A project of Cooperative Union of Baguio City and Luzon

1. :
Preparing Cooperative Leaders for
Tomorrow
January 25-26, 2023

3. Succession Planning Process

4. Consider the scriptural picture of Joshua succeeding the revered Moses
or Elisha who followed the mighty Elijah. These examples show that
“spiritual leaders are always investing in the next generation of leaders”
(Blackaby & Blackaby, 2001, p. 278)
Joshua succeeds Moses Elijah anoints Elisha to succeed him

5. In 1916 Fayol published the
book Administration, in which
he developed 14 principles
related to administration. In the
book Henri states that the
management of an
organization has a
responsibility to ensure the
long-term stability of the
workforce and if that stability is
threatened, then important
positions in the organization
will be filled by unprepared
workers.
Henri Fayol (1841-1925), French
pioneer of management history,
was among the first to recognize
and document the universal
organizational need for succession
planning.
Furthermore, Fayol (1918) states
that the strength of an organization
depends on its employees and that
when workers become more skilled
and ready, the organization will reap
the benefits.
Henry Fayol
1841-1925

6. • Next, the most popular scholar in the field of succession
planning was Rothwell (2015). He states that organizations
that do not have formal succession planning face issues such
as important positions are not filled in the required time, key
vacancies take place, key positions are filled with leaders
outside the organization, there is always a turnaround for key
positions, no there is the provision of a replacement for
potential leaders, a lack of skills among the successors in the
organization and no retention of talent in the organization.
According to Rothwell these problems are problems faced by
organizations due to the absence of a succession planning.

7. Key position
with key
competencies

8. • Concepts
• Definitions
• Generation
Gaps
• Benefits
• Calibrate
& Assess
• Talent
Review
• Performance
• Potential
• Behaviors
• Obstacles
• Action
Planning
Prepare
for future
role
• Framework
• Align V-M-
G-V
• Process
Succession
Plan
• Develop
/Support
Talent Pool
Conclusions

9. Learning Goals
• To know how to keep your best and brightest stars thru development
and succession planning
• To integrate succession planning seamlessly with other areas of talent
management
• To develop leaders for tomorrow beyond yesterday and today
• To challenge leaders to examine their overall succession planning

10. What looks
like the ideal
picture . . .
Attrition is the departure of
employees from the organization for
any reason (voluntary or
involuntary), including resignation,
termination, death or retirement.

11. Why Succession Planning?
 To avoid vacancies in key positions and ensure the stability of
business operations.
 Provide meaningful developmental opportunities from the
organization and its people.
 To help develop diverse workforce by enabling decision makers to
look at the future manpower make-up of the organization.

12. Anyone experiencing
pain in succession
planning?
Succession planning
is a systematic
process towards the
preparation of future
leaders and individual
career development
(Rothwell, 2005).
The number 1
challenge of the
75% Swiss
companies
(Small-Large) is
their human
resource capital
in the next 3-5
years. A need
to develop a
pipeline of
leaders at all
levels.
Leadership skills gap?
NOT ENOUGH

14. NOT ONLY
UPGRADING
BUT
CLOSELY
Align with
business
strategy and
future
requirements
Leadership and learning agility
Adaptive capacity
Modify structure and roles

15. Why do succession planning?
Succession planning is a need of
all enterprises: conglomerates,
large, medium, and small
companies, non-profits, and
government regular posts. One,
is to ensure that mission critical
positions continue to meet
service and business goal

16. 96
All Others Global Top Performing Companies

19. Ineffective
Leaders?
No
Leadership
skills?

22. 22

23. 23
Baby boomers mass
exodus in the workplace
10T turning 65 each day
75M eligible for
retirement
45 M ready to enter
workforce
Getting talents from
other countries due to
skill shortages , a global
epidemic

24. • Based on the 2020 Census of
Population and Housing (2020 CPH),
the Philippines had a total population
of 109,035,343 persons. On the other
hand, persons aged 15 to 64 years
(working-age or economically-active
population) totaled to 69.40 million
(63.9%) while those in age groups 65
years and over (old dependents)
comprised the remaining 5.86 million
(5.4%).
• Aging workforce, young workforce,
revisit your people strategy.
5.86 M
Philippines

25. • In reality that many executives
today belong to the “baby
boomer” era and will not live
forever. Meantime, right sizing or
downsizing in the past decade
has left a lean middle
management that may result in
fewer candidates. The mentors
and coaches are few. The
benefits of succession planning
are clear. But the senior
executives have to make time for
it or it vanishes in the whirlwind of
day-to-day execution.

