Best Practices to Identify, Assess and Develop Your Next Gen of Successors

Seminar on Best Practices on Succession Planning on 13 January 2016 – Kuala Lumpur, Malaysia Page 1
EXECUTIVE BRIEFING ON
“BEST PRACTICES TO IDENTIFY, ASSESS AND DEVELOP
YOUR NEXT GEN OF SUCCESSORS”
The Importance of Succession Planning to ensure Business Continuity
Date: Wednesday, 13 January 2016, 1500 – 1630 hrs. Venue: Azmilaw Academy
Synopsis of Presentation:
The motivation to have your own business often includes the desire to have more control over and
freedom with your time. But many business owners find, at least in the early years of starting their
business, that their working hours are much longer than expected and the opportunity to take a vacation
is almost impossible. As the business grows, a business owner can find herself stretched to breaking
point by retaining all of the decision-making power in the business and trying to do justice to the many job
roles she is trying to cover on a day-to-day basis. Having built a business to a stage where it's providing
strong returns, it may even be time to inject fresh ideas and energy
1
.
Unfortunately, some Founders, Business Owners and CEOs neglect their talent management
accountability – consequently, their pipelines run dry. When this occurs, the downward spiral of
competitive capability becomes discernible, the edge is lost, and the “magic” disappears. The competition
begins to outwit, outflank, and outperform these companies which threatened its survival
This briefing will highlight Centre for Executive Education (CEE) as well as other contemporary research
findings on how business owners and founders could implement succession planning to ensure the
successful continuity of your business – particularly as it relates to people and processes. We will be
looking at why succession plans are a business critical process, how to identify the talent in your
organisation and what is needed to provide an effective handover to the next generation of leaders.
About the Speaker:
Professor Sattar Bawany is the Chief Executive Officer of the Centre for Executive
Education (CEE Global). He is also the Managing Director as well as Master
Executive Coach & Facilitator with Executive Development Associates (EDA) Asia
Pacific.
Prof Bawany has over 30 years of international business management experience
and has assumed various senior management roles including Managing
Director/Country Head and Talent Development/Coaching Practice Leader for DBM
Asia Pacific as well as Business Leader, and Executive Coach with Mercer HR
Consulting, The Hay Group and The Forum Corporation.
Prof Bawany is an astute advisor to executives who need to know how they are perceived and want to
focus on what is most important in their professional and personal lives. He has coached a range of
founders, business owners and leaders, from CEOs, to senior vice presidents, and high potential
managers. His current work in organisations focuses on encouraging individual initiative and leadership
from a systemic perspective in order to achieve clearly defined business results. His specialty is
effectively linking people processes to business outcomes.
1
Sattar Bawany (2015). ‘Don’t Deprive Your Business of Succession Plan’, in The Business Times, Singapore Press Holdings
(SPH), 8 December 2015. http://www.businesstimes.com.sg/sme/dont-deprive-your-business-of-a-succession-plan

Copyright © 2016 Centre for Executive Education Pte Ltd
All Rights Reserved  www.cee‐global.com
CEE is a Strategic Partner of Executive Development Associates (EDA) Inc. 1
Prof Sattar Bawany
CEO, Centre for Executive Education (CEE Global)
C-Suite Master Executive Coach, Executive Development Associates (EDA)
Adjunct Professor of Organisational Leadership, Curtin Business School (CBS)
13 January 2016 AZMI Law Academy, Kuala Lumpur
Best Practices to Identify, Assess and
Develop Your Next Gen of Successors
(The Importance of Succession Planning
to ensure Business Continuity)
About
Centre for Executive
Education  (CEE)
 Executive Coaching
 Succession Planning
 Talent Management
 Executive Education
 High Potential Assessment
& Development
2
CEE is the Strategic Partner of Executive Development Associates
(EDA), a global leader in executive development & coaching since 1982.

• Centre of Executive Education (CEE Global) is a premier network
for established human resource development and consulting firms
around the globe which partners with our client to design solutions
for leaders at all levels who will navigate the firm through
tomorrow's business challenges.
• CEE has established strategic partnerships with Executive
Development Associates (EDA) and International Professional
Managers Association (IPMA) as well as a network of Affiliate
Partners across the globe including Harvard Business School
Publishing (HSBP).
• CEE faculty, consultants and executive coaches are highly
credentialed with extensive experience to help managers and
executives who are being positioned for future career growth.
Who We Are
• CEE collaborates with clients, adapting various organizational
development approaches to their specific business contexts.
• We design and implement tailor‐made learning and
organisational development strategies that greatly improve our
client's performance, increase market value and enhance
organisational capability.
• We develop insight into what drives value creation and
competitive advantage in our clients' businesses. Then, we work
closely with our clients to convert insight into concrete strategies
and tactics.
• The implementation of insight has high impact in the form of
value created for our clients.
What We Do

• Companies often say that their employees are their
most valuable asset, but many struggle to connect
each employee's individual performance to the
company's strategy and mission.
• Developing an integrated talent‐development
process can solve that problem while also helping
companies identify critical skills gaps and address
succession planning.
CEE Philosophy –
Talent Management as a Strategic Priority
Succession Planning - Defined
Process of identifying the future leaders of your
organization and creating a development plan
for them to be ready when the time comes.

CEE POV on Succession Planning
• Our Succession Planning process is rooted in the
understanding that addressing the future now allows
the most time to successfully transition management.
• It is imperative that Succession Planning is a key part of
a company’s strategic planning process and business
continuity management.
• Without a proper succession plan, it would be difficult
to develop your key talent and future leaders.
• Succession Planning is much more important than
most companies realize in both SMEs and MNCs.
Succession Planning Process
• Succession planning involves the identification of next
generation of successor, evaluating and honing their
skills and abilities, and preparing them for advancement
into key leadership positions which are key to the
success of business operations and objectives.
• Succession planning involves two key elements:
Understanding the organization's long‐term strategy, goals
and objectives.
Identifying the successor candidates and their respective
developmental needs.

Challenge of Succession Planning
for Family Owned Businesses
• If you're running a family business and want to pass the
baton of leadership down to your son or daughter, the
choice of successor is not really cut and dried.
• Don’t assume that your offspring will want to take on
your business.  Start by first asking what their career
goals and aspirations are and then explore if he or she is
ready to take over your role.
• They will probably need the professional development
support to meet the challenge of leadership.
Succession Planning Process
Establish
Board
Level
Succession
Planning
Committee
Integrate the Process into the Organization’s Performance Management System
Integrate  Potential Successor’s Leadership Development with Succession Management
Identify
Potential
Successors
Assess
Potential
Successors
Develop
Potential
Successors
Implementation and Ongoing Evaluation / Review of the Process
Define for
the
Future
Success of
the
Organization
Reference: Sattar Bawany, Creating a Succession Plan: Importance of Succession Planning published in Talent Management
Excellence – Issue 12.2015 (December 2015) E-copy available from: www.cee-global.com/6/publication

Critical Steps Involved
1. Understand Business Strategy and the needs of the future
company that the potential successor will need to fulfil
2. Establish Board‐Level Succession Planning Committee
3. Define Leadership Competency Models
4. Conduct Assessments and Establish Baseline
5. Review Current Performance Management system
6. Assess Future / Potential Successors
7. Managerial Leadership Competency Gap analysis
8. Individual Development Programs
9. Assign Accountability for Development of Potential Successors
10. Implement, Measure, Review, Revise if necessary…Repeat!
www.executivedevelopment.com
Confidential and Proprietary
12
Identifying Potential Successors
1. Strong track record of performance
2. Demonstrates initiative, drive, and persistence to reach higher
3. Understands the people side of the business and demonstrates
strong interpersonal and communication skills
4. Learning Agility with strong desire to grow and develop
5. Understand organization dynamics (up‐down‐across) with the
ability to communicate with and influence key stakeholders
6. Readily seeks out and accepts feedback for self‐development
7. Improvement focus/mentality (self, team and business) with the
ever willingness to change behavior and embrace changes
8. Gravitas and leadership presence with strong communication skills
9. Strong work ethic and the willingness to go above and beyond
10.Strong drive to succeed and continuous improvement

 The difference between high‐performance employees and
high‐potential employees is that the high‐performance
employee are very good at performing their jobs, while the
high‐potential employees have demonstrated measurable
skills and abilities beyond their current jobs.
 The real damage is done when the high‐performance
employee is promoted to a managerial level, is uncomfortable
and struggles in their new role, resulting in high levels of
stress and anxiety, causing them to quit.
High Performers vs. High Potentials
Assessment and Gap Analysis
• Assessment against core, leadership and functional
competencies
• Gap Analysis for each person and for each position
• Sample Assessment tools:
– 360 Degree Feedback
– Structured Behavioral Interview
– Emotional and Social Intelligence Inventory
– Extended DISC for Leaders
– Hogan – Leadership Potential
– Watson Glaser – Critical Thinking
• Assessment Center may be included

Plan for Development
• Leadership Transition Plan – The First 90 Days
• Create a specific developmental plan for each potential
successors which may include but not limited to :
– Movement to a developmental role
– Cross‐functional projects or teams
– Stretch assignments
– Board Mentoring Support
– C‐Suite Executive Coaching Support
– Action Learning projects
– Corporate Training Programs
– University’s Executive Education Programs, etc.
Executive Development Approaches
Executive Education (classroom/online),
Stretch Assignment, Action Learning,
Executive Coaching and Mentoring
Company/
Sponsor
Expectations
Individual/
Coachee
Expectations
Transition
Readiness
Assessment
Company/
Sponsor
Feedback
Individual/
Coachee
Feedback
Gaps
Action
Plan
Gaps
Action
Plan
Adapted from: Sattar Bawany, The ART of War for Talent, Human Capital (SHRI), Vol. 10 Issue 1
E-copy available as a download from : www.cee-global.com/6/publication
CEE Framework for Developing
Sustainable Leadership Pipeline
(Critical Leadership -
EQ & SQ Competencies)

• Next Generation of leaders at all levels demonstrate
a high degree of Emotional Intelligence in their role
• Emotionally intelligent leaders create  an
environment of positive morale and higher
productivity resulted in sustainable employee
engagement
• Critical EI competencies includes: relationship
management; cross cultural communication;
effective negotiation and conflict management
Reference: Bawany, Sattar: ‘Maximising the Potential of Future Leaders: Resolving Leadership Succession Crisis with
Transition Coaching’ In ‘Coaching in Asia – The First Decade’., Candid Creation Publishing LLP, September 2010.
E-copy available as a download from : www.cee-global.com/6/publication
Leadership Competencies of Next
Generation of Leaders
Case Study on Meeting the

• Succession Planning Process:
 Identify a critical position in the organization (Ann, the CEO)
 Delve down three levels below the critical position: no one, then Abby
(Head of HR), and finally Robin (Head of Organisational Excellence)
• Looking at this example, what are the potential
challenges do you foresee to the subject of succession
planning for Ann’s role as the CEO and what are your
recommendations to the Board?
Case Study on Meeting the
Prof Sattar Bawany
CEO, Centre for Executive Education (CEE)
Managing Director, EDA Asia Pacific
Email: sattar.bawany@cee-global.com
Articles: www.cee-global.com/6/publication
LinkedIn: www.linkedin.com/in/ceeglobal
Facebook: www.facebook.com/ceeglobal
Twitter: www.twitter.com/cee_global
Presentation: www.cee-global.com/7/speaking_engagements
For Further Information, contact:

14 Talent Management Excellence Essentials presented by HR.com | 12.2015Submit your Articles
By Prof. Sattar Bawany
The importance of succession planning
Creating A Succession Plan
The motivation to have your own business often includes the
desire to have more control over and freedom with your time. But
many business owners find, at least in the early years of starting their
business, that their working hours are much longer than expected
and the opportunity to take a vacation is almost impossible. As the
business grows, a business owner can find herself stretched to breaking
point by retaining all of the decision-making power in the business
and trying to do justice to the many job roles she is trying to cover
on a day-to-day basis. Having built a business to a stage where it’s
providing strong returns, it may even be time to inject fresh ideas
and energy.
As a business owner, it may be time to consider succession planning
to ensure the successful continuity of your business – particularly as it
relates to people and processes. The Centre for Executive Education
(CEE) looks at why succession plans are a business critical process,
how to identify the talent in your organisation and what is needed
to provide an effective handover to the next generation of leaders.
Why create a succession plan?
There are many pertinent reasons to create a succession plan. You
may wish to take a back seat for a while, perhaps to facilitate a change
of lifestyle or to investigate a new project or business venture. If you
head up a family business, you may simply want to give your chil-
dren a chance to shine and make their own mark. If your business
is experiencing a strong period of growth, you may want to stay at
the helm while building a strong management team to support you
or develop the business.
Another reason to create a succession plan could be that you
intend to sell your business. You will be in a better position to attract
interested buyers if you have a proper succession plan in place that
demonstrates continuity and stability within the management team.
Regardless of the reason why you may be selling your business, good
business practice dictates that you ensure a smooth and successful
handover to the next owner, especially if you are planning to remain
in the business after the sale or start another venture. Good personal
and professional networks will be vital in your future business ven-
tures, and by generating the goodwill of your successor, you will be
in a better position to maintain and even give a boost to your current
business relationships.
Perhaps the most compelling reason of all to start planning for suc-
cession is the fact that the plan you put in place could well save your
business in the event of your death or serious illness. Many business
owners are very much the key-players in their business. It is the ones
who are most depended upon who have the greatest need to plan
ahead by making sure there are people and processes around them
that ensure the successful continuity of the business in their absence.
Creating a Succession Plan
Before you start planning, take a moment to consider all the ele-
ments that make up the day-to-day running of your business. What
are the strengths and weaknesses of your business? Where are the
opportunities and threats? Who among your team members holds the
key competencies and responsibilities? What skills and experience
are missing in your business? What procedures have been established
that need to be formally documented? What systems need to be
implemented to capture important information such as supplier or
customer relationships that you or others in the business keep in your
head or personal diary?
The answers to these questions should be the foundation for the
creation of a formal document outlining your succession plan. By
documenting your plan, you create an easy way of reviewing and

15Talent Management Excellence Essentials presented by HR.com | 12.2015 Submit your Articles
Creating A Succession Plan
modifying it as you move through the process of handover. Your
business will also benefit from the insurance of having a physical docu-
ment ready to be referred to in the event you cannot run the business.
People are usually the greatest competitive advantage for and asset
of any business, so you’ll want to ensure that your succession plans
adequately address succession planning in your critical existing or
future job roles. Many businesses unwittingly fall into the trap of
allowing key knowledge or expertise to lie in the hands of just one
individual; whether it is the knowledge of something as important as
the financial details of the business or something as seemingly trivial
as the software the business uses. To ensure business continuity in
times of transition, you should always ensure that more than one or
two people have access to critical knowledge. The ideal is to have a
back-up person for every role within your business.
Consider the key external stakeholders who are important to your
business. A big part of the successful handover of your business will
be in making sure these relationships – whether they are with clients,
customers, suppliers or partners - continue to be nurtured as you take
a less prominent role. Make sure you create opportunities for your
customers and other key contacts to gradually communicate with your
future replacement. If this is done smoothly, it will reduce anxiety
among stakeholders when you tell them you’re leaving. Keep in mind
the departure of a customer’s key contact in your business could be
enough to allow one of your competitors to tempt them away!
Once you have completely evaluated your business situation, use
this analysis to focus on your objectives and detail what you need to
achieve to be able to start the succession process.
Things to be included in your plan could include:
• A list of potential successors
• A training and coaching program for your future leaders that will
need to be personalised once you have identified potential successors
• A list of the key stakeholders in your business and a relationship-
building plan
• A breakdown of all the job descriptions in your business
• A detailed manual of key procedures of your business
Identify the next generation of leadership
The leadership of a business is fundamental to its success. While
the temptation may be strong to identify a leadership successor first
and then built a succession plan, try to avoid it. It can be fatal to a
business to put a successor in place only to find they lack one or all of
the skills, qualifications, experience, cultural fit, and motivation to run
the business or manage the areas you identified in your succession plan.
Choosing the right future leader or leaders for your business requires
consideration of a number of factors. While there are some common
attributes fundamental to any leadership role such as communication
skills, financial acumen, people management and so on, every organisa-
tion will require different qualities of its leaders and every great leader
will have their own strengths, weaknesses and personal leadership style.
Therefore, there are many questions you should ask yourself when
deciding on the leadership qualities that are most important to your
business. Who among your team consistently achieves results? Who
motivates and inspires those around them? Who has a clear vision
for the future of your business? Who constantly finds innovative
ways to improve processes? Who has the interpersonal skills needed
to maintain the stakeholder relationships?
If you’re running a family business and want to pass the baton of
leadership down to your son or daughter, the choice of successor may
not necessarily be cut and dried as one would expect. Don’t assume
that your offspring will want to take on your business. Start by first
asking what their career goals and aspirations are and then explore
if he or she is ready to take over your role. They will probably need
the help of further training or coaching to help them meet the chal-
lenge of leadership.
If more than one of your children is interested in taking over, you
need to carefully consider how this will work. Could the major roles
and responsibilities of leadership be distributed among them? Do they
have individual talents that could help to show you how to split the
demands of managing the business?
Handing over the reins of your business should be a gradual process
rather than an event. The earlier you start planning, the more options
you will have. You will be able to facilitate the gradual transfer of
roles and responsibilities that will enable you to observe individual
leadership styles and abilities. This will not only let you to see if the
people you have chosen are going to work, but will also give these
people a better chance to grow into their new positions. The other
benefit to a longer lead-time is that it will enable you to get used to
your diminishing role in the business.
Identifying the talent in your organisation is not an exercise that
begins and ends at the senior levels. Look down through the ranks to
see where talent is. Are there any existing staff members who could step
into the current role of your future leader once they have moved up?
Perhaps the hardest thing to let go of in any business is decision
making. Business owners must remember that despite the many
leadership theories that proliferate the market today, there is one
fundamental of good management that hasn’t changed
Responsibility + Authority = Accountability
You cannot expect any manager, leader or successor to be account-
able or responsible for the business if you give them no authority to
make decisions and second-guess or countermand their every move.
Authority does not mean having a free reign; it is about establishing
what is appropriate to a role and ensuring there are checks and bal-
ances relevant to the impact a decision has upon the business. For
example, you may impose a set of spending levels that do and don’t
require your input. Or, you may schedule a series of projects or job
functions that allow incremental steps in authority while you build
your confidence in your chosen successor. If you have good informa-
tion management systems in place then you’ll have the early warning
systems needed to identify if there is an emerging problem and take
appropriate action without having to micro-manage on a daily basis.
Conclusion
Finally, remember succession planning is an ongoing process. Start
planning sooner rather than later and keep your plan up-to-date when
key business changes happen. Just as you would never leave your
business assets uninsured, so too you should never leave your business
without the security of a succession plan. ITM
Would like to Comment? Please Click Here.
Prof Sattar Bawany is the CEO & C-Suite Master Executive Coach of Centre
for Executive Education (CEE Global). CEE offers human capital management
solutions for addressing challenges posed by a multigenerational workforce in-
cluding talent management and executive development programs (executive
coaching and leadership development) that help leaders develop the skills and
knowledge to embrace change and catalyse success in today’s workplace.
Visit www.cee-global.com
Email: sattar.bawany@cee-global.com
Connect Sattar Bawany

Best Practices to Identify, Assess and Develop Your Next Gen of Successors

Recomendados

Recomendados

Mais conteúdo relacionado

Mais de Centre for Executive Education

Mais de Centre for Executive Education (20)

Último

Último (20)

Best Practices to Identify, Assess and Develop Your Next Gen of Successors