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Naza World Group’s<br />
SUCCESSION PLANNING &<br />
TALENT DEVELOPMENT FRAMEWORK<br />
1
SUCCESSION PLANNING & TALENT MANAGEMENT FRAMEWORK
“Today we operate in an environment which is<br />
increasingly competitive and demanding. It is<br />
no longer enough that we are good at what we<br />
do.<br />
In today’s business landscape, innovation,<br />
strategic mindset and entrepreneurial values<br />
are some of the key competencies which a<br />
company needs to drive its business forward.”<br />
Datuk Wira SM Faisal Tan Sri SM Nasimuddin,<br />
Group Executive Chairman & Group Chief Executive Officer<br />
i
Foreword<br />
Nearly 30 years ago, my late father, Tan Sri Nasimuddin<br />
SM Amin ventured into the automobile business due to<br />
his great passion for cars. It wasn’t an easy start and<br />
the years that followed were very challenging to say<br />
the least but with a clear vision on what he has set out<br />
to achieve and through years of hard work, my late<br />
father has developed a small family business into one<br />
of the largest conglomerates in Malaysia.<br />
As I reflect on our company’s journey, I am very proud<br />
of what we, as a company have achieved over the<br />
years. From our humble beginning as a small motor<br />
trading company, we have established a strong brand<br />
name in the market, ventured into the production of<br />
vehicles and expanded our partnerships with several<br />
prominent brands from around the world.<br />
At the same time, I am also mindful of the challenges<br />
which we face, both current and in the future. Today<br />
we operate in an environment which is increasingly<br />
competitive and demanding. It is no longer enough<br />
that we are good at what we do. In today’s business<br />
landscape, innovation, strategic mindset and<br />
entrepreneurial values are some of the key<br />
competencies which a company needs to drive its<br />
business forward.<br />
The Succession Planning and Talent Development<br />
initiative is our response to the new demands of doing<br />
business. We want to enhance the capability of our<br />
employees to ensure that they have the<br />
competencies which are relevant not just for the<br />
present but also for the future. We also want to groom<br />
new leaders so that our company will always be led<br />
by a strong leadership to steer our business to achieve<br />
greater heights in the future.<br />
This initiative is beneficial not just for the company but<br />
also for our fellow Nazarians who are involved and I<br />
would like to take this opportunity to extend my<br />
genuine appreciation to those who share the same<br />
optimism and have contributed to the successful<br />
implementation of this initiative.<br />
Datuk Wira SM Faisal Tan Sri SM Nasimuddin,<br />
Group Executive Chairman & Group Chief Executive Officer<br />
ii
“We only achieve what we do because of our<br />
people. Naza World’s success is because of the<br />
talent and dedication of Nazarians, working<br />
together for a common purpose.”<br />
Rozana Ismail<br />
Head, Group Corporate Human Capital Division<br />
iii
Foreword<br />
During his brief lifetime, Alexander the Great created<br />
one of the greatest empires in the ancient civilization.<br />
Considering his remarkable achievements, it was<br />
indeed tragic when he could not identify his successor<br />
in his last hours. Legend has it that when Alexander<br />
was asked to name his successor at his deathbed, he<br />
could only say “to the strongest” and we know from<br />
history that soon after his death, his great empire fell<br />
apart rapidly.<br />
This example is still relevant today to illustrate just how<br />
important it is to have a clear leadership succession<br />
plan in any organisation be it a business, a public or a<br />
non-profit organisation. Without a succession plan,<br />
companies face the risk of disruption to their business<br />
continuity and the inability to realise their planned<br />
visions or targets.<br />
These risks are real and could potentially hit us one<br />
day. We, in the Senior Leadership team are very<br />
mindful of the risks and have therefore embarked on a<br />
succession strategy for our company. We have added<br />
to this an equally important component of talent<br />
management. This two-pronged approach would<br />
ensure that we not only identify suitable successors<br />
but also focus on the professional<br />
development of our employees to create a wide pool<br />
of talents, from which the potential successors may be<br />
identified.<br />
We also want to put this <strong>Framework</strong> in place to ensure<br />
that we have a structured approach which is<br />
transparent and merits-based. The approach and the<br />
values which we have embedded into this <strong>Framework</strong><br />
is important to reach an outcome which is just and<br />
fair.<br />
I am very honoured and delighted to lead and<br />
oversee the implementation of this important initiative.<br />
I want to express my appreciation to those who have<br />
supported this initiative and were involved in it. A lot of<br />
thoughts and work have been put into this initiative<br />