26. A Workforce Exit Strategy is necessary

27. Demographic shifts.
How to attract the right
people?
If you recruit the wrong people, you
will feel miserable, stressful,
unhappy and they limit
organizational growth

30. Common
characteristics of
Generation Z
1. Expects to work with modern
technology
2. Prefers in-person interactions
3. Entrepreneurial
4. Less tolerant of authoritarian
environments
5. Embraces change
6. Values flexibility
7. Competitive

31. Employees will always leave . . .
Institutions outlive their workers
Others should be ready to resume the
institutional journey
To seek greener pasture
To advance career
The preparation for the changing of
guards is Succession Planning

32. 32
Succession planning is the identification
and development of potential successor
for key positions in an organization,
though systematic evaluation process
and possible training and mentoring.
Succession planning and management involves
an integrated, systematic approach to identify,
develop and retain talent for key positions and
areas in line with current and projected
organizational objectives.
Defining Succession Planning

33. • Understanding the organization’s long-term goals
and objectives.
• To improve ability to respond to changing
environmental demands, support implementation
of organization plan; ensures the stability and
continuity of the business at all levels
• To identify replacement needs due to unexpected
events that cause vacancies in key positions -
death, illness, resignation – as well as expected
events – retirements, promotions
Objectives of Succession Planning

34. Objectives Cont.
• Identifies pool of talent able or being prepared
for succession to all levels of leadership by
providing opportunities for high potential
workers, increasing pool of promotable
employees and provide meaningful them
developmental opportunities
• To guide individuals in their career path,
encourage the advancement of diverse
groups and improve employee morale

35. o How do we ensure that the right
people with the right skills, in the right
place, at the right time, at the right cost
and performing at the right level are
available whenever needed?
o Looking at your people strategies 3-5 years
o Lets review.
Fresh eyes, new mindset.
What strategy to support
Bring observations to the table
Maintaining a healthy succession pipelines

36. Responsorial Psalm
The right people, with the
right knowledge, attitudes,
skills, at the right time, right
place and the right cost.

37.  Succession pipelines
are ideally applied to all
of the organization
layers

38. Succession plans are as different from
each other as the organizations for
which they are developed.

39. a. Succession planning cannot be performed in a vacuum;
foundation components should be in placed before it
can be implemented.
b. Steps that lay the groundwork for succession planning:
o Design jobs with complementary or layered skill sets.
o Design of open organizational structure to reduce the
barriers that prevent cross-functional learning.
o Candidates who are viewed in light of potential
functions beyond the immediate vacancy. By
assimilation, new employees can learn the
organizational culture from the start.
Organizational Foundations
Once these processes are secured, key positions best suited to succession
planning are identified based on strategic objectives

40. a. Succession planning is the lifeblood and critical to
organization’s success
b. The in-advance nature of succession planning significantly
enhances the transition for all parties. The employee, new
leader and team have the opportunity to interact and develop
a work style.
c. There is also an overarching culture of employee development
as an investment in the interest of the organization as a whole,
as well as a practice of ongoing transitions and shared
expertise.
40
Planning

41. Preparation
• Succession planning is a 12-
to 36-month process.
Encourage team members
and leaders to think long-
term and big-picture during
the program development.
Reinforce the concept of
preparation, not pre-selection

