Effective Succession Planning: Elements You Need to Ensure Regulator Happiness

Transcription

1 Effective Succession Planning: Elements You Need to Ensure Regulator Happiness Date or subtitle Community Bankers of Iowa Peer Connection Forum 1 Session Highlights Getting the People Thing Right Understanding Succession Management The Business Case Why Now The Process Tool Examples and Discussion

2 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 Talent Management Loop Communication Culture Organizational Structure and Role Alignment Talent Assessment and Succession Management Behavior, Competencies and Performance Standards Reward and Recognition Learning and Development Performance Management Coaching and Feedback

3 Succession Management An integrated set of processes within the overall talent management system that identifies and prepares successors for key roles needed to deliver the business strategy. Processes include: Talent Assessment Succession Planning Development Planning 5 Replacement Planning vs. Succession Planning Replacement Planning Reactive Risk Management Replacing/Substituting Unstructured Approach Exclusive Rigid Succession Planning Pro-Active Talent Management Renewing/Energizing Organized Alignment Inclusive Flexible Source: Grow Your Own Leaders Authors: Byham, Smith, and Paese

4 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 Identify Talent Formal Assessment Internal Screening Performance Reviews/Promotions Develop Talent On the job/off the job Job Assignments Coaching and Mentoring Progress Talent Organization Structure Performance Management/Rewards Career Paths 7 Succession Management Cycle PLANNING TEAM /PROCESS IMPLEMENTATION Performance Against Plan Development Outcomes STRATEGIC PLAN Goals Mission Critical Roles/Functions SUCCESSION PLAN (1-3 yrs.) Goals, Objectives & Measurements Action Plans Budgeting SUCCESSION ASSESSMENT Talent Pool Assessment Incumbents Known Successors Unknown Talent Succession Readiness Gaps Risks SUCCESSION PRIORITIES (3 yrs.) Mission Critical Roles Key Talent

5 The Central Challenge To have the talent that the business needs over time there are four key imperatives: Safeguard Business Critical Capabilities Accelerate Development Overcome New Hire Derailers Leverage Talent 9 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 structures Regulatory focus on leadership and governance

6 The Business Case Workforce Demographic Projections 10% 2% 21% Traditionalists ( ) Boomers ( ) X ers ( ) 16% Millennials ( ) Gen Z ( ) 51% In 2015 Millennials surpassed the Boomers to become the largest share of the American workforce. - Pew Research

7 People aren t a company s most important asset the RIGHT people are. - Jim Collins, Good to Great 13 The Succession Management Process Review the strategic plan and any pertinent management reports. Review and align the organizational structure with the strategic plan. Identify mission critical positions. Identify key emergent positions. Identify and define critical experience, skills, and competencies for mission critical positions and key emergent roles

8 The Succession Management Process Develop comprehensive job descriptions. Conduct a talent assessment of current talent within the Bank. Evaluate the current demographics of the Bank for each mission critical position. Identify the mission critical talent. Identify the high potential employees who will be considered candidates for succession into higher levels of role and responsibility. 15 The Succession Management Process Identify, assess, and prioritize gaps Develop detailed personal development plans for mission critical and high potential employees within the Bank. Continually monitor progress toward and achievement of personal development goals. Communicate, communicate, communicate! Update succession plan and related tools annually or when turnover occurs

9 The Role of CEO and Human Resources This is a top down process that needs to be owned and led by the CEO. Partnering closely with human resources and senior leadership, the CEO ensures the Bank is taking a long-term review regarding the development and management of its talent to support its strategic direction today and into the future. HR serves an integral role for ensuring the necessary processes and tools are in place to ensure accurate data collection and accountability. 17 Competencies The Polaris Competency Model Organization Systems International INTERPERSONAL COMMUNICATIONS MANAGEMENT LEADERSHIP CONCEPTUAL PERSONAL CONTEXTUAL Assertiveness Active Listening Delegation Change Mastery Business Thinking Composure Customer Orientation Conflict Management Communicativeness Financial Acumen Influence Creativity Drive/Energy Functional/ Technical Expertise Diplomacy Informal Communication Organizing & Planning Leader Identification Learning Agility High Standards Global Skills Relationship Building Presentation Skills Talent Management Mission Focus Problem Solving & Decision Making Initiative Industry Knowledge Sensitivity Written Communication Team Management Risk Taking Self-Objectivity Integrity Organization Knowledge Team Player Technology Savvy Strategic Thinking Positive Impact Visioning Results Orientation

10 Process Tools Job Description Template Key Position Planning Tool 9 Box Talent Assessment Readiness Level Chart Least Afford to Lose Tool Personal Development Planning 19 The Talent Assessment Matrix

11 Execute the Plan Demonstrate intentionality, commitment, and sustainability Ensures effective talent management to achieve strategic goals objectives today and into the future Prepares the Bank and individuals for change by developing critical competencies Promotes continuity of organizational culture 21 The people... in the seats... for the time

12 Questions Deb Marshall Senior Manager, Talent Management Services