for advancement and ensure leadership continuity

▲Tracking innovative efforts to meet replacement needs

▲Establishing effective approaches to evaluating the benefits of systematic SP&M

▲Designing and implementing programs geared to special groups (such as high-potentials, plateaued workers, high performers, or low performers) or to meet special needs (such as reducing voluntary turnover of key employees after downsizing, handling cultural diversity, using suc-

cession planning in autonomous work teams, and integrating SP&M with such other organizational initiatives as quality or customer service)

Depending on an organization’s unique needs, however, some issues may demand immediate attention—and action.

Take this opportunity to consider program priorities in the organization. Use the activity that appears in Exhibit 6-7 to establish initial program priorities in the organization. (If you are the coordinator of the SP&M program, you may choose to circulate the activity to key decision-makers for their reactions, feed back the results to them, and use their reactions as a starting point for setting program priorities. Alternatively, share the activity with a standing committee on SP&M established in the organization, if one exists. Ask committee members to complete the activity and then use the results as a basis for setting initial program priorities.) Revisit the priorities at least annually. Gear action plans according to the program priorities that are established.

Addressing the Legal Framework

Legal issues should not be forgotten in SP&M. That is especially true because employee complaints filed with the Equal Employment Opportunity Commission have been on the increase in recent years. Those responsible for formulating and implementing an SP&M program should familiarize themselves with government laws, rules, regulations, and other provisions—both in the United States and, if they do business internationally, in other nations as appropriate. Competent legal advice should be sought when the organization’s decisionmakers have reached agreement on the goals and objectives of the SP&M program. Additionally, employers should take special care to avoid real or perceived employment discrimination of all kinds. Private-sector employers should also take care to ensure that SP&M programs are consistent with company human resource policies and procedures as described in company documents (such as employee handbooks or policy and procedure manuals). Public-sector employers falling under state or federal civil service rules should double-check their program descriptions to ensure that SP&M programs are consistent with policies and procedures governing hiring, promotion, training, and other policies.

A complex web of employment law exists at the federal government level in the United States. Key national employment laws are summarized in Exhibit 6-8. Under the supremacy clause of the U.S. Constitution, federal laws take precedence over local laws unless no federal law exists or federal law specifically stipulates that local laws may be substituted for federal law. In addition to national labor laws, each state, county, and municipality may enact and enforce special laws, rules, regulations, or ordinances affecting employment in a local jurisdiction. The latter may influence succession planning and management practices.

Exhibit 6-7. An Activity for Establishing Program Priorities in Succession Planning and Management

Directions: Use this activity to help establish priorities for the succession planning program in an organization. For each activity listed in the left column below, set a priority by circling a number for it in the right column. Use the following scale:

1A top priority that should be acted on now

2A secondary priority that is important but that can wait awhile for action

3A tertiary priority that should only be acted on after items prioritized as 1 or 2 have received attention

Circulate this activity among decision-makers as appropriate. If you do so, compile their responses and then feed them back as a catalyst for subsequent decision making. Add paper as necessary. (You may also wish to add other activities of interest.)

3.Training Managers and Employees for Their Roles in the Systematic Succession

9.Providing Individuals with the Means by Which to Carry Out Career Planning