Beyond Leadership:
Approaches To Comprehensive
Succession Planning
(c) 2006 Charles J. Sawyer
Succession Planning
What is Succession Planning?
Note on terms used
The term “Succession Planning” and
“Succession Management” can be used
interchangeably.
In this presentation, the term “Succession
Planning” is used, but can be taken to mean
“Succession Management” as well.
What is Succession Planning?
The short answer:
Managing key personnel transitions for



Maximum continuity of operations.
Retention of “institutional knowledge.”
Minimum disruption.
What is Succession Planning?
In the past, succession planning
typically targeted only key leadership
positions.
In today's organizations, it is important
to include key positions in a variety of
job categories.
U.S. Government’s Office of Personnel Management
http://www.opm.gov/hr/employ/products/succession/succ_plan_text.htm
Why Succession Planning?
“With good succession planning, employees are
ready for new leadership roles as the need
arises, and when someone leaves, a current
employee is ready to step up to the plate.
“In addition, succession planning can help
develop a diverse workforce, by enabling
decision makers to look at the future make-up of
the organization as a whole.”
U.S. Government’s Office of Personnel Management
http://www.opm.gov/hr/employ/products/succession/succ_plan_text.htm
Why Succession Planning?
A pending transition of a leader or key
employee may also be seen as an
opportunity for change.