and I trust that this <strong>Framework</strong> would be helpful for<br />
interested parties involved in the succession process<br />
directly or indirectly.<br />
Rozana Ismail<br />
Head, Group Corporate Human Capital Division<br />
iv
About<br />
This Guide provides a broad framework to help Naza<br />
World Group identify critical positions and find<br />
potential successors for those roles within the<br />
organization. It also includes processes and templates<br />
that we hope will equip you with a variety of<br />
approaches to effective succession planning.<br />
This framework, therefore, is meant to serve as a guide<br />
and resource for management team, Human Capital<br />
personnel members and other internal stakeholders<br />
involved in part or in whole with the succession<br />
management and talent development process.<br />
iv
1<br />
Strategy & Aspirations<br />
SUCCESSION PLANNING & TALENT MANAGEMENT FRAMEWORK
Contents<br />
Foreword<br />
i – iv<br />
About 1<br />
Part 1 : STRATEGY & ASPIRATION<br />
• Succession & Talent Management Strategy 2 - 4<br />
• Objectives & Value Proposition 4<br />
Part 3: TALENT DEVELOPMENT<br />
• About Talent Development 25<br />
• Development Plans for Identified Talents 26<br />
Part 2; SUCESSION PLANNING<br />
• Introduction 6 – 7<br />
2a: Succession Planning Policy 9<br />
2b: Succession Planning Process 11<br />
• Step 1: Identifying the Critical Positions 13 - 14<br />
• Step 2 : Profiling of Critical Positions 16<br />
• Step 3 : Identifying the Talent Pool 18 - 22<br />
• Step 4 : Creating a Succession Plan 24<br />
Part 4: IMPLEMENTATION & EVALUATION<br />
• Implementation and Evaluation 28<br />
Part 5: STAKEHOLDERS, ROLES & RESPONSIBILITIES<br />
• Roles & Responsibilities 30 -31<br />
APPENDIX<br />
• Table of Content 33<br />
• Step 6 : Implementation and Evaluation 26 - 27
Naza World Group’s<br />
Succession & Talent Management Strategy<br />
Naza World Group’s Succession & Talent Management Strategy is developed to be in line with the Group’s Human Capital<br />
strategy, and importantly equips the Group to deliver its strategic goals through a talented and diverse workforce.<br />
Our vision is for the organisation to be populated by ready talents highly skilled and committed to realise our ambitious<br />
business goals. Against this vision, we have defined the following aspirations which underlies our talent strategy definition:<br />
Naza World Group<br />
Strategic Aspirations for Succession & Talent Development<br />
2<br />
Our Succession Management & Talent Development strategy is closely<br />
1<br />
aligned to the company's Strategic Plan to ensure that we deliver our<br />
key objectives<br />
Our human capital will have the confidence and capabilities to work and<br />
lead in diverse and challenging business environments<br />
3<br />
Our diverse people will work together and capitalise on their<br />
Individuality to innovate and excel<br />
It is against the above vision and strategic aspirations that we have defined the Group Succession and Talent Management Strategies.<br />
2
Our Talent Management Strategy comprises three inter-connected thrusts which together provide a structured approach for<br />
succession management and talent development. Our aim is to create the people capability needed for future success by<br />
developing talents for leadership, operational and service excellence.<br />
Talent Pipeline Readiness<br />
Leadership Capability<br />
Development<br />
Strategic Talent<br />
Management<br />
We will ensure that the organisation has a<br />
talent pipeline with readiness for future<br />
challenges by maximising the potential of<br />
our human capital.<br />
We will create a pool of robust and<br />
dynamic leaders capable of driving<br />
achievement of business results through<br />
great leadership.<br />
We will provide talents with the<br />
opportunity to realise their potential and<br />
develop their talents, through succession<br />
planning, advancement opportunities<br />
and structured development.<br />
Naza World Group Succession Management & Talent Development Strategy<br />
3
Objectives & Value Proposition<br />
Succession management influences how people<br />
across the company think about performance,<br />
potential, job assignments, career paths, staffing<br />
decisions, and employee development. Ultimately,<br />
succession management is about ensuring a<br />
continuous supply of high performing talent in critical<br />
positions.<br />
Traditionally, succession management initiative places<br />
emphasis on determining who would replace top<br />
executive position. However, in line with best practices<br />
Naza World Group’s Succession Management and<br />
Talent Development <strong>Framework</strong> encompasses a<br />
broader pool of critical positions.<br />
The key objective of this Succession Management &<br />
Talent Development framework is to define and<br />
streamline the approach and processes of succession<br />
planning and talent development in Naza World<br />
Group.<br />
Effective succession management will provide Naza<br />
World Group with an improved ability to maintain<br />
continuity of operations during leadership transitions<br />
with minimal disruption, delivering benefits to both<br />
individual employees by preparing them to be strong<br />
