Passing the Baton: What’s So Hard About Succession Planning?

a reprint from StrategyForcusedHR.Blogspot.com

“One of the things I did best was provide a successor. Adam has the respect of the owners and the players, he has expertise in the very important areas of social media, international and television, all of which report to him.”
That was a statement this week from the commissioner of the National Basketball Association, David Stern, in announcing his retirement. Stern steps down on Feb. 1, 2014, 30 years to the day after taking charge of the league, and he will be replaced by Deputy Commissioner Adam Silver.

“I decided that things are in great shape and there’s an organization in place that will ultimately be led by Adam that is totally prepared to take it to the next level,” Stern said.

As the saying goes, “That’s what I am talking about.” I could almost see Stern’s checklist:

• Identify new skill set needed for the future;
• Hire for replacement;
• Groom/Mentor with other needed skills;
• Make the appropriate introductions as needed;
• Work side-by-side as a true partner;
• Announce retirement;
• Pass the baton.

What’s so hard about succession planning?

Aging CHROs - When to Leave!

Do you remember when you first started in HR? You were amazed at people around you that had already spent 20+ years in HR and were thinking of retiring. You never thought you would ever get to that point in your career yet alone that age. 


As we see the workforce aging and Boomers moving out as the new generations take over we have to stop and think" when should I leave". I am sure everyone has asked that question. Look at some of your heroes, Ali,  Howe, Blanda to name a few. They just never got it. They went long past their time to retire. So you have to ask yourself the question again " when should I leave". 


Here are a couple of key things to consider:

• do I have a succession plan in place;
• have I accomplished all that I wanted to 
• am I getting hints from the leadership team
• is my relationship with the CEO changing and he/she is asking my #2 more than asking me?

If you can answer yes to most of these then don't pull an Ali, Blanda, or Howe. Leave the company on a high note and with an accomplishment that the entire company feels the impact. 

Don’t Get Burned Passing the Torch

by Joel Koblenz, December 13, 2011


In the recent Atlanta Journal Constitution article from December 2011, “Don’t Get Burned Passing the Torch,” founding partner of the Koblentz Group, Joel M. Koblentz was quoted extensively on the importance of succession planning as “the” seminal responsibility of corporate boards.


These days, boards of directors at most large companies consider succession planning one of their key tasks, said Joel M. Koblentz, senior partner at the Koblentz Group.  Often, boards now formally monitor CEO’s efforts to develop their potential replacements, as well as candidates for other members of the senior executive team, said Koblentz, whose Atlanta firm advises companies on succession issues and helps them recruit executives and board directors.

“It’s only in the last few years that boards have taken it seriously,” he said. But now, in the wake of numerous financial scandals and corporate missteps over the past decade, company directors are “much more cautious” about vetting a CEO’s hand-picked heir-apparent, he said. They’re also insisting on a wider choice of candidates.

“Because it’s a lengthy process, they’re starting earlier,” said Koblentz. “The best companies are doing it continuously.”

He said it usually takes at least two years to set up a viable succession plan because it takes that long for the current CEO and board of directors to pick candidates, become familiar with their strengths and weaknesses, and rotate them through jobs to broaden their experience.

Smaller companies are at a disadvantage, he added, because often their bench isn’t deep enough to allow such juggling of jobs to groom candidates.

“There are many emerging and midcap companies who struggle with this because the costs are so expensive,” said Koblentz. “But many are concluding that it’s more expensive not to do it.”

Sometimes, however, even the largest companies appear to stumble, either because they didn’t have a good replacement waiting, the board didn’t challenge the CEO’s hand-picked successor, or board members and other players become involved in internal power struggles.

“The process fails when the CEO designates the crown prince and the board just says, ‘OK,’ “ he said.

Even so, there is an advantage to appoint executives who are in the company today.

Koblentz commented that insiders naturally have an advantage over outside hires. “They know the business. They know the culture. They know how the trains run.”

Joel is a good friend and his sage advise is something that a;ll HR executives should listen to and read his blog on www.koblenzgroup.com 

Meet the Boss - Warren Gatland, Coach of Wales National Rugby Team on Success

MeetTheBoss.tv has an exclusive video interview with Warren Gatland, the recently re-signed Head Coach of the Wales National Rugby Club.  The New Zealand-born coach gives an insight to his emphasis on leadership and successful coaching skills for the national side. Gatland explains to MeetTheBoss.tv that the most important way to measure success in any circumstance, is to “over achieve.”  Moreover, he adds that as a coach in Rugby Union, his role as leader is not about dominating and overpowering the team but empowering them and building trust, loyalty and honesty.

Check this video out on http://www.meettheboss.tv/

Succession Management

A common misconception is that succession management is a human resources driven exercise with little impact on the company. Well, the opposite is true. For those companies that do not have a pure succession plan it has a damaging effect on the long-term impact on the companies bottom line. So where does your company stand on this very important issue especially in today's high impact, fast moving environment of business activity and mobility of great talent. Here are the guideposts and where do you stand:

Level 0 - no succession plan. 21% of companies fall into this category

Level 1 - Replacement Planning - companies only focus on senior level management and an A list of potentials is created. 15% operate at this level

Level 2 - Traditional Succession Planning - Talent review are conducted and plans are put in place. 52% of companies operate like this today

Level 3 - Integrated Succession Planning - A company targets all critical positions at all levels and it is tied to business strategy. 12% operate like this today

Level 4 - Transparent Talent Mobility - no companies operate at this level today where companies completely understand the capabilities and potential of their human capital where decisions are made naturally based on business need and the company as a whole.

So where are you in this talent slide? Bersin & Associates have dealt deeply into this subject and the full text is in this months issue of Workforce.