Succession Planning Made Simple

If you ask 100 people about succession planning, you are likely to get 100 different responses about what it actually is and how their organization is handling it. But you will get the majority of the people to agree that it is important, and a growing concern for them. As more and more baby boomers are set to retire, organizations are planning ahead to ensure they have the skills and leadership required in the future.

Capital District Physicians Health Plan (CDPHP) located in Albany, NY is a health maintenance organization (HMO) that serves nearly 400,000 people throughout New York State. Up until a couple of years ago, the organization’s performance appraisal system provided limited data resulting in holes in the organization’s broader understanding of its employee performance, especially as it related to information required for succession planning. As a result, CDPHP did not have the information to accurately understand its workforce potential and its areas of retention risk, let alone groom possible successors from within and reduce risk.

To address these needs CDPHP implemented a talent pool based succession planning system, part of an integrated employee performance and talent management suite. The succession planning solution follows the proven best-practice talent pool model and enables CDPHP to identify the skills and competencies required to support the organization’s three to five year strategic plans.

Since rolling out the system, they have identified their talent pools – three within their management level – and with those three talent pools, the organization has a leadership development program that focuses on the behaviors and traits that are linked to competencies within each talent pool. From there, they are fine tuning the pools and competencies and then assessing the gaps that exist for the 77 managers identified as having potential to move up in the organization. The plan is then to take that data and work on building specific development plans for each manager. Ultimately, this approach gives the organization the ability to cultivate the necessary skills and competencies in high-potential employees with talent pool focused career and development planning.

According to Susan Karavolas, director of human capital management at CDPHP, “We are able to identify talent needs that we may have as we continue to evolve. Now we have the power to address new areas as they emerge and successfully support our long-term vision.”

Succession planning will continue to become even more of a priority in the coming months and years and organizations need to start planning today so they have the bench strength they need for the future of their companies. CDPHP’s forward thinking will enable them to continue to grow and stay competitive for years to come.