For example, the “retirement” of Fidel
Castro is fueling much speculation about
the future of Cuba.
Comprehensive
Succession Planning involves:
First,
Understanding the organization's long-term
goals and objectives
Identifying the workforce's developmental needs
Determining workforce trends and predictions
U.S. Government’s Office of Personnel Management
http://www.opm.gov/hr/employ/products/succession/succ_plan_text.htm
Then,
Aligning the organization’s human resources
strategies accordingly.
Beyond replacing people…
Succession planning should include not
only planning to replace people,
but should be strongly coordinated with
other organizational planning.
It should be tied to the management of
all the transitions that your organization
is now facing, or will one day face.
Succession Planning
The growing necessity for
Succession Planning.
Two reasons why Succession Planning
is becoming more important than ever:
1. Population trends show that the rate of
retirements of workers will increase in
coming years.
2. The management principles growing out of
“organizational excellence” and “quality”
movements are becoming standard practice
among successful organizations.
Succession Planning
Population and
Demographic Trends
“Expert Exodus”
“With the first baby boomers due to reach
60 this year, the challenge of holding on to
institutional memory is taking on a new
sense of urgency.”
Governing.com, Feb 2006,
By Christopher Conte
“Expert Exodus”
“The Conference Board, a business research
group, estimates that by 2010, 64 million
workers — 40 percent of the nation’s public and
private workforce — will have reached
retirement age.”
Governing.com, Feb 2006,
By Christopher Conte
Workforce Trends
By 2010, the number of 55-64 year-olds
will expand by 52 percent.
While the number of 35-44 year olds,
those normally expected to move into
senior management ranks, will actually
decline by 10 percent.
Senior Journal, Sept. 20, 2005
http://www.seniorjournal.com/NEWS/Retirement/5-09-20AgingWorkfoceChallenge.htm
What is the impact of these
population trends?
What exactly does the exit from the
workforce of the Boomers really mean
to organizations?
How serious is the “coming retirement
crisis”?
Population Trends
Year
90
19
80
19
70
19
60
19
50
19
40
19
30
19
20
19
10
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
19
Births
USBirths,
Births 1910-2000
by Year
U.S.
The Baby Boom
Year
90
19
80
19
70
19
60
1975
19
19
40
19
30
19
20
19
10
50
1945
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
19
Births
USBirths,
Births 1945-1975
by Year
U.S.
The Baby Boomers turn 60
Average
retirement
age is now
about 63,
and is
trending
down.
The round
number 60 is
used here for
simplicity.
Projected
Retirements
Boomers
Reaching
Retirement Age
Year Reaching 60
50
20
40
20
30
20
20
20
10
20
00
20
90
19
80
19
70
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
19
*
Retirements
*These
numbers do
not represent
the number of
“workplace
retirements.”
They simply
add 60 years
to the birth
data. There
are many
other factors
that influence
retirement
rates.
Where we are now on the
demographic curve
Year Reaching 60
50
20
40
20
30
20
20
20
10
20
00
20
90
19
80
19
70
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
19
Retirements
Projected
Retirements
Boomers
Reaching
Retirement Age
2006
What we’ve gotten used to
in the previous 15 years:
Year Reaching 60
50
20
40
20
30
20
20
20
10
20
00
20
90
19
80
19
70
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
19
About
2.6
million
per
year
Retirements
Projected
Retirements
Boomers
Reaching
Retirement Age
1990 2005
What we can expect over the
next 15 years:
Growing
from 2.6
to 4.4
Year Reaching 60
50
20
40
20
30
20
20
20
10
20
00
20
90
19
80
19
70
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
19
Retirements
million
per year,
a 70%
increase
Projected
Retirements
Boomers
Reaching
Retirement Age
2008 2023
How will immigration affect
retirement rates?
“Ellis
Island”
The
Baby
Boom
Period
http://www.susps.org/overview/numbers.html
Impact of immigrants will be considerably
less than that of Boomers…
Just over 4 million
immigrants entered the
U.S. in the 1970s.
If their average age at
entry was 20, they are
now about the same age
as Boomers born in the
1950s, a decade in which
over 40 million Boomers
were born.
http://www.susps.org/overview/numbers.html
What impact will immigrant population
trends have on retirement rates?
Immigration rates are harder to analyze
because of age at entry and other factors.
Yes, the number of immigrants has been
increasing dramatically in recent years, exceeding
native births.
This will contribute significantly to rising
retirement rates, but
the greatest impact of immigrants on retirement
rates will lag behind the Baby Boom factor.
So how serious is the
“coming retirement crisis”?
The number of retirements per year will
increase over the next 15 years.
At it’s peak in 15 years, the rate will approach
twice the number of retirements per year
compared to what we’re used to.
However, the rate of increase will be gradual
over the next 15 years.
Serious, but not an immediate
emergency…
This means that the rate of loss of
institutional knowledge and leadership will
be as much as double what we’re used to.
However, adopting succession management
practices now will enable organizations to
cope with increasing retirement rates
successfully,
in plenty of time.
Succession Planning
The Impact of the
“Organizational Excellence,” or
“Quality” Movements
Organizational Excellence
or Quality Movement
The adoption in Japan of Edward Deming’s
quality circle and continuous improvement
concepts resulted in tremendous gains in
quality and value.
This success led to Total Quality Management
and all the other modern approaches to
organizational excellence.
Deming’s Quality Circle
Adjust
Plan
Check
Do
Organizational Excellence
or Quality Movement
Over the years, research and experience have
refined these concepts into a number of
widely-agreed-upon ideas about what
constitutes excellent organizational practices.
These widely-agreed-upon best-practices are
represented by the Malcolm Baldridge and
Florida Sterling award criteria.
Florida’s Sterling Criteria for
Organizational Excellence
Sterling is Florida’s version of the national
Baldridge award, and is patterned after it.
Sterling & Baldridge criteria are not “flavors
of the month” in organizational improvement
methods.
They don’t tell you HOW to do anything.
They ask IF certain things are being done
effectively.
They represent the “collective wisdom” about
organizational excellence.
The Seven Sterling Criteria:
1.
2.
3.
4.
Leadership
Strategic Planning
Customer and Market Focus
Measurement, Analysis, and Knowledge
Management
5. Human Resources Focus
6. Process Management
7. Organizational Performance Results
Succession Planning is chiefly
concerned with 4 of the 7*
1.
2.
3.
4.
Leadership
Strategic Planning
Customer and Market Focus
Measurement, Analysis, and
Knowledge Management
5. Human Resources Focus
6. Process Management
7. Organizational Performance Results
*All 7 Criteria have succession planning implications, but
these 4 represent the bulk of the necessary analysis,
planning, development, and other actions.
We’ll use these four Sterling areas to frame
our examination of Succession Planning.
Leadership
Strategic Planning
Measurement, Analysis, and
Knowledge Management
Human Resources Focus
Succession Planning and
Leadership
What are the competencies
required of leaders?
Leadership
Dictionary.Com definitions:

Capacity or ability to lead: showed strong
leadership during her first term in office.

