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Succession Planning for Critical Roles

Process & Guidelines

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 Succession Planning @ NEC
Step 2: Define
Step 1: Identify Step 3: Assess
Competencies and
Key Positions Internal Talent Pool
Skills

Step 4: Develop Step 5: Provide Step 6: Monitor

Individual Development Progress and
Development Plans Opportunities Performance

Step 7: Review and Step 9: Evaluate

Step 8: Succession
Update Succession and Refine the
Implementation
Plans Process

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 Succession Planning@ NEC

Step 1: Identify Key Positions- Identify key positions within the organization that are critical for its long-term success and
sustainability. The critical roles can be assessed basis Position Criticality or Risk of Vacancy.

Step 2: Define Competencies and Skills- Clearly define the competencies, skills, experience & exposure required for each key
position. This involves a thorough analysis of their role & responsibilities, current & future business needs.

Step 3: Assess Internal Talent Pool-Evaluate the existing talent pool within the organization to identify potential successors
for key positions. This assessment may involve performance and 9 bock reviews, talent reviews, and evaluations of employees'
potential and readiness for advancement.

Step 4: Develop Individual Development Plans- Respected Managers work with identified successors to create individual
development plans tailored to their specific needs. These plans include targeted training, mentoring, job rotations, stretch
assignments and other experiences that will enhance their skills and prepare them for future leadership roles.

Step 5: Provide Development Opportunities- Provide identified successors with opportunities to gain experience and
exposure to develop their leadership abilities. This may involve assigning them to challenging projects, exposing them to
cross-functional teams, or offering stretch assignments to broaden their skills.

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 Succession Planning@ NEC

Step 6: Monitor Progress and Performance- The managers along with respective HRBP’s regularly monitor the progress and
performance of potential successors to ensure they are on track with their development plans. The manager provides feedback,
coaching, and support to help them address any skill gaps or developmental needs.

Step 7: Review and Update Succession Plans- Periodically review and update the succession plans based on changes in
organizational goals, strategies, or talent landscape. This is an ongoing process to ensure the plans remain aligned with the
organization's evolving needs. The progress scorecard is reviewed annually along with the management during talent reviews.

Step 8: Succession Implementation- When a key position becomes vacant, execute the succession plan by appointing the
identified successor (Build approach) This may involve a smooth transition process, knowledge transfer, and ongoing support to
ensure the successor's success in the new role. In case, successors are not involved, look for external hiring (Buy approach).

Step 9: Evaluate and Refine the Process – The progress scorecard is evaluated along with the management in talent discussions
to ensure the effectiveness of the succession planning process and make necessary refinements, seek feedback from key
stakeholders and incorporate best practices to enhance the overall succession planning strategy.

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Critical role identification Guideline
Purpose: It is imperative to drive business growth and have a significant impact on bottom line, additionally ensure business continuity.
Investment in business-critical roles will enhance NECI performance & contribute to the achievement of strategic and business objectives,
besides providing longer-term competitive advantage.

Definition : Business-critical are the ones which add the most value and have the greatest strategic impact for NECI, Value Creators and
Enablers. Value creators directly generate revenue, lower operating costs, and increase capital efficiency. Value enablers, functions like Finance.
IT , HR , etc perform indispensable work that enables the creators.

How to Assess if a Role is Critical ? There are 2 primary areas to assess:

1. Position Criticality.
2. Risk of Vacancy.

Position Criticality, consider these 5 Dimensions and develop questions relevant to your business:
 Impact on Business Results, e.g. drives revenue, BU/DU head that is operationally and strategically critical
 Leadership Context, e.g. influence on culture
 Strategic Impact, e.g. setting strategy, huge Network internally & externally; strong customer network
 External Environment, e.g. how valuable is the role to the company compared to other competitors, Future Orientation, e.g. extent of
strategy delivery depends on the role, retirement in 2 years

Risk of Vacancy consider questions such as

 Impact on business results
 Difficulty to replace internally/externally, - rare in Market , unique to location/geography
 Successor retention risk etc.

*HiPO Definition
Consistently outperforms peer group in a variety of settings, exhibits behaviors that reflect NEC culture & values , shows a strong capacity to grow and succeed

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