High-Impact Succession Management The Performance Model: Key Drivers and Talent Outcomes Andrea Derler, Ph.D., Research Manager, Leadership &

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1 High-Impact Succession Management The Performance Model: Key Drivers and Talent Outcomes Andrea Derler, Ph.D., Research Manager, Leadership & Succession Management Christina Rasieleski, Lead Member Advisory Manager, Talent Management & Leadership Bersin by Deloitte, Deloitte Consulting LLP March 21, 2017

2 Contents Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 2

3 Succession Management Making the business case Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 3

4 High-Impact Leadership Research ,014 responses in 95 countries HR and Business Leaders Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 4

5 We identified 17 drivers of leadership maturity Strong Leadership Pipeline is one of them HiPo Retention Culture strength Leader Motivation Org Support Enactment of Core Values and Beliefs Clear Company Identity Communicating the Leadership model Knowledge sharing Risk taking 2 Designed Leadershi Designed 2p Leadership 1 2 Organizational Culture Matrix Structure 3 Organizational Design Clarity in Decision Making Management of Collaborative Overload Exposure as a Learning Method HR & Business Collaboration Career Mgmt Integration Business Leader Involvement Strong Leadership Pipeline Source: High-Impact Leadership research, Bersin by Deloitte, Deloitte Consulting LLP, 2016 Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 5

6 High Leadership Maturity pays off Organizations high in Leadership Maturity tend to: Have 37% more revenue per employee Have 9% higher gross profit margin Source: High-Impact Leadership research, Bersin by Deloitte, Deloitte Consulting LLP, 2016 Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 6

7 A strong leadership pipeline enables organizations to be: 8X more likely to excel at maximizing efficiency 2X more likely to meet and/or exceed financial targets 6X more likely to anticipate and respond well to change 4X more likely to excel at innovating Source: High-Impact Leadership research, Bersin by Deloitte, Deloitte Consulting LLP, 2016 Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 7

8 Common Roadblocks for Effective Succession Management Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 8

9 Effective succession management still scarce Source: High-Impact Leadership research, Bersin by Deloitte, Deloitte Consulting LLP 2016 Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 9

10 Common Roadblocks: What our members are saying Executives underestimate the value of good succession planning and don t make it a business priority Succession is for C-Suite only Many focus on replacement planning Managers are not good at assessing potential They rely on talent reviews and 9-box grids only Managers are not rewarded for developing talent They lack most needed data Their processes are siloed Too time and resources intensive Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 10

11 The Performance Model Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 11

12 B e r s i n b y D e l o i t t e 4 levels of Succession Management Maturity Level 4 Transparent Talent Mobility Dynamic Process Highly Transparent Pool-Based Talent Movement Professional & Management Roles 6% Level 3 Integrated Succession Management Business Strategy Alignment Talent Management Integration Enterprise Perspective Owned by CEO 31% Level 2 Traditional Succession Planning Development Plans Talent Reviews Business-Unit Focus Targets Key Positions HR-Driven 36% Level 1 Fragmented Replacement Planning List of Senior-Level Positions List of High Potentials No Targeted Development 28% Numbers may not add up to 100% due to rounding Source: High-Impact Succession Management : Key Findings and Maturity Model, Bersin by Deloitte, Deloitte Consulting LLP, 2014 Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 12

13 Succession Management: The Performance Model Key Performance Drivers Common Performance Outcomes Leadership & Governance Improved employee engagement Identification of critical positions Improved career development opportunities Identification of succession candidates Improved retention of HIPOs Development experiences for succession candidates Reduced time to fill key positions internally Communicate succession program broadly Improved bench strength Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 13

14 Succession Management: The Performance Model Key Performance Drivers Common Performance Outcomes Leadership & Governance 12x more likely Improved employee engagement Identification of critical positions 20x more likely Improved career development opportunities Identification of succession candidates 6x more likely Improved retention of HIPOs Development experiences for succession candidates 7x more likely Reduced time to fill key positions internally Communicate succession program broadly 8x more likely Improved bench strength Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 14

15 The Performance Model Five top drivers Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 15

16 Leadership & Governance: Succession management champions: strategic, high-profile, high-influence executives Firm governance model: Facilitated by strong HR and business leader relations Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 16

17 Identification of critical roles Succession management for all Critical roles exist throughout the company Talent segmentation is one approach Workforce planning helps identify critical roles Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 17

18 Identification of Succession Candidates Organizational Profiling Knowing your strategy, critical roles and career paths Talent assessment and calibration Knowing your talent, and plan for the future High-potential identification Consider your leadership model, and separate performance from potential Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 18

19 Development experiences for successor candidates Blended learning focused on Experiences Mix various learning methods to help maximize impact Leaders typically learn best by Exposure To peers, colleagues, thought leaders Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 19

20 Broad communication of Succession Programs Transparency is an enabler of culture Allow employee access to information about the succession management process Sharing information enables ownership Knowledge helps jumpstart learning and career planning Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 20

21 The Performance Model Five strongest talent outcomes Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 21

22 Succession Management: The Performance Model Key Performance Drivers Common Performance Outcomes Leadership & Governance Identification of critical positions Targeted Development Mobility Improved employee engagement Improved career development opportunities Identification of succession candidates HiPo Initiatives Improved retention of HIPOs Development experiences for succession candidates Strategic planning Reduced time to fill key positions internally Communicate succession program broadly Leadership Development Improved bench strength Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 22

23 Succession Management: The Performance Model Performance Drivers Leadership & Governance Performance Outcomes Improved employee engagement Identification of critical positions Improved career development opportunities Identification of succession candidates Improved retention of HIPOs Development experiences for succession candidates Reduced time to fill key positions internally Communicate succession program broadly Improved bench strength Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 23

24 Check list for effective Succession Management practices Establish a measurement strategy Link business and succession strategy Establish opportunities to talk about talent Establish criteria for critical roles Develop managers coaching and feedback skills Focus SM on wider audience beyond senior roles Spread the word about the SM process Include future open positions Source: High-Impact Succession Management : Key Findings and Maturity Model, Bersin by Deloitte, Deloitte Consulting LLP, 2014 Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 24

25 Q&A Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact Succession Management 25

26 About Deloitte 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. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the Deloitte Network ) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. Copyright 2017 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited