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The CEO’s Guide To Succession Planning – Managing Risk & Ensuring Business Continuity

Introduction

Once reserved for the upper echelons of senior management, and often viewed as replacement planning should catastrophe strike, today’s succession planning is being redefined. The discipline has broadened in both breadth and scope to become a central component of board-level strategy.

Succession planning focuses on managing risk and ensuring continuity across all levels of the organization – risk of untimely departures of critical personnel, risk of retirees taking their skills and knowledge with them and leaving nothing behind, and risk of losing high value employees to competitors. It does so by helping your business leaders to identify top performers within the organization, create dynamic “talent pools” of this critical talent that other leaders can leverage, and prepare and develop these high performing employees for future roles.

If this was easy, everyone would be doing it. The problem that exists today is that succession planning is barely automated, let alone optimized. This CEO guide provides five key tips for jump starting your succession planning efforts.

1. Automate and Reduce Costs

Today’s succession planning efforts are characterized by fragmented, inconsistent, paper-based processes. Indeed, 67% of companies are still primarily paper-based, according to a global survey conducted by SumTotal.

Conventionally, business and HR leaders will spend weeks or even months manually scouring different parts of the organization for information needed to build lists and pools of nominees and successors for specific job families or positions. The information required to generate the lists often includes self assessments, past performance appraisals (often paper-based), and 360 feedback. After a lengthy period of information gathering and aggregation followed by manual analysis (e.g., nine-box, gap analysis), the results are printed and collated into large three-ring binders for use in executive planning meetings. This time-consuming, inefficient, and costly process is still commonplace today.

To effectively transform succession planning from a manual, paper-based process to one that is systematic and technology-enabled, CEOs must focus on laying a solid foundation supported by strong executive leadership.

Program & Process Foundation

Establish dedicated management function (e.g., program management office) with CEO-sponsored executive leader or council (with senior representation from line-of-business, geography, and corporate HR)
Define core succession process along with key constituents and tasks at each step of the process; Clearly articulate touch points to other business processes (e.g., performance management, career development)
Understand implications of change with emphasis on managers & employees
Align program with broader business strategy
Determine initial scope (e.g., enterprise-wide, divisional)
Define processes independent of technology

Technology Foundation

Must support and enable key processes
Must integrate learning and development
Must link seamlessly to other business processes, especially performance management
Must be flexible and configurable to meet unique needs
Must centralize and consolidate key information and data
Must be easy for managers and employees to use

2. Drive Succession Planning Deeper into Your Organization

Many CEOs still view succession planning as replacement planning to designate successors in the event of a catastrophe befalling senior company leaders. Indeed, succession planning penetrates only the highest levels of the organizational hierarchy, according to survey data. Only 35% of companies currently focus their succession planning efforts on most critical roles within the organization.

Yet a most dramatic transformation is underway: 65% of the organizations surveyed plan to extend succession planning to all critical positions within the two years. Applying succession planning beyond the top layers of management is critical to retaining high performers across all levels of the organization and mitigating the risk of untimely departures of personnel in high-value positions.

The key to extending succession planning into the organization is to provide career development planning to employees. Indeed, fully 97% of business and HR leaders believe that a systematic career development process positively impacts employee retention and engagement. These leaders also believe that providing career advancement opportunities as well as dedicated development planning to employees are the two most important mechanisms for retaining high performers.

Retaining existing employees not only has the potential to minimize the effects of talent shortages, it also provides significant and tangible cost savings (since replacement costs range from 100%-150% of the salary for a departing employee).

3. Establish Dynamic Talent Pools to Improve Pipeline Visibility

Centralized talent pools provide CEOs with global visibility into their talent pipeline and overall organization bench strength. They provide a mechanism for ensuring that the organization’s future staffing plans are adequate, thereby reducing risk and ensuring continuity. To be truly effective, talent pools need to be dynamic in nature. For instance, if an employee is terminated, that person should be automatically removed from existing successor pools. Alternatively, if an employee closes a key skill or certification gap that had previously kept her from being considered as a successor, the pool should be updated appropriately. Talent pools that are inaccessible or not up-to-date are of little use to decision makers.

A key element of making talent pools accessible is in-depth searching for talent exploration. A talent pool is not much good if managers cannot easily view, track, update, and search for potential successors. Dynamic talent pools should take the guess work out of succession planning by aligning employee assessments, competencies, development plans, and learning programs. Proactive system monitoring ensures that as employees learn and grow, talent pools are dynamically updated to reflect the changes. It is this element in particular – supported by robust reporting and analytic capabilities – that helps CEOs make more objective staffing decisions and better plan for future staffing needs.

4. Promote Talent Mobility to Retain High Performers

Industry analyst firm Bersin & Associates defines talent mobility as “a dynamic internal process for moving talent from role to role – at the leadership, professional and operational levels.” The company further states that “the ability to move talent to where it is needed and by when it is needed will be essential for building an adaptable and enduring organization.”[1]

Talent mobility is:

A business strategy that facilitates organizational agility and flexibility
A mechanism for acquiring and retaining high performing and potential talent
A recruiting philosophy that favors internal sourcing over costly external hiring
A method for aligning organizational and individual needs through development
A proactive and ongoing approach to succession planning rather than a reactive approach

A systematic talent mobility strategy enables business leaders to more effectively acquire, align, develop, engage, and retain high performing talent by implementing a consistent, repeatable, and global process for talent rotation. Without a cohesive talent mobility strategy, CEOs face several risks:

Focus on costly external recruiting vs. internal sourcing
Wrong hires (cost can be 3-5x person’s salary)
Increased high performer churn
Reduced employee engagement
Reduced flexibility as business conditions change

CEOs should consider the following integrated processes – and a complete technology platform to support them – to promote and enable talent mobility:

Current workforce analysis:Includes detailed talent profiles, employee summaries, organization charts, competencies, and job profiles.
Talent needs assessment: Assess employees on key areas of leadership potential, job performance, and risk of leaving.
Future needs analysis:Development-centric succession planning to create and manage dynamic, fully-populated talent pools.

5. Integrate Succession Planning to Broader Business Processes

Succession planning is not a silo. It implicitly relies on other talent processes and data, especially assessments that provide a performance and competency baseline. Yet unlike a performance management process, which can be executed in a relatively self-contained fashion (assuming it has access to core employee data), the same is not true for succession planning.

Succession planning requires foundational data (e.g., competencies, job profiles, talent profiles, and employee records) and inputs (e.g., appraisals, feedback). Outputs include nominee pools, successor pools, development/learning plans, and reports. To facilitate the level of integration required to get succession planning right, a single, natively-integrated technology platform that centralizes key talent processes and information is required. With this single platform, the time to develop succession plans can easily be reduced from weeks or months to mere hours. The benefits can be significant: reduce costs, reallocate personnel from tactical activities to more strategic endeavors, and mitigate the risk of untimely departures of essential personnel.

Additionally, a single technology platform promotes the linkage of learning and career development to succession planning. By bridging these processes, nominees who are not ready for advancement can be assigned detailed development plans that guide them to improve the competencies and skills required for new job positions. Learning paths and specific courses can be established for employees to facilitate their career growth. By providing learning opportunities and development plans to employees, CEOs can take a more active role in promoting employee growth, retention, and engagement.

Finally, with a single system of record, reporting and analysis is vastly improved, since all relevant talent data resides within a single data structure. Strategic cross-functional metrics can be readily established (e.g., measure the impact of learning and development programs on performance). Reporting and analysis are key to the CEO’s success in managing employee resources and implementing strategies that support corporate objectives and initiatives.