42. Succession Planning Framework
Define
scope and
establish
accountabili
ties
Identify critical
positions
Identify candidates
and competency
gaps
Provide leadership
Trng/Exp/ Coaching
Review process and
evaluate the
effectiveness
• Gain
commitment
from senior
management for
the process
• Define scope of
succession
planning (in
terms of levels
for which
applicable)
• Establish
accountabilities
• List high
performing high
potential
Candidates
• 3/3 Matrix
• Assess candidates
against
competencies for
target jobs and
identify
competency gaps
• Develop training and
development
programs for
individuals which
include
–Job rotation
–Job enrichment
–Special Projects
–Shadow Running
–Development
programs
• Establish a review
schedule for the
succession plan
• Develop metrics for
evaluating
effectiveness of the
process
• Identify key jobs:
Business Critical
Positions
• The above to be
aligned with
retirement,
business growth,
Career Plans,
attrition, scarce
skill sets and
future risks of
loosing etc.
Initiate Develop Evaluate
Identify

43. 43

46. Strategy needs to be clear at all parts of the organization to
make decisions that are aligned and speak the same language
Top down approach is better replaced with a continuous
dialog to assure an understanding flavored by experience
at various levels.
The strategist’s job is to figure out how to deliver unique
value to customers the organization chooses to serve.
Porter observes that strategy is more about how – about the
set of choices the organization makes that will give it the
competitive advantage needed to achieve the goal. Strategy is
more holistic; it’s not about any single action. Actions flow out
of strategy. Typically, it is a series of action steps which are
implemented by projects and programs.
Strategy is about the whole organization, how it fits together

47. a. Succession planning cannot be
accomplished as a stand-alone
process. The principles that support
succession planning must also
influence the selection process and
performance management.
b. Identifying roles eligible for succession
planning requires forethought during
the selection phase to ensure that the
right person, with development
potential, is chosen.
c. Future-focused performance
management practices that highlight
personal initiative, skill acquisition and
development are most suitable.
Alignment

50. • All the rights coming together (skills,
place, time)
• Looking for competency based
• Looking for talent – Performance
and potential
• Process of benchmarking
• Profiling successors, experience
requirements
• Use calibration tools (Peak
Performance traits
• Use of competency models (Skills,
knowledge, behavior)
• 60 degree feedback – what good
looks like) assessing competencies
on the next level position
• Personality assessment

52. • Look at key position; Validate
roles suitability top-down.
• Developing a pool of talent
• Promotability – well placed and
acceptable
• Defend recommendations-
Consensus agreement
Real time data for effective
decision making

53. What is Peak Performance?
• Exceptional performance
• Put is all together – both physically
and mentally
• Certain level of mastery and physical
conditioning
• Is relative, vary from one person to
other
• Most likely to occur when skill level
matches the demand

54. Profile of Peak Performance
• High self confidence
• Self regulation about performance
• Feeling in control (energized and
relaxed)
• Total concentration
• Present task focus
• Present task focus
• Good perfectionism ( high
standards yet flexible)
• Positive attitude
• View difficult situations as
exciting challenges
• Determination and
commitment

55. Development
• Employee development is almost
universally recognized as a strategic
tool for an organization’s continuing
growth, productivity and ability to
retain valuable employees.
• Employees have to go through a
development plan which is specifically
designed as per strengths and areas of
improvement.

56. Develop Talents
• The process of articulating necessary skill sets and
competencies for key positions may lead to the
identification of skill gaps and training needs among
workers, thus interventions (i.e. cognitive and behavioral
training programs) can be developed to address the
gap/need.
• Integrating with talent management. Collaborative effort
• Collaborative effort of HR, CSO, Board to have
ownership
• Development of talents is key element for successful
planning to be effective from general competency to
sophisticated, intentional and formalized not only for top
roles but in between roles.
• Development not for development say but for retention
and relationship that are long lasting.

57. Developing System
• Succession planning includes
identifying skills and
competencies next-generation
employees will need to function
well in key positions. Developing
systems to identify and transfer
that knowledge and shorten
learning curves should be a
primary objective. Partner with a
trainer to determine the best way
to promote learning.

