STRATEGIC LEADERSHIP ISSUES

Transcription

1 STRATEGIC LEADERSHIP ISSUES Talent and Succession Cheryl L. Thomas Managing Director Impacting People, LLC Wadsworth, IL August 3, 2018

2 Talent and Succession Graduate School of Banking Banking School

3 Agenda 1. Levels of Succession 2. Talent Assessment 3. Succession Management 2

4 If we don t get the people thing right, we lose. It s the most important thing in all our businesses. Jack Welch, Former CEO, General Electric (GE) 3

5 Levels of Succession 1. Ownership 2. Board 3. CEO 4. Key Positions 4

6 Ownership What is the ownership structure today? How might it change going forward? What is the end game? In what timeframe? 5

7 Is there a Plan? Board Are the needed skills, knowledge and qualifications known? What structure is needed for the Bank today? Future? What is the recruiting strategy? 6

8 CEO Succession What is the timeframe? Is it succession or replacement? What are the needed skills, knowledge, abilities for the next CEO? What is the long term strategy of the Bank? 7

9 CEO Succession Succession 18 months or more in the future Determine who owns the process (Board, Board Committee, Family, etc) Determine Profile for the future CEO position Define the potential internal pool Evaluate/assess internal talent Recruiting strategy and On-boarding process 8

10 Key Position Succession Determine key positions to include Determine internal candidate pool Assess internal candidates/talent Commit to Development Connect to Annual Goal Setting and Strategic Planning 9

11 Capital Adequacy Do you have the right Human Capital? Is the Bank... Well capitalized? Adequately capitalized? Under-capitalized? 10

12 Why Now? Competitive Changes Economic rebound more opportunity Human capital as a differentiator Labor Market Changes Demographic trends More dynamic labor markets Organizational Changes New organizational structure New focus on leadership and governance 11

13 The Business Case 12

14 People aren t a company s most important asset... the RIGHT people are. Jim Collins, Good to Great 13

15 The Link to Business Strategy Business Strategy and Drivers determine Talent for what? Business Strategy and Drivers Human Capital Strategy Strategy is future focused: What we have today may not be what we need in the future. Talent Strategy Acquiring Talent Recruiting Selection/Hiring Identifying Talent Assessment Performance Reviews Develop Talent Job Assignments Coaching and Mentoring Promotions Center for Creative Leadership 14

16 TALENT The ONLY thing that will matter 15

17 What is Talent? Consider this: An employee known to be High Performing with High Engagement and High Aspirations 16

18 Talent Assessment Process Necessary for Succession Management Can stand alone w/o Succession Calibrated with multiple inputs Can change over time 17

19 Talent Assessment Process A process of identifying HIGH-POTENTIAL ASSOCIATES and then evaluating and developing their skills and competencies in preparation of advancement into POSITIONS THAT ARE KEY to the success of the business strategy. 18

20 Key Concepts Two Distinct Components: 1. Key POSITIONS 2. Key TALENT 19

21 What Are Key Positions? Critical to strategic goals Key leadership and functional expertise Defined by: Key Responsibilities WHAT is to be accomplished Competencies HOW work gets done (knowledge, skills, and abilities) 20

22 Key Position Characteristics 1. Has direct impact on the company s culture, strategic success, and profitability 2. Having significantly more top talent in these roles would enhance the success of the business model 3. Usually less than 15% of all positions 4. Not determined by hierarchy but rather by impact 21

23 Identifying Key Positions Goal Rationale Identify which jobs are mission critical Less than 15% of jobs Want Top talent in mission critical roles Strategy executed by key positions Don t want B/C players in strategic roles Top talent impacts the bottom line 22

24 ASSESSING TALENT 23

25 Talent Assessment Dimensions of Talent: Performance Delivering on goals, results, and accountabilities Potential the ability to adapt to and fit into increasingly complex roles and environments: - Personal and Professional Motivation - Intellectual Curiosity - Innovation and Insight - Engagement - Determination 24

26 Performance: Track Record of Success Most recent performance review ratings Feedback from others 360 feedback Stretch goals and contributions Questions to ask: Does this person have a proven track record for accomplishing impressive results? Are any potential inconsistencies derailers? Are they already performing at the next level? 25

27 Assessing Potential It is multi-faceted Prioritize most important facets to evaluate Values Competencies It is ALWAYS a judgment call Minimize subjectivity through comprehensive involvement The more evidential experience, the better your judgment will be 26

28 Questions to Consider Potential How do unexpected changes affect this person s performance? How does this person respond to obstacles? Does this person inspire others and lead through persuasion and influence? Does this person have initiative and seek additional responsibility? Does this person continually offer solutions and new ideas? 27

29 Characteristics of Potential Multi-year performance track record Relevant experiences & qualifications Track Record Aspirations Learning Agility Strong career desires Ambition to be challenged and continuously grow skills and experiences Cognitive abilities Ability and willingness to learn from experience and apply to new situations Ability to adapt to higher level of job complexity Source: Center for Creative Leadership 28