Guidance; direction: The business prospered
under the leadership of the new president.
Proportion of necessary broad
skills at various levels
Executive
Manager
Supervisor
Worker
The Leadership Challenge
(©Kouzes & Posner, Jossey-Bass books)
Model The Way


Find your voice
Set the example
Inspire A Shared Vision


Envision the future
Enlist others
Challenge The Process


Search for opportunities
Experiment & take risks
Enable Others To Act


Foster collaboration
Strengthen others
Encourage The Heart


Recognize contributions
Celebrate the values and
victories
CPM: A Reflective Practitioner
Flexible, Critical,
Creative Thinking
Inductive And
Deductive Reasoning
Initiative, Question
Assumptions, Suggest
Alternatives
Aware of Personal Style
of Self and Others
Committed to Growth,
Development, Lifelong
Learning
Committed to Improve
Organizational Quality
Aware of Societal
Trends, and the
Organization's Impact
on Society.
Tolerant of Ambiguity,
Complexity, and
Uncertainty
Anticipating and
Shaping Change
Encourage the
Involvement of Others
Interpersonal
Communication Skills
Primarily Motivated by
Intrinsic Rewards
The Qualities of Leadership
(©AchieveGlobal “Principles and Qualities of Genuine Leadership”)
Collaborative
Inventive
Skilled
Visionary
Mindful
From AchieveGlobal research paper, Building Leadership Bench Strength: Current
Trends In Succession Planning And Management
AG survey results
Interpersonal Skills
Problem Solving
Conceptual Skills
Project Management
Coaching
*Technical Skills
77%
75%
63%
58%
47%
41%
*Technical
Skills as used
here are the
competencies
that are specific
to your
business or
industry.
The “soft” skills are critical
to leadership.
Yes, a fundamental understanding of the
business you’re leading is necessary.
Your best technical people may seem like a
likely source of promising leaders, but do
they also have the necessary “soft” skills?
Beware of the “Peter Principle!”
Succession Planning and
Strategic Planning
Strategic Planning must precede
Succession Planning
You have to know where you are
going in order to plan to get there.
Succession Planning cannot occur without
broader organizational planning.




Organizational Mission, Vision, and Values.
Strategic Plans
Long-term Goal & Objectives
Strategic alignment within the organization
Strategic Alignment
Organizational Mission & Vision
Organizational Strategic Plans
Organizational Goals & Objectives
Areas of responsibility in achieving these goals
& objectives (“departments”).
The people working in these areas.
Succession Planning is inextricably
linked to Strategic Planning.
Sustainability of the organization.
Adapting to changes in technology.
Adapting to new business processes.
Adapting to anticipated changes in
markets, service requirements, etc.
Facilitating growth.
Strategic planning precedes
succession planning.
Before planning for the succession of key
personnel, know where you want to go.
Define Mission, Vision, Values, Goals &
Objectives.
See that your current business processes and
organizational focus are aligned with your vision
and strategic plans.
But of course stay flexible and plan for change.
Succession Planning and
Measurement, Analysis, and
Knowledge Management
Preserving and Sharing
Institutional Knowledge
A morbid, but useful, question to
ask about each key position:
What would happen if a particular employee
were to suddenly disappear (sudden accidental
death, for example)?
Of course it would be personally & humanly
tragic, but what would be lost to the
organization?
Former White House Chief of Staff Andy Card
developed what he called a “Hit By A Bus” list.
Knowledge Management
With the departure of key leaders and other
critical personnel, what knowledge will your
organization lose?
It’s easy to take for granted the wealth of
knowledge stored in our brains.
Succession planning seeks to capture and retain
the “institutional knowledge” that would
otherwise be lost when key people leave.
How do we do this?
Knowledge Management
World-class organizations have
developed effective, well-integrated
systems for

Communication

Learning

Documentation
Communication: Vertical
Organizational Mission & Vision
Communicated
Down:
Organizational Strategic Plans
Communicated
Up:
Results,
Mission,
Innovation,
Organizational
Goals
&
Objectives
Vision,
Research,
Values,
Learning,
Strategic
Areas of responsibility in achieving these goals
which&then
Plans,
objectives (“departments”). informs
Goals,
MVV &
Objectives
Planning
The people working in these areas.
Communication: Vertical
How will the departure of key people affect
things like

How strategic plans are translated into action
plans.

How action plans are assigned and communicated
down the org chart.

How progress on action plans is monitored.

How measures of performance are communicated
up the org chart.
Communication: Horizontal
Organizational Goals & Objectives
Area
1
Area
2
Area
3
“Everybody on the same page”
Communication: Horizontal
How will the departure of key people affect
things like

Coordination of activities between areas.

How information about the organization’s activities
is shared.

How one area knows where to go to find
organizational support or resources.