58. • Board sponsorship. Need
leaders that are accountable.
• Financial resources allocated
to develop your talent pool.
• Even if budget isn’t sufficient,
continue work making, to do
investment in people.
Budget

60. Sect. 5. Optional Training for Coop
Officers
MEMORANDUM CIRCULAR NO. 2015 – 09
Series of 2015

61. • Review notes, recruitment documents
(what went wrong/what went right)
• Biodata easily accessible ( performance
part organization, education trainings
attended, designation received, benefits,
compensation
• Benchmark strengths analysis
• Match profile vs the next higher position
• Highest ability
• Willing to be relocated
• Position in the nine box.
Check appropriateness of the promotion

62. Implementation team
a. Some areas of expertise and commitment will
improve the success rate of the program—such
as in HR, organizational development, BOD and
other leaders.
b. Knowledge of job design concepts, effective
performance management practices, training
and development initiatives, and adult learner
and mentoring programs gives the program
coordinators a good foundation for a well-
rounded program.
c. Having a receptive organizational culture (silo-
free, accepting change, learning-organization
mentality and focus on performance
management) is essential to achieving program
objectives.

63. Review
A carefully prepared
succession plan which is
periodically reviewed helps a
cooperative avoid prolonged and
costly vacancies, thus
succession planning must be a
priority task that should be
integrated into the strategic plan
of the cooperative.

64. It is important to identify critical employees
through performance metrics and outputs
Identifying key positions takes a holistic approach
and needs the input of managers and executive
sponsors regarding critical KSAOs, current and
future competency gaps and environmental scanning
to identify opportunities and obstacles.
Owners and sponsors of succession planning
will need to continuously and systematically
assess critical positions, KSAOs and
competencies needed and plans of future
roles each time a new strategy or mission is
created.
Requires the individual
input of each participant
Provide opportunities and
solutions that address talent
gaps and create
accountability for leaders to
develop successors

65. Common Pitfalls:
1) Keeping it a secret
2) Underestimating talent within
3) Narrow minded thinking – too
old/young, rough, different
4) Focusing exclusively on hard skills
5) Not offering training/development
opportunities
6) Expecting employees to self-identify –
help them see what they can be.
7) Not holding managers accountable for
succession planning.
8) Considering only upward succession.
Lateral?
9) One size fits all program.

66. References
DR. DAVID N. ALMAREZ (2021) Succession Planning. KoopBalitaan
Chairperson, Human Resource Development Committee, MSU-IITNMPC
Chairperson and Training Director, Cooperative Union of Iligan City
Paul Walsh
Succession Planning
Webinar: An Objective Succession Planning Process – YouTube
Succession Planning Simplified(with template)| How to introduce Succession
Planning in your company
Succession Planning Simplified(with template)| How to introduce Succession Planning in your company - YouTube
HCI Research: Next-Gen Now, Build Your Succession PLAN
HCI Research: Next-Gen Now, Build Your Succession PLAN - TRACOM Group
Tita Datu Puangco PDI (2023)
https://business.inquirer.net/206419/best-practices-in-succession-planning#ixzz7rIDpV5i9

67. Cont. Ref
Succession Planning Webcast | How To Do Succession Planning in 7 Steps
Succession Planning Webcast | How To Do Succession Planning in 7 Steps – YouTube
Free Webinar: Best Practice Succession Planning - Integrating the System with the Process
Free Webinar: Best Practice Succession Planning - Integrating the System with the Process – YouTube
Free Webinar: Best Practice Succession Planning - Integrating the System with the Process
Free Webinar: Best Practice Succession Planning - Integrating the System with the Process – YouTube
Vichetera Rajagani@ Diya and Mahaliza Mansor (2019
Review of History Succession Planning: Replacement Planning, Talent Management and Workforce
Planning
Review_of_History_Succession_Planning_Replacement_Planning,_Talent_Management_and_Workforce_Plannin
g.pdf (hrmars.com)