The Practical Approach towards

Succession Planning

Abdullah Lin
Finisar Malaysia Sdn Bhd

Succession Planning NSM 2003

Quotable Quote
"From now on, choosing my successor is the most important
decision I'll make. It occupies a considerable amount of
thought almost every day."
 
- Jack Welch, CEO, GE
 
( Quote from 1991 speech--9 years before his anticipated
retirement)

Succession Planning NSM 2003

What is Succession Planning?
The process of developing the right people
to fill the leadership positions for future
strategic tasks.

Succession Planning NSM 2003

Forms of Succession Planning
1. Abruptly, where a major player leaves and his or her
position has to be filled.

2. Prudently, an employee is targeted for another

position and is groomed to take over.

3. Successfully, there exists an ongoing function in

which an organization consistently prepares for its
future needs while producing to meet today’s plan.

Succession Planning NSM 2003

The Objective
To establish a dynamic, on-going process of
identifying, assessing and developing potential
successors into the key positions identified by
management team.

Succession Planning NSM 2003

Succession Planning Flow
Potential Successor
Development

Potential Successor
Gap Analysis

Competency Model
Design

Potential Successors On-going Changes

Identification and Buy-off Resignation/Low Performance

Key Position On-going Changes

Identification and Buy-off Technology Development

Succession Planning NSM 2003

Project Phases
• Overview with Management Team
• Overview with individual Divisions
• Compilation of Key Positions
• Approval of key positions by Mgmt Team
• Detailed discussion with Incumbents
• Development Plans for Successors

Succession Planning NSM 2003

What is Key Position?
Major impact on the organization in his or her
absence to contribute
• Impact on company revenue
• Availability of replacement in worldwide
market
• Contribution to core business

Succession Planning NSM 2003

Types of Key Positions
Mandatory Key Positions
• Expat Positions
Selective Positions by Management Team
• Technical Ladder Participants
• Module Managers
• Others (as identified by Heads of Division)

Succession Planning NSM 2003

Mandatory: Expat Positions
• The understudy of the approved expat positions

MUST be a Malaysian
• Specify duration of grooming to take place
• Show a training plan

Succession Planning NSM 2003

Management Responsibilities
• To buy off Succession Planning process
• To buy off key position list
• To buy off name list of potential successors
• To provide full support in the successful
implementation of program

Succession Planning NSM 2003

Incumbent Responsibilities
• Provide two (2) names of potential successors
• Discuss with HR on job competencies
• Gauge current level of successor competencies
• Identify competency gaps of successors
• HR gets endorsement from Heads of Division

Succession Planning NSM 2003

Successor Responsibilities
• To keep up high performance
• To learn and achieve the required competencies
• To improve their communication skills
• To provide confidence to management

Succession Planning NSM 2003

Potential Successor Criteria
• Immediate back-up of Incumbent

• Potentials outside the functional area

• Promising candidates at lower levels in the

organization

Succession Planning NSM 2003

Successor Readiness
• Use Annual Performance Appraisal Form
• Key Result Areas (KRAs) MUST include
competency development to succeed the
Incumbent Position
NOTE: We will focus for development on the
people, not the positions.

Succession Planning NSM 2003

Progress Status
• Expat to Malaysian
• Approximately 30 % met

• Malaysian to Malaysian
• Approximately 60% met

Succession Planning NSM 2003

Blank Spots for Successor
There are situations whereby there are no
available potential successors resulting in longer
in-house development or external hire:

• Fast Track Programs e.g. YMGP, MA, PostGrad

Internship
• External hire (must be Malaysian)
Succession Planning NSM 2003
Issues
• Understanding the competencies
• Selecting the right competencies
• Scope of plan
• Communication of plan
• Unclear with program objective
• Job Priority
• Resignation - incumbent or successor
• Time Lag - sourcing and filling

Succession Planning NSM 2003

Recommendations
• Avoid assumption
• Regular follow-up, at least once a quarter
• Minimise changes (Competencies,KRA, etc)
• On-going Management Review
• Identify both Visible and Invisible workers
• Consider both upward and lateral
succession
• Minimize pinching

Succession Planning NSM 2003

Conclusion
• Accurate understanding of workforce

• Value the talents within the organization

• Open-minded and objective Incumbents

• Balanced focus on technical and soft skills

• On-going progress monitoring

Succession Planning NSM 2003

 Q&A
Abdullah bin Lin
Human Capital Development Manager
Finisar Malaysia Sdn Bhd.

abdullah.lin@finisar.com
Tel: 05-2908006

www.finisar.com

Succession Planning NSM 2003