Will the information gained by one area be
available to those from another area who need it?
Learning
How will the departure of key people
affect the availability of

External Knowledge
 Industry practices
 Industry history
 Markets
 Industry trends
 Key Contacts
 Etc.
Learning
How will the departure of key people
affect the availability of

Internal Data
 Customer knowledge
 Unique characteristics of individuals
 Efficiency & effectiveness of processes
 Sources of materials and information
 Etc.
Documentation
Documentation is used here to describe the
process of capturing and preserving the
“Institutional Knowledge” that will be lost when
key people depart, in order to make it
permanent and useful...
...and to make it available to the people who
will replace those who depart.
Quit “reinventing the wheel” with every major
personnel transition.
Systematize Documentation
A systematic approach to
documentation is essential for
succession planning


Of policy, procedures, plans, activities, etc.
Accessible to all who need it
Require everyone’s work to be


Organized systematically (standardized
document management policies &
procedures)
Accessible & Transparent
Mature Systems
Legally mandated and regulated systems are
usually relatively mature.
Many of your documentation procedures and
practices have been prescribed by law,
And have been shaped by practice and necessity
over many years.
However, not all your processes may be welldocumented.
Policy & Procedure Manuals
If they exist at all, they are often out of date.
Systematically update these manuals.
If you issue a policy memorandum, update
the manual.
If you implement a new procedure, update
the manual.
Easier than ever to do (online or with word
processing – distributing new loose-leaf
pages is now unnecessary!)
Meetings and Discussions
Require managers to maintain ongoing agendas that
describe what their department is doing.
Provides a view of current activities, and a
record of discussions and assignments.
Provides a view of current activities, and a
record of discussions and assignments.
Each week’s agenda is permanently
stored on a shared drive
Filename sorts
automatically by date, i.e.,
2006-06-08 LDOI Agenda
(Year-Month-Day)
Develop systematic approaches to
planning and project management.
Microsoft Project is a good tool, but is
complicated.
You can adopt some of it’s key features
yourself:
Develop a simple form that outlines the
important aspects of major projects, such as





Goals
Personnel involved
Budgets
Timelines and checkpoints
Approvals
A One-Page Project Assignment and
Management form
Project Form, continued:
Succession Planning:
Human Resources Focus
Planning for the Succession
of Key People
Human Resource Focus
Succession planning often starts with
planning for the replacement of a single key
leader (i.e., the founder).
It may focus on all important leaders (i.e.,
senior management).
It may also focus on




Historically difficult to fill (or train for) positions
Key technical positions
Less desirable locations or specialties
Mission critical positions
A step-by-step approach:
1.
2.
3.
4.
5.
6.
Identify key positions
Decide on the initial scope of your SP
efforts
Identify competencies of selected
positions
Identify internal and external talent pools
Create internal and external selection and
recruitment processes
Create and support employee
development processes
1. Identify key positions
Start at the top of the org chart.
Work your way down to mid-level managers
and key technical positions.
Prepare a list of all the positions for which
succession plans are necessary or helpful.
2. Decide on scope
Plot the career trajectories of people in key
positions on a timeline.
Develop a long-range schedule for
implementation of succession planning for
the identified positions.
Consider your organizations other long-range
plans and trends.
Prioritize the positions for which you want or
need to develop succession plans.
Map the Succession Process
Timeline>
v Steps
2007
2008
2009
2010
Mary,
CEO
2011
2012
2013
Retires
June 30,
2011,
consults
2-year
Consulting
contract
End
consulting June
30, 2013
Joe,
HR
Mgr.
Apply to
CPM
Leadership
program
Begin
CPM
Leadership
training
Graduate
from
CPM
program
Ass’t
CEO
July
2010
CEO July
1, 2011
Branch
office
plans
Award
construction
contract
Construction
End construction
10/31/
2009
Joe to
new
branch
1/1/2010
Joe to
HQ
July 1,
2011
Highly
simplified,
of course
3. Identify competencies of
selected positions
This is easier to do with technical positions than
with leadership positions.
Develop lists of skills for key positions.


“Job (or Task) Analyses.”
Map processes
Consider, for each position, the required



Knowledge
Skills & Abilities
Attitudes
Consider other characteristics
of the selected positions
Determine challenges you’ll face in
replacing people in particular positions,
i.e.,


Scarcity of potential candidates
Training and development issues
Identify any other general human or
professional qualities that your
organization wants to have in it’s
workforce (Values).
4. Identify talent pools and paths
Assess your internal talent pool first.





