Succession Planning

1. Succession Planning Work force Planning Part 1

2. Agenda Workforce Planning & Succession Planning Why this planning is critical The value of planning How to prevent failure How to ensure success Model developed by Sheila Allen

3. Why Strategic Workforce Planning is Critical Knowledge loss • many organizations will lose 30-40% of their knowledge by 2012. • Accentura Consulting : 45% or organizations are failing to capture critical workforce knowledge and experience from those facing retirement • How long does it take to recapture a 40% knowledge loss? How much time and money will this cost?

4. Why Strategic Workforce Planning is Critical Plans may fail • No longer can organizations assume a one for one replacement. • Need to create pools of candidates who are available to fill various positions. • This is important because, more often than not, things don’t go according to plan.

5. Why Strategic Workforce Planning is Critical Multi-generational workforce • A workforce comprised of 3 or 4 generations of workers who: • each value different rewards and work environments, • who communicate differently, • who are motivated differently and • who work differently.

6. Questions for class Multi-generational workforce What implication do you think this multigenerational workforce will have on the various HR functions such as planning, hiring, training, performance management and retention? Give examples of the implications for 1 area using 3 generations. So, for example, how would performance management differ for someone 19-29 vs 30 -39 vs 40-50.

7. Why Strategic Workforce Planning is Critical Employer of choice • How can one organization be the ‘employer of choice’ for such a diverse work force - A work force of the old, young and in between, of the disabled, minorities, and new immigrants? • This will be difficult and will demand an integrated strategic workforce plan.

8. Strategic Workforce Planning is Critical • So having given you a few of the facts and reasons to move forward with a new workforce and succession plan, would it surprise you to learn that according to the New Older Worker Survey prepared by the Society for Human Resource Management discovered that 32% of organizations are doing nothing to prepare for worker shortages • Now that sounds like a great opportunity to get a jump on your competition!

9. The Value of Workforce Planning 1st, workforce planning can address employee needs. • So what? Well, it comes back to being the ‘employer of choice’. • By identifying your employee’s needs, you can use these to create initiatives which motivate your staff toward your organization goals, objectives and mission, while attracting the most qualified persons for the job.

10. The Value of Workforce Planning • 2nd, your organization will save time and money by properly assessing current and future staffing requirements and comparing this with the current and upcoming supply and demand before expansion and growth opportunities arise. • This will help you to identify your recruitment strategy in order to gain a competitive advantage in attracting the ‘best and the brightest’ - Not to mention retention and decreased absenteeism.

11. The Value of Workforce Planning • 3rd, a strategic work force plan will include a budget for employee counselling, mentoring and training which will decrease knowledge loss, add to the value of your corporate culture, thus decreasing turnover etc.

12. The Value of Workforce Planning • 4th, a detailed work force plan will include detailed employee information and statistics, and will be a flexible plan which will allow your organization to make adjustments as market conditions fluctuate. • Gone are the days of the 10 year and 20 year corporate plans. Most organizations are lucky to draft 5 year plans in this technologically advanced global economy.

13. The Value of Workforce Planning • 5th, will be your organizations increased ability to attract and retain ‘choice employees’. • In a labour shortage this is ‘key’ to your organization. • Keeping down retraining costs and maintaining a level of service your customers and stakeholders expect is paramount in attracting funding, gaining top line support, and/or gaining competitive advantage.

14. The Value of Workforce Planning • 6th, having a strategic work force plan containing all of the levels, will increase your corporations ability to attract, hire, and retain the top workers. • This means not only must you target the right group you must also ensure potential hires align with your corporate culture and that your interview strategies are such that you don’t scare off ‘the good ones’.

15. The Value of Workforce Planning • 7th, effective work force and succession planning will decrease positional gaps. In other words, the ‘ship will sail’ more smoothly, decreasing friction increases speed and efficiencies. • 8th, having an effective plan will decrease the impromptu, the popular vote, or other poor promotion decision strategies. This aligns again with #6 above, fit. Fit applies to internal promotion as much as it does to external recruitment.

16. The Value of Workforce Planning • 9th, the 1st phase of workforce planning is to assess where you are as an organization. This will help you to increase stakeholder awareness of mass retirements, and will give you, the HR professional, a place to start working from – a database of valuable information which is key to your organizations future success. • 10th, due to the pending mass worker exodus, there is a heightened level of importance to align workforce planning to the organizations corporate strategy. Thus allowing for realistic forecasting and proactive planning.

17. Class discussion • So, in light of the reasons for and purported benefits of, why do organisations fail to plan?

18. Plan to Prevent Failure • As mentioned above, one of the reasons succession plans and many parts of workforce planning often fail, is that many organizations operate in a somewhat reactive vs. proactive problem solving space.

19. Plan to Prevent Failure • A result of reactive problem solving is a ‘band aid solution’.

20. Plan to Prevent Failure • Another barrier to the success of many workforce planning initiatives is the use of old or slow systems and tools.

21. Plan to Prevent Failure • Other tools which may create barriers to successful workforce planning include old interview techniques which treat interviewees as insignificant.

22. Plan to Prevent Failure • Yet another reason why strategic workforce plans often fail, is a lack of leader support including expressive, funding, and resources.

23. Plan to Prevent Failure • Further to this, many organizations are burdened with budget restraints and misallocate funds, or try to make due with so little funding that they ‘Mickey Mouse’ the project.

24. Plan to Prevent Failure • Unfortunately, many managers think they are saving money by allocating ‘volunteers’ to manage major projects, but in reality, they are costing their organization thousands of dollars.

25. Success factors • Management and stakeholder support is key. With out it, the program will never fully get off the ground and change agents will become frustrated, the corporation will lose time and money, and will not be able to successfully become the ‘employer of choice’. • The full support of the HR department is key. HR must be fully versed in workforce planning and succession planning, must be able to realign current processes and systems to meet new objectives, and must be involved in overall corporate strategic planning. • Workforce planning and all processes and systems must be flexible enough to support current mid term plans as well as changes which will inevitably result in long term planning.

26. Success factors 4. Employee buy-in to the value of work force panning is important. Whilst data is being collected, plans laid and processes revised, employee awareness and involvement will decrease friction and increase the speed and success of changes to be made. 5. Work force plan must align to the strategic plan and within this context, must include a succession plan. Further, corporate policies, systems and processes will need to be modified as necessary to increase the programs success. 6. Data collected, must be accurate and within a flexible system which meets the need of the organization within the budget provided and all those to use the systems are properly trained to use the systems. 7. No plan can be a success with out an effective communication strategy and thus will be discussed in upcoming chapters.

27. Talent Management Model • Hand out

28. Today we discussed... Workforce Planning & Succession Planning Why this planning is critical The value of planning How to prevent failure How to ensure success Model developed by Sheila Allen Next class...deeper into the model