November 10, 2004

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Succession Planning

You can save money by planning ahead for the filling of those vacancies.

The Wastewater Authority Board for Bar Screen, Pennsylvania is returning from their associations annual convention.

Shawn, I cant believe the number of papers and topics covered. One was better than the next!

Eric, I agree, but for some reason I cant stop thinking about that succession planning presentation.

Eric begins to reply but is interrupted. This is the captain speaking. Please fasten your seat belts we will be landing soon in bucolic Bar Screen, Pennsylvania.

A week later, Barbara English has just ended her staff meeting and notices an urgent email from the Board Chairman.

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

To: Barbara English, Plant Manager

From: Shawn Keaveny, Board Chairman

Subject: Next Board Meeting Urgent Read Right Away

At our annual conference we learned that:

In five years we could lose 22% of our staff

In ten years we could lose 34% of our staff

Because utilities will be hit harder by the baby boomers, we could have turnover rates of 50%

The amount of knowledge we could lose that isnt documented anywhere could be astronomical

Therefore, our next board meeting will be devoted to nothing but succession planning. We want to know where we are and what we need to do. See you then. Oh see if you can get those French pastries again--they were awesome!

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Shawn Keaveney bangs the gavel to gain the attention of the other board members. We have a very important subject to cover tonight, so we will need your full attention. Our plant manager is here to discuss succession planning. So without further ado, I yield the floor to Barbara. Before you begin, I noticed you brought three of your staff with you. Are they to help with the presentation?

With a slight smile, Barbara responds, In a way.

Since you all have computer screens networked to the mainframe, I thought the best way to update you would be to use PowerPoint. Please look at the summary page. It should be downloading now. I will take each bullet in order.

Succession Planning Bar Screen, Pa.

?Future Organization

?Employee Inventory

?Gaps

?Supply/ Demand

?Feeder Systems

?Track

?Never Done

Future Organization

About three years ago I reviewed our current goals and forecasted what services we would be providing five and ten years into the future. I then modified the organization to align ourselves with my future vision. Shawn, I see you have a question?

Not about the organization chart. I think you are right on the money. But I did want to know what you did with the French pastries.

Barbara helps them solve the missing-pastry puzzle and continues with the second bullet.

Employee Inventory

Now that we have a look at the future, next I reviewed our current staff to see if they would easily fit into the various new responsibilities and if they would be available. In other words, does the staff have the right mixture of skills for our future needs and would the identified staff still be there? I confirmed staff availability by reviewing all retirement projections.

Gaps

Gaps are vacancies in the future organization. Gaps can be filled by growing internal candidates to take on these new responsibilities, hiring directly from the outside, or hiring and growing new staff.

Supply/demand

In order to fill the gaps, we need to prepare existing staff for their new positions and hire new staff to fill the remainder of the gaps. I assessed the job market and determined that there is and will continue to be a labor shortage for the raw talent needed. It was clear that our normal hiring approach would not meet our needs. I developed an approach to supplement our normal practices.

Feeder Systems

To supplement our hiring practices, I developed an outreach program. This program goes after potential candidates well before they are ready for hire. We are working now with schools (grades 8-12, Vo-techs, and the local Community College) and have established coop programs. The students work part-time for the Authority. They learn about us and we learn about them. Upon graduation, we have the option of hiring a ?known quantity.

The feeder system is just not for the procurement of raw talent, but also for the training of new talent and existing staff to ready them for those future vacancies. The training programs are specifically designed for each employee. A large part of the program is accomplished through mentoring. Basically our senior staff (those within two years of retirement) perform this training function. The program calls for our mentors to impart not only supervision/management/leadership skills, but also tacit knowledge. This is knowledge retained by our staff but not well documented. Plant process control procedures are prime examples of tacit knowledge.

Track

Once the plan begins, it is important to watch its progress. Is the training program meeting its intended goal? Are there multiple candidates for important leadership positions? Is the turnover as predicted or higher than expected? Adjustments are made to the program to compensate for the unexpected.

Never Done

I am proud to report that the succession plan is in motion. Although the plan is well underway, my work is not done. Continuous improvement means just that. The plan needs to be re-evaluated and pruned. Nothing is constant. New authority services surface, existing ones increase in their scope and complexity, and human beings (staff and prospective hires) never behave on plan.

Well, that concludes my presentation. Are there any questions?

Barbara, speaking on behalf of the entire board, this is excellent work, but we are still not clear why you brought three of your staffers to this presentation.

Mr. Keaveny, I have a surprise for you. Six months from today I am taking a very early retirement. I have spent the last two years mentoring and growing these three staffers. Over the next six months the board should get to know them and ultimately select one to be my replacement. In my estimation, all three are equally qualified. Nice problem to have, eh?

It was very quiet in Bar Screens board room as members took on the look of deer in the headlights.

Barbara broke the silence, OhIf youre not going to finish the rest of those pastries, would you mind if I bring them back to the plant for the night shift?

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Next time we will cover The Seven Wastes.


 

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