High-Impact Succession Management Revealed
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1 High-Impact Succession Management Revealed Key Findings and Maturity Model Kim Lamoureux VP Leadership & Succession Research Deloitte Consulting LLP January 29, 2015
2 Agenda Top 10 Key Research Findings Succession Management Maturity Model Factors and Dimensions of Maturity Impact of Maturity 1 High-Impact Succession Management Revealed: Key Findings and Maturity Model
3 High-Impact Succession Management Research An extensive, quantitative survey completed by 260 succession management professionals 44% were small organizations ( employees) 21% were midsize organizations (1,000-9,999 employees) 17% were large companies (10,000-24,999 employees) 18% were enterprise organizations (25,000+ employees) Rigorous statistical analysis of succession management performance drivers In-depth interviews with senior succession management leaders to better understand related issues and trends Source: High-Impact Succession Management : Key Findings and Maturity Model, Bersin by Deloitte, High-Impact Succession Management Revealed: Key Findings and Maturity Model
4 10 Key Findings Broad communication regarding programs is 5X more influential on the success of succession management programs Identifying key positions is a key driver of overall succession management Organizations fall short in their ability to identify key positions Organizations are not prepared to hold leaders accountable for developing successors. HISM drives improvement in employee engagement and career development Source: High-Impact Succession Management : Key Findings and Maturity Model, Bersin by Deloitte, High-Impact Succession Management Revealed: Key Findings and Maturity Model
5 10 Key Findings Implementing development that is tied to succession gaps is the top capability gap Strong governance influences the performance outcomes of a succession management program Establishing criteria to identify successor candidates is a table stakes activity The use of behavioral assessments in identifying successor candidates and HiPos is a key differentiator Companies at Level 4 are more than twice as ready and able to share talent companywide Source: High-Impact Succession Management : Key Findings and Maturity Model, Bersin by Deloitte, High-Impact Succession Management Revealed: Key Findings and Maturity Model
6 B e r s i n b y D e l o i t t e Succession Management Maturity Model Level 4 Level 3 Level 2 Level 1 Transparent Talent Mobility Dynamic Process Highly Transparent Pool-Based Talent Movement Professional & Management Roles Integrated Succession Management Business Strategy Alignment Talent Management Integration Enterprise Perspective Owned by CEO Traditional Succession Development Plans Talent Reviews Business-Unit Focus Targets Key Positions HR-Driven Fragmented Replacement List of Senior-Level Positions List of High Potentials No Targeted Development Source: High-Impact Succession Management : Key Findings and Maturity Model, Bersin by Deloitte, High-Impact Succession Management Revealed: Key Findings and Maturity Model
7 Five Dimensions of Maturity Dimension Refers to: Business The alignment of business and talent goals, supported by strong governance, leadership and workforce planning Succession The demand, supply, and calibration of talent, wrapped with action plans for increasing bench strength Infrastructure The capabilities of HR and managers to do SM, guided with processes, tools, technology, and analytics Culture The philosophies, frameworks, systems, and behaviors of an organization as it relates to SM Global The readiness of an organization to do SM globally 6 High-Impact Succession Management Revealed: Key Findings and Maturity Model
8 Five Dimensions of Maturity Dimension Characteristics Business Succession Infrastructure Culture Global SM is a strategic enabler of the business A high-profile, influential leader responsible for SM Objectives of SM clearly defined and aligned to the business and workforce plan Unique SM needs and maturity of different parts of the business understood Governance model in place with clarity of purpose and how it works SM fully integrated with other TM programs 7 High-Impact Succession Management Revealed: Key Findings and Maturity Model
9 Five Dimensions of Maturity Dimension Characteristics Business Succession Infrastructure Culture Global Critical roles identified for today and the future Talent capability assessed and potential identified consistently Process used to effectively calibrate talent Retention risks identified and retention plans put into place Development plans defined to close capability gaps Feedback provided to potential successors and high-potentials Succession planning includes external talent 8 High-Impact Succession Management Revealed: Key Findings and Maturity Model
10 Five Dimensions of Maturity Dimension Business Succession Infrastructure Culture Global Characteristics Service delivery based on business outcomes and includes defined processes, tools and templates HRBP s and managers trained to effectively implement SM Technology understood and leveraged to its fullest capacity Action plans tracked and followed up Succession program measured for efficiency and effectiveness Data analysis useful and easy to access by business leaders Improvements regularly made to succession program 9 High-Impact Succession Management Revealed: Key Findings and Maturity Model
11 Five Dimensions of Maturity Dimension Characteristics Business Succession Infrastructure Culture Global Employees understand what is expected of them for success in their role and future with company Leaders held accountable for assessing and developing talent Process instilled for resolving conflicts and making talent decisions Talent shared company-wide, cross-business, function, region SM program understood widely among workforce Appropriate information shared with talent who are part of succession planning process 10 High-Impact Succession Management Revealed: Key Findings and Maturity Model
12 Five Dimensions of Maturity Dimension Characteristics Business Succession Infrastructure Culture Global Center of Excellence (CoE) established Common global infrastructure and standards exist for service delivery Processes defined to assess, develop and share talent globally Channel exists for leaders to easily talk about talent and to access talent information Top talent interested in global assignments High-potentials offered global experiences 11 High-Impact Succession Management Revealed: Key Findings and Maturity Model
13 Five Dimensions & 20 Factors of Maturity Dimension Factors Business Business Value & Alignment Leadership & Governance Workforce Organizational Profiling Talent Management Integration Succession Critical Roles Assessment Talent Assessment & Calibration HiPo Identification Talent Reviews Development & Mobility Infrastructure Service Delivery Tools & Technology Monitoring & Sustainment Reporting & Analytics Culture Talent Expectations Decision Making Talent Sharing Transparency Global Global Talent Capability Global Implementation 12 High-Impact Succession Management Revealed: Key Findings and Maturity Model
14 Maturity Levels of a Factor Succession Critical Roles Assessment Talent Assessment & Calibration HiPo Identification Talent Reviews Development & Mobility Level 1: Fragmented Replacement Level 2: Traditional Succession Level 3: Integrated Succession Management Level 4: Transparent Talent Mobility Critical roles are not assessed. Only executive-level positions are included in succession planning discussions. Critical roles are defined by level in the organization. Only management roles at a certain level or above are included in the succession plan. The leadership strategy helps establish roles and capabilities essential for achieving business goals. Criticality of existing roles is assessed based upon defined criteria regardless of level in the organization. Critical roles are not prioritized and are treated equally. Labor market intelligence is used to help uncover which roles are in short supply. Headcount is forecasted based upon the workforce plan. Scenario planning exercises are conducted. Roles, current or anticipated, are determined that deliver significant competitive advantage. These roles include all capabilities that are critical to day-to-day operation or that deliver a disproportionate level of value to the company. These roles are prioritized by criticality and identify skills requirements as well as areas that require immediate focus in order to realize business goals. 13 High-Impact Succession Management Revealed: Key Findings and Maturity Model
15 Maturity Levels of a Factor Culture Talent Expectations Decision Making Talent Sharing Transparency Level 1: Fragmented Replacement Level 2: Traditional Succession Level 3: Integrated Succession Management Level 4: Transparent Talent Mobility Succession conversations are top secret and happen behind closed doors. HiPos and successors are not aware of their nomination for the SM pipeline. SM process is opaque and not communicated throughout the organization. Succession conversations are owned and driven by HR. HiPos and successors are aware of their nomination for the SM pipeline. SM process is transparent with SM participants but not communicated throughout the organization Succession conversations are owned and driven by business leaders. Managers have conversations with high potentials and successor candidates regarding career aspirations. SM process is transparent and communicated throughout the organization. Organizational leaders actively participate in SM and encourage others to become familiar with the SM process. Managers have candid discussions with employees about their performance, career aspirations and development needs for possible next positions. Succession conversations happen with common processes and structure. HiPos are identified early in their careers for select positions. 14 High-Impact Succession Management Revealed: Key Findings and Maturity Model
16 The Impact of Maturity
17 Effective Talent Decisions On average, organizations at Level 4 are 2.5x more effective at using behavioral data to make talent decisions than organizations at Level 1, making the business case for investment in succession management very compelling. 150% More effective Level 4 Level 3 Level 1 Level 4 Level 3 Level 2 Level 1 Source: High-Impact Succession Management : Key Findings and Maturity Model, Bersin by Deloitte, High-Impact Succession Management Revealed: Key Findings and Maturity Model
18 Sharing Talent Companywide On average, organizations at Level 4 are 2x more effective at sharing key talent companywide than organizations at Level % More effective Level 4 Level 3 Level 1 Level 4 Level 3 Level 2 Level 1 Source: High-Impact Succession Management : Key Findings and Maturity Model, Bersin by Deloitte, High-Impact Succession Management Revealed: Key Findings and Maturity Model
19 Improving Engagement Overall, we found that Level 4 organizations are 2x more effective at improving the engagement of employees overall than organizations at Level % more likely to perform higher Level 4 Level 3 Level 1 Level 4 Level 3 Level 2 Level 1 Source: High-Impact Succession Management : Key Findings and Maturity Model, Bersin by Deloitte, High-Impact Succession Management Revealed: Key Findings and Maturity Model
20 Improving Retention Overall, we found that Level 4 organizations are 1.7x more effective at improving retention of high-performing individual contributors than organizations at Level 1. 70% more likely to perform higher Level 4 Level 3 Level 1 Level 4 Level 3 Level 2 Level 1 Source: High-Impact Succession Management : Key Findings and Maturity Model, Bersin by Deloitte, High-Impact Succession Management Revealed: Key Findings and Maturity Model
21 High Impact Succession Management What s Coming? Three-Part Series High-Impact Succession Management: Key Findings and Maturity Model. This first report includes our top, high-level research findings and an overview of the four levels of maturity. Dimensions and Factors of High-Impact Succession Management. This second report provides an in-depth overview of the five dimensions and 20 factors that drive higher levels of maturity. The High-Impact Succession Management Performance Model. This final report in the series provides an overview of the top 10 performance drivers and the top 10 performance outcomes of high-impact succession management programs. 20 High-Impact Succession Management Revealed: Key Findings and Maturity Model
22 Questions or comments? Kim Lamoureux Vice President, Leadership & Succession Research Bersin by Deloitte Deloitte Consulting LLP Copies of today s slides will be available to members; please log in to For information about our WhatWorks membership, please call or info@bersin.com Copyright 2014 Deloitte Consulting LLP. All rights reserved.
23 About Deloitte This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
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