Conclusion

Organizations can realize significant efficiency gains and cost savings by moving from a manual, paper-based succession process to one that is fully technology-enabled. The shift to a single technology platform facilitates extending succession planning deeper into the organization, since a well-architected solution seamlessly links succession to career development and learning. A complete platform improves senior management’s global visibility into the talent pipeline and bench strength, and promoting talent mobility to retain high performers becomes a viable engagement strategy. Succession planning, done correctly, is all about process and supporting technology integration. Without integration, succession planning becomes just another organizational silo.

Endnotes

[1]Lamoureux, Kim. “Talent Mobility: A New Standard of Endurance.” Bersin & Associates, November 30, 2009.

A Twenty First Century Christian Review of Napoleon Hill’s "Think & Grow Rich" Part One

Introduction:

In this article I will cover the biblical admonitions regarding the obtaining of wealth, a brief biological sketch of Napoleon Hill, followed by a survey of his ideas on business success. The reader will be amazed at some of Hill’s brilliant and at the same time common sense ideas of obtaining wealth. This section will focus on the positive contribution Hill made. Part two (separate article) I will cover the negative and out right dangers in Hill’s philosophy of success.

To begin this review, I would be negligent as a Christian not to mention the Biblical admonitions against the “deceitfulness of riches” Matt. 13:22 and our Lord’s warning that “you cannot serve God and Mammon” Luke 16:13. As Christians we are instructed to “seek first the Kingdom of God” Matt. 6:33. In case there is any confusion at this point I do not equate money as being evil. The distinction I see is stated by the apostle Paul when he tells us that “For the Love of Money is the root of all evil” 1st Tim 6:10.

If the reader is to take anything away from this review, it should be how to approach the topic of gaining wealth and success and excellence in business by being fully aware of the personal motives behind this desire. Have you been influenced by the ways of this world? Consider this: “For what shall it profit a man, if he shall gain the whole world and lose his soul?” Mark 8:36.

As Christians we should desire success and excellence in our endeavors not only to be a witness for Christ but also to bring glory to God. The Bible gives us instructions on life if followed will not lead to poverty. Negatively, we are neither to be a “sluggard” Prov. 20:4 nor “to love sleep” Prov. 20:13. Positively: “…diligent hands bring wealth” Prov. 10:4 “The plans of the diligent lead to profit…” Prov. 21:5. And finally, from Prov. 31:10-31; is the praise given to the noble or virtuous woman.

To begin this review, let me state up front that I see some positive guidelines for achieving success and excellence in business in Napoleon Hill’s book. Conversely, there are sections and material in Hill’s book that are antithetical to Christian beliefs and practice that the reader should be aware of. First I will offer the briefest biographical sketch and then a survey of some of the positive material in the book. In the concluding section I will point out some of the Biblically speaking problematic areas of Hill’s theories. This review is limited to Hill’s book “Think & Grow Rich” and not to his work in future years, although I will comment on it.

Napoleon Hill was born on Oct. 26th, 1883 and died Nov. 8th 1970. Hill is best known as the author of one of the best selling books of all time called “Think & Grow Rich.” Napoleon Hill is the father of what can be described as personal success or motivational literature. Hill’s biographer, Michael J. Ritt, Jr., tells us that he was born in poverty in a one-room cabin in the town of Pound, Virginia, a rural area. At the age of 13, he began writing for small town newspapers. He used his earnings as a reporter to enter law school, but had to drop out for monetary reasons.

The turning point in his career happened with his assignment, to write a series of articles about famous men and to interview the wealthy industrialist Andrew Carnegie. Hill learned that Carnegie believed the process of success could be explained in a simple formula that could be learned and put into practice by the average person. Carnegie was impressed with Hill and subsequently commissioned him and provided him with letters of reference so that he could interview over 500 successful men and women to discover and publish this formula for success. This project went on for 20 years and culminated in Hill becoming an advisor to Carnegie and the publication of “Think & Grow Rich.” The knowledge obtained from the interviews with the leaders of industry is where you find the value of Hill’s book.

It is amazing on how many of Hill’s ideas are used as quotes for practical encouragement. Some of the more common quotations of Napoleon Hill are:

o Think and grow rich

o Desire is the starting point of all achievement, not a hope, not a wish, but a keen pulsating desire which transcends everything

o Your big opportunity may be right where you are now

o If you cannot do great things, do small things in a great way

o A goal is a dream with a deadline

o Lack of loyalty is one of the major causes of failure in every walk in life

o Perseverance: The majority of men meet with failure because of their lack of persistence in creating new plans to take the place of those that fail

o Every adversity carries with it the seed of an equivalent or greater benefit

o Thoughts mixed with definiteness of purpose, persistence, and burning desires are powerful things

o The majority of men meet with failure because of their lack of persistence in creating new plans to take the place of those which fail

o First comes thought; then organization of that thought, into ideas and plans; then transformation of those plans into reality. The beginning, as you will observe, is in your imagination

o If you’re not learning while you’re earning, you’re cheating yourself out of the better portion of your compensation

o It is literally true that you can succeed best and quickest by helping others to succeed

We find that much of Hill’s book is an analysis of the capitalist system in America and how it works. Hill believed that he had discovered a principle that allows the regular every day people to achieve success. Hill called his success teachings “The Philosophy of Achievement” and he considered freedom, democracy and capitalism, to be important causative factors in his discovery. Hill’s ideas would not work in a Marxist or a centralized planned economy because the tyrannical regulation and taxation would destroy anyone’s ability to strive for success since the fruits of success would be given to others who would squander it, since it had no intrinsic value to them. Hill believed in personal honesty and in not cheating your fellow man or employees. The cheat or dishonest person would eventually be seen for what he is. A leader has to be one of moral and ethical integrity.

Hill believed that you achieve success by doing superior quality work, treating your customers as number one at all times and how anyone can become successful if they overcome their personal shortcomings. Hill also incorporates a lot of good, practical business advice like finding new opportunities created by what we would call today as disruptive technologies. Also key according to Hill, is having a written business plan and not deviating from it, along with not being afraid to make mistakes as long as you grow and learn from the mistakes. If you find your strategy to be in error you must be able to reformulate your plans. Hill believed that most people never succeed simply because a lack of ambition or self discipline. Relating to discipline, Hill said: “If you do not conquer self, you will be conquered by self.” Today there is a course on business success called Personal Mastery which is influenced by Hill’s research.

The beginning of Hill’s philosophy began first with a thought, hence the title “Think & Grow Rich.” First you formulate a plan mentally. It involves desire, belief and passion, (absolutely essential for success) auto-suggestion (a controversial area of his research) obtaining specialized knowledge, (very helpful) using the imagination, (portions of this are very controversial) organized planning, (very helpful) decision making, persistence, the master mind group, (portions of this section is very helpful) the last three areas transmutation, the subconscious mind and finally the brain are also quite controversial and unproven. One thing is certain; ideas most certainly do have consequences. In this respect, business success beginning first with an idea cannot be questioned.

As said, there are many positive ideas in “Think & Grow Rich” such as organized planning, and finding a group of people who think like you, and then turning those plans into reality. Hill was a believer in the fact that all successful people were successful because they are able to find like minded people who think as they do and who could be recruited into a business venture with them. Then their abilities, talents and passion could be utilized for benefit of the business venture. Hill is basically saying: “don’t hang around with people who don’t think like you do.” Stay away from negative people since their negativity will affect you. Our parents were correct in warning us against hanging around with the wrong crowd.

Hill’s business success ideas focused on goal setting and making sure that decisions are carried through with consistency. In the area of responsibility, it means that you are responsible for your own outcomes, and it is important that failures are not something to fixate on. Everyone has failures, and we should learn from them, including figuring out what caused them to happen. Most failures involve a breakdown of vision, or a failure to plan to take advantage of a new situation that may have arisen. An individual that is focused on success should not fixate on failure. We can learn from mistakes and grow. Mistakes can be turned into successes.

