Whatever your business, location or situation, having the right people in the right roles is essential for success. Introduction

Transcription

1 Whatever your business, location or situation, having the right people in the right roles is essential for success.»»»» Introduction

2 Good employees are hard to find and with declining populations in developed western countries, it is becoming harder and more competitive to find talented people with the right attitude and skills. The solution is succession planning the ability to deploy the specific capabilities in the right place at the right time. It also requires talent management: attracting, developing and retaining the right people. Nurturing, developing and retaining the most talented people requires constant attention and action in several ways this checklist explains how to ensure success. The Leadership Pipeline What does it do? Provides a framework for leadership development Explains what success looks like at each stage Describes how to improve skills from newcomers to top executives Ensures consistency across the business Explains how to prepare for career advancement Why is it valuable? The leadership pipeline improves the performance of individuals, teams and, consequently, the whole organization. It meets three vital business needs: The leadership pipeline: Provides clarity about what is required at different leadership levels. Ensures the right development is accessible for all, helping people to understand the development that is needed at different stages of their career. Focuses the organization s development activities. The leadership pipeline is used to ensure that development activities are focused, accessible and relevant. How it works There are six stages in the leadership pipeline: 1. Self-leadership: individuals are responsible for their own effectiveness, development and results. 2. Leading others: individuals are responsible for the work of other people. 3. Leading managers: individuals are responsible for the work of other managers. 4. Leading leaders: individuals are responsible for the delivery of part of a business. 5. Leading a business: individuals are accountable for the results of a business. 6. Leading your organization: individuals are responsible for more than one business. Succession Planning and The Leadership Pipeline 2

3 Where am I in the Leadership Pipeline? The following questionnaire is a quick, easy way to give you an indication of your stage on the leadership pipeline. Decide which statement applies to you in each section, and note your responses by circling a, b, c, d or e. At the end, read the paragraph that represents the majority response and reflect on your position in the leadership pipeline. 1 I typically 2 I typically a manage my own performance. a plan my own work. b manage the performance of a b plan and allocate the work of team. others. c manage the performance of other c assign managerial work to managers who manage teams. managers within my team for them to plan. d manage and lead a business, d am involved in strategic planning focusing on business strategy and for the department or function in financial awareness. which I work. e manage and lead a business, e define strategy and drive the building cross-business unit business. value, taking full accountability for P&L. 3 Primarily, I 4 It s important in my role that I a am responsible for my own a build local relationships for development. personal results and benefits. b coach and develop a team. b build relationships external to the team. c develop managers to develop and c work horizontally across the coach their teams to support business. business delivery. d am responsible for managing d build networks across the longer-term talent and people organisation. development in my unit. e am accountable for longer-term e take accountability for internal and talent and people development of external stakeholder management the business. relevant to the organisation. Succession Planning and The Leadership Pipeline 3

4 5 I typically a b c d e get results through personal proficiency and individual delivery. get results through leading and developing others. get results through setting direction and leading managers to deliver through their teams. get results through creating, selling or delivering a service and setting strategy to deliver this. get results through building cross-business unit value and driving the business. Results Mostly As Self Leadership, focusing on: personal identity; developing individual expertise, and learning from mentors, peers and from your manager. Mostly Bs Leading Others, focusing on: professional identity; planning, organizing and integrating expertise; developing influence and interdependence; coaching; developing engagement and team commitment, and working through others. Mostly Cs Leading Managers, focusing on: developing leadership identity; ensuring cross-functional integration; displaying vision and authority; generating organizational commitment, and learning from mistakes. Mostly Ds Leading Leaders, focusing on: business identity; building reputation and authority; dealing with increasing complexity; having a pivotal role in enterprise structure, and dealing with less visible opportunities. Mostly Es Leading a Business or Leading the Organization. Business Leadership is about organizational identity, risk-taking, creating alliances, creating competitive advantage, cross business value creation and learning from the competition. Leading the organization is about enterprise identity, vision and strategy, company legacy, shaping culture, creating organizational synergy, managing enterprise alliances, creating shareholder value and learning from sharing wisdom. Benefits For individuals, the leadership pipeline: supports improved performance and development plans increases understanding of development options provides clarity about what is expected for each transition helps articulate future opportunities provides a basis for developing performance helps explain what is required for great performance Succession Planning and The Leadership Pipeline 4

5 For line managers, the leadership pipeline: supports performance management and development conversations; increases understanding of development issues and priorities. For the organization, the leadership pipeline: supports end-to-end leadership development planning helps develop future leadership enables people to perform at their best clarifies leadership challenges and the support required helps people (individuals and managers) understand issues affecting performance and roles promotes consistency across the organization Succession Planning and The Leadership Pipeline 5

6 Overview of each stage in the leadership pipeline What skills are required What will individuals do What do individuals value at What should people do to during this stage? during this stage? this stage? prepare for the future? Succession Planning and The Leadership Pipeline 6

7 What skills are required What will individuals do What do individuals value at What should people do to during this stage? during this stage? this stage? prepare for the future? Succession Planning and The Leadership Pipeline 7

8 What skills are required What will individuals do What do individuals value at What should people do to during this stage? during this stage? this stage? prepare for the future? Succession Planning and The Leadership Pipeline 8

9 What skills are required What will individuals do What do individuals value What should people do to during this stage? during this stage? at this stage? prepare for the future? Succession Planning and The Leadership Pipeline 9

10 What skills are required What will individuals do What do individuals value at What should people do to during this stage? during this stage? this stage? prepare for the future? Succession Planning and The Leadership Pipeline 10

11 Talent Management The term talent management was coined by McKinsey & Company following a 1997 research study and it was featured in the book The War for Talent by Ed Michaels, Helen Handfield-Jones and Beth Axelrod. Talent management and succession planning are the essence of leadership. The benefits of talent management and succession planning include ensuring a steady supply of skills, business continuity and the ability to attract and retain the best employees those that will make the greatest difference and bring the greatest benefit. It is often said perhaps too often that people are an organization s greatest resource. Whether this is true or not may depend on the organization but they are certainly the resource with the greatest potential and the one that is invariably expensive, decisive and critical to a business s continued success. Given this fact, their needs, skills and priorities need to be integrated with the business. It is the task of the leader to help people achieve this potential. Clearly, this benefits the individual but it also benefits the leader, their team and the whole organization. The best businesses understand that talented, results-driven employees are the difference between them and their competitors. Research conducted by the Economist Intelligence Unit in 10 countries found that talent management is an indispensable source of competitive advantage. This is because talented executives: Plan and execute strategy better Create a positive work environment with greater innovation, flexibility, teamwork and collaboration Achieve the benefits of employee engagement, including greater productivity and revenue growth If current and potential leaders have the right skills and experience then their direct reports and middle managers will also thrive. In addition, talent management increases job satisfaction and improves retention rates. This is vitally important at a time when competition for strong managers is fierce and growing. Talent management also helps improve succession planning, ensuring that firms have the right people in the right roles, at the right time. A fundamental part of talent management is recognizing the fact that talented people are a vital, scarce and often neglected resource. In a business with limited resources and opportunities, and faced with intense competition, it makes sense to give priority to those with the greatest ability and potential. Talent assessment and entry to the talent pool This means identifying those individuals with the leadership capability and potential to undertake complex roles. This assessment may be made by a panel comprising, for example, the individual s line manager, the head of the business area, a senior HR professional and an independent consultant who provides 360-degree feedback. At the panel meeting, members make an evaluative judgement of an individual s potential, focusing on five elements: Succession Planning and The Leadership Pipeline 11

12 Performance history Capability ratings Personal aspirations The ability to progress Readiness to move to a new role The talent proposition This supports accelerated career development for talent pool members and it often combines a bespoke career path with specific and targeted development opportunities. The talent contract Membership of the talent pool confers a wide range of benefits on each member, designed to support and accelerate career progression and to enable each individual to succeed. The benefits of membership should be explained and agreed, together with details of the responsibilities and expectations. These benefits and responsibilities then comprise each member s contract with the business. The benefits of talent pool membership for individuals typically include: a bespoke career path with active, practical support for career progression; job roles that meet members specific development needs; a personal development plan, providing access to a suite of learning opportunities; feedback on performance; progression that is transparent, open, honest and direct; access to senior members of staff for advice and career coaching, and the opportunity to develop a network of contacts to inform and guide career choices. The responsibilities of talent pool membership include active career management (preparing and implementing personal development plans); receiving regular feedback, designed to support and encourage a sustained level of performance that most employees do not achieve, and willingness to undertake challenging roles and to make the most of the opportunities available within the business. Ongoing assessment and segmentation This ensures that the talent pool s resources are being focused on the right people, in the right way, to provide the greatest benefit. The goal of the talent pool and the way in which success is judged, is to have people ready to move into vital roles as required. Assessment helps check that this is happening. Talent pool members may be assessed as: 1) green, with their career plan on track or moving faster than planned; 2) amber, the career plan is partially on track but action is required to get back on track within three to six months, with a strong sense that this is achievable, or 3) red when the career plan and succession readiness are off track. The individual needs to review and recalibrate their progress. Typically, there are several concerns about talent pools and succession plans that may need to be addressed. Succession Planning and The Leadership Pipeline 12

13 Potential problem or challenge Possible solution Career counselling and support for members of the talent pool It is valuable for managers and HR professionals to provide career counselling and help to create a bespoke career path for each talent pool member. This career path should: Include clearly-identified milestones, explaining what is expected of the talent pool member at 12, 24 and 36 months Take full account of each individual s career aspirations Be explained to the individual s line manager (and their business unit head, if different) Succession Planning and The Leadership Pipeline 13

14 In addition, it is valuable for an HR professional to meet at regular, agreed intervals with each member of the talent pool to provide support. This may include brokering leadership-development programmes and scheduling development activities. Coach talent pool members using the GROW model Coaching has four main phases: 1. Set goals both for the overall coaching relationship and for the individual session 2. Explore the current position of the learner: the reality of their circumstances and their concerns 3. Generate strategies, action plans and options for achieving the goals outlined above 4. Decide what is to be done, by whom, how and when This is aptly known as the GROW model (an acronym reflecting the Goals, Realities, Options and What/Will phases of the process). The central element is that responsibility for setting the goals ultimately rests with the learner. Goals set by others are more likely to be wrong, inappropriate, set too high or low and lack the commitment of the learner. The main objective of the mentor or coach is to help the learner through this process, chiefly by using effective questioning, rather than by instruction or reminiscing. The goals established should cover both the long-term (what the learner hopes to achieve in the next twelve months with the coach/mentor s support) and the immediate purpose of the coaching/mentoring session. Talent management roles and responsibilities Individual Roles and responsibilities Succession Planning and The Leadership Pipeline 14

15 Individual Roles and responsibilities Support Personal Development Planning Personal development planning The next stage is to write the personal development plan and this should include the following headings and information. Situational analysis ('Where am I now?') Personal objectives ('Where do I want to be?') Strategy ('How am I going to get there?') Succession Planning and The Leadership Pipeline 15

16 Also, consider how best to resolve or overcome any impediments (personal or professional) to achieving your desired outcome and take action. Include details of your planned activities: development objectives, activities, details of when they will be completed, any support needed and when progress will be reviewed. It is the talent pool member s responsibility to implement their action plan. They should consider how the development activity will be supported, perhaps by a mentor within the organization, and how the results will be integrated into workplace activities. Follow the self-development cycle The self-development cycle is a method of focusing, planning and undertaking development activities in a rigorous, thorough and practical way. The success of the personal development cycle depends on repeating the planning process regularly, at least every year, preferably every six months, or when circumstances change, such as taking on a new role. The seven stages of the cycle are: 1. Establish the purpose. You need to keep the overall aim firmly in mind and then ensure that all activities directly support this aim. Without this clear goal in mind, it is often difficult to stay on track, keep momentum or maintain motivation. 2. Identify development needs. The development needs must be identified and a programme for meeting those needs should be devised. In particular, the needs must be realistic and time-constrained, with a definite deadline. 3. Look at your opportunities for development. Deciding how to meet the development needs is the next stage, and this may include a mix of formal and informal methods. As well as effectiveness, cost and timing, bear in mind your own preferred learning style: what approach suits you best? 4. Formulate an action plan. This will be necessary for more complex development needs requiring a range of activities or an ongoing process. You should also consider how to support the development process will be supported, perhaps by a mentor. 5. Undertake development. This is the core of the process. It is worth considering specifically how the results will be integrated into workplace activities. 6. Record outcomes. Keep track of development activities in order to assess results against planned objectives (reviewing progress and understanding what methods work best) and plan future activities. 7. Review and evaluate. The process of recording and evaluating is often completed using a Personal Development Log; evaluating an event will help to assess whether the original objective has been met and the development need fulfilled. You should evaluate: The development activity: whether it met your needs and was useful The knowledge, skills and understanding that you gained How the activity will make a difference in the workplace The next steps: for example, the activity might have highlighted further areas for development or additional tasks that can be completed Succession Planning and The Leadership Pipeline 16

17 Things You Can Do Explain why talent management matters Cultures that nurture talent have several valuable characteristics. Ensuring that these are understood enables people (employees and leaders) to buy-in to the need for talent management and to begin to understand what they need to do. Teams are highly cohesive Authority resides with expertise and ability, not status Talented individuals acknowledge the support they receive from others Talented people possess skills of critical analysis: they challenge and do not follow blindly Leadership is highly respected Talented teams display freedom, autonomy, space, flexibility, openness and trust Risk-taking is encouraged Success for talented people goes beyond the bottom line It is important that succession planning is actively embraced and valued by senior executives. It should be integrated into training and development activities, and the board should oversee the management of the process and the progress being achieved. Executives should be encouraged to get to know successful, highpotential individuals; they should be able to gauge the likely effectiveness of the leadership pipeline and they should provide individuals with the benefit of their time, insights and experience (e.g. via a mentoring programme). Develop and communicate principles for talent management Several guiding principles are valuable when establishing a talent pool. Each organization needs to develop their own, however it may be useful to establish the following principles: Rigorous, standard procedures for assessing and developing talent (including personal development plans) A consistent approach to engaging and supporting talent A meritocratic approach that recognises the value of diversity A globally-consistent standard for recording and reporting data A clear, practical framework to measure success Manage the head, heart and hands Talent management requires a rational, consistent process that clearly engages with each individual s intelligence and their ability to learn and develop. Two other elements are also important: the heart (the need to appeal to a person s passions and intrinsic motivation) and the hands (the ability for an individual to take what they know and control and shape it). Building an environment that encourages these three elements simultaneously can be accomplished in several ways. Succession Planning and The Leadership Pipeline 17

18 Carefully match employees with objectives, projects and the work they are doing. Give them a challenge at the top of their skill level, so they will continue to develop Provide adequate resources enough to ensure that plans can be implemented Empower them with freedom and control over their work, as well as the time and latitude to pursue their ideas Send the right signals, recruiting the right type of people and allowing people to work in their own way, even if it is highly individual Inspire trust Building trust with talented individuals is vital. It can be accomplished by repeating each stage in the trust cycle in sequence: Diagram: The Trust Cycle Missing one stage takes you back to the start and makes it harder to build trust in the future. Trusted leaders hold certain values, behave in certain ways and do certain things. Create an expectation of trust. Leaders who cultivate trust work hard to retain it. Trust others. The best leaders trust people and believe that individuals want to do the job well. This tends to be a self-fulfilling prophecy. Also, ensure your intent is clear and honest, without hidden agendas. Trusted leaders are open. Genuinely, have the business s interests at heart. Trusted leaders want to leave a legacy and build something far beyond their tenure with the company. Be consistent. This means treating people fairly and upholding standards of behaviour and performance. Your values and principles should be so clear that people are able to predict your response. Confront people, without being confrontational. We trust someone who we can rely on, yet leaders can fall down when tackling performance issues incorrectly, undermining their credibility. Succession Planning and The Leadership Pipeline 18

19 Let others see your passion and what you care about. People will be much more inspired to follow you if it's obvious that you truly care about the project, company or product. Trusted leaders speak from the heart, not just from their intellect. Admit when you don't know. Trusted leaders don't mind talking about their vulnerabilities or admitting when they are wrong. We tend to be suspicious of people who act as though they are always right, who think they know all the answers and who won't admit mistakes. Behave with integrity being honest, keeping confidences and promises and respecting others. Use power positively. Trusted leaders are interested in power only because it will enable them to do the right thing, not to support their ego. They use power for productive reasons. Behaving this way means that people are better informed and focused on doing the right things. Also, less time is wasted and problems are identified and solved early. Finally, remember that trust is not a temporary quick fix approach we can use when it suits us and discard when we choose. It is a genuine belief system. We don t trust people for our own gain. We trust them because it is the right thing to do and, in the end, we all benefit. Dos and Don ts Do: Involve line managers and senior executives in identifying and managing the most talented people Be clear about the skills and behaviours needed for the organization s longterm development Agree a contract for talent pool members Be patient and manage expectations Integrate talent management with succession planning, and ensure that both directly support the business strategy Maintain top level support for the talent pool and succession plans Invest in talent management it is vital for the future Do not: Ignore individual performance issues among talent pool members find ways to resolve them Be inflexible a contract is vital but it should also have the flexibility to adjust to specific circumstances Forget the rest of the business. Pre-empt resentment by communicating and providing opportunities for talent pool members to share their expertise and build links Leave failing performers in the talent pool. Take action to ensure that the talent pool remains relevant and effective Succession Planning and The Leadership Pipeline 19

20 A final thought... If, as it is often said, individuals don t leave an organization they leave a boss, then there is a more encouraging aspect to this: using succession planning to ensure that there is a steady supply of strong leaders with the right skills, will make each employee s situation more positive and they will be more inclined to stay and give their best. The leadership pipeline improves the performance of individuals, teams and, consequently, the whole organization. Article edited by Stephanie Edwards Succession Planning and The Leadership Pipeline 20

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