Is your organization s talent ready for the future? Succession planning for future success

Transcription

1 Is your organization s talent ready for the future? Succession planning for future success

2 Business Focus Customized leadership, team building and individual training/coaching Analysis and strategies for talent management and creating an intentional culture Personality and behavioral assessments for individuals or teams Designing succession planning tools and processes and career development Employee engagement/culture surveys Creating mentor programs 2

3 Avoid the Crown Prince Phenomenon

4 Problem Aging-out Baby Boomers Critical global labor shortage 1 in 5 executives is eligible for retirement in the next decade 40% of companies do not have a succession plan for their CEO Recognition that there is a problem

5 With so many problems, why don t more organizations do succession planning? Triads For those that do, why don t they do it well?

6 Benefits of Succession Planning Leadership is key contributor to job satisfaction, commitment and intent to stay Only 1% of companies rate their succession management plans as excellent; 2/3 rate them as fair or worse Identify competency gaps Helps achieve strategic plan Message to employees that they are valuable

7 Benefits (cont) Increase or secure retention of key talent Manage the corporate risk by ensuring a supply of talent to fulfill future business roles Reduce recruitment costs Realize the potential of individuals Increase organizational capability

8 The Case for Internal Promotions 66% of senior managers hired from the outside usually fail within the first 18 months Companies with a succession plan that results in an internal hire are less likely to experience negative effects on employee morale Source: Center for Creative Leadership and Making Transitions Work: - Canadian Center for Management Development

9 Is This Urgent? Have you lost high potential talent because they didn t know they were on the succession list? If your exec team won the lottery would their replacements be able to step right in and be productive? Is anyone on the top floors or the board room worried about the status of your talent bench? What lost opportunity costs has your organization incurred because it took a long time to replace a key leader?

10 Purpose of a Succession Plan Preparing for the transfer of leadership and an opportunity grow your own Manage diversity to survive in global environment Control the learning curve Increase commitment and loyalty

11 Evolution of Succession Planning Traditional Approach Selection of Replacements Secret process HR usually not involved Form of Risk Management Reactive Focus on Senior levels only Integrative Approach Creation of Leadership pipeline Transparency into the process Strategically linked to HR Planned future development Proactive Extending into mid- and lowerlevel management

12 How Will it Continue to Evolve? Succession planning that meets knowledge transfer needs A greater reliance on retirees Continued to focus on developing groups of people who can assume a variety of unknown future positions Increased integration of succession planning and career development.

13 Demographic Shifts Both the U.S. and Canada are becoming older and more diversified. The workforce is also becoming more dominated by women. In the next decade: o >50% of your high potentials should be women o 25% of your high potentials should be nonwhite Are you on track to capitalize on these demographic trends?

14 6 Simple Steps 1. Make the Commitment 6. Monitor, Measure and Assess 2. Examine the Business Strategy and Future Needs 5. Develop the Talent 3. Gap Analysis and Identify Key Positions 4. Talent Review 14

15 1. Make the Commitment Senior leader buy-in Demonstrate the need for the program Connect to the values of the organization Unveil the program Train 15

16 2. Examine the Business Strategy and Future Needs Align with strategic plan How is your business changing? What competencies and skills are needed? Talent SWOT 16

17 3. Gap Analysis and ID Key Positions Defining scope What roles are critical to the organization? What roles might become crucial over the next five years? What roles are not critical in the future? What gaps exists? Create success profiles 17

18 4. Talent Review Identifying talent with multiple inputs Who are high potential candidates? Who are those pivotal people: What is their level of readiness: What is their engagement level and career aspirations? Separate CEO succession plan 18

19 Hi Potential Competencies Strategic Thinking Drive for results Culture fit Commitment to the organization Has the respect and trust of supervisors, peers, and subordinates Has a high level of competence in his/her technical or functional discipline Ensures that team goals are achieved within cultural and ethical guidelines Has a bias for action and is a catalyst for change Is open to feedback and criticism Self-manages in a way that fosters learning and high performance Demonstrates creative problem solving Actively leads and manages teams that create loyalty and a sense of community 19

20 5. Develop the Talent Individualized experience based learning opportunities Provide support, and feedback Do goals meet succession requirements? What tools & resources are needed? Consider Talent Developers 20

21 Two Types of Development Horizontal Development: Refers to the adding of more knowledge skills and competencies to the leader. It s about what you know. Vertical Development: It is about how you think. Refers to advancement in a person s thinking capacity. The outcome of vertical development is the ability to think in more complex, systems, strategic and interdependent ways. Source: Center for Creative Leadership 21

22 Vertical Development Complex Challenge New Perspectives Connections and Support 22

23 Important Future Leadership Competencies Change management expertise Effective developer of talent/teams Effective collaborator/network Generational savvy Multi-cultural & multi-lingual aptitude Comfort with ambiguity Immersive learning* Dilemma flipping ability* * Bob Johansen, Institute for the Future 23

24 Tracking development 6. Monitor, Measure and Assess How do we monitor & measure the success of an individual s development against their plan? What external factors are at play? Is accountability in place? 24

25 Measurement Ideas IDP completion rate % of high potential employees to exempt workforce Number of positions with no internal candidate Number of ready now candidates Progression of SP readiness Number of positions filled with succession candidate Number with multi-country experience (international firms) % of positions filled by SP candidates SP candidate retention 25

26 Triads What are pitfalls to avoid when designing succession planning in your organization?

27 Process is not easy to use HR Loses Creditability Managers game the systems Participants lose sight of the purpose Not built around continual reinvention Pitfalls To Avoid

28 Does not have senior leader support Lack of understanding Making assumptions about future growth Lack of clear, understandable criteria to be assessed Failure to provide developmental assignments Pitfalls To Avoid (cont.)

29 Critical Success Factors Line manager owned and accountable Must have a definition of a successful leader Supports, and supported by a Talent Management culture and mindset Early successes and measureable value to the organization A system to monitor candidates development Timeline for succession and candidate readiness

30 Best Practices Top-Performing Companies Use in Hi-Potential Programs Specialized leadership tracks Multi-disciplinary rotation programs across disciplines, divisions, and locations Unlimited learning opportunities for high-potential employees Leveraging technology in talent development Action learning Mentoring Source: UNC Kenan-Flagler Business School 30

31 Views on Succession Pool A privilege and must be continually earned Does not guarantee a promotion in fact, it could mean a lateral move, or even exit from the pool if performance wanes Align succession candidates expectations with organizational expectations of what it means to be in the succession pool Take a rigorous approach to supporting a smooth transition into next-level or other critical roles Push succession management deeper and broader in the organization 31

32 Some future leaders need to be moved out of their seat All great riders don t make great drivers Attempt to develop future leaders for multiple positions It is an ongoing process where the players will change continuously It is a strategic effort that utilized inputs from multiple sources The organizational direction also change so be flexible Competencies need to be constantly monitored to ensure they are measuring what you want to measure 32

33 Organizations succeed over the long term because they are continuously regenerate leadership at all levels Leaders take inspired actions that transform their organizations 33

34 Annette Matthies, SPHR, SHRM-SCP (303) Thank you!