People: Succession Planning

Transcription

People: Succession Planning
HR Pastime or Critical Business Strategy Enabler
“An organization is nothing more than the
collective capacity of its people to create
value.” Lou Gerstner former CEO of IBM
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Largest potential gains in revenue and profits
for business leaders came from building
bench strength when looking at a variety of
talent outcomes*
*CLC Talent Management Effectiveness Survey: Corporate Leadership Council Research
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According to Marshall Goldsmith, on average,
the executives he meets give their succession
planning process a grade of C+ and they give
their execution of succession plans a grade of
D
How are you doing?
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Time
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To
To
To
To
plan
develop
fill open positions with the right people
think further down the road
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Getting Feedback and Buy-In from Others
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It is Hard
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Not Defining the Business Case
• Requires tough and direct conversations
Business
Strategy feeds
into talent
strategy
Executive
Commitment
and
Accountability Reinforcement
Manage
Ongoing
process and
Action Plans
Succession
Planning is an
Ongoing Process
Metrics that
Matter
Talent
Development,
Acquisition and
Planning
Identify Critical
Positions
Develop
competency and
assessment
model
Assess Talent
and ID
Successors;
Calibration
Business
Strategy
feeds into
talent
strategy
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Identify the External Trends in your Business
Environment
Define your Business Strategy
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How do you compete?
What do you do better than the competition?
Can you do this without the right people?
What is needed now and what will be needed in the future?
What kind of culture is needed to drive success?
Feeds into the Talent Needed
Executive
Commitment
and
Accountability Reinforcement
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After Sarbanes-Oxley, Boards have become
more involved with succession management
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Leadership Responsibility should start with CEO
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Talent Expectations for leaders and managers
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Hold ongoing reviews, consider talent management
results as part of bonus plan or performance
management ratings
Direct strategic impact on the business; can drive
competitive advantage
Identify
Critical
Positions
High variability in performance can have major impact on
business
Critical positions may require and receive larger and/or
differentiated investment and development
Make sure the discussion is around the position not the people
Position
Variability in
performance
Impact on
strategic
outcomes
Scarcity of
resource
Impact on
other
strategic
activities
Total Score
Job A
Job B
Job C
Complete the table for each job using a scale from 1 (low) to 5 (high)
Highest Total Score = Most Critical
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List 3 or 4 most important sources of competitive
advantage for your company – examples:
• Innovation
• Quality
• Branding
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• On-time Delivery • First to Market
• Cost
• Relationships
• Distribution
• Service
Identify relative importance by allocating 100
points among them where no two sources of
competitive advantage can have equal weighting
Using this list helps you identify core, technical
capabilities/positions
Michigan Ross School of Business
Executive Education
Defining
Characteristics
“A” Position –
Strategic
“B” Position – Support
“C” Position Surplus
Scope of Authority
Has direct strategic impact
and exhibits highperformance variability in
the position, representing
upside potential
Has an indirect strategic impact by
supporting strategic positions and
minimizes downside risk by providing
a foundation for strategic efforts, or
has a potential strategic impact, but
exhibits little performance variability
among those in the position.
May be required for the
firm to function but has
little strategic impact.
Primary Determinant of
Compensation
Performance
Job Level
Market Price
Effect on Value Creation
Creates value by
substantially enhancing
revenue or reducing costs
Supports value-creating positions
Has positive economic
impact
Consequences of Mistakes
May be very costly, but
missed revenue
opportunities are a greater
loss to the firm
May be very costly and can destroy
value.
Not necessarily costly.
Consequences of Hiring
the Wrong Person.
Significant expenses in
terms of lost training
investments and revenue
opportunities.
Fairly easily remedied thru hiring of
replacement.
Easily remedied thru
hiring of replacement
Source: “The Differentiated Workforce Transforming Talent into
Strategic Impact” Adapted from “A Players” or “A „Positions‟? The
Strategic Logic of Workforce Management,” Harvard Business Review,
December 2005
High
Needs Development Meets Expectations
Potential
Improve in current
role or reassign
Develop
Competency
and
Assessment
Model
Exceeds Expectations
Prepare for
future role
Improve in current
role
improve in current role reconsider
Low
Performance
High
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Hy-Vee
◦ Culture – how it drives
◦ Position Identification
 Internal vs. External
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Candidate Development and Assessment
Hy-Vee University
◦ Identification of Potential candidates
◦ Etc……
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Mentors
Diversification tool
Business
Strategy
feeds into
talent
strategy
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Reviewed External Environment, Trends and
Current Performance
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Redefined the Business Strategy and what Cultural
Capabilities we needed to succeed
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Analyzed the # of Director Level and Above Positions that we
Hired Externally the Prior Year
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Reviewed Current Number of Open Director and Above
Positions
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Calculated the Cost of Turnover
• Search agency costs
• Relocation costs
• Lost productivity/revenue from open positions
CEO Active Involvement and Accountability
Executive
Commitment
and
Accountability Reinforcement
LEADERSHIP TEAM Identification and Alignment of Critical Positions
MANAGERS Perform Talent Assessments
ID of Critical
Positions
Senior Leadership Calibrates Talent Assessments and ID‟s Successors
BU Leaders, HR Partners, CEO, CHRO Review of Succession Planning and
Talent Management and Upgrade Process
Senior Leaders have performance goals and objectives
specific to talent development and upgrade/acquisition
Develop
Competency
and
Assessment
Model
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Understanding of company‟s cultural capabilities
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Consideration of motivation, ability and
engagement
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Performance and Potential
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Definition of competencies and derailers
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Defined promotability and retention risk
assessments
Motivation
Engagement
Ability
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Motivation
Motivation
Extent in which an employee wants:
• Prestige and recognition in the
organization
• Advancement and influence
• Financial rewards
• Work-life balance
• Overall job enjoyment
Resources
Engagement
Ability
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Employee career goals in
SAP Talent Profile
Regular development
conversations
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Ability
Motivation
A combination of characteristics and
learned skills to carry out day-to-day
work:
• Mental and cognitive ability
• Emotional intelligence
• Interpersonal skills
• Functional and technical skills
Resources
Engagement
Ability
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Employee competency
self-assessment in Skills
Profile
Performance history
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Engagement
Motivation
Engagement
Ability
Includes four elements of commitment:
• Emotional commitment to the
organization
• Rational commitment – a belief that
staying with organization is in the
employee‟s self-interest
• Discretionary effort
• Intent or desire to stay
Resources
•
Regular performance and
development discussions
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Promotability Scale:
Highly promotable (HP): Seen as having the ability and motivation to be
promoted two levels within five years. Include in succession planning.
Promotable within 2 (P2): Seen as having the ability and motivation to be
promoted one level within two years. Include in succession planning.
Promotable within 5 (P5): Seen has having the ability and motivation to be
promoted one level within 5 years. Include in succession planning.
Lateral Development (LD): Consider for lateral move within the next 12 months
to broaden experience base and potentially enhance long-term promotability.
Include in succession planning.
Well Placed (WP): Continue development in current role based on employee‟s
expertise and motivation.
At risk: Not meeting current performance expectations; may be due to poor job
fit or poor performance.
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Possible Ratings:
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Possible Ratings:
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Required – Indicate Next Position
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Possible Ratings:
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Talent development plans put into place for
• Internal successors listed for critical positions
• Individuals identified as promotable/lateral development
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Talent
Development,
Acquisition
and Planning
Talent acquisition plans put into place to diversify existing
capabilities and fill in gaps
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Action plans put into place for individuals “At Risk” as assessed
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“Stay” discussions initiated where retention risks identified
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Leaders and managers accountable for owning in partnership with HR
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Tools to use throughout the year
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Review action plans
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Consider experiences needed
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Manage large groups of people
Make significant decisions
Work on cross functional teams
Work in customer/client facing role
Launch new business, initiatives or programs
Assign a mentor – inside or outside the company
Strong P&L knowledge
Talent
Development
and Planning
Consider knowledge/credentials needed
Create accountability for success in new roles
(internal and external hires)
360 assessment tool
Metrics that
Matter
Name
Title
% Promotable: 0%
Name - Open
Title
Bench Strength: 1.00
% Promotable: 17%
RN and/or 1-2 yrs: 0
Name (P2)
Title
Bench Strength:0.00
% Promotable: 0%
RN and or/1-2 yrs: 0
Name (WP)
Title
Bench Strength: 1.75
Name (WP)
Title
Bench Strength: .25
% Promotable: NA
% Promotable: 0%
RN and/or 1-2 yrs: 1
RN and/or 1-2 yrs: 1
Name (WP)
Title
Bench Strength: 1.00
% Promotable: NA
RN and/or 1-2 yrs: 1
Name (WP)
Title
Bench Strength: .25
% Promotable: NA
% Promotable: NA
Name (WP)
Title
Bench Strength: .75
RN and/or 1-2 yrs: 1
% Promotable: NA
% Promotable: 0%
% Promotable: NA
RN and/or 1-2 yrs: 1
Name (WP)
Title
Bench Strength: 2.00
% Promotable: NA
RN and/or 1-2 yrs: 2
Name (At Risk)
Title
Bench Strength: 0.00
% Promotable: NA
% Promotable: 33%
RN and/or 1-2 yrs: 0
RN and/or 1-2 yrs: 0
% Promotable: 33%
RN and/or 1-2 yrs: 0
RN and/or 1-2 yrs: 0
Name (WP)
Title
Bench Strength: .75
Name (WP)
Title
Bench Strength: .75
% Promotable: NA
% Promotable: 0%
RN and/or 1-2 yrs: 4
RN and/or 1-2 yrs: 1
% Promotable: NA
RN and/or 1-2 yrs: 0
Name (LD)
Title
Bench Strength: 1.00
Name (WP)
Title
Bench Strength: .75
% Promotable: NA
RN and/or 1-2 yrs: 1
Name (LD)
Title
Bench Strength: 0
% Promotable: 0%
Name - Open
Title
Bench Strength: 0.00
%Promotable: 0%
Name (WP)
Title
Bench Strength: 0
RN and/or 1-2 yrs: 0
Name (At Risk)
Title
Bench Strength: 0
RN and/or 1-2 yrs: 1
Name (WP)
Title
Bench Strength: 1.00
RN and/or 1-2 yrs: 1
Name (WP)
Title
Bench Strength: .25
RN and/or 1-2 yrs: 1
Name (WP)
Title
Bench Strength: 1.50
Name (WP)
Title
Bench Strength: .75
% Promotable: NA
RN and/or 1-2 yrs: 4
KEY
Indicates Critical Position
Name (WP)
Title
Bench Strength: .75
% Promotable: 0%
RN and/or 1-2 yrs: 4
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Percentage of externally sourced successors versus
internally sourced
Metrics that
Matter
Total number of internal succession candidates considered for
open positions
Critical turnover - % of high potential employees leaving is higher
than average or low potential employees
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Time to fill critical positions
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Cost of external hires versus internal promotions/development
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What questions are you trying to answer or what decisions are
you trying to make?
Example of a Succession Planning Checklist
Business Case: Connects Business Strategy and Needs into Talent Strategy
Should be ongoing and dynamic as business is
Executive Level Commitment and Accountability
Reinforce the Importance of Talent Development and Acquisition throughout Organization
Identification of and Agreement on Critical Positions
Assessment of Current Talent and Identification of Successors
Calibration and Discussion
Targeted Talent Investments, Development and Planning
Internal
External
Measure what Matters
Ongoing Management through the Four Succession Risks
Vacancy Risk - focus on most vulnerable and critical areas of business
Readiness Risk - provide needed development experiences and enable movement across company
Transition Risk - understand transition derailers, manage expectations of new hires and create accountability for success in roles
Portfolio Risk - ensure talent is aligned and deployed against evolving business priorities
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Manage vacancy risk – focus succession efforts by
translating business strategy into talent strategy
Manage
Ongoing
Process and
Plans
Manage readiness risk by providing needed development
experiences and enabling movement across the organization
Manage transition risk by understanding derailers, manage
expectations and create accountability for success in roles
Manage portfolio risk by effectively aligning and deploying
talent against evolving business priorities
2006 Corporate Executive Board
Employee Information
Name:
Current Job Title:
Date of Meeting/Interaction:
Individual/s Providing Feedback:
Cultural Capabilities – Provide any feedback on behaviors related to our cultural capabilities
Tenaciously Resourceful
Dynamically Responsive
Passionately Aligned
Leadership Competencies: Ratings: (N/A – Not Applicable, IE – Ineffective, SE – Somewhat
Effective, E – Effective, VE – Very Effective, O – Outstanding)
Business Acumen:
Dealing with Ambiguity:
Decision Quality:
Developing Direct Reports and
Others:
Drive for Results:
Interpersonal Savvy:
Managerial Courage:
Managing Vision and
Purpose:
Managing and Measuring Work:
Describe purpose for rating/s above, be as specific as possible:
Functional Competencies:
Derailers: List any of the following you witnessed and explain what you witnessed:
Betrayal of Trust, Defensiveness, Lack of Ethics and Values, Failure to Staff Effectively, Insensitive to
Others, Performance Problems
Name of Individual
DP – Definitely a Problem
Performance
Problems
Insensitive to
Others
Failure to Staff
Effectively
Cultural Capabilities Rating: N/A, IE, SE, E, VE, O
Derailer Assessment Rating:
PNP – Probably Not a Problem NS – Not Sure PP – Probably a Problem
– Not Enough Information
Strategic Agility
Problem Solving
Priority Setting
Managing &
Measuring Work
Managing Vision &
Purpose
Managerial Courage
Interpersonal Savvy
Drive for Results
Developing Direct
Reports & Others
Decision Quality
Dealing with
Ambiguity
IE – Ineffective SE – Somewhat Effective
VE – Very Effective
O - Outstanding
Lack of Ethics
& Values
Defensiveness
Betrayal of
Trust
Derailers:
Dynamically
Responsive
Passionately
Aligned
NP – Not a Problem
Tenaciously
Resourceful
Name of Individual
Business Acumen
N/A – Not Applicable
Leadership Competencies Rating:
E – Effective
NEI
Business Strategy - Current and Future Needs, External Environment
Succession Management – Link Business Strategy into Talent Strategy:
Commitment, Assessment, Actions, Measurement
Talent Development and Retention - how and where should we target
our development investments? What experiences are needed? How are we
communicating to employees?
Talent Acquisition - what skills, capabilities and gaps did we identify that
we might want to find externally?
Performance Management - how are we defining, measuring and
rewarding work performance – does it tie to strategy? Do we consider
talent management performance for managers and leaders?
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In Real Time, how do we keep this front of mind versus quick fix solutions
when openings occur?
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Not just an HR responsibility
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Calibration – does it sound easy? It‟s not!
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Assessment Tools
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Employee Ownership
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How and what should you communicate?
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How do you build breadth at the entry to mid level roles?
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What about positions that aren‟t critical?
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Generational differences and expectations
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Define your culture and business needs
• Use your company‟s culture – don‟t force it
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What is your process today?
• Can – should you develop internal candidates?
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Do you have senior leadership enthusiastic support
and accountability?
Discussions are crucial for success – amongst
leaders, with employees, etc.
Model Succession
Evaluate
Plan
Review
Evaluate