Hill’s ideas on leadership are well thought out. His eleven points on the attributes of leadership are excellent and exactly the traits you would hope any business leader would have. Likewise, the ten major causes in failure of leadership are also very perceptive. His 31 major causes of failure are points that are surprisingly accurate reasons for every person who tries and fails in business. His 28 questions for self analysis are helpful to avoid self-deception. However his teaching on transmutation of sexual energy has probably offended or shocked many as sounding sexist. It is accurate according to Hill that sexual energy can be turned into creative energy and not simply wasted in vain physical affairs. It is also accurate to acknowledge that behind every great man one usually finds a great woman.

Some of the many positive things that can be learned from “Think & Grow Rich” can be summarized by citing several of his ideas relevant to business, such as “Failing to plan is planning to fail,” “Perseverance: The majority of men meet with failure because of their lack of persistence in creating new plans to take the place of those that fail,” “A quitter never wins, and a winner never quits,” “It is literally true that you can succeed best and quickest by helping others to succeed” and “The man who does more than he is paid for will soon be paid for more than he does.” Hill’s philosophy of success was grounded in the real world to a large extent as can be seen by his statement that: “Riches do not respond to wishes. They respond only to definite plans, backed by definite desires, through constant persistence,” and “Great achievement is usually born of great sacrifice, and is never the result of selfishness.”

As the reader works their way through the book, they will see that much of Hill’s work boils down to setting goals, and making sure that important decisions are acted upon thus insuring your success. Hill is saying that you must put your plans into action. Hill was a believer that a group of people on the same wave-length and positively focused is substantially greater than a group of disorganized individuals. Of all the successful leaders Hill interviewed, all of them attributed their success to being able to see opportunities, and most importantly, in finding people who can be delegated to help achieve success. It is not enough to work hard, one must also find like minded people, and inspire them to work hard as a team on getting things done.

This idea of recruiting and inspiring individuals so that they be delegated various responsibilities reminds me of what J. Paul Getty once wrote, “I would much rather receive 1% of the efforts of 100 men than 100% of my own.” Much of the material in Hill’s book has been tremendously helpful for those individuals involved with network marketing. To illustrate this Hill said: “It is literally true that you can succeed best and quickest by helping others to succeed.” Those involved in the Network Marketing industry will understand appreciate this concept.

Hill tried to systematize steps to become successful in this book and to a large degree he was successful if one confines his work to the real world or common sense ideas. In my next article I will look at some of the dangers in Hill’s work. Stay tuned!

How To Enter The Realms Of Entrepreneurship & Start Your Own Business

If you have been thinking of starting your own business but with a little information on how to make the first step, then, you have to take the following into great consideration.

1. Decide what type of business you want to put up. You may ask to some of your successful friends what is a good type of business. Well, they might suggest some, but the right answer is in you. Deciding what type of business you would put up means reflecting deeply the things you want to do and things you are good at. Look ahead and ask yourself these questions: Am I willing to do this business everyday for years? What do I love to do? What are the things that are both profitable, at the same time, things that I find enjoyable? These questions will lead you to specific type of business you want to put up. Take your time.

2. Do research. Once you have determined a particular type of business you want to put up, study its profitability. You simply don’t put up a business you love, don’t you? You still have to think if the business will click. Feasibility study would do the job. In other words, study if the business you are trying to put up will return to you the investment you have given. In here, you have to decide where to put up your business. Remember that a certain type of business would hit big time in one place but not on the other, so make sure that the place you will choose will give you good sales once you have opened.

3. Decide on the name. Create a name that is snappy; the name that will put every element of your business in a nutshell. A name may or may not be short as long as it distinguishable.

4. Decide on the form of business. Form of business means that you will have to choose between, incorporation, partnership, and sole proprietorship. Know the difference between the 3 and what are their advantages and disadvantages to you.

5. The registration. Most businesses must be registered and there are processes to follow. You need to reserve for the business name and registering your business. One state might have different business registration procedure from another. Check the information on the website of your state.

