Presenter
David Krieg
Participants will gain insights into: •The process used to design and implement the IRS Succession Planning model •The use and benefits of the Leadership Succession Review (LSR) process •Measures for assessing Succession Planning effectiveness
Key Takeaways
- 1.The IRS initiated its succession plan to address a massive retirement wave requiring the replacement of one manager per day through 2018.
- 2.Its Leadership Succession Planning process was designed in 2006, piloted in 2007, and eventually scaled to include 7,000 managers.
- 3.The investment in growing leaders was directly linked to significant gains in customer satisfaction and employee productivity.
- 4.The IRS's model is considered a 'best practice' for succession planning within the government sector.
- 5.A key goal of the initiative was to make the IRS the best place to work in government by building a ready workforce for the future.
- 6.Effective succession planning involves assessing talent needs, creating a structured development process, and gaining executive buy-in.
- 7.Prioritizing the development of internal talent is crucial for building a resilient and engaged workforce.
This case study from the BPI vault details the IRS's strategic response to a looming leadership crisis. While the context is from the late 2000s, the principles of proactive talent management remain highly relevant for any large organization facing demographic shifts.
The Challenge: A Looming Retirement Wave
Around the year 2000, the Internal Revenue Service (IRS) began investing heavily in leadership development, seeing measurable gains in customer satisfaction and employee productivity as a result. However, the organization faced a critical challenge: a massive wave of retirements was cresting. Projections showed that to overcome the shortfall, the IRS would need to hire an average of one new manager every day between the program's launch and 2018.
A Strategic Solution: Leadership Succession Planning
To address this critical need, the IRS designed its formal Leadership Succession Planning process in 2006 and conducted a successful pilot program the following year. The initiative was then scaled into a formal process conducted across all IRS Business Units.
Implementation and Scope
The program was comprehensive, involving approximately 7,000 managers across the agency. This large-scale implementation demonstrated a significant commitment to building a sustainable leadership pipeline from within. The process and its results have been recognized as a "best practice" within the U.S. government sector, earning praise from organizations like the Association of Government Accountants and Linkage, Inc.
Linking Succession Planning to Performance and the Future
The IRS's efforts were not merely about filling seats; they were part of a broader strategy to enhance organizational effectiveness and prepare for the future.
Key Outcomes
- Improved Organizational Performance: The strategic focus on growing leaders helped drive significant improvements in both customer satisfaction and employee productivity.
- A "Best Practice" Model: The structured approach provided a benchmark for other government agencies facing similar demographic challenges.
- The Workforce of Tomorrow: The succession planning process was a cornerstone of the "Workforce of Tomorrow Task Force," an initiative aimed at making the IRS the best place to work in government and ensuring it had the right leadership for the next 15 years.
Core Principles for Application
Leaders can adapt the lessons from the IRS model by:
- Assessing current and future talent gaps, particularly in critical roles.
- Developing a structured process for identifying, assessing, and developing high-potential employees.
- Integrating succession planning with broader talent management systems like performance reviews and career pathing.
- Securing executive buy-in to ensure resources and champion the process.
- Prioritizing the growth of internal talent to build a resilient and engaged organization.
This session explores the Internal Revenue Service's journey in establishing a comprehensive leadership succession planning process. It details the strategic initiatives undertaken to cultivate internal talent and address the looming challenge of widespread retirements, showcasing a pragmatic approach to ensuring leadership continuity and organizational effectiveness.
What you'll learn
- How a large government agency strategically implemented a succession planning model.
- The specific challenges and drivers that necessitated a robust talent management overhaul.
- Key elements of the IRS's Leadership Succession Planning process, initiated in 2006.
- Methods for scaling succession planning across diverse business units, involving thousands of managers.
- Insights into how succession planning supports broader goals like employee satisfaction and productivity.
- How to build organizational resilience through proactive workforce-of-tomorrow initiatives.
Who this webinar is for
- HR professionals and talent management specialists seeking best practices in succession planning.
- Leaders in government agencies facing similar workforce demographic shifts.
- Organizational development practitioners interested in large-scale talent initiatives.
- Executives and managers responsible for long-term strategic workforce planning.
- Anyone looking to understand how to link succession planning to improved organizational performance.
Why it matters now
While this case study dates back to 2009, the challenges of an aging workforce and the critical need for robust succession planning remain highly relevant across all sectors today. Organizations continue to grapple with talent gaps, knowledge transfer, and ensuring a pipeline of ready leaders. The principles and frameworks discussed by David Krieg offer timeless lessons on proactive talent management and strategic foresight. Understanding how a large, complex organization like the IRS navigated these issues provides valuable context for contemporary talent strategies.
How leaders can apply this
Leaders can draw lessons from the IRS's approach to formalize and scale their own succession planning efforts. This includes:
- Assessing current and future talent needs: Identify critical roles and potential gaps due to retirements or growth.
- Developing a structured process: Establish clear steps for identifying, assessing, and developing high-potential employees.
- Integrating with talent management: Connect succession planning with leadership development programs, performance management, and career pathing.
- Gaining executive buy-in: Secure support from senior leadership to allocate resources and implement initiatives effectively.
- Focusing on continuous improvement: Regularly review and adapt the succession plan based on organizational changes and talent data.
- Emphasizing internal development: Prioritize growing leaders from within to build a resilient and engaged workforce.
About this session
Key takeaways
Watching this webinar gives you grounded, practical perspective on Talent Management. Expect ideas you can use in leadership conversations, not abstract theory, drawn from David Krieg's direct experience.
Who this is for
CHROs, HR business partners, talent leaders, executive coaches, organizational development practitioners, and senior leaders who are responsible for resources inside their organization.
Why it matters now
Workforce expectations, hybrid work patterns, and AI-driven change keep raising the bar on culture and leadership. Sessions like this help leaders make smarter, more evidence-informed decisions about Talent Management.
How to apply it
Use the ideas here to challenge a current assumption on your team, design a single concrete experiment in the next 30 days, and bring one finding back to your leadership group for discussion.
Frequently asked questions
Topics