Assess existing position structure.
Look at the history of your hires and
promotions.
Identify entry level positions.
Are there natural career development
paths?
Can you alter the structure to create such
paths?
Assess performance potential.
Aptitude testing
Employee Performance Evaluation
System, including 360° evaluations
Preferences expressed in employee’s
individual career development plans.
Find strength in diversity
High performance + aptitude + career
motivation = Potential
From AchieveGlobal research paper, Building Leadership Bench Strength:
Current Trends In Succession Planning And Management
Top 7 competencies used to
identify high-potential employees
Decision-making
(74%)
Performance
exceeds
expectations
(74%)
Drive for results
(66%)
Analytical skills (63%)
Potential in another
function (63%)
Problem-solving
(59%)
Cognitive ability
(52%)
From AchieveGlobal research paper, Building Leadership Bench Strength:
Current Trends In Succession Planning And Management
External talent pools

Look at the history of your hires and
promotions
Identify entry level positions.

Research your industry’s labor market.

Identify institutional sources:

 Colleges, technical schools, military, etc.

Identify like or related organizations:
 Can you offer incentives to lure talent?

Identify appropriate employment services.
5. Selection and recruitment
processes
Internal selection and recruitment
Create career progression paths.
 Decide how open or closed your
recruitment processes will be.
 For open processes, establish an internal
promotion culture.

 Announce, publicize, and support the effort.
 Communicate clear lines of job progression.
 Follow through: promote from within.
External selection and recruitment
Where did your existing workforce come from?
Target the most promising external talent pools.
Establish relationships with institutional talent
sources.
Implement a systematic recruitment,
assessment, and hiring process.

There are a number of good resources in this area
(books, etc.) that will help you.
6. Create and support employee
development processes
Integrate training and development plans
with with Mission, Vision, & Values, and
Strategic Plans.
Align training and development plans with
succession plans.
Implement systematic training and
development paths and options to develop
the competencies identified as necessary for
the organization.
6. Create and support employee
development processes
Discuss each employee’s personal and
professional goals, and help them
achieve them.
Create “career pathing” plans for each
employee.
Make and sustain the commitment to
develop employees.
Create a plan to systematically pass on
the wisdom of senior workers.
Mentoring
Pairing
Apprenticeship
Cross-training
Team assignments
Job rotation
Shadowing
Coaching
Benefits of
Mentoring, Cross-training, etc.,
Adds to assignment flexibility,
Provide for greater continuity of operations in
unexpected (i.e., “Hit by a bus”) situations.
Give the employee a chance to evaluate
potential career paths.
Provide employees with advancement
opportunities
Supports succession plans.
From AchieveGlobal research paper, Building Leadership Bench Strength:
Current Trends In Succession Planning And Management
Activities used to develop high
potentials
Formal in-house
training (68%)
Project assignments
(62%)
Action Learning
(44%)
Formal training,
external vendor
(44%)
Job rotations 37%
Role shadowing
(35%)
Succession Planning
Challenges and Recommendations
Seven Common Challenges Organizations
Face Related to Succession Planning
1. Finding the right employees to develop
2. Time for the process
3. Buy-in by senior leaders
From AchieveGlobal research paper, Building Leadership Bench Strength:
Current Trends In Succession Planning And Management
Seven Common Challenges Organizations
Face Related to Succession Planning
4. Organizational issues such as
downsizing or mergers
5. Implementation and follow-through
6. Assessment and measurement
7. Losing talented people
From AchieveGlobal research paper, Building Leadership Bench Strength:
Current Trends In Succession Planning And Management
GAO Recommendations:
1. Receive active support of top leadership.
2. Link to strategic planning.
3. Identify talent from multiple
organizational levels, early in careers, or
with critical skills.
Highlights of GAO-04-127T, testimony before the Subcommittee on Civil
Service and Agency Organization, Committee on Government Reform, House
of Representatives, October 1, 2003
GAO Recommendations:
4. Emphasize developmental assignments
in addition to formal training.
5. Address specific human capital
challenges, such as diversity, leadership
capacity, and retention.
6. Facilitate broader transformation efforts.
Highlights of GAO-04-127T, testimony before the Subcommittee on Civil
Service and Agency Organization, Committee on Government Reform, House
of Representatives, October 1, 2003
Amazon’s best-selling book on
Succession Planning:
Effective Succession Planning,
Ensuring Leadership Continuity
and Building Talent from Within


2nd ed., By William J. Rothwell
(c) 2001, AMACOM (American Management
Association)
Beyond Leadership:
Approaches To Comprehensive
Succession Planning
Thank you!
(c)2006 Charles J. Sawyer
Charlie Sawyer is the Bureau Chief of the Florida
Department of Education’s Bureau of Leadership
Development and Organizational Improvement
(850) 245-9713
Charlie.Sawyer@FLDOE.Org