This presentation focuses on the major tenets of Succession Planning development and effective executive Leadership.

1. NAAAHR SUCCESSION PLANNING: THE EFFECTIVENESS OF A LEADER IS MEASURED BY THE DEVELOPMENT OF HIGH PERFORMERS www.resultstrainingcompany.com 1

2. Itinerary What Makes a Good Leader? Succession Planning Defined. The Necessity of Succession Planning. The Nine Steps of Comprehensive Succession Planning. Diversity In Succession Planning. 2 Results Company Copyright 2010

3. What Makes a Good Leader? SELF AWARENESS INFLUENCE INSPIRES COLLABORATION VISIONARY ADAPTABILITY INTEGRITY DEVELOPS OTHERS SERVITUDE ACCOUNTABILITY 3 Results Company Copyright 2010

4. Leading well is not about enriching yourself, but about empowering others. Don’t fall prey to the Barriers to Empowerment: Fear of Loss of Job Security: Many people hoard information and responsibility from others to maintain their own job security. Change is often uncomfortable. Requiring growth and improvement equals change for the leader and team member. Those with low self-worth cannot empower others, because they don’t recognize the power that they have within. Empowerment is rewarding for everyone: Empowerment creates better performers and overall better performance for the entire team. It also encourages retention of your star players. Leaders must embrace change in order to improve and grow as leaders. Effective leaders are, in fact, change agents. Secure leaders are recognized and respected. They are honored for the star team that they develop. 4 Results Company Copyright 2010

5. Succession Planning is… a strategic system to ensure that the Organization has a steady pipeline of High Performance talent that will meet the needs of critical roles of the organization now and in the future. 5 Results Company Copyright 2010

6. Traditionally, succession planning focused on merely on finding replacements for top three levels of management below the CEO. CEO Successor Ready? Successor Ready? Successor Ready? 6 Results Company Copyright 2010

7. Unlike yesterday, today, Succession Planning is continuous and inclusive, not simply an annual process. Effective Succession Planning consists of -Succession -Progression -and Development 7 Results Company Copyright 2010

11. Developing company programs

13. As managers and small company 0wners, There still exists the need to replace critical roles and responsibilities and retain knowledge. Oftentimes the need is greater in smaller organizations since there are fewer individuals carrying multiple and major responsibilities. 11 Results Company Copyright 2010

14. Is it any wonder that companies that manage their succession, progression and development for HIPOs have higher retention of executive talent? -Sobol 2007 12 Results Company Copyright 2010

15. “Perhaps the Single Most Important thing that Jack Welch did at GE is build an integrated plan for succession, progression and development - Sobol, 2007 13 Results Company Copyright 2010

16. Why is Succession Planning so important now? 14 Results Company Copyright 2010

17. Recruiting and retaining leaders will become an economic and strategic challenge. The average college graduate will change jobs five times in his or her career. Within the next decade, this norm will probably increase to seven job changes. 15 Results Company Copyright 2010

18. The Average Tenure of Employees Working at Organizations in Professional Service Capacity in the United States is 3 years. The Average Tenure of Employees Working at Organizations in the United States is 4 years. 16 Results Company Copyright 2010

19. Why Is Succession Planning So Important Now? The workforce is shrinking-for every two hires that leave only one Enters. 60% of new jobs require skills that are possessed by only 20% of the Workforce. There is high employee discontent. 54% are not engaged The recession shuffle - massive layoffs will require Workforces to reorganize. 17 Results Company Copyright 2010

20. 81% of companies worldwide rank as TOP Human Capital Problem 18 Results Company Copyright 2010

21. 9 Steps to Effective Succession Planning 19 Results Company Copyright 2010

22. Ensure that everyone, especially leadership is on the same page. Nothing dies faster than an organizational effort that does not have leadership buy-in. In order to reach and influence a maximum number of managers and employees ensure that leadership understands and supports the succession plan. A sure way to test whether a succession plan is owned by leadership is to assess whether any rewards or consequences are linked to it. 20 Results Company Copyright 2010

23. Identify the Important Positions, Skills AND People that you have and need. Due to their diverse ability to exceedingly perform in multiple areas, star performers give you the luxury Of moving them around to a variety of needed positions. Ensure that focus is on star performers in addition to star positions, so that your most vital players don’t walk out of the door. 21 Results Company Copyright 2010

24. Develop a Competency Model that best serves your entire organization. Start by observing your top ten critical human assets. Identify the skill sets that they possess. Identify your top core competencies of your organization. Rank your staff based on the top of your organization. core competencies Identify your high performers based upon your competency model. 22 Results Company Copyright 2010

25. Develop a clear and systematic path for all employees. 23 Results Company Copyright 2010

26. Build a Hierarchy that maps how positions and people are to travel within your organization. Paths should exist to clearly display the connection between positions within your organization. The hierarchies should be simple enough for all employees to understand. Globalized Architecture that connects everything for all employees should be available- linking performance review scores, goals, possible promotions, etc.. Nothing should stand alone. Everything should be connected in a meaningful way. 24 Results Company Copyright 2010

28. Competency Profile and Strengths

29. Development Needs

30. Individual Development Plan

31. Personality Characteristics

32. Risk (Vulnerability) Assessment

33. Work Experience

34. Progression Path

35. Job Goals

36. Next Steps25 Results Company Copyright 2010

37. Continuously Align and Re- Align Your Human Capital Succession Paths as needed. 26 Results Company Copyright 2010

38. Technology can be your best friend for Succession Planning… Technology can be used to seamlessly organize your data. Web-based systems seem to offer great potential for worldwide access and large-scale integration of data. People, Positions and Paths can be found all in one place and integrated in a meaningful manner. Reports can reveal retention/ gap risk areas People performance can be displayed among core competencies. 27 Results Company Copyright 2010

39. Upcoming Events 28 Results Company Copyright 2010

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42. What if your top performer walked out of the door and never came back? 31 Results Company Copyright 2010

43. Develop a Central Repository. What information is most pertinent to your organization and operation? The majority of information and projects should be managed and stored in a central repository. A centralized knowledge system empowers the team to continue work as seamlessly as possible when an employee exits. Consistent and regular updates to the central repository should be a general process for all employees to follow, not only leadership. 32 Results Company Copyright 2010

44. What if you left today, would your team be able to function? Results Company Copyright 2010

46. Identify target locations for the assets at risk- internal teams, external companies, organizations, etc.

47. Develop emergency contingency plans.34 Results Company Copyright 2010

48. Develop Your Stars for Future Positions. If you are a manager, you don’t have to wait for leadership to develop your team. Build you bench strength. Some of tomorrow's key jobs may not even exist now. If a firm plans to double in size in five years, they will need more talented managers. Don’t underestimate the importance of succession planning for front line employees. 35 Results Company Copyright 2010

49. What type of development and coaching practices do you use? Do you have a philosophy toward professional development? 36 Results Company Copyright 2010

50. Which Element Most Closely Resembles Your Leadership Style? 37 Results Company Copyright 2010

51. As a manager, nothing gets through you. You hoard all of the information and vehicles to get anything done. You pull the ultimate trigger on everything. “My job is secure.” 38 Results Company Copyright 2010

52. As a manager, things permeate rarely… though only when pulled and prodded out from supervisees. You are a tough gatekeeper. “You only need to know but so much...” 39 Results Company Copyright 2010

53. As a manager, things permeate.. You give, but only as absolutely needed to get the assigned task completed. “I’ll give it to you, but only if you absolutely need it to finish this project at hand..” 40 Results Company Copyright 2010

54. Knowledge flows generously, but without intention and strategy . There is no planning involved. “What would you like to know? “ 41 Results Company Copyright 2010

56. You professionally develop your staff strategically.

57. You pour out of yourself to others around you- above, below and laterally.

58. You encourage the same behavior for your staff.

59. Exponential growth is recognized among your team throughout the entire organization.

60. Learning is contagious.

61. You create stars who are tomorrow’s leaders of your organization. 42 Results Company Copyright 2010

62. Developing leaders is the highest level of team evolution. Stage 1: Develop Yourself. Stage 2: Develop Your Team. Stage 3: Develop Leaders. 43 Results Company Copyright 2010

63. The Difference between Leaders who Maintain Followers and those who Develop Leaders. Leaders who maintain followers. Leaders who develop Leaders. Need to be needed. Develop the bottom 20% Focus on weaknesses Treat everyone the same Spend time with others Grow by addition Want to be succeeded. Develop the top 20% Focus on strengths Treat individuals differently Invest time in others Grow by multiplication 44 Results Company Copyright 2010

64. You benefit from developing your successors. 45 Confidence for your seniors to promote you, knowing that a placement exists. A mutually benefitting and trusting relationship. Greater assets for the higher performance of your team. An intrinsic satisfaction from seeing others grow Continuation of a legacy that you worked tirelessly toward. Results Company Copyright 2010

65. Who is ready to take over when you leave? 46 Results Company Copyright 2010

66. The CASE OF THE RUNAWAY TALENT 47 Results Company Copyright 2010

67. Ensure That Your Organization has a Solid Rewards and Retention Program. 48 Results Company Copyright 2010

68. Traditional Model of Employee Retention Development Model of Employee Retention 49 Results Company Copyright 2010

69. Average CEO turnover Has grown by 59% from 1995 to 2006. Hay Group 2008 50 Results Company Copyright 2010

70. At least ___ % of Employees plan to change jobs when the economy recovers? 51 Results Company Copyright 2010

71. Never Stop Courting High Performers Never Stop Courting Your High Performers. 52 Results Company Copyright 2010

73. Position/ Title

74. Work/ Life Fit

75. Boss/ Supervisor

76. Team/ Environment

77. Learning/ DevelopmentWhat is Your Turnover Risk? How Happy Are Your High Performers? Results Company Copyright 2010

78. Continuously Monitor and Evaluate Your Succession Plan and Respective Employees. 54 A good succession plan includes clear measures for success. Evaluation should be regularly conducted. Feedback and communication is always good for employees to understand where they are performing and how they may improve and progress. Build a Scorecard that clearly reflects the performance of all areas that influence the success of your succession plan. Results Company Copyright 2010

80. Ratio of internal hires to external hires for key positions

81. Average number of positions having no successors

82. Average number of candidates for key positions

83. Average number of successors for key positions55 A good succession plan includes clear measures of success. Results Company Copyright 2010

84. 56 Build A Scorecard That Clearly Reflects the Performance Levels Of All Aspects Of Your Succession Plan. Good Risky Low Results Company Copyright 2010

85. Be Open and Transparent with Your Succession Plan. 57 Your succession plan is a roadmap for your employees. They should be able to use it to help navigate their careers. High performers should be recognized and aware of the path that is available to them within the organization. Transparency of the succession plan also makes it much easier to implement and increase the understanding of all stakeholders required to make it successful. Results Company Copyright 2010

86. Instilling Diversity & InclusionIn Your Succession Plan It’s the right thing to do. It better reflects your customer mix and equips you to serve better. It enhances decision-making with alternative, differing mindsets. It ensures greater participation and greater connection with global reality. Diversity is a Must to incorporate into Your Succession Plan. 58 Results Company Copyright 2010

87. Instilling Diversity & InclusionIn Your Succession Plan Ensure that diversity is incorporated into your recruitment approach. Train competencies that address diversity and inclusion Connect Performance Management with diversity efforts Develop mentor efforts Create a culture of openness and collaboration. Diversity can be seamlessly incorporated into your succession planning approach. 59 Results Company Copyright 2010

88. AGOOD TEACHER HAS BEEN DEFINED AS ONE WHO MAKES HIMSELF PROGRESSIVELY UNNECESSARY. -Thomas J. Carruthers 60 Results Company Copyright 2010

89. ? RESULTS COMPANY Dr. Lepora Manigault, SPHR, PMP, Six Sigma Black Belt www.resultstrainingcompany.com lepora@resultstrainingcompany.com 770.367.5444 61