Succession Planning with PI

How can I use the Predictive Index® (PI) to identify those individuals who will lead my company in the future?

Succession planning presents some of the most daunting challenges to any organization. Too often, succession-related planning is put on the back burner, until the chief executive is critically near (or even past) normal retirement age. Compounding this challenge today is the aging of the workforce and a smaller pool of qualified candidates. Additionally, succession planning is an issue that is not only exacerbated when heir apparents leave the organization but when any key senior level manager leaves. Planning for succession is a critical management challenge.

How can an organization target future leaders?

Predictive Index helps with the "who" of succession planning

Too often leaders are determined by tenure and hours worked. In today's business world, organizations need leaders that can move the company forward. PI can help you chart your organization's future by taking an objective look at the drives, capacities and motivations of the key individuals who can execute the business plan, page for page. The Predictive Index can highlight decision making capabilities and vision, identifying where current employees are not appropriate to move into greater levels of leadership responsibility, indicating the need for greater leadership development of current employees or the need to attract new talent.

For example, PI-profiled succession planning information may show your senior managers' strengths are technical, not managerial. You may determine a need to develop or hire new management talent whose PI information indicate they can push the company to greater levels of success. They may be the candidates to do so if they have attributes necessary for leadership success, such as strong organizational development skills and the ability to understand, modify when necessary, and lead toward the company's vision.

Hammering succession planning home at National Nail

Chairman Tom Korhorn and President Roger Bruins of National Nail, a building materials manufacturer and distributor, were concerned with the company's long term growth and their own desire to retire within five years. In an industry where things change rapidly, they decided that executive succession planning and new leadership were needed.

An intensive 18 months later, they found Scott Baker, whose PI profile and major international consulting firm experience made him an excellent choice for the CEO position.

Next, they initiated a formal management planning process, evaluating key human resource requirements that determined additional leadership talent needed to be in place for Korhorn and Bruins to execute their plan for retirement. A Finance Vice President, and a Director of Home Center Sales were added. Each has appropriate work experience and behavioral traits, confirmed by PI, making them highly successful in their respective roles. A Director of Operations joined more recently.

Initiating succession planning with PI-generated management information, National Nail continues to have a bright future with a strong leadership team in place, forward-thinking business planning, and growing revenue.