Talent Management - November 2008 - (Page 38)

recruitment & retention assessment & evaluation compensation & beneﬁts performance management learning & development succession planning Lessons in Workforce Planning Execution Mary Ann Downey Succession planning is the execution of one dimension of workforce planning. While not all organizations may consider or align their succession plans with workforce planning, the objectives are the same: to prepare the organization for future talent requirements needed to ensure business success. The Institute for Corporate Productivity (i4cp) recently completed a survey on succession planning practices, and the ﬁndings offer lessons for either process. Articulate the Process’ Purpose Organizations unclear on the “why” or “how the output will be used” run the risk of creating check-the-box succession activity. This is harmful for two reasons. First, it is a waste of valuable resources — consider the value of just one hour of a senior executive’s time and multiply by the number of executives involved and hours spent, not to mention the paper, ink and binders. An organizations’ succession strategy easily can add up to a multimillion-dollar plan. Second, even more damaging than wasted resources is a false sense of security that an organization is prepared if the CFO is suddenly lured to a competitor, the COO suffers a health crisis or the CEO takes a vow of poverty. Align Support Process Once an organization is clear why the plan is important and how senior leaders are expected to use it, the necessary support mechanisms become more obvious. In the i4cp survey, many companies seemed to be chasing best practices such as building the succession plan into compensation and rewards strategy or creating transparency. These are outstanding practices if the purpose of the plan is to support and feed talent management initiatives, but not if this is a board requirement that will be discussed for 30 minutes at a retreat. Communicate Carefully If an organization communicates who is part of the succession or workforce plan, it is essential to be clear with all parties in order to manage expectations. In some organizations, being part of the plan raises unrealistic expectations or can reveal animosity between colleagues. Communications must be crafted with the organization’s culture and historical practices in mind. The person who delivers the communication also can inﬂuence how the message will be received. If an HR or talent management executive delivers a developmental plan to a potential successor to the CEO, it will be received very differently than if the CEO delivers the same message. Communication should be considered integral to the execution and not an afterthought. Measure Outcomes Most organizations acknowledge that succession and workforce plans need to be improved in terms of measuring plan outcomes. Talent leaders also need to know how often the plan is used when opportunities are created or become available. If it becomes a standard practice to ignore the plan when opportunities arise, then the purpose of the process must be re-examined. Organizations that do not follow up with employees in the plan to measure their progress — whether or not opportunities are presented — also risk undermining the plan and creating distrust among high-potential employees. When well-conceived and executed, succession and workforce planning can be valuable decision-making tools to help organizations prepare for their future and ensure success in a challenging business environment. Mary Ann Downey is pillar director for the Institute for Corporate Productivity, a research ﬁrm. She can be reached at editor@talentmgt.com. Figure 4: Important Competencies for Workforce Planners Rank 1 2 3 4 5 6 7 8 9 10 Competency Knowledge of the business planning process Business acumen Analytical skills Natural interest in the underlying business model of companies Personal credibility Influencing skills Knowledge of demand and supply forecasting techniques Communication skills Formulating strategic staffing interventions to address project gap Determining position competencies force planning had run successfully for a few managers, others began to approach HR requesting the process. Today, that HR team has constant demand for workforce planning from throughout the company, with universal acceptance of the process and the value it delivers. As organizations expand workforce planning to include more job roles, workforce 38 November 2008 talent management magazine www.talentmgt.com http://www.talentmgt.com

Table of Contents Feed for the Digital Edition of Talent Management - November 2008

Talent Management - November 2008 Editor’s Letter Contents Human Performance Leading Edge Learning Connections Recruitment & Retention Assessment & Evaluation Compensation & Benefits Performance Management Learning & Development Succession Planning Insight Dashboard Application Advertisers’ Index Editorial Resources Full Potential

Talent Management - November 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.