succession planning: preparing for the perfect labor storm

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Succession Planning Preparing for the Perfect Labor Storm

Copyright 2011. Ira S Wolfe. Duplica>on or reproduc>on prohibited without permission.

Trends that should be keeping execu>ves awake at night The New "Normal": the state of talent management 2011 Emerging Best Prac>ces: from metrics to social media

Ques>ons?

Agenda

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Copyright 2011. Ira S Wolfe. Duplica>on or reproduc>on prohibited without

permission.

What is the Perfect Labor Storm?

Convergence of demographic, socio-‐economic and

technologic trends that are working together to produce

true disrup9ons in the workplace.


WHAT SHOULD BE KEEPING EXECUTIVES AWAKE AT NIGHT?


Mega-Trends

•  Aging But Ac>ve Popula>on •  Smart Technology •  Data Deluge •  “Superstructured” Organiza>ons •  New Media •  Globaliza>on Source: Ins>tute for the Future


Demographic Trends

•  Graying of America (and developed world) •  5 (or more) Genera>ons Living •  Diversity Up •  Birth Rate Down •  Breadwinners Flipped


Societal Trends

•  Economic vