Succession Matters: Effective Succession Management Planning

© 2014 Korn Ferry. ALL RIGHTS RESERVED.

Succession Matters: Effective succession management planning.

March 5, 2015

© 2014 Korn Ferry. ALL RIGHTS RESERVED. 2

Korn Ferry


The Succession Matters global survey.


• Dissatisfaction with the Status Quo.

• Too much talent “bought” not “built.”

• Succession planning does not go deep enough.

Key findings.


How do you get there?


• What kind of leadership talent will you need in the future?

• Which roles are most critical to the success of your company?

• How broad and deep will your succession process go?

Do you know the answers to these questions?


What is the value of succession management?


Despite this, not everyone is good at it…

Identification

of successors Yes Yes Yes

Development

of successors Little or none

Yes

(Top talent pools)

Yes

(All talent pools)

Managerial

levels

Top one or two

Top two or three All levels

Decisions and

analytics

Individual-level analytics to

decide:

• Who is ready right now?

• Is the best talent internal

or external?

Group and Individual

analytics to decide:

• Which leaders should be

successors?

• Are they ready? How do

we develop them?

Enterprise, group, and

individual analytics to decide:

• Where do gaps exist in

talent pools?

• How long will talent gaps

take to fill?

Towards succession management

Replacement planning Succession planning Succession management

Talent

strategy


Successful execution requires high-performing talent and culture aligned to strategy.

Growth strategies.

Growth in new

markets

Mergers &

acquisitions

Innovation

Customer

loyalty

Culture

Talent

Execution. Success.


FOR EXAMPLE

Apply financial acumen.

Drive for results.

Build talent.

Display global perspective.

FOR EXAMPLE

Assertive.

Detail-focused.

Problem-solver.

Innovative/Creative.

Optimistic.

FOR EXAMPLE

Likes managing people and

delegating work.

Willing to relocate.

Enjoys providing strategic

direction.

FOR EXAMPLE

Leadership in complex

organization.

Worked in team, results-oriented,

and structured environment.

Experience in 2-3 functions.

Defining the “whole role” in relation to the “whole person.”


Build vs Buy.


Prioritize the critical roles to address in the succession management process.

Top leaders in an organization are almost always critical roles that drive strategy.

Examples include:

Executive Committee P&L Leaders The Top 100

How are these roles pivotal? This can change depending on the organizations strategy.

Create value for the

organization through

synergies across

business units.

Strategy

Top enterprise

leaders.

Pivotal Role

Enterprise leaders can

collaborate across the

matrix, have a systemic

perspective, and adopt a

global mindset.

How?


Key leadership roles can vary over time because they are dependent on the organization’s strategy.

Key Leadership Roles

Integration Leadership Provide leadership to rapidly integrate new capabilities into

the organization while preserving existing client relationships

and revenue streams.

Strategy

Growth through

mergers and

acquisitions.

Supply Chain Leadership These leaders are responsible for planning and implementing

strategies that will enhance quality and efficiency and drive

cost out of the system.

Strategic cost

management.

R&D Leadership Implement a product innovation plan that will generate new

solutions for the market.

Growth through product

or service innovation.


Depth of succession management.






• Define effective leadership for your company strategy.

• Identify roles that add the most value.

• Determine how broad and deep to go with your succession

process.

Key takeaways.

Any questions?

© 2014 Korn Ferry. ALL RIGHTS RESERVED. 19 © 2014 Korn Ferry. ALL RIGHTS RESERVED.

Recruiting & HR

Succession Matters: Effective Succession Management Planning