SUCCESSION MANAGEMENT AND INSTITUTIONAL CONTINUITY

Transcription

1 SUCCESSION MANAGEMENT AND INSTITUTIONAL CONTINUITY April 10, 2015 Presented by: Angelita Becom Elyse Lyons Copyright 2015 by The Segal Group, Inc. All rights reserved.

2 Contents 1. Definitions 2. Why Do It 3. How To Do It 4. Overcoming Problems 1

3 Definitions Succession Identifying and preparing replacements for single incumbent roles Workforce Planning Predicting and preparing for workforce needs in multi-incumbent roles 2

4 Succession Is One Part of Talent Management Recruiting and Selection Succession Management & Career Progression Performance Management Talent Management Training/Development Compensation Workforce Planning 3

5 Why Manage Succession? Reasons for Succession Management 3 Low performance missing top talent 2 Shift in strategy 1 Strong performance, impending turnover What are your reasons? 4

6 Succession Planning Problems Why doesn t everyone do succession well? Typical succession problems: Openings may seem distant, so why prepare? Leaders resist having successors for themselves Assuming that an external search will always occur Seems like a stand-alone theoretical exercise Favoritism and desire to manipulate replacement decisions Organization and role design always changing 5

7 Critical Success Factors Start where there is pull Integrate with other HR programs When preparation meets opportunity 6

8 Sounds Like When it is Wrong No Pull We don t need succession, no one is going anywhere. Not Integrated We need a whole new assessment system for succession Preparation Does not Meet Opportunity She has done one part of my role and is loyal, so can probably learn the others when I am gone. Keep in mind powerful political dynamics are in play. 7

9 Should Sound Like Pull We need to make sure we have people ready for the future. Integrated Preparation Meets Opportunity Succession decisions can be made based on existing information and integrated into development plans. We don t know exactly when roles will be available, but we know they will. The roles will go to those who are best prepared. 8

10 The Successful Succession Approach Key Steps Identifying key roles needing succession plans Defining the future requirements of those key roles Assessing the strength and development needs of the talent pool 4 Taking development actions 5 Predicting succession needs and starting selection processes proactively 6 Making a calendar In each step, buy-in from current incumbents is a key to success. 9

11 Succession Foundation 1: Identify Key Roles TALENT SEGMENT Strategic Critical to driving long-term competitive advantage, with specialized skills or knowledge Core The Engine of the Organization, core to delivering on its mission PLAN SUCCESSION? Yes Yes Requisite Cannot do without, but whose value could be delivered through alternative staffing strategies (other than full-time headcount) Non-Core (Misfit) Talent whose skill sets no longer align with the organization s strategic direction No No 10

12 Succession Foundation 2: Define Talent Standards/Competencies for Key Roles FUNCTIONAL AREA LEADER EXAMPLE Differentiators Experiences/ Skills Talent Standards/ Competencies Foundations Experiences/ Skills Differentiators Foundations Managing multiple groups Improving functional results Critical events major automation, centralizing Goal driven Holds others accountable Influencer Learning agility Emotional intelligence Functional experience 11

13 Succession Foundation 3: Planning Development ASSESSING FUTURE ROLES AND DEVELOPMENT Actions Talent Pool Potential Future Roles Readiness 1 2, 2 4 years Main Dev Need Manager Feedback 360 Feedback Mentor New Assignment Assign a Coach Challenge with Goals Educate/ Train Practice Skills James CFO 1 2 Manage a major change Ayana CFO 2 4 Manage a different function Connor VP Investments 2 4 People sensitivity Lucas Payroll Management 1 2 Process Excellence Kiran Revenue Management 2 4 People sensitivity Miguel Procurement 2 4 Understand organization Karen Accounts Payable 1 2 People management Alex Analysis and Reporting 1 2 Advanced Analytics Development actions should be considered individually and for the talent pool. 12

14 Succession Foundation 4: A Talent Review Meeting Calibrates Assessments and Development Introduces Common Talent Mindset Establishes common talent standards Calibrates assessments Brings together multiple viewpoints on individuals Gives people a sense of fairness, objectivity, transparency Provides Overview of Talent Pool and Gaps Links talent to strategy Highlights the stars and the strugglers Identifies gaps (functional, global, diversity, etc.) Makes it obvious if managers are building their talent pool Makes Real Action Happen Reduces hoarding of resources Leads to better assignment and development decisions Facilitates mobility across units Providing transparency reduces favoritism and other problems. 13

15 Succession Foundation 5: Predicting Needs, Proactive Selections PREDICTIVE POSITION REVIEW Key Roles Incumbent Timing of Departure Retention Risk Internal Successors Action 1. CFO Bob 1 2 years No Yes 2. VP Investments James 1 2 years Yes No 3. Controller Ayana TBD No No 4. CIO Dave TBD No Yes 5. Investment Portfolio Manager 6. VP Student Services Connor 0 1 year Yes Yes Anne TBD No No 7. VP Marketing Tricia TBD Yes Yes Each key position is reviewed annually to determine if selection process is needed. 14

16 Succession Foundation 6: Make a Calendar Take a project approach to implement successful succession Project Phase 1. Clarify talent implications of organization strategy and trends Month January 2. Identify and define key roles January 3. Revise talent standards if needed February 4. Train assessors March 5. Assess talent and create development plan April 6. Talent review May 7. Take development actions June and Ongoing 8. Review scorecard December 15

17 Measure Succession Management # of Succession Positions Turnover Risk for Succession Positions Average Perf. Ratings % of Jobs with Successors Ready 1 2 Years % of Jobs with Successors Ready 2 4 Years Significant Dev. Actions Needed Unit A 6 50% % 50% 80% Unit B 4 0% % 75% 20% Unit C 5 20% % 25% 30% Unit D 4 25% % 100% 50% 16

18 Dealing with Problems: Leadership Resistance Problem: Leaders resist succession planning They Say: It is a waste of time. They Mean: I don t want to be pushed out of my role or have to make tough decisions. Solutions: Find the leaders ready to focus on succession. Measure leaders on developing bench strength. Assure them they are not being pushed out. 17

19 Dealing with Problems: Silo Views of Talent Problem: Talent is hoarded by leaders and/or career development is in silos. Looks Like: No one ready for cross silo roles like VP of Administration or Functional Heads. Solutions: Take a portfolio view of talent with talent reviews crossing silos. Assess the portfolio on key capabilities that cross the silos. Move people cross functionally earlier in their careers. 18

20 Dealing with Problems: Favoritism Problem: Leaders selecting successors in their own image or as favors for loyalty. Does not put the best talent in place. Looks Like: Best talent is passed over when selection decision is made. Selection decisions don t include alternative candidates. The agreed upon successor does not have support. Solutions: Multiple decision makers for every selection Have check points and milestones: did you interview all 4 candidates? 19

21 Thank You 1100 Crescent Green, Suite 103 Cary, NC T Elyse Lyons elyons@sibson.com 1100 Crescent Green, Suite 103 Cary, NC T Angelita Becom abecom@sibson.com 20