Succession Planning
Best Practice Succession Planning & Talent Management
Creating and Sustaining Competitive Advantage In Human Capital Capability
Challenges and Solutions
Christopher Dawson, Ph.D
Dawson Consulting Group
830 Covington Road, Suite A Belmont, California 94002 650.773.2925 cdawson@DawsonConsult.com www.DawsonConsult.com
SUCCESSION PLANNING & TALENT MANAGEMENT A Dawson Consulting Group White Paper
©Chris Dawson 2007 All Rights Reserved
The Time is NOW Succession planning is necessary to ensure business continuity and create competitive advantage in the human capital war for talent. In the days before strategic human resources, ‘succession planning’ meant ‘disaster contingency’ planning for the unexpected: Who will fill this slot if it becomes vacant? In recent years, the concept has grown to include a longer time horizon and is the ‘glue’ that holds together several critical human capital processes under a ‘Talent Management’ umbrella. The best practice in 2007around talent management relies on a constellation of interlinked human capital processes that provide a steady stream of talent over time, creating the ’Leadership Pipeline’. What the statistical demographers have been saying since the early 1990’s is more dramatic with each passing year: there are simply not enough leaders to fill all of the positions that will be vacated by the currently departing generation of managers. That crisis will come to a peak in 2012 and continue, but is already evident. Like any external scarce resource, some companies will solve this problem sooner and more effectively than others, producing a competitive advantage. If you have not already considered the impact of these Bureau of Labor Statistics figures, you need to! • • • • Overall labor market availability is anticipated to be virtually static, at just 1.1% growth A significant 9% decline in prime age workers, aged 25-45 is forecast. An aging labor force, with the growth of the over-55 years group rising at 4
Creating and Sustaining Competitive Advantage In Human Capital Capability
Challenges and Solutions
Christopher Dawson, Ph.D
Dawson Consulting Group
830 Covington Road, Suite A Belmont, California 94002 650.773.2925 cdawson@DawsonConsult.com www.DawsonConsult.com
SUCCESSION PLANNING & TALENT MANAGEMENT A Dawson Consulting Group White Paper
©Chris Dawson 2007 All Rights Reserved
The Time is NOW Succession planning is necessary to ensure business continuity and create competitive advantage in the human capital war for talent. In the days before strategic human resources, ‘succession planning’ meant ‘disaster contingency’ planning for the unexpected: Who will fill this slot if it becomes vacant? In recent years, the concept has grown to include a longer time horizon and is the ‘glue’ that holds together several critical human capital processes under a ‘Talent Management’ umbrella. The best practice in 2007around talent management relies on a constellation of interlinked human capital processes that provide a steady stream of talent over time, creating the ’Leadership Pipeline’. What the statistical demographers have been saying since the early 1990’s is more dramatic with each passing year: there are simply not enough leaders to fill all of the positions that will be vacated by the currently departing generation of managers. That crisis will come to a peak in 2012 and continue, but is already evident. Like any external scarce resource, some companies will solve this problem sooner and more effectively than others, producing a competitive advantage. If you have not already considered the impact of these Bureau of Labor Statistics figures, you need to! • • • • Overall labor market availability is anticipated to be virtually static, at just 1.1% growth A significant 9% decline in prime age workers, aged 25-45 is forecast. An aging labor force, with the growth of the over-55 years group rising at 4