6. Get the license and business number. Register for the PST and the GST/HST. All these must be accomplished before you can operate your business. Again, you may want to check on the whole procedure of starting a business on your state.

7. Get you employees ready. Having an employee helping you will certainly give additional boost on your business. It may be the last thing you would think on the early stage of business but it is nice to know that when you have an employee, you know there is someone who can assist you as you go along the way.

8. Get business insurance. A support net would come in handy once you fall from the sky. Research on the types of business insurances that you can get.

9. Get started. Give a good start and keep your name clean. You may want to study more on the principles of entrepreneurship as you go along.

Although all these may sound easy or awfully hard task, you still need to understand how the business world works. Yes, having read this would not mean that you would instantly become a tycoon. These are only your initial steps; somewhat the basic information you need to know when you decide to start a business of your own. To become a successful entrepreneur, you need to dedicate you whole heart and soul to the business you love. Before you know it, you are a growing businessman.

Once you have started, never disregard the chance of failure. And this should not demoralize you. It is just the part of the game. Learn how to adapt to the business and charge all your failures to experience. You will learn as you go along. Successful people never give up. Remember, always head forward but have time to look back, learn from the past and seek out new information to improve your results.

Get started now at: http://www.BusinessGrowthGuru.com where you can claim your FREE copy of Aaron Parsons Best New Book “How To Make A Million Dollars In Your Business In The Next 3 Years Or Less”

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Commitment & Determination – What Makes You an Entrepreneur

What makes you an entrepreneur?; this question is simple but very difficult to answer. For a long time, people have studied the science behind entrepreneurial process, what drives a great entrepreneur, the things that make an ordinary person transforms into a job creator.

To answer this question, it’s much better if we try to understand what’s behind entrepreneurial process. At the heart of every entrepreneurial process is the founder, the opportunity seeker, the creator and initiator, the leader, problem solver, and motivator; the planner and the guardian of vision and mission. Without this human energy, behavior, drive, and vitality, the greatest ideas-even when they are backed by an overabundance of resources and people-will fail, grossly underperform, or simply never get off the ground. Brilliant athletic aptitude and potential is not equal with the great athlete. The difference is invisible and intangible: commitment, tenacity and determination.

Commitment and determination are seen as more important than any other factor that inspiring an entrepreneur. It makes an entrepreneur can overcome incredible obstacles and also compensate enormously for other weaknesses. Almost without any exception, entrepreneurs live under extreme, constant pressure (when they start their business, for them to stay alive, and for them to grow). A new business requires top priority of entrepreneur’s time, emotion, patient, and loyalty. The level of entrepreneur’s commitment can be measured in several ways: through a willingness to invest a substantial portion of his or her net worth in the venture, through a willingness to take a cut in pay because he or she will own a major piece of venture, and through the other big sacrifices in lifestyle and family circumstances. Clearly, commitment and determination usually demand personal sacrifice.

What you should keep in mind is that the desire to win never equal to the will to never give up. And this is actually a critical distinction. So many lead entrepreneurs say that they really want to win, but only few have the dogged tenacity and unflinching perseverance to make it happen. Just take an example of a young entrepreneur who made several phone call but none were returned. He made a few more calls but still, no response. Over the next week he made yet another series of calls that once again received no response. At that point, what would you do? Would you keep trying, or decide to move on and not waste any more time? Only you can answer this question, and the answer will gives a clear picture of your persistence’s level.

Entrepreneurs who successfully build new business seek to overcome hurdles, solve problems, and complete the job. They are disciplined, tenacious, and persistent. They are able to commit and recommit quickly. They love to win and love to compete at anything. However, if tasks are unsolvable, an entrepreneur will be the first person to give up than the others. There is a fair opinion says that while entrepreneurs are extremely persistent, they are also realistic in recognizing what they can and can’t. They know where they can get help to solve a very difficult but necessary task.