1

Succession Planning
Based on Talent Management ;
Performance Management System &
Competency Based HR Management

By Pungki Purnadi
www.pungkipurnadi.com or www.pungkipurnadiassociates.com

Yogyakarta, 23rd July 2016 & 12th May 2018

Duta Wacana Christian University (UKDW) Yogyakarta as part of

Certified Talent Management (CTM) Program
Certified Professional Human Capital Management (CPHCM) - Indonesia
 2

Personnel Mgt HRM HCM

Succession
Succession Plan is
Plan based on everybody
Unclear Top business,
Succession management open,
Plan view with HR transparent
as with
administrator committee
system

Boomers Gen X Gen Y

Certified Professional Human Capital Management (CPHCM) - Indonesia
Module Objectives

To provide an in-depth
understanding and application on
how to design & implement
succession planning program using
talent management system as in
line with company vision mission
values & target business objectives.

Certified Professional Human Capital Management (CPHCM) - Indonesia JMU R2-16/3/05

OUTLINE
• Objectives of Succession Planning
• People & Talent Development
Committee
• Bench Strength
• Candidate Pools

Certified Professional Human Capital Management (CPHCM) - Indonesia

OBJECTIVES of SUCCESSION
PLANNING
• To ensure that proper candidates are available
when critical positions become open due to
transfer, promotion or departure.
• To maintain the talent pool or high potential
employees.
• To have structured development plan.
• To establish Learning Organization and
Mentoring culture.

Certified Professional Human Capital Management (CPHCM) - Indonesia

Succession Plan vs Replacement Plan
• Succession Plan is based on the Key Position within the
organization
• Succession Plan is based on talent pool population in the
1-3 boxes of 9 box matrix.
• Succession Plan is based on Integrated Talent
Management System
• Every Key Position should have the position
competencies profile
• Profile match-up process can be set-up based on the
percentage matching of key position competencies
profile with individual talent competencies profile.

Certified Professional Human Capital Management (CPHCM) - Indonesia

What is the difference with
Replacement Plan
• Replacement Plan is apply for all staff employees and all
positions within the organization
• Replacement plan is based on employee competencies
profile
• Replacement Plan, can be immediate and any time as per
organization needs
• Replacement Plan is based on talent pool population in
the 4-6 boxes of 9-box matrix.
• Profile match-up process can be set-up based on the
percentage matching of employee competencies
profile with selected position competencies profile

Certified Professional Human Capital Management (CPHCM) - Indonesia

Replacement Planning vs Succession Planning
Replacement Planning is used to find
a position within the organization
that is suitable for a specific
employee.

Succession Planning is used

to find a suitable successor
(talent) for a key position within
the organization.

Certified Professional Human Capital Management (CPHCM) - Indonesia

 Talent & Career Strategy Matrix
Low Performance Average Performance High Performance
High Potential 5. High Potential 2. High Potential 1.
Misfits – attitudinal or job fit issues Prince-in-waiting – more time needed Stars – ready to fly

▪ Close monitoring and regular counseling ▪ Stress-test with more challenging assignments ▪ Promote
▪ Urgently reassign or redesign job scope ▪ Increase scope of experience ▪ Constantly expand job scope & provide greater
▪ Manage expectations challenge
▪ Specialized training for gaps in job skills

Low Performance Average Performance High Performance

Average Potential 7. Average Potential 4. Average Potential 3.
Critical List – Needs salvaging Cadre – the typical employee Eagles – delivers consistently

▪ Close monitoring and regular counseling ▪ Set challenges to sieve out this group ▪ Manage expectations
▪ Re-look at skills and job scope ▪ Mentor and train ▪ Consider for promotion for related areas
▪ Test for capability outside core competence

Low Performance Average Performance High Performance

Low Potential 9. Low Potential 8. Low Potential 6.
No hopers – pull in the plug Foot Soldiers – monitoring needed Workhorses – keeps the show going

▪ Why are they still in the organization? ▪ Set clear performance targets ▪ Recognize achievements and motivate
▪ Plan exit ▪ Monitor performance closely ▪ Train to update skills

