Succession management

Jahangirnagr University, Savar, Dhaka.

1. SUCCESSION MANAGEMENT

2. What is Succession Management? Succession management is the process of ensuring that pools of skilled employees are trained and available to meet the strategic objectives of the organization. It is a tool to identify employees who have the potential to assume key positions in an organization and to prepare them for the future.

3. Importance of Succession Management Ensure continuity in leadership by developing the next generation of leaders. Increase the talent pool of promotable employees and provide increased opportunities for high-potential workers. Identify replacement needs for targeting necessary training, employee education and employee development.

4. Importance of Succession Management Contribute to implementing the organization’s strategic business plans. Help individuals realize their career plans within the organization. Encourage the advancement of diverse groups. Improves employee’s ability to respond to changing environmental demands.

5. Importance of Succession Management Improve employee morale. Cope with the effects of voluntary separation programs. Decide which workers can be terminated without damage to the organization. Reduce headcount to essential workers only. Cope with the effects of downsizing.

6. Evolution of Succession Management Replacement planning has evolved into succession management by broadening the focus expanding the time horizon creating a talent pool of replacements and improving the evolution system.

7. Evolution of Succession Management

8. Evolution of Succession Management Differences Between Succession and Replacement Replacement planning is the process of finding replacement employees for key managerial positions . Factors Replacement Planning Succession Management Environment Stable Dynamic Focus Jobs Strategy Time Frame 6-12 months 2+ years Selection Criteria Job experience Competencies Appraiser Immediate manager 360 degree feedback Swlection Pool Internal Internal and external Successors Stated individuals Talent tools Development Limited Flexible, multiple

9. Succession Management Process

10. Step 1: Align Succession Management Plans with Strategy • Organizations must start with the business plan • Using environmental scanning, managers try to predict where the organization will be in three to five to ten years

11. Step 2: Identify the Skills and Competencies Needed Job‐Based Approach Competency‐Based Approach

12. Job‐Based and Competency‐Based Approaches Job Based Approach – • focus on duties, skills, job experience, and responsibilities required to perform the job • Not adequate since jobs change rapidly Competency‐Based Approach – • focus on measurable attributes that differentiate successful employees from those who are not • Hard and soft skills • Produces more flexible individuals

13. Types of Competencies Core competencies Role or specific competencies Unique or distinctive competencies

14. Step 3: Identify High‐ Potential Employees Organizations use several approaches to identify managerial talent, including the following: • Temporary replacements • Replacement charts • Strategic replacement • Talent management culture

15. Step 4: Provide Developmental Opportunities and Experiences • Peter Drucker states that: “Most managers are made, not born. There has to be systematic work on the supply, the development, and the skills of tomorrow’s management. It cannot be left to chance.”

16. Management Development Methods • Promotions • Job Rotations • Special Assignments • Formal Training and Development • Mentoring and Coaching

17. Promotion • Promotion – an employee’s upward advancement in the hierarchy of an organization

18. Job Rotations • Job rotations – a process whereby an employee’s upward advancement in the hierarchy of an organization is achieved by lateral as well as vertical moves

19. Mentors • Mentors – executives who coach, advise, and encourage junior employees

20. Step 5: Monitor Succession Management • Corporations with strong succession management programs are higher performers in revenue growth, profitability and market share • HR metrics can be used to help monitor succession management

21. Approaches to the identification of managerial talent

22. Employee Role in Succession Management