The best practices in succession planning begin with great strategic planning. It is best when linked with review of operations, sales, marketing, finance and Research and Development. We illustrate how to incorporate well defined processes in staffing planning, retirement estimates; 360 feedback, performance planning and management, compensation review; individual training and development plans and affirmative action plans. Some sections are openly shared while others, such as our high potentials ranking are highly confidential. Interdivisional and regional sharing of talent is essential. Lateral moves are frequent to departments that are not well known to the incumbent prior to promotion.

1. Succession Planning
for Continuous
Human Capital Improvement
ASQ Buffalo Conference 2012.10.24
Brian R. Pettit

2. McKinsey 7S Framework
Structure Strategy
Systems Shared Values Style
Skills Staff

3. McKinsey 7S Definitions
1. Strategy: A coherent set of actions aimed at gaining a
sustainable advantage over competition, improving
position vis-à-vis customers, or allocating resources.
2. Structure: The organization chart and accompanying
baggage that show who reports to whom and how tasks
are both divided up and integrated.
3. Systems: The processes and flows that show how an
organization gets things done from day to day (information
systems, capital budgeting systems, and performance
measurement systems would be good examples).
4. Style: Tangible evidence of what management considers
important by the way it collectively spends time and
attention and uses symbolic behavior. It is not what
management says is important, it is the way management
behaves.

4. McKinsey 7S Definitions
5. Staff: The people in an organization. Here it is very useful
to think not about individual personalities but about
corporate demographics.
6. Shared Values (or superordinate goals): The values that
go beyond, but might well include, simple goal statements
in determining corporate destiny. To fit the concept, these
values must be shared by most people in the organization.
7. Skills: A derivative of the rest. Skills are those capabilities
that are possessed by an organization as a whole as
opposed to the people in it. (The concept of corporate
skill as something different from the summation of of the
people in it seems difficult for many to grasp; however,
some organizations that hire only the best and brightest
cannot get seemingly simple things done where others
perform extraordinary feats with ordinary people.)

5. McKinsey 7S Checklist
Strategy Does the strategy support either a competitive advantage or improve
our position with customers?
Structure Does the organization and divisions of labor support accomplishment of
the strategy?
Systems What processes, measurements and/or information improvements are
needed to make strategy execution straightforward?
Style Are the reviews, questions, rewards and recognition offered by local
management in alignment with achievement of the strategy?
Staff Are we populating or do we have the right overall proportions of specific
skill sets or functions or diversity needed to have the strategy succeed?
Shared Values Is the strategy consistent with one or more of the organization Strategic
Imperatives? Is there anything inconsistent about the strategy and
corporate values?
Skills Do all the above end up providing the organization with capabilities
others may have difficulty emulating?
Can we succeed where others can’t? Why?

6. Global Talent &
Organization Review
(GT&OR)
Board Overview

7. Key Topics
• Talent Management: The Call for Action
• Global Talent & Organization Review
• Strategic Elements and their Linkages
• Timeline

8. Why Focus on Global Leadership Talent?
The time to act is now. Market factors constraining supply and demand will
only accentuate Our Company leadership supply issues going forward.
100%
100% “In 15 years, there will be 15% fewer Americans in the
85%
35- to 45-year-old range than there are now. At the
same time the U.S. economy is likely to grow at 3-4%
Supply of per year … That sets the stage for a talent war.”
Supply and Demand of Qualified
50%
Leaders
U.S. Leaders (Today = 100%)
0%
“Capital is accessible for good ideas and good projects.
Strategies are transparent; even if you’ve got a smart
strategy, others simply copy it. And the half-life of
Demand technology is growing shorter all the time … In that
(50%) for
Leaders kind of environment, all that matters is talent.”
- Ed Michaels, McKinsey & Co.,
(100%)
(100%) author, The War for Talent
(125%)
(150%) Market-driven
Today 15 Years Forward
leadership
gap

9. Components of the Gap
Compounding the external constraints on leadership talent are potential
gaps between Our Company’s internal needs and resources.
Our Company
Our Company
Leadership Gap
Leadership Gap
Depth Gap
Depth Gap Skills Gap
Skills Gap
Short Term • Open critical positions • “Rapid science and
Drivers: • Short-term Company growth technology evolution
• (skill gaps)
Potential removal of
substandard performers
Long Term • Long-term Company growth • Instituting performance
Drivers: (20%) management mentality
• Employees eligible for • Changing business perspectives
retirement that lead to different talent (skill
• Market constraints set) requirements

