PMAC Succession Planning and Execution: Talent September 28, 2016

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1 PMAC Succession Planning and Execution: Talent September 28, 2016 Keith Robinson, Managing Partner Focus Consulting Group

2 Today s Questions 1. Why does it matter? 2. What are we talking about? 3. What s the best approach to this? 4. Any questions? 1

3 VOTE: My clients care about talent succession at my firm. A. Strongly Agree B. Agree C. Somewhat Agree D. Neutral 19 E. Somewhat Disagree F. Disagree 10 G. Strongly Disagree A. B. C. D. E. F. G. 2

4 3

5 VOTE: Our firm has/had a strong Founder/CEO who established the culture. A. Strongly Agree B. Agree C. Somewhat Agree D. Neutral 17 E. Somewhat Disagree 12 F. Disagree G. Strongly Disagree A. B. C. D. E. F. G. 4

6 Culture: Values, Beliefs and Behaviours that differentiate one firm from another. 2) Ethics/ Integrity 3) Teamwork X XXX X X 1) Client 4) Excellence 5

7 VOTE: Top Benefits of a Strong Culture (top 3 choices) A. Attract top talent B. Effective hiring C. Retain top talent D. Promote and compensate based on values E. Mentor and coach more effectively F. Better weather the tough times G. Improved decision making H. Morale of staff, greater well-being I. Lead change more effectively J. Client satisfaction A. B. C. D. E. F. G. H. I. J. 6

8 VOTE: Succession planning is for (select all you believe are true) A. Founder/CEO role B. All C-Suite Positions C. Key management positions D. All management positions 19 E. Key investment positions F. All investment positions G. All positions A. B. C. D. E. F. G. 7

9 Today s Questions 1. Why does it matter? 2. What are we talking about? 3. What s the best approach to this? 4. Any questions? 8

10 Succession Strategy Ensuring we have the right people, in the right places, at the right time, to achieve our short and long term objectives. Considerations: Assess Recruit Strategy Align Retain 9

11 Succession Strategy Ensuring we have the right people, in the right places, at the right time, to achieve our short and long term objectives. Considerations: Assess Recruit Strategy Align Retain 10

12 Today s Questions 1. Why does it matter? 2. What are we talking about? 3. What s the best approach to this? 4. Any questions? 11

13 VOTE: Select the elements that apply to your firm s succession planning approach. A. Firm has a stated succession plan B. Founder s/ceo s success attributes identified C. Leadership attributes for continued firm success into the future are identified D. Firm has identified successor(s) with verified leadership attributes E. Successor(s) have a development plan F. Financial plan is in place to support succession G. Founder/CEO has post-succession plan H. Firm leverages outside resources to support the process I. Change management strategy is in place J. We don t have an approach A. B. C. D. E. F. G. H. I. J. 14

14 13 Absolute Power: Founder s Syndrome

15 Characteristics of the Founder s Syndrome 1. Founder/CEO builds culture and becomes key man/woman. 2. Founder/CEO retirement and succession plan are taboo topics 3. Belief by Founder/CEO (and others) than no one else can lead the firm 4. No clear succession plan for Founder/CEO 5. Financial solutions don t solve succession issues 6. Next generation of leadership is unprepared to succeed 7. Founder/CEO life path after succession is not clear or planned 8. Cultural or legacy relationships create drama and prevent open discussions regarding succession 9. No process in place for successful transition management 16

16 VOTE: Founder/CEO has a plan in place for next steps after leaving the organization. A. True B. False 25 9 A. B. 24

Three Hats of Leadership (Sample) Leads the Firm Broader firm wide impact Leads the Team Tactical team management Leads the Self Personal effectiveness Ethical and Character- Centered Leadership

17 Three Hats of Leadership (Sample) Leads the Firm Broader firm wide impact Leads the Team Tactical team management Leads the Self Personal effectiveness Ethical and Character- Centered Leadership Client Focus Inspires and Builds Talent Effective Decision Making Business Expertise Drives Firm Vision Builds Effective Collaboration Develops Others Reading People Provides Direction Manages Conflict and Confrontation Firm Core Principles Originality Intellectual Integrity Curiosity Candor Continuous Improvement Humility Teamwork 16

18 Prospective Talent Management A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be. The Great One Wayne Gretzky 17

19 VOTE: We do prospective talent assessment at my firm. A. Strongly Agree B. Agree C. Somewhat Agree D. Neutral E. Somewhat Disagree F. Disagree G. Strongly Disagree A. B. C. D. E. F. G. 20

20 21 Prospective Talent Assessment

21 The 3Cs Contribution What: Goals Objectives Projects Daily Work Competency How: Knowledge Skills Ability Values Criticality To: Clients Firm Team Other? 20

22 Prospective Key Position Talent Map High Contributor/ Highly Comp. Good Contributor/ Some Dev. Weak Contributor/ Needs Dev DAS, 2.49 STM, 2.59 LCM, 2.48 RTJ, AAP, 2.10 LPL, 1.99 LPT, 2.03 EBT, 1.84 MOA, SLR, 1.57 CEA, 1.47 MTK, 1.38 KSP, 1.42 JLP, 1.29 KPM, MCT, STM AAP LCM RTJ KSP CEA EBT MOA SLR JLP LPT MTK LPL DAS KPM MCT Not Critical Moderately Critical Highly Critical 21

23 A Word About Your Brain & Assessment Reflexive Reflective Avoiding the Peter Principle by applying the Buffet Principle 22

24 You must retain to succeed The top two asset management industry Aspirational values are: Excellence and Continuous Improvement & Leadership Development and Mentoring 23

25 VOTE: We have a good talent development process with succession in mind. A. Strongly Agree B. Agree C. Somewhat Agree 8 D. Neutral E. Somewhat Disagree 6 7 F. Disagree G. Strongly Disagree A. B. C. D. E. F. G. 22

26 Prospective Talent Development Key Considerations: Clear skills and experiences have been identified with associated milestones Candidates on the bench will get enough practice at the next level A personality comparison has been done to identify key areas of difference in leadership genius For Founder or CEO succession, the process has been transparent to the firm (call your shot) There is an organizational development process in place 23

27 You must retain to succeed Motivation: What has most meaning in daily experience? N=968 from 6 firms; 3 US, 2 European, 1 Canadian The work serves a larger purpose, doing something positive in the world (such as allocating capital properly in the markets.) The work contributes to a sound and sustainable financial future for our firm. The work benefits our clients, and I enjoy happy clients most of all about my job. The work allows me to spend time with bright and encouraging colleagues. I like these team interactions best of all. 8% 15% 23% 22% The work is interesting, challenging and intellectually stimulating. 32% Question: Please choose the TWO (2) factors that are most meaningful to you in your daily experience. 26

28 You must retain to succeed Mastery: the opportunity to improve Autonomy: choosing how, when and where to work Purpose: doing meaningful work that adds value 27

29 VOTE: Every leader in my firm actively recruits (they have annual recruiting goals) even when we don t have an opening A. Strongly Agree B. Agree C. Somewhat Agree D. Neutral E. Somewhat Disagree F. Disagree G. Strongly Disagree A. B. C. D. E. F. G. 28

For additional questions please contact: Keith Robinson +1-312-560-7216 krobinson@focuscgroup.

30 For additional questions please contact: Keith Robinson For copies of these slides or FCG white papers contact: Liz Severyns 29

CGMA Competency Framework

CGMA Competency Framework Leadership skills CGMA Competency Framework 1 Leadership skills : This requires a basic understanding of the business structures, operations and financial performance, and includes