Certified Professional Human Capital Management (CPHCM) - Indonesia

Develop and Manage Talent
Talent Needs and Gaps Analysis Talent Assessment
 Strategic Staffing  Performance Management
 Succession Planning for Critical Process
Functions – Jobs - Positions  Hi-Potential Talent Assessment
 Retention Strategies for
Key Talent
Having the
right people,
with the right
capabilities, at
the right time

Talent Sourcing/Selection Talent Development

 Global Recruiting  Job Assignments
 Selective Experienced Hiring  Multi-Source Feedback and
 Diversity mentoring
 Programs for New Employees,
Leaders, and Competency Gaps

Certified Professional Human Capital Management (CPHCM) - Indonesia

People & Talent DEVELOPMENT
TEAM or COMMITTEE

Central or Cross
P&T Dev Committee

Functional P&T Dev Committee

Certified Professional Human Capital Management (CPHCM) - Indonesia

People & Talent Development Committee
Charter, Guidelines & Process

• Charter to link objectives to vision and strategy

• Policy, Guidelines and System to ensure
consistency
• Calendar and planning Schedules
• Mechanism and processes
• Roles of HC/HR & Line Mgt

Certified Professional Human Capital Management (CPHCM) - Indonesia

People & Talent Development
Committee (sample)
• C-PTDC:
▫ Members: all direct reports of the President.
▫ Chairman: Director E&P; Secretary: Director HR
▫ Meet every second Wednesday of the month.
▫ Discuss Succession Planning in Feb, May, Aug, Oct.
• F-PTDC:
▫ Members are all managers of related functions
▫ Chairman and Secretary are appointed as appropriate
▫ Each member of the C-PTDC will be the advisor of each F-PTDC
▫ Meet every first Wednesday of the month.
▫ Discuss Succession Planning in Jan, Apr, Jul, Sep

Certified Professional Human Capital Management (CPHCM) - Indonesia

Succession Planning Process

• Bench Strength Analysis

▫ (1 key position with at least 3 bench strength)
• Position Competencies Profile of the targeted key
position
• Employee Competencies Profile which explain in detail
historical information about the employee prior to and
during employment with the Company.
▫ Including “employee potential level”, “employee
performance history” and “Employee Risk Category”

Certified Professional Human Capital Management (CPHCM) - Indonesia

 BENCH STRENGTH (sample)

Position & Ready In Ready In

Ready Now
Incumbent 1 – 3 Yrs 4 Yrs & up

Ali Edi, Supt Maint Hari, Supv Prod Mulyono, Sr Engr

Mgr Prod Diah, Supt Proc Joni, Supv Engr Dakso, Supv Maint

Bidin Harto, Sr Sup Tax Ari, Supv A/P Doddy, Supv A/R
Mgr Sati, Head of Plg Iwo, Supv Payroll Yono, Supv Bdgt
Finance

Cecilia Hadi, Sr Supv RD Rita, Sr Supv Mrkt Wida, Supv Prod

Mgr Sales Joko, Head of Rev Dono, Hd of A/P Didi, Supv Engr

Certified Professional Human Capital Management (CPHCM) - Indonesia

 HIGH POTENTIAL
2 1

•High Potential but •High performance and high

performance needs to be potential
improved •Ready to be promoted to
A times in 3 years
POTENTIAL

•Well placed in the position •High performance

•Have reached the optimum of
his potential
B

PERFORMANCE

Certified Professional Human Capital Management (CPHCM) - Indonesia

 TECHNICAL CAREER PATH
6. Principal

5. Consultant
*

*
4. Advisor
*

3. Senior

2. Advanced

1. Discipline

Certified Professional Human Capital Management (CPHCM) - Indonesia

TCP measures progress & sets expectations
for performance at each level
Principal

Consultant

Advisor

Senior VALUE
Advanced

Discipline

Results
Scope &
Impact
Career/Development
Behaviors Knowledge
planning is critical for
Knowledge Technical &
Sharing & Business professional growth.
Interaction
with others

Certified Professional Human Capital Management (CPHCM) - Indonesia

In addressing the capability gaps of the Technical Executives, there is
a need to accentuate and refocus the existing framework to develop
their cross functional capabilities
Managerial Path Technical Path
SALARY BAND
MD/CEO ROLE LEVEL
E7

E6 Senior GM
Custodian L6

E5 GM

E4 Senior Manager Principal L5

E3 Manager Staff L4

Cross-functional rotation
HSE
QS
IT

Business Skills
People Skills

Senior Engineers within the same business

A3 B3 C3 D3 E3 F3 Cross attachment to other
E2 businesses is not
L3
encouraged

Engineers Cross-functional rotation

A2 F2 Minimum of 2 positions in
L2 E1
Maximum of 3 years per
Junior Engineers position
E1 A1 F1 Cross attachments to
other businesses are
L1 allowed.
Common Core Orientation Technical SGDP L1 OPU Specific
Skills Programme Induction Programme Orientation Programme Approximately 12 to 18
ENTRY LEVEL PROGRAMMES months
Certified Professional Human Capital Management (CPHCM) - Indonesia
HC/HR’s Role in Succession Planning
Identifying development needs
of the workforce

Assisting in identifying needed

future job skills

Noting employees who might fill Succession

future positions Planning

Communicating the succession

planning process to employees

Tracing and regularly updating

succession plan efforts

Certified Professional Human Capital Management (CPHCM) - Indonesia

Succession Planning (cont’d)

Succession Planning
Considerations

Electronic/Web-
“Make or Buy” Succession Planning
Based Succession
Talent Skill Areas
Planning

Certified Professional Human Capital Management (CPHCM) - Indonesia

Summary step by step
1. Identify Key / Critical position in the
organization in term of number and its
minimum requirement.
2. Establish Succession and Talent Criteria with
its guidelines and procedures
3. Establish Committee (Talent Committee)
4. Identify the talent with appropriate tools
(performance, potential, etc.)
5. Apply the Human Asset Value (HAV) Matrix
6. Select the best from the best talent to fulfill
the succession plan
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Certified Professional Human Capital Management (CPHCM) - Indonesia
Step by step Succession
• Establish the Talent Committee
• Identify Competencies requirement
for key position
• Assess Competencies of Talent who
might fill up the key position
• Get the competencies gap
• Prepare the Talent Development
program
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Certified Professional Human Capital Management (CPHCM) - Indonesia
 Case Study Of
PetroChemical Company
Designing Succesion Planning
Advanced Chemical India
Corporation (ACI)

Certified Professional Human Capital Management (CPHCM) - Indonesia

Case Study
Introduction 1
• Advanced Chemical India Corporation (ACI) is founded in 1982 by
current owner & president, Mr.Gupta.
• Company Vision : “to become a leading global petrochemical
company”.
• Company Mission : “to serve all client needs with the best
product, best people, best service with latest technology with
the maximum gain to the shareholders and stakeholders”.
• Average employee’s age is 45 years old with average service per
employee is 15 years with the company ACI.
• Employee movement internal company little bit difficult.
• Last three years recruits youngsters with significant numbers.
• ACI’s corporate philosophy is Keep High Quality in products. The
culture of ACI is basically conservative.
• ACI’s overall sales turnover in 2016 hit US$800 million and profit is
US$30 million before tax. 60% of ACI’s are sold in domestic market
although overseas sales have been growing steadily.

Certified Professional Human Capital Management (CPHCM) - Indonesia

Case Study
Introduction 2
• ACI originally started producing basic chemical products that are used
in clothes. Gradually other applications are developed such as for
automobile, home appliances. Some products for homes are sold
directly from supermarkets in India with ACI brand.
• They have three plants in India and sales offices in US, UK, Hong
Kong. Thailand and Malaysia. All plants produce basic chemicals and
modified (specialty) products based on needs of clients.
• About 2160 employees are hired. Their organization organized by
functions. There are 160 employees in HQ, 1500 in production with
production engineering, 400 in sales in various branches, and 100 in
R&D. HQ covers marketing and corporate functions as Finance, IT,
Legal, Purchasing, HR etc..
• ACI uses patents licensed by UK chemical companies. But by
developing own products for specific clients, some new patents are
developed by ACI and registered.
• They also updated the production technology from time to time with
significant number of investment.