10. Leadership Depth
Growth could create significant leadership strains within Our Company
1000
Present Leadership
Leadership Bench Strength (Numbers)
732
150
15
Management Leadership Executive
Leader
897 leaders from Manager to Executive Leader

11. Developing Leaders: Effectiveness of Interventions
Developmental Individual Feedback/Coaching Executive Education
assignments (#1 impact*) (#2 impact*) (#3 impact*)
Effectiveness of implementation: rated “excellent” or “very good”
80
Response from executives in 50 large US companies (McKinsey study)
70
Special Developmental
60
projects jobs
Speed of job
50 moves
Assessment-based
Role
Traditional Performance Feedback on
models
40 external Evaluation strengths &
360-degree
training weaknesses
feedback
30 Traditional internal Informal
training Individual coaching and
learning Mentoring
feedback from
20 (career path boss
Nontraditiona advice)
l learning
10 programs
(%)
0 0 10 20 30 40 50 60 70 80
90
Importance to self-development: rated “absolutely essential” or “very important” (%)
*Reference: For Your Improvement by Mike Lombardo & Robert Eichinger

12. What is the Global Talent &
A Process that:
Organization Review?
Aligns human capital with business objectives resulting in
focused organization development and greater effectiveness
Matches appropriate talent to organization structure to achieve
results
Evaluates the strengths and developmental needs of:
– the current organization, and
– its leaders and potential leaders
Includes:
• Results in human capital action plans to position the
organization for greater success in the future Compensation
Global Talent & Review
Performance Linked Linked
360 feedback Linked Organization
Management Training &
Review Meetings Development
Integrated Talent Management that Aligns Human Capital to Achieve
Organizational Results

13. How does Our Company benefit?
For People who Lead
Allows for more accurate decision-making around employee promotion,
placement, development, reward and recognition of top talent
Creates a succession plan for leadership roles
Assesses key individuals according to results, behaviors and potential
Evaluates succession depth across global sites, functions, and businesses
Measures leadership retention and execution of leadership action plans
For Our Company:
Builds an high performing workforce necessary to achieve our strategic
imperatives
Facilitates the selection of the right leaders for growing/acquiring new
and existing business
Creates a performance culture of continuous human capital improvement
Provides opportunity for “cross-pollination” of leaders between
functions/segments/international locations
Build Leadership Bench to drive Performance & Innovation in Science,
Technology and Biological Understanding

14. Global Talent & Organization Review
For Performance and Innovation
ABC Region, Division, Local Facility

15. Strategic Organization
Overview
• Last year Re-cap
• Current Year Strategic Priorities
• Organization Structure
• Systems & Processes
• Performance Capability
• Organization Culture

16. Last Year Re-cap
Accomplishments Opportunities
• % of Sales • Six sigma look at
• % Growth ABC Process
• Key new hires • Need higher
• Key promotions efficiency in XYZ
Takeaway Box

17. Strategic Priorities/HR Implications
New Year Strategic Priorities/GT&OR Implications
OVERALL BUSINESS STRATEGIES/ GT&OR IMPLICATIONS
OBJECTIVES
Takeaway Box

18. Organization Structure
Position Title
Location
Position Title Position Title Position Title Position Title Position Title Position Title
Location Location Location Location Location Location
Position Title Position Title Position Title Position Title Position Title Position Title
Location Location Location Location Location Location
Position Title Position Title Position Title Position Title Position Title Position Title
Location Location Location Location Location Location
Key Changes
•
•
•
Takeaway Box

19. Organization Structure:
Management Layers & Spans
Management Layers Span of Control
Number of Number of Direct Reports Months in
Title Incumbents Average Range (min-max) Position (Avg)
President (#) (#) (#-#) (#)
Vice (#-#) (#)
President (#) (#)
Director (#) (#) (#-#) (#)
Manager (#) (#) (#-#) (#)
c
Team (#)
Leader (#) (#) (#-#)
Individual (#)
Contributor (#) (#) (#-#)
Strengths Weaknesses Go Forward Actions
• • •
• • •
• • •
Takeaway Box

20. Systems & Processes
Process Key Processes Current Assessment Identified Gaps
Effectiveness
Factors New Account Funnel Marketing Customer
Product Mgmt / Mgmt (Sales Service
Intro Team Support) Fulfillment
Sales
a) World-Class • •
Design -- Is the
process a
benchmark for
other companies?
b) Integrated - Is the • •
process aligned
with other relevant
functions?
c) Metrics – Can the • •
process be
tracked &
measured?
d) Systems Capable • •
– Is the process
digitized?
e) User-Friendly – Is • •
the process simple
and intuitive to
use?
Process Improvement Required:
= Total overhaul
= Moderate improvements
= Minimal improvements
Takeaway Box

21. Performance Capability
Sales
Sales Marketing
Marketing
T
T Expert Anderson, Lori
E Expert Anderson, Lori
Ball, Beth
C Ball, Beth E
Smith, Henry
H Smith, Henry C White, Dave
N White, Dave H
I N
C I
A Intermediate C
Averi, Lisa
L . Averi, Lisa A Intermediate .
Bulkley, Abe
Bulkley, Abe L Smith, Lori
Smith, Lori
Black, Mike
Black, Mike S
S T
T R
R Basic E
N Basic
E
N G Brown, John
G T House, Mary
T H Jones, Steve
H
Basic Consultative Strategic Executive
Limited Basic Advanced
SALES STRENGTH
MARKETING STRENGTH
Degree Legend
Phd = Red
MS = Blue
MBA = Bold
Takeaway Box

22. Performance Capability (cont’d)
Business Acumen
Business Acumen Service
Service
T Expert Anderson, Lori
T Expert Anderson, Lori
Ball, Beth
E Ball, Beth
Smith, Henry E
C White, Dave Smith, Henry
C White, Dave
H
H
N
N
I
I
C
Averi, Lisa C
A Intermediate Averi, Lisa
.
Bulkley, Abe A Immediate
L Smith, Lori Bulkley, Abe
.
L Smith, Lori
Black, Mike
S Black, Mike
S
T
T
R
R
E
Basic E
N Basic
Brown, John N
G
G Brown, John
T House, Mary
T House, Mary
H Jones, Steve H Jones, Steve
Limited Basic Sophisticated
Basic Functional Expert
BUSINESS ACUMENT
SERVICE STRENGTH
STRENGTH
Degree Legend
Phd = Red
MS = Blue
MBA = Bold
Takeaway Box

23. Organization Culture
Culture
Global Regional Site
Dimensions
Identity – Employees identify
with the company as a whole
rather than specific work group or
L  H L  H L  H
field of expertise
Direction – Organization
creates clear objectives and
performance expectations
L  H L  H L  H
Control – Number of rules
and regulations and amount of
direct supervision used to
L  H L  H L  H
oversee and control employees
Communication
Patterns – Organization
communication is restricted to
L  H L  H L  H
formal hierarchy of authority
Integration – Units are
encouraged to operate in a
coordinated manner
L  H L  H L  H
•
•
Observations
•
•
23
Takeaway Box

24. Organization Chart
Promotability Legend Results Rating Behavior Rating
* = High Potential O = Outstanding % 4 = Role Model %
Avg. Time in Position (in mo.) ___ + = Promotable V = Achiever % 3 = Very Effective %
Avg. Length of Service (in mo.) ___ = = Grow in Position
Position P = Performer % 2 = Effective %
Males ___ Minority Name - = Placement Issue
P-3 I = Improve. Required % 1 = Improve. Required %
Females ___ ? = Too New
= Months in Position:
Length of Service Date:
Position Position Position Position Position Position
V-3 Name O-3 I-1 O-2 P-2 P-2
Name Name Name Name Name
+ Months in Position: * Months in Position: - Months in Position: + Months in Position: = Months in Position: = Months in Position:
Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date:
V-2 Position P-2 Position Position Position Position Position
Name
P-3 I-2 O-4 P-2
Name Name Name Name Name
* Months in Position: ? Months in Position:
+ Months in Position: = Months in Position: + Months in Position: ? Months in Position:
Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date:
Position
I-1 Position P-2 Position O-2 Position I-1 Position P-2 Position v-3 Name
Name Name Name Name Name
- Months in Position: ? Months in Position: + Months in Position: - Months in Position: = Months in Position: + Months in Position:
Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date:
Takeaway Box
24

25. 9 Block Talent Summary
Anderson, Lori * Promotability Legend
Outstanding
Ball, Beth + * = High Potential
+ = Promotable
Smith, Henry ?
= = Grow in Position
White, Dave + - = Placement Issue
? = Too New
Averi, Lisa =
R .
Bulkley, Abe +
E Performer/
Achiever Smith, Lori ?
S Black, Mike =
U
L
T
S
Improvement Brown, John -
Required House, Mary =
Jones, Steve -
Improvement Required Effective/Very Effective Role Model
BEHAVIOR
25
Takeaway Box

26. Leadership Development
• Improvement Required – Planned Actions
• High Potential/Promotable Vitality – Planned Actions
• Critical Contributors – Any Career Band
• Succession Depth – Top Positions
• Current & Future Talent Needs

27. Improvement Required – Planned Actions
(Bus. Segment/Comm. Operations Region/Global Function)
Length of
Name Results - Months in Service
Position Career Behavior Current Date Planned Actions/Timing:
Location Band Rating Position (Months) (developmental job assignment, training, redeployment, mentoring, out placement, etc.)
Timing of the planned actions: Use quarter/year designation (i.e. 4Q04)

28. High Potential/Promotable Vitality –
Planned Actions
(Bus. Segment/Comm. Operations Region/Global Function)
Name Career Results - Months in Length of Retention Next Best Planned Actions/Timing:
Position Band Behavior current Service Risk Move (de ve lopm e ntal job as s ignm ent,
Location Rating Position Date (Spe cific Title ) training, re deploym e nt,
(Months ) & Timing m e ntoring, re location
pre fe re nce s/ re strictions, e tc.)
Retention Risk: Green = O.K. Yellow = Caution Red = High
Timing of next best move and planned actions: Use quarter/year designation (i.e. 4Q04)

29. Critical Contributors – Any Career Band
(Bus. Segment/Comm. Operations Region/Global Function)
Name Career Results - Months in Length of Retention Next Best Planned Actions/Timing:
Position Band Behavior Current Service Risk Move (developm e ntal job ass ignm ent,
Location Rating Position Date (Spe cific Title ) training, re de ploym ent,
(Months) & Timing m entoring, re location
prefe rences/ res trictions , e tc.)
Retention Risk: Green = O.K. Yellow = Caution Red = High
Timing of next best move and planned actions: Use quarter/year designation (i.e. 4Q14)

30. Succession Depth – Top Positions
Position: Vice President of Marketing
Results Rating Behavior Rating Ready for Position Demographics
A-4
Incumbent: Gerald Moser [g] A = Now [^] = Minority
O = Outstanding 4 = Role Model O-3
V = Achiever B = 1-2 years [~] = Female
3 = Very Effective Jack Black [g] B
P = Performer 2 = Effective A-3 C = 3-5 years [g] = Global experience
I = Improve. Required 1 = Improve. Required Sarah Parker [~] B
A-2
Mike Davis [g] C
Position: Director of Advertising Position: Position:
Incumbent: Megan Millen [~] Incumbent: Incumbent:
Jake DeLong O-2 A
Jessica Jones [~] [^] [g] V-3 A
Katie Hines [~] P-3 C
Position: Position: Position:
Incumbent: Incumbent: Incumbent:
Position: Position: Position:
Incumbent: Incumbent: Incumbent:
30 Takeaway Box

31. Current & Future Talent Needs
Current Talent Needs Anticipated Future Talent Needs
Bus.Seg./Commercial Current Open Requsitions Owners & Timing Planned Headcount & Incumbents
Operations Region/Global Anticipated Turnover
Function
Europe Director of Marketing Dole/Carter 4Q13 Director of Engineering 4Q14 Jim Roads
Position Opening Length: Green <45 days Yellow 46-75 days Red >75 days
Takeaway Box
31

32. Organization Assessment Summary
Bus.Segment/ Leadership Bench Systems & Structure Skill Strategy Business Overall Comments
Commercial Talent Strength Processes Mix Results Status
Operations
Region/Global
Function
•
•
•
•
•
•
•
•
•
•
Green = OK Yellow = Caution Red = Concern
Takeaway Box

33. About Us
3P Associates was founded in 2004 to continuously improve
people; their passion, productivity, processes and profits.
Human Resources Consulting from 3P Associates includes:
•Team Building
•Training in Leadership, Communication, Productivity
•Employee Relations Investigation & Resolution
•Employee Handbooks, On-boarding
•Performance Management Systems
•HR Audit and Strategic Process Improvement
•HR Onsite Services: Short & long Term
•Career Coaching & Resume ReWork™
www.3Passociates.com
Brian@3Passociates.com • www.3Passociates.com * ph.716.909.2657 * People, Passion, Productivity, Profits