leaders, as well as to our organisation by facilitating<br />
smooth leadership transitions.<br />
Value Add of Succession Management<br />
A means of ensuring the organisation is prepared with a plan<br />
to support service continuity when people in critical positions<br />
exit the organisation<br />
A continuing supply of qualified, ready talents, which forms<br />
the ‘bench strength” of the organisation<br />
An alignment between organisation's vision and people<br />
strategy that demonstrates an understanding of the need to<br />
have the right human capital to achieve strategic plans<br />
A commitment to developing career paths for employees<br />
which will facilitate our organisation's ability to recruit and<br />
retain top-performing employees and volunteers<br />
Enhancement of Naza World Group’s “employer brand” or<br />
external reputation as an employer that invests in its people<br />
and provides opportunities and support for individual career<br />
advancement<br />
Communicating a message to all “Nazarians” within Naza<br />
World Group that that they are valuable<br />
4
2<br />
Succession Planning<br />
SUCCESSION PLANNING & TALENT MANAGEMENT FRAMEWORK<br />
13
Introduction<br />
Succession planning is a strategic planning exercise that seeks<br />
to ensure that an organisation has a pool of highly skilled and<br />
talented employees available and ready to step into senior<br />
leadership and other critical roles should the need arise. It<br />
enables an organisation to have business continuity and realise<br />
its business objectives.<br />
It consists of several processes that will guide an organisation to<br />
identify critical positions in the organisation, the current and<br />
future competencies (i.e., knowledge, skills, and abilities)<br />
individuals need to be successful in that position, and<br />
assessment of current talent to fulfill those roles to ensure an<br />
organisation’s business continuity.<br />
It also drives an ongoing, proactive dialogue between<br />
managers and senior executives that identifies and tracks key<br />
performers / high-potentials within the organisation.<br />
By implementing an effective succession planning process, Naza<br />
World Group aims to:<br />
• Proactively monitor critical talent needs and gaps for<br />
continued organisation growth;<br />
• Identify, develop and promote key talent and leaders; and<br />
• Improve the base of information about talent within the<br />
organisation.<br />
This section outlines the policy and process determined by the<br />
Group to achieve the above objectives.<br />
At the end of the process the organisation will have a<br />
comprehensive pool of talent to draw upon to meet current<br />
and future needs to ensure that the right person is in the right<br />
place, in the right position, at the right time.<br />
6
Key Elements of Naza World Group’s Succession Planning Initiative<br />
Identifying the bench strength<br />
within the organisation<br />
Putting the right people<br />
in critical and/or leadership positions<br />
Managing and developing<br />
a steady internal pipeline<br />
A systematic approach to look at<br />
current strengths and skill gaps at every<br />
level of the organisation.<br />
A fair and equitable process to assess<br />
employees potential in order to support<br />
future business needs<br />
Provide individual and career<br />
development opportunities to internal<br />
talents.<br />
7
2a<br />
Succession Planning Policy<br />
SUCCESSION PLANNING & TALENT MANAGEMENT FRAMEWORK
Naza World Group’s Succession Planning Policy<br />
• Succession Planning is used by Naza World Group to assess, develop and evaluate a talent pool of individuals and<br />
high potentials to determine their readiness to assume higher positions within a certain time frame.<br />
• The talent pool are willing and able to learn and occupy these higher positions.<br />
• The Succession Planning initiative is a method to help Naza World Group in preserving its information and<br />
knowledge that may be lost due to retirement and attrition.<br />
• Criteria for successor evaluation will be determined at the sole discretion of the company.<br />
• A developmental plan for high performing employees at various levels to undertake the next higher position would<br />
be provided for by the company.<br />
• An employee on a succession planning programme can be removed if he/she fails to upkeep the qualifying<br />
criteria.<br />
• NAZA does not commit to keep the potential successors informed of their role during the succession planning<br />
duration.<br />
• Being on Succession Planning Programme is no guarantee that a career progression will happen in the preplanned<br />
direction.<br />
9
2b<br />
Succession Planning Process<br />
SUCCESSION PLANNING & TALENT MANAGEMENT FRAMEWORK
Succession Planning Process<br />
The succession planning process focuses on defining<br />
requirements for critical roles and then identifying<br />
participants who meet these requirements.<br />
Naza World Group’s succession planning processes is rolebased<br />
focusing on specific roles that are considered<br />
critical to the current and future performance of the<br />
organisation.<br />
These pivotal or key roles can be strategic or operational,<br />
as well as developmental roles that are viewed as key<br />
“feeder positions” for providing employees with the skills<br />
and experiences needed to move into critical or pivotal<br />
roles.<br />
This framework provides a six-step process to help initiate<br />
succession management efforts, as well as detailed<br />
considerations regarding the approach to assess the<br />
leadership pipeline end-to-end implementation of effective<br />
succession management programmes with the goal to<br />
increase “leadership pipeline” or “bench strength”.<br />
This systematic approach begins with identifying succession<br />
requirements and culminates with implementing effective<br />
development programmes for successors or leaders.<br />
STEP I<br />
Identifying the Critical Positions<br />
STEP II<br />
Profiling of Critical Positions<br />
STEP III<br />
Identifying the Talent Pool<br />
STEP IV<br />
Creating a Succession Plan<br />
Naza World Group’s Succession Planning Process<br />
11
I<br />
Identifying the Critical Positions<br />
SUCCESSION PLANNING & TALENT MANAGEMENT FRAMEWORK
Step I: Identifying the Critical Positions<br />
Purpose<br />
Identifying critical positions is the starting point for the succession<br />
planning process.<br />
• Critical positions can potentially impact business operations<br />
(e.g., financial operation, process efficiencies, loss of<br />
institutional knowledge, etc) due to retirement, attrition and<br />
voluntary/involuntary separation.<br />
• A critical position is one that, if it were vacant, would have a<br />
significant impact on the organisation’s ability to conduct<br />
normal business. These positions may be Managerial,<br />
Technical or Support in nature.<br />
Approach<br />
• Develop or review the *Critical Position Criteria based on<br />
present business and operational requirements. Any<br />
existing Critical Position Criteria and Critical Position listing<br />
should be reviewed and validated for every succession<br />
planning exercise to ensure they remain relevant.<br />
• Obtain necessary approval for the said criteria<br />
• Identify and shortlist the Critical Positions across the Group<br />
based on the latest organisation structure<br />
• Obtain necessary approval for Critical Positions for the<br />
succession planning exercise<br />
* Refer to page 23 for critical position criteria<br />
Note:<br />
List of the latest approved critical positions is attached to this <strong>Framework</strong> as Appendix 1<br />
13
Selection Criteria For Critical Positions<br />
Strategic & Business Impact<br />
Stakeholder Relations<br />
Unique Nature<br />
of Position<br />
1. Business contribution of the position<br />
To what extent does the position plays a<br />
pivotal role to drive revenue and impact<br />
bottom-line financial results?<br />
2. Position’s contribution to the Company’s<br />
future<br />
To what extent does the position involve<br />
developing strategies, designing new<br />
products, or creating growth opportunities<br />
for the Company for the future?<br />
3. Relevance to core business<br />
To what extent is the position relevant to the<br />
Group’s core business, both in terms of<br />
operations and management?<br />
4. Strength of the product brand<br />
To what extent is the position important in<br />
representing the product brand?<br />
5. Relationship with Customers<br />
To what extent does the position involve<br />
relationships with internal & external<br />
customers<br />
6. Relationship with Customers<br />
To what extent does the position’s relations<br />
with key stakeholders affect company’s<br />
reputation and credibility?<br />
6. Position’s Uniqueness<br />
To what extent is this position unique to the<br />
company; such that it will be extremely<br />
difficult to recruit an external candidate?<br />
7. Specialised Expertise<br />
Is the position one that requires a very<br />
specialised set of skills, knowledge and<br />
expertise?<br />
14
II<br />
Profiling of Critical Positions<br />
SUCCESSION PLANNING & TALENT MANAGEMENT FRAMEWORK
Step II: Profiling of Critical Positions<br />
Purpose<br />
All positions have a requisite set of knowledge, skills and<br />
abilities that are expected of employees who are filling<br />
that function. Thus, knowing the success factors of a job<br />
is necessary to:<br />
• Establish the desired requirements for job success;<br />
• Create a baseline for assessing interested potential<br />
employees; and<br />
• Identify the appropriate learning and development<br />
opportunities.<br />
Approach<br />
• Job descriptions or role profiles offer a good<br />
starting point for the identification of the job’s<br />
success factors. Other sources could include, for<br />
example, interviews with senior management,<br />
immediate supervisors and other stakeholders<br />
who can offer insights on the profile requirements<br />
of every critical position.<br />
• Current incumbents of the positions may also<br />
have a good understanding of the competencies<br />
that are important for their roles. Interviewing<br />
present job holders may reveal critical<br />
knowledge, skills and abilities that potential<br />
successors should possess to assume those<br />
positions in the future.<br />
• Other considerations may include:<br />
• What are the specific behavioural and<br />
functional competencies that apply to a key<br />
job or group?<br />
• What competencies apply to all employees<br />
and groups? Are these competencies aligned<br />
with the Company’s vision, mission and<br />
values?<br />
• The Corporate Human Capital Division (CHCD)<br />
will create a *Position Success Profile for the<br />
positions within the organisation which are seen<br />
as critical.<br />
*Template is attached to this <strong>Framework</strong> as Appendix 2<br />
16
III<br />
Identifying the Talent Pool<br />
SUCCESSION PLANNING & TALENT MANAGEMENT FRAMEWORK
Step III: Identifying the Talent Pool<br />
Purpose<br />
The purpose of this step in the sucession planning process is to<br />
identify Naza World Group’s Talent Pipeline. The process shall<br />
focus on:<br />
i. Identification of potential talent pool who shall be assessed<br />
for potential and readiness for critical positions<br />
ii.<br />
Administering the assessment of potential talents to<br />
determine the Group’s talent pipeline<br />
At the end of this process, a Talent Pipeline would have been<br />
established, represented by a pool of talents who are either<br />
ready to assume critical positions, or high potential talents who<br />
shall undergo the appropriate structured development<br />
programmes to be ready for critical roles in the near future.<br />
The Talent Pipeline answers these 3 key questions:<br />
Which employees must be retained and<br />
grown (either vertically or laterally)?<br />
Which employees need to be engaged<br />
and developed?<br />
Which employee-related issues need to be<br />
managed and resolved?<br />
Talent refers to high performing and high potential<br />
employees, which the organisation would like to retain<br />
and develop for the future.<br />
18
ck on<br />
d top<br />
m t<br />
roval<br />
uence<br />
d 5<br />
Approach<br />
3(i) Identification of Potential Talent Pool through formal<br />
Assessment<br />
The following guidelines outline the steps which the Corporate<br />
Human Capital Division (CHCD) should take to ensure that the<br />
identification process is equitable, inclusive and without any<br />
prejudice or biases:<br />
*SELECTION CRITERIA FOR POTENTIAL TALENT POOL<br />
CATEGORY<br />
Discipline & Conduct<br />
CRITERIA<br />
No record of disciplinary cases or<br />
misconduct<br />
1. CHCD shall invite the incumbents of the critical positions to<br />
nominate potential talents and advise on the selection<br />
criteria. The nominations must be reviewed and shortlisted<br />
by CHCD against the Criteria for Potential Talents.*<br />
2. CHCD filters existing employee database and shortlist<br />
participants against the Criteria for Potential Talents.<br />
3. Prepare Potential Talent Database<br />
(Template is attached to this <strong>Framework</strong> as Appendix 3)<br />
4. Group the Potential Talent Pool by similar functions. Where<br />
possible, potential talent can be assigned to specific<br />
critical position or pool under skill groups/ job families such<br />
as Marketing, After Sales etc. for talent assessment purposes<br />
5. The list of nominees shall be presented to the Senior<br />
Leadership for review, deliberation and approval.<br />
6. The approved potential talent pool nominees shall undergo<br />
a series of assessments to determine their state of readiness<br />
and competency gaps.<br />
Qualifications<br />
Job Grade<br />
Years of Service/<br />
Experience<br />
Performance Appraisal<br />
Rating<br />
Each participant must fulfill a minimum<br />
education requirement. Either a<br />
degree/equivalent in the relevant field.<br />
In special circumstances, a lower<br />
qualification may be acceptable if<br />
there is a compelling justification such<br />
as experience or attainment of<br />
specialised training.<br />
Job Grade of JG13 and above<br />
(exceptions can be made subject to<br />
management discretion)<br />
Impose a minimum tenure in their<br />
current position<br />
Impose a rating score for annual<br />
appraisal result<br />
19
Talent Performance & Potential Criteria<br />
It focuses on identifying high performing/high potential employees’ position on the Talent Pipeline<br />
Map. It also gives a reference and guideline to identifying low performers.<br />
Marginal<br />
Performers<br />
Either just meeting objectives<br />
or too often missing objectives<br />
Under<br />
Performers<br />
Current performance reflects an<br />
urgent and significant need for<br />
improvement<br />
Incompatible<br />
Values<br />
Current behaviour reflects a need<br />
to fundamentally and urgently<br />
change their approach to working<br />
High<br />
Performers<br />
“ At Level ” or with Potential<br />
Effective<br />
Performers<br />
Sustained Effective Performers<br />
Note: Performance must be high or<br />
better before Potential is considered<br />
relevant<br />
Future Leaders<br />
+ Professionals<br />
Highest Performers<br />
with Potential<br />
Sustained highest performers<br />
currently have the potential to move<br />
higher (one or more levels) within 3<br />
years<br />
Current Leaders<br />
+ Professionals<br />
Highest Performers<br />
“ At Level ”<br />
Sustained highest performers who<br />
we currently believe will most likely<br />
remain at their current level over the<br />
next 3 years<br />
“ Manage and Resolve “ Engage and Develop “ Retain and Grow”<br />
Sustained Lowest Performers<br />
Sustained Highest Performers<br />
20
Approach<br />
3(ii) Administering the Assessment<br />
a. About Assessment Centre<br />
There are a number of assessment methods to identify or<br />
assess the potential candidates once a pool of potential<br />
talents is finalised, as illustrated by the table below:<br />
• ‘Assessment Centre’ (AC) is a method of assessment that<br />
assesses thinking, behaviours, skills and potential of individuals<br />
through scenario-based simulations exercises and tests.<br />
• AC is built around a leadership and behavioural competency<br />
model designed to identify essential skills necessary for<br />
effective leadership and role fulfilment. They contain a broad<br />
range of non-threatening assessment techniques to promote<br />
willing participation.<br />
• The objective of the AC is to identify employee’s potential by<br />
assessing their behavioural competencies. As such, the design<br />
of the AC has to be effective to ensure successors and high<br />
potential leaders can be identified.<br />
• The findings from the AC shall highlight each incumbent’s<br />
competency gap and lead to the application of the<br />
appropriate Individual Development Plan to accelerate his or<br />
her advancement. More importantly, the information will<br />
provide the CHCD valuable insights to determine pipeline of<br />
successors and their readiness to assume higher position.<br />
• A combination of different methods shall be used to identify<br />
Naza World Group’s talent pool.<br />
Method<br />
Competency<br />
-based<br />
Interview<br />
Individual<br />
activity<br />
Psychometric<br />
profiling<br />
Group<br />
activity<br />
Role play<br />
Paired<br />
activity<br />
Presentation<br />
Objective<br />
Assess leadership capabilities, performance<br />
track record, and job fit<br />
A written activity with a series of scenario which<br />
requires the participants to read and respond<br />
individually<br />
Measure personality and leadership style and<br />
interpersonal needs<br />
Facilitated group discussion of a leader’s<br />
demonstrated capabilities, predicted potential<br />
and development requirements<br />
G a t h e r m u l t i p l e p e r s p e c t i v e s f r o m<br />
knowledgeable sources on leadership<br />
behaviour and job-related competencies<br />
Participants are required to work in pairs to<br />
respond to a business scenario<br />
Participants are required to review a case study<br />
or scenario and present the information<br />
required to the group<br />
21
Approach<br />
3(ii) Administering the Assessment (cont’)<br />
b. Design of Assessment Centre<br />
1. Create a competency/ activity matrix based on the<br />
competencies which have been identified during the profiling<br />
of the critical positions.<br />
2. Design the AC’s tools, process, schedule, activities and<br />
guidelines.<br />
3. The activities for the assessments are designed for a<br />
particular set of job grade or job functions e.g. individual<br />
activity/ presentation for senior job grades and group<br />
presentation for junior and mid-level employees. It is<br />
therefore essential that in assessments for large group of<br />
individuals that the groupings include employees of the<br />
same job grades. Employees of different job grades may<br />
be included in a particular group but the gap should not<br />
be too big. The following example illustrates this:<br />
Group 1: all JG 13 employees<br />
Group 2: JG 13 & JG 14 employees<br />
Group 3: JG 15 and JG 18 employees<br />
Coordination of the Assessment Centre<br />
• CHCD shall contact the individual employees to notify<br />
them about their respective sessions.<br />
• On the day of the assessment, the lead assessor shall<br />
brief the employees prior to the start of the assessment.<br />
• An individual assessor shall be assigned for each<br />
employee or a group of employees, depending on the<br />
activities.<br />
• The assessors shall take down notes during the<br />
assessments for the preparation of the individual report<br />
after the assessments.<br />
• Assessors shall prepare individual reports of each<br />
potential talent based on tests, activities and/or<br />
interviews undergone by the participants.<br />
Due to nature of Assessment Center, typically external help is<br />
required for design and facilitation. CHCD will source and<br />
appoint consultants or certified assessors for this step of the<br />
process<br />
22
IV<br />
Creating a Succession Plan<br />
SUCCESSION PLANNING & TALENT MANAGEMENT FRAMEWORK
Step IV: Creating a Succession Plan<br />
Purpose<br />
A succession plan documents the steps which will be taken to prepare the successors for future vacancies. It shows the current<br />
level of readiness for the talent bench and the development plans which have been identified to prepare the individual<br />
successors for the intended positions within the Naza World Group.<br />
Approach<br />
Identification of Successor Pool<br />
Identification of Successor Pools is the actual “matching” phase where a pipeline is created for each critical position. In other words, succession pools are<br />
finalised by placing high-potentials into a pipeline for roles.<br />
Detailed Steps<br />
1. Review the information gathered during the assessment:<br />
• Placement of employees on the Talent Pipeline Map<br />
• Psychometric assessment individual profile and report<br />
• Assessment Centre individual evaluation and results<br />
• Result comparison of the prospective successor’s competency (summary of the overall result)<br />
2. Determine the individual’s readiness based on:<br />
• Inputs from Step 1<br />
• Knowledge of the job requirements<br />
• Extent of the individual’s competency development before he/ she is ready to assume the target position (based on the analysis of competency<br />
gap)<br />
• The individual’s experience history and the relevance to the target role<br />
3. Capture the successor’s readiness to promote/ transfer on<br />
the Succession Readiness Worksheet (attached to this <strong>Framework</strong> as Appendix 4)<br />
• Ready now (RN)<br />
• Ready in One Year (R1)<br />
• Ready in Two Years (R2)<br />
• Ready in Three Years (R3)<br />
4. Complete/ Update the Succession Plan Matrix (attached to this <strong>Framework</strong> as Appendix 5)<br />
5. Review the Succession Plan Matrix to ensure that the information is correct and complete.<br />
24
3<br />
Talent Development<br />
SUCCESSION PLANNING & TALENT MANAGEMENT FRAMEWORK
About Talent Development<br />
A strategic succession planning exercise is based on learning and development to fulfil a talent’s potential, rather than<br />
merely suceeding a vacancy. Therefore, once the talents or successors have been identified, based on their interest and<br />
potential for success in a critical position, the Company must plan and ensure that these employees have access to<br />
focused learning and development opportunities.<br />
Talent Development Planning is where Naza World Group will match the right talent with the right growth opportunities,<br />
maximise the learning captured from those experiences and align individuals' goals with corporate priorities in order to<br />
ensure a lasting, robust pipeline of internal talent.<br />
Planning for Talent Development: Key Implementation Steps<br />
Conduct training and development needs analyses based on the successors’<br />
Competency Profiles in order to identify strengths and weaknesses within the<br />
high-potential talent pool.<br />
1<br />
2<br />
Conduct one-on-one discussions with successors on their candidacy and<br />
development plans towards future roles.<br />
Consolidate plans in order to set up specific development programs (e.g. Firstline<br />
Management Development Program; Sales Management Development<br />
Program, Coaching & Mentoring, Job Shadowing, Short-term Job Assignments,<br />
Job Rotation etc).<br />
3<br />
4<br />
Monitor the implementation of the plans and developmental progress of the<br />
successor pool.<br />
25
Development Plans for Identified Talents<br />
• The plans should focus on decreasing or<br />
removing the gap between the required<br />
competencies and the current<br />
knowledge, skills and abilities of the<br />
individual.<br />
Example of Learning & Development Programmes<br />
for Naza World Group Talents<br />
• Explore several options of learning and<br />
development opportunities such as:<br />
• Job assignments that develop and/ or<br />
improve an individual’s<br />
competencies;<br />
• Job rotations; and<br />
• Formal training<br />
• Ensure that appropriate strategies are in<br />
place to support the transfer of<br />
knowledge to the individuals for the key<br />
positions, which can include:<br />
• Mentoring, coaching or jobshadowing;<br />
• Documenting critical knowledge;<br />
• Feedbacks from exit interviews; and<br />
• Establishing communities of practice.<br />
Notes:<br />
The examples above are not exhaustive and may include other programmes from time to time.<br />
26
4<br />
Implementation & Evaluation<br />
SUCCESSION PLANNING & TALENT MANAGEMENT FRAMEWORK
Purpose<br />
The final step in the succession planning process is to monitor<br />
and evaluate the strategies implemented to close identified<br />
and prioritised talent gap(s). It is important to regularly<br />
evaluate the succession planning process to ensure<br />
effectiveness.<br />
It is recommended that the succession planning efforts be<br />
measured and monitored: the relationship between inputs,<br />
activities, outputs, and outcomes; and impact of the process<br />
based on stated goals and objectives. Additional measures<br />
may focus on the framework functional strengths and<br />
weaknesses, and assessing gaps in developing succession<br />
candidates.<br />
Approach<br />
Sample Quarterly Metrics<br />
• How well are individuals progressing through their<br />
development assignments?<br />
• Progress toward development goals and career<br />
development plans.<br />
• Percent of candidates in a rotational position with a<br />
formal action plan.<br />
• Percent of candidates in cross-functional<br />
assignments.<br />
Sample Annual Metrics<br />
• Number of successful promotions into key leadership<br />
positions.<br />
• Percent of open positions filled.<br />
• Percent of turnover.<br />
• Diversity demographics of “talent pool”.<br />
• Percent of talent pool candidates that are “ready<br />
now”.<br />
28
4<br />
Stakeholders<br />
Roles & Responsibilities<br />
SUCCESSION PLANNING & TALENT MANAGEMENT FRAMEWORK
The Succession Management process is not merely a human resource initiative, but a strategic initiative which<br />
impacts the business & operations of the Group. Therefore, it is pertinent that internal stakeholders play their roles<br />
accordingly to ensure the realisation of succession management and talent development strategies and<br />
objectives.<br />
Executive Director / Group Executive Chairman<br />
The Executive Director/ GEC is the ultimate owner of Naza’s succession plan and talent management<br />
programmes for all positions that report to the Executive Director/ GEC and other identified critical positions.<br />
The Executive Director/ GEC should personally participate in the process including regular reviews and updates<br />
for the Company’s succession plan. The Executive Director/ GEC acts as a champion or ambassador to the<br />
process, including showing the Company’s commitment to the process and ensuring Succession Planning and<br />
Talent Management become embedded in the Naza’s culture.<br />
Senior Leadership<br />
The Senior Leadership’s should ensure that Succession Planning and Talent Management is embedded into<br />
Naza’s culture and are included as one of their key accountabilities. These responsibilities may include<br />
identifying high potential employees, conducting meetings with identified employees, assessing employee<br />
skills, knowledge and competency levels and assisting in the creation and execution of individual<br />
development plans for the high potential employees. Senior Managers should have regular succession<br />
planning and talent management update meetings with the GEC and the Head of GCHCD.<br />
Group Corporate Human Capital Division (GCHCD)<br />
GCHCD is primarily responsible for administering the Company’s Succession Planning and Talent Management<br />
Programme. Some of the main duties should include:<br />
• Collaborating with the Senior Leadership to develop the Succession Planning and Talent Management<br />
toolkit for use in the Company<br />
• Ensuring that the company’s Performance Appraisal system supports the Succession Planning and Talent<br />
Management Programme<br />
• Tracking and measuring progress of talent management (databases, reports etc.)<br />
• Facilitating talent review meetings with the relevant stakeholders<br />
• Assisting the management in evaluating potential talent<br />
• Providing templates, tools, etc. to assist in the process<br />
30
Managers<br />
Management staff (may include Supervisors/Directors) play a very important role in liaising between the Senior<br />
Leadership and direct support employees. This can include participating in talent review meetings, helping to<br />
identify potential talent, understanding employees’ future career goals and aspirations. Managers can also<br />
ensure effective performance appraisals occur where individual development plans are created to assist<br />
potential talent in developing to the required competency levels for career growth, as well as evaluating<br />
employee performance and progress on individual development plans. Managers should also participate in<br />
talent review meetings with the Senior Leadership to help identify potential talent and update on individual<br />
development plans.<br />
Employees Employees who are interested in their career growth should take ownership of their future by<br />
actively seeking out opportunities for skill and knowledge growth. This can be done by learning about the<br />
critical positions in the Company and having discussions about their interest with their manager. Employees<br />
should feel able to discuss their career aspirations and interests with their manager and develop mutually<br />
agreed on individual development plans as part of the performance appraisal process. Employees should<br />
also seek out professional development opportunities in partnership with their managers/ superiors.<br />
31
5<br />
Appendix<br />
SUCCESSION PLANNING & TALENT MANAGEMENT FRAMEWORK
Appendix of Forms & Templates<br />
No Title Reference Page<br />
1 Approved Critical Positions<br />
2 Position Success Profile<br />
3 Potential Talent Database<br />
4 Successor Readiness Worksheet<br />
5 Succession Plan Matrix<br />
Sucession Planning<br />
Process: Step1:<br />
Identifying the Critical<br />
Positions<br />
Sucession Planning<br />
Process: Step II: Profiling<br />
of Critical Positions<br />
Sucession Planning<br />
Process: Step II: Profiling<br />
of Critical Positions<br />
Sucession Planning<br />
Process: Step Iv:<br />
Creating A Succession<br />
Plan<br />
22<br />
25<br />
28<br />
32<br />
33
For further information refer to:<br />
Group Human Capital Division<br />
Naza World Group<br />
Lot 1, Jalan 51A/221,<br />
Seksyen 51a,<br />
46100 Petaling Jaya,<br />
Selangor, Malaysia<br />
E : info@nazaworld.com.my<br />
T : +603 79532888<br />
F : +603<br />
First version 2016<br />
Published by<br />
Naza World Group Sdn Bhd<br />
Developed by