Certified Professional Human Capital Management (CPHCM) - Indonesia

Case Study
Business Issues
• Global competition around ACI is getting severer. Now for low cost (basic) product, ACI
is competing with Chinese companies and for high end (modified/specialty) products
competitors are US/European/Japanese chemical companies.
• As a result of severe competition, though the sales has increased by 5%, the profit has
decreased by 20% last year. Both commodity and specialty (high end) chemicals
divisions are reducing profits.
• Mr. Gupta wants to transform ACI, review its business model and lift ACI into the next
era of growth.
• He considered that organizational issues of ACI are followings.
▫ Since many Products introduced, profit control for each product is getting difficult.
And the final responsibility of each product is not clear.
▫ Functional organization becomes barrier to develop/introduce products in speedy
manner.
▫ HQ seems too big.
▫ He feels difficulty to manage everything by himself
• Therefore he decided to transform ACI from functional to business unit base
organization ( basic chemical and specialty/modified chemical units). Also he wants to
reorganize HQ and R&D to more value oriented organization
• Currently Job based pay and incentives with profit share (for total ACI profit) are used.
Mr. Gupta also feels the necessity to change these according to the organization change

Certified Professional Human Capital Management (CPHCM) - Indonesia

Business Team Organization for
Chemical Company - ACI
(Virtual) Companies Division
GM 50 Manager Corporate Planning
Corporate
Service Manager Finance & Accounting
Division 50
Research 20 Manager Purchasing & Logistic

Manager Development 20 Manager IT

R&D
Board of Process Engineering 15 Manager HR & Labor Relations
Directors 100
(incl Gupta) 5 Manager Legal &Intellectual Property
Manager Planning
Control
GM Basic Manager X Plant New Management
Chemical *Divisions have teams of
Application Manager Y Plant Production 3 management layers.
*Each biz unit / team has
1000 Manager Branches
300 own P/L
USA - UK
*Corporate service cost is
charged by number of
GM Specialty Manager Planning
Control people by team.
Chemical Manager Z Plant *Professional staff of
Application Production Corporate & R&D uses
500 Manager Branches Application time charge system
100 Engineering
THA - MAL -HKG *Corporate staff shifted to
company

Certified Professional Human Capital Management (CPHCM) - Indonesia

Case Study (Designing Succession Planning )
People Issues
• After Re-organization, Mr Gupta is having difficulty to find the good candidates to
fill up the GM Position of his two business units.

• He has Mr. Subramaniam which is now as Plant Manager X. Mr. Subramaniam is a

tempered person but a perfectionist guy in job. He has been respected by his
subordinates due to the result of the production which always meet the target. Mr.
Subramaniam is a career person, since he started his career since the beginning of
ACI and develop the production technology very well. Until now he is still a single
man at the mature age.

• He has Mr. Kumar which is now as Plant Manager Y. Mr. Kumar is an easy going
person and having a good leadership style in managing his plant. Everybody in Plant
Y loves him very much. In term of competencies he has the one who always being
sent for Leadership training. Mr. Kumar is just married person and still his first
baby born. Kumar also quite mature on his age.

• He has Mr. Sanjeev who are now as R&D Manager. Mr. Sanjeev is a keen person,
patient and persistence. Not many innovative product is produced during his
leadership. However his accurate calculation and good judgment on the financial
(cost of product) makes him good in the eye of Mr. Gupta. Sanjeev is a family
person, sometime he brings his grown children at the office while waiting his end
of the working day.
Certified Professional Human Capital Management (CPHCM) - Indonesia
Case Study (Designing Succession Planning )
People Issues
• He has Mr. Venkat who are now hold Planning Manager position under Specialty
Chemical Product Division. He work side by side with Mr. Rajiv who are the Plant
Manager Z. Venkat is a senior and mature person who has career from bottom as
operator and getting higher education with scholarship from England. Before
holding Planning Manager, he was the second person in charge in R&D Division. He
always do some risk analysis during his career which put him good in front of Mr.
Gupta. He is also family man with good children education perspective.

• He has Mr. Rajiv who are now as Plant Manager Z. Mr. Rajiv is a thinker style person
but having a good communication skills. It is proven that he has so many client
relationship and can maintain his product sales to the big customers and industries.
Rajiv is the bright young person who are having a great career jump from fresh
graduate to become a capable engineer and promoted to become Plant Manager.
He is in close relationship with another young bright lady engineer at the R&D
department. They may be in wedding ceremony next year.

• Mr. Gupta still has a strong lady of Ms. Bhindi who are now just handle head of
corporate planning. Ms. Bhindi is MBA graduated from Harvard Business School. She
just joint ACI 4 years ago and her last three years performance are outstanding and
most of the managers agreed that she is the star lady of the company. Before
handle Head of Corporate Planning, she was the brightest financial planner in the
Finance & Accounting Department. Now she is learning by doing on the production
operation by having good relationship with most of all engineers in those three
plants. Until today she is still single and no clue that she has special relationship
with somebody.

Certified Professional Human Capital Management (CPHCM) - Indonesia

Case Study (Job Purpose)
Job Purpose
• GM Basic Chemical Business Unit is having main accountability to
manage two production plants with number employees around
1000 people consisting of Production department, QA/QC,
maintenance and Sales at their spreading offices. This position has
an authority to set production planning, control the quality and set
price on the marketing and sales up to their overseas offices.
Dimension of sales target is around US$300M per year.

• GM Advance or Modified Chemical Business Unit is having main

accountability to manage one production plant with number
employees around 500 people consisting of Production
department, R&D, maintenance and Sales at their spreading
offices. This position has an authority also to set production
planning, produce specific product as per customer needs, control
the quality and set price on the marketing and sales up to their
overseas offices. Dimension of sales target is around US$ 200M per
year.

Certified Professional Human Capital Management (CPHCM) - Indonesia

Case Study – PetroChemical Company
• Based on the above people situation, please
recommend the succession planning process and
scheme
▫ Establish the Talent Criteria to fill up the GM
business unit position
▫ People Development Program for each person
▫ Who are the best candidate to fill up the GM
Position

• Leadership Development recommended?

Certified Professional Human Capital Management (CPHCM) - Indonesia

 good luck & success!
If you need further assistance,
please contact me at 08121055000
Or visit www.pungkipurnadi.com
www.pungkipurnadiassociates.com
Or sending e-mail to :
Pungki.purnadi@yahoo.com
pungki@pungkipurnadi.com

Certified Professional Human Capital Management (CPHCM) - Indonesia

 Pungki Purnadi, ST.MM.MHRM.
Pungki Purnadi is certified HR practitioner, having more than 26 years
experience in handling HR matter. His engineering background education and
master human resources management support him to become the innovative
HR Practitioner. He had various working experiences regionally and
internationally such as with TOTAL Indonesie, MedcoEnergi, Petronas Carigali,
WorleyParsons, Petrosea and some years with international management
consultant, handling some HR matters in various industries.
During his working experiences, he had been assigned to various key HR
position domestically & internationally (in France, England, Scotland, Norway,
Arab Emirates, Iran, Turkey, Libya, Nigeria, Sudan, Argentine, Australia,
Myanmar, Thailand and Malaysia) such as Training & Development Manager,
HRD Manager, Country HR Manager, South East Asia Regional HR Manager
and Human Capital Director. He is also one of the founders who have an
initiative to conduct HR certification in Indonesia such as Certified Human
Resources Professional (CHRP); Certified Human Resource Management
(CHRM) and Certified Professional Human Capital Management (CPHCM). As
HR practitioners, he is very active to run and facilitating several HR program.
Certified Professional Human Capital Management (CPHCM) - Indonesia