30 Source: American Bankers Association 29

31 9 - Box Matrix - Example Source: McKinsey 9-box Grid 30

32 9 - Box Matrix - Example Source: McKinsey 9-box Grid 31

33 Example 1 Sandy Sneed Peter Jensen Jane Austin Pat Richardson Candy Lane Andrea West Terry Non Julius Quo Andrew Layman Lonnie Bates Source: McKinsey 9-box Grid 32

34 Example 2 Lindy Noodle Jackson Normandy Jane Austin Sandy Sneed Julius Quo Andrew Layman Candy Lane Pat Richardson Terry Non Peter Jensen Andrea West Lonnie Bates Andy Coffman Source: McKinsey 9-box Grid 33

35 Talent Assessment Results Quantity and Quality of existing talent Relevant to all people processes: Recruiting Development Rewards Performance Management Succession 34

36 ARC Model Accelerate development; test potential Retain and motivate; continue to grow Coach or change; improve performance Remember: All positions and all employees are important to the organization! 35

37 Re-Recruit The A team! Identify the Starting Lineup How do we define? Who are they? How many do we have? What s our bench strength? 36

38 Reward and Retain Take good care of the CORE team! Nurture them: Core staff Dependable, content Some have capacity/desire to move up/develop 37

39 Take action C team: Coach them up or coach them out! Pay attention talk banker talk! Special Assets Portfolio May be new to the role Workout portfolio 38

40 TALENT AND SUCCESSION 39

41 Succession Management An integrated set of proactive processes within talent management that identifies and prepares successors for key roles needed to deliver the business strategy. Processes include: Talent Assessment Succession Planning Development Planning 40

42 Why is it important to have a succession plan? To avoid extended and costly vacancies in key positions and assure the stability of business operation To provide development opportunities for associates, thereby increasing retention of highpotential associates To develop a diverse workforce 41

43 Components of a Succession Plan 1. Organizational Summary of key issues and risks 2. Current Organization Chart (Mission Critical Positions) 3. Current Job Description(s) Key responsibilities and accountabilities Competencies needed for success Qualifications 4. Readiness Chart(s) 5. Profile(s) of potential successors 6. Development Plans for potential successors 42

44 The RIGHT people... in the RIGHT seats... for the RIGHT time 43

45 Succession Readiness Identify for key positions 1. Critical skills and competencies 2. Potential candidates for succession 3. Readiness level for succession 4. Developmental needs for skills or competencies 44

46 Succession Readiness SUCCESSION READINESS PLAN TITLE: COMPETENCIES NEEDED: CURRENT INCUMBENT: COMPLETED BY; DATE: Candidate Name Current Position Title Current Department Interim Readiness Level Ready Now 2-3yrs 3-5 yrs Long Shot Strengths Development Needs 45

47 Succession Plan Process 1. Discuss roles, responsibilities, and competencies of each key position for succession 2. Discuss candidates identified in one-on-one meetings and their projected readiness levels 3. Discuss known strengths and development needs of each candidate 46

48 Succession Plan Process 4. Prioritize candidates for formal leadership evaluation for formal development plan 5. Assess gaps in succession process to ensure contingency planning for open key positions 6. Identify potential legal or diversity issues 47

49 Succession Plan Process 7. Identify leadership assessment tool and conduct evaluations 8. Develop detailed development / action plan for each identified associate 9. Continually monitor associate progress toward development goals 10.Update succession plan annually, at minimum 48

50 Succession Plan Tools 1. Job Descriptions for key positions 2. Organizational Chart(s) 3. Leadership Competencies 4. Talent Assessment Grid 5. Readiness Level charts 1. Compilation of demographic data for Successor Candidates (HR) 2. Development Plans for Successor Candidates (HR) 3. Tracking / monitoring tools (HR) 49

51 Key Position Planning Executive Interim 2-3 years 4-5 years Long Shot 50

52 Development Planning Individual Development Plan: Clarifying the development gap between what possible successors can already do and what they must do to qualify for advancement 51

53 Development Planning Job assignments Mentors On-the-job training Project teams Developmental Activities Off-the-job degree programs Reading Development programs Developing others Conferences and professional association affiliations 52

54 Development Planning ORGANIZATIONAL STRUCTURE ORGANIZATIONAL DESIGN JOB DESIGN 53

55 Developing the A-Team 1. Know them 2. Tailor rewards / recognition 3. Develop retention strategies 4. Tell them! 5. Allocate appropriate development $$ 6. Track retention 54

56 Summary Succession strategies for all levels Ownership Board CEO Key Positions 55

57 Summary Get real about Talent Assessment! Re-recruit the Top Talent Motivate and Retain the Core Change or Coach as needed 56

58 Summary At the end of the day, it s all about the M! 57

59 QUESTIONS? Cheryl Thomas, SPHR, SHRM-SCP Managing Director Impacting People, LLC