SUCCESSION PLANNING

HUMAN RESOURCE MANAGEMENT

SUCCESSION PLANNING
PRESENTED BY 2012 -2014 SEM 2

ASHISH PH 1201 AFZAL PH 1202 AKHIL PH 1203 AKSHAY PH 1204 AMAR PH 1205 ANKUR PH 1207

OUTLINE
INTRODUCTION WHAT IS SUCCESSION PLANNING ? WHY IT IS NEEDED ? SUCCESSION VS. REPLACEMENT MAJOR PRINCIPLES SUCCESSION PLANNING PROCESS FOUR THINGS TO REMEMBER CASES

Your businesss greatest asset is not your people. Your businesss greatest asset is the right people.

The continued survival of the organization depends on having the right people in the right places at the right time.
Drucker

INTRODUCTION

Succession planning is a systematic approach to: Building a leadership pipeline/talent pool to ensure leadership continuity Developing potential successors in ways that best fit their strengths Concentrating resources on the talent development process yielding a greater return on investment.

WHAT IS SUCCESSION PLANNING

Succession Planning is a process of developing talent to meet the needs of the organization now and in the future. A deliberate and systematic effort that ensures: LEADERSHIP continuity in key positions RETENTION and DEVELOPMENT of intellectual capital for the future ENCOURAGEMENT of individual advancement

WHY IT IS NEEDED ?

In new cost paradigm, internal bench strength non existent, Need for speed and non availability of time to pause, Reduced loyalty and Impatience of Gen Next, Development of their high performers are a step ahead of their competitors

SUCCESSION VS. REPLACEMENT

SUCCESSION PLANS Long-term: 12-36 months Focus on future leadership Develops leaders capable of filling multiple assignments Narrow approach E.g. Mining Company, E.g. MNC Telecom Company REPLACEMENT PLANS Short term: 0-12 months Focus on immediate needs Develops back-up staff for key positions Broader -Aligns with organizations goals and values

E.g. MNC Pharmaceutical company

MAJOR PRINCIPLES OF SUCCESSION PLANNING

1. Leaders really do matter in managing/driving accountability, results, culture.

2. Performance is what counts top performers over high potentials (the what & how both count). 3. Todays top performing leaders arent necessarily

tomorrows
even our best leaders can fall behind or derail. 4. Talent is an enterprise resource willingness to

share talent makes

the system work.

MAJOR PRINCIPLES OF SUCCESSION PLANNING

5. A broad

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set of experience & assignments is

the best classroom

yet a balanced approach is still necessary for development.

6. Its

incumbent upon todays top-100 to

leave a legacy of future talent current leaders

must teach, mentor, & role model others on what it takes to succeed. 7. Invest

in the best focus the rest.

SUCCESSION PLANNING PROCESS

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SUCCESSION PLANNING PROCESS

1. Assessment of Key Positions:

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What are the competencies and experiences needed

to qualify for each key position? 2. Identification of Key Talent: Typically people at the top two levels of the organization and high potential employees one level below. Identified by their managements assessment of their performance and potential for advancement..

SUCCESSION PLANNING PROCESS

3. Assessment of Key Talent:
For each person on the radar screen, primary

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development needs are identified focusing on what

they need in order to be ready for the next level. 4 Generation of Development Plans: A development plan is prepared for how we will help the person develop over the next year.

SUCCESSION PLANNING PROCESS

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5. Development Monitoring & Review An annual or semi-annual succession

planning review is held to review progress of

key talent and to refresh or revise their development plan.

FOUR THINGS TO REMEMBER.

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1 Change the name of the process to from Succession Planning to Succession Development. 2 Measure outcomes, not process 3 Keep it simple 4 Stay realistic

FOUR THINGS..

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Plans do not develop anyone only development experiences develop people. We see many companies put more effort and attention into the planning process than they do into the development process.-----Our focus should be on weight loss, not planning for weight loss. We sometimes find companies adding excessively complex assessment criteria to the succession planning process in an effort to improve the quality of the assessment. Bottom line is don't jerk around high performing leaders with unrealistic development expectations. Only give the promise of succession if there is a realistic chance of its happening!

ROLE OF HR MANAGER

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Develop human resources tools for managers and employees Provide timely advice and guidance to managers, Engage in and ensure on-going discussions with bargaining agents Ensure on-going discussions with corporate planners and ensure that links are made to program management Facilitate Performance Management Program exercises and talent review meetings as requested Consult with functional communities (e.g. financial management, information technology) Help managers to evaluate succession planning initiatives Help communicate key areas and positions to employees

SUCC. PLANNING AT GENERAL ELECTRICALS

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Now let's look at one of the most successful business leaders of all time, Jack Welch, who started working at General Electric in 1960. As he moved upward in the organization he displayed leadership qualities that set him apart from his peers. But what did Jack Welch think of succession planning? One of his most admired skills was the ability to develop his subordinates so there was always someone ready to take his place when Jack was offered a promotion.

GENERAL ELECTRICALS..

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How successful was his strategy? In 1981 he became the CEO of General Electric and served in that position until he retired in 2000. Furthermore, in 1991, Jack Welch stated: "From now on, choosing my successor is the most important decision I'll make. It occupies a considerable amount of thought almost every day. That's a pretty strong statement for someone that had the vision and leadership ability to increase the value of General Electric from $13 billion to $410 billion dollars during his tenure.

GSK COMMENCES SUCCESSION PLAN FOR MANAGEMENT OF VACCINES BUSINESS

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GlaxoSmithKline (GSK) today announced management changes related to its Vaccines business as part of a planned succession strategy. With immediate effect Jean Stephenne is appointed Chairman, GSK Biological. Mr Stephenne will assume this role in addition to his existing position as President, GSK Biological.

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GSK
Over the next two years, operational responsibility for Biological will transition to Dr Moncef Slaoui. These new responsibilities will be in addition to those he currently holds as Chairman of Research & Development. Andrew Witty, Chief Executive Officer, GlaxoSmithKline said: Succession planning is fundamental to GSKs long-term success and todays changes are clear evidence that we are taking proactive steps to maintain excellent leadership in our business

WAL-MART

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The $256.3 billion retail chain Wal-Mart has the distinction of being the worlds largest company. Founder Sam Walton carried the company to new heights. As his term drew to a close, Sam debated whether to have a family member, or an outsider, or a company employee to succeed him. After weighing the pros and cons, Walton decided to make his eldest son the chairman after he died.

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WAL-MART
He groomed David Glass a senior employee to take over as Wal-Marts CEO (Chief Executive Officer) in 1988. The Walton family is quite happy to stay away from day-to-day operations. But it has decided to be watchful and groom the next generation of Walton's to understand their responsibilities

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In summary

We may not know what the future holds, but we know Who holds the future

REFERENCE
en.wikipedia.org/wiki/Succession_planning

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www.opm.gov/policy.../reference.../successionplanning.pdf blogs.hbr.org/.../change_succession_planning_to.ht www.icmrindia.org/casestudies/catalogue/.../HROA010.htm us.gsk.com/html/medianews/.../2010_pressrelease_10023.htm www.ceo.com/.../case-study-succession-planning-at-ge

THANK YOU FOR PATIENCE LISTENING

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