creating a talent driven organization

Succession Planning

Nancy Rehbine Zentis, Ph.D

Creating a Talent Driven Organization

Agenda

• Purpose• Benefits• Best Practices• Talent Management Model • Steps to Develop a Succession

Planning Process

Introduction

“ Failing to plan is planning to fail”

Organizations must have plans in place so that the right people are in the right

place at the right time to achieve successful organizational outcomes.

Why Is Succession Planning Important?

27% of high potentials are at risk because of career derailment

1 in every 4 high performers will never reach his or her potential

17% of high performers are disengaged with their jobs and 5% of thinking of quitting

Dwindling Pool of Talent

Lack of qualified internal candidates

Number of Baby Boomers Retiring

Benefits

• Identify a talent pool for future replacements

• Keep employees engaged and challenged• Recognize your “A” players• Identify competencies critical for success• Create a talent driven culture that focuses

on training and development, rewarding performance, and attracting top talent

Just-in-Time (JIT)

Select HireAdvance and Promote

Evaluate Results

Develop

RetainRecruit

Transfer Knowledge

Manage Performance

Train

Compen-sate

Classify jobs

Strategic Integrated Approach

Workforce & Succession

PlanningCompetency M

odel

Recruitment, S

election, H

iring

Training & D

evelopment

Promotion & C

areer Mobilit

y

Retention

Knowledge Management

Compensation

Program Evaluation

Who’s in the Pipeline?

Time

High Potentials and Replacement Pool for Sr. Managers

MiddleManagers

1st-line Supervisors

Technical Specialists

All Employees?

Alignment is key . . .

Hiring and Recruitment

Compensation & Benefits

Learning & Developmen

t

Performance Management

Career Management

Talent Management

Succession Planning

Assessment & Selection

Best Practices

• Define standards of performance• Communicate how to move up and across career ladders • Identify criteria for selecting high performers • Specify development opportunities - job rotation, special

assignments, mentoring, leadership development programs, team projects

• Train managers to identify and coach high potentials • Define the reward and recognition process - promotions,

compensation, job progression, internal recruiting and selection

I. ESTABLISH ASUCCESSION

STRATEGY

II. IDENTIFYINGSUCCESSOR

CANDIDATES

III. DEVELOPING CANDIDATES

FOR LEADERSHIP ROLES

IV. MEASURING THE IMPACT OF

SUCCESSION MANAGEMENT

Steps to Developing A Strategy

All materials copyrighted

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Keys to Effective Succession Planning

– Identify Critical Positions to Develop A Pool– Define Criteria for High Potentials– Identify Candidates– Determine Development Needs– Create a Development Plan – Determine their Readiness– Follow Up, Feedback and Coaching– Communicate Progress

Innovative Methods for Developing Leaders

• Identifying Leadership Competencies

– Define leadership by a set of competencies that guides leadership development at all levels

– Leadership competencies uniquely fit the organization, its particular strategy, and its business model.

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Critical Positions Job Profile

• Analyze the current and future requirements based on needs of the organization and strategic business direction

• Identify the Competencies (skills, behaviors, traits, and knowledge) needed to be successful

• Benchmark other Leadership Development Studies to determine leadership success factors

High Potential Qualifications

• Define qualifications needed to be successful in a upward or lateral position

• Current Performance

• Past Performance

• Potential for Movement

• Readiness Now or Future


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Identify High Potentials

“Performance” (past) “Potential Ability *Competencies”

(future)• Achieves results in a variety of

areas• Recognized functional, technical,

and managerial leader• Can be counted on to perform,

especially in tough times• Demonstrates a high level of

proficiency in job competencies • Works independently with little or

no supervision

• Business Acumen• Strategic Thinking• Leadership• People Skills• Agility• Technology

Predictors of Success

Rating Scale - 3 - High Performer, 2 - Above Average, 1- Average Performer

Rating Scale: 3 - Exemplary Effectiveness, 2- Effectiveness, 1 - Developing Effectiveness


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Other “Potential” Indicators

• Current job role (over and above performance)

• History with the company (other positions held)

• Job experience prior to the company

• Education/Certifications

• Other significant events/accomplishments “Turnaround” of business unit Leading a taskforce/special project Outstanding achievement

Other Predictors of Success (High Potential’s Career Profile matched to Critical Position Job Profile)


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Readiness Rating Scale

5 - Ready Now – 0 to 1 YearHigh performer and high potential

4 - Short Term Promotable – 1 to 2 YearsEither high performance and moderate potential or average performance and high potential

3 - Long Term Promotable – 2 to 3 YearsEither average performance and moderate potential or high performance and moderate potential

2 - Wait and See – 3+ YearsAverage performance (may be due to being new in the job, having an inappropriate assignment, little or no coaching/development, etc.), but shows signs of potential

1 - Well Placed – Average performance, but few signs of potential

Developing Performance Developing Performance Potential PipelinePotential Pipeline

4High Professional/ Master Contributor

2Key Performer/

Solid Professional

1Low

Performer

3Inconsistent

Performer

5Adaptable

Key Performer

7Adaptable High

Performer/High Professional

9Strategic Star

8Rising Star

6Diamond in the

rough

POTENTIAL

PERFORMANCE

The “Pipeline”

•First line of development (9,8,7)

•Next line of development

(5,6, 4)

Less learning agilityLess learning agility More learning agilityMore learning agility

Less than Less than effectiveeffective

Highly Highly effectiveeffective

Not Classified

Identifying TalentIdentifying Talent

High Professional/ Master Contributor

Consistently produces exceptional results and

high performance ratings. Knows current job

extremely well. May not effectively adapt to new

situations.

Low Performer

Not delivering on results as expected. Does not adapt to change well and may be a blocked personal learner.

Inconsistent Performer

Delivers results inconsistently. Knows the job, and may be a passive learner. May adapt to new situations if necessary.

Adaptable Key Performer

Consistently meets expectations. Knows current job well and enhances skills as appropriate. Can adapt to new situations as necessary.

Adaptable High Performer/ High Professional

Consistently produces exceptional results and high performance ratings. Knows the job well and continuously

enhances skills. Adapts to new situations if necessary.

Strategic StarOutstanding, clearest example of superior performance and potential. Has the ability to

take on major stretch assignments in new areas. Will

challenge the organization to provide growth opportunities

fast enough.

Rising StarConsistently meets

expectations. Knows the job well and enhances skills as

appropriate. Has the ability to take on new and different

challenges on a consistent basis.

Diamond in the Rough

Delivers results erratically. Has

demonstrated potential but is not living up to it.

POTENTIAL

PERFORMANCE




Key Performer/Solid Professional

Consistently meets expectations. Knows

current job well. May not effectively adapt to new

situations.

0Not

Classified

Developing TalentDeveloping Talent

Inconsistent Performer

Boost Performance

Under Performer/Hasn’t

Reached Potential

May Need to Drop/Exit

Dilemas, Performance Not

Commesurate with Potential

Improve or Exit

Core Employee

Boost Performance

Growth PotentialDeemed High

Potential to Advance

Boost Performance to Highest Potential

Top Talent, Ready to move into key

positions

Develop, Recognize, Establish Career

Retention Plan, RewardRising Star - High Performer

Stay on Track, Develop

ChallengeReward

Diamond in the RoughTransitional Performer

Potential/Under Performer

Improve Performance Short Term

POTENTIAL

PERFORMANCE




Accomplished Potential

Develop and Train, Differentiate

Rewards

Low 1

2

High

1

High Potential

Medium Potential

Low Potential

She had the boxes pop up

Development Activities

Activities for High Potential Development– 360 Feedback– Succession

Planning– Development Plan– Career

Development– Mentoring– Job Related

Activities

Activities for the Organization– Commitment– Accountability– Results– Support– Resources– Embedded in the

Culture– Link to

Performance Management

– Communication– Internal

recruitment and advancement policies

Activities for the Manager– Support– Coach– Advocate– Feedback– Promote– Discuss– Guide– Plan

Development Plan

• Identify a plan for short and long term development

• Identify measurable goals and action items• Identify development - On the job, training,

conferences, books, certification, continuing education, rotational assignments, project teams, temporary assignments, etc.

• Develop a timeline for monitoring progress

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Action Plan Grid

Employee Name

Job

Title

Perf

Rating

Potential

Placement

Promotion

Promotion

Years In Organiziaotn

Speciality

Development Potential

Recommended Action

Retention Plan

Weakness

Strength

Threats

DeRailment

• 27% of High Potentials are at Risk of Career Derailment

• 1 of every 4 will never reach his/her potential

• DeRailers– Sharp remarks– Not a team player– Aggressiveness– Pushy– Put Self Before Others– Cold Hearted– Arrogant– Too Ambitious– Self Glorification– Hurrying to move ahead– Sense of entitlement

Provide Feedback

• Meet regularly to discuss progress and give feedback

• Provide coaching and mentoring to help the high potential achieve his/her goals

• Discuss his/her progress with your manager and HR

• Monitor outcomes of performance and potential


Measure Outcomes

• Tie Succession Planning to Organizational ResultsMetrics:

– Employee Satisfaction– Turnover/Retention/Potential for Leaving– % of HIPO’s – Replacements– Improved Performance– Improved Development– Improved Readiness– Talent Inventory - Pool available for future movement


Communication Process

• Should you tell them or not!

50% (no)

50% (yes)

Why? Entitled

Bad Feelings

Competition

Why? Retention

Engagement

Morale



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Outcomes

Effective Succession Planning Process Drives Business Results by Ensuring the Best People Get Promoted

Ensure the Right People Are Developed For Future Needs Increase Leadership/employee Satisfaction Retain Key Talent By Providing a Process Toward

Promotion Define a Career Development Process for Each Position• Develop Functional Pools of Internal Talent• Improve Productivity and Profitability• Increase Employee Engagement, Collaboration, and Job

Satisfaction


Summary and Close

• What questions do you have?

• What recommendations do you have?

• What are your next steps?


References

• Byham, W.C., Smith, A.B., & Paese, M.J. (2002). Grow your own leaders: How to identify, develop and retain leadership talent. New York: Prentice-Hall.

• Charan, R. (2008) Leaders at all levels: Deepening your talent pool to solve the succession crisis. San Francisco: Jossey-Bass.

• McCall, M.W. (1998). High flyers: Developing the next generation of leaders. Boston: Harvard Business School Press.

For More Information:

Contact: Nancy Zenits, Ph.D

[email protected]

954-341-2522

Check out our website for more information

www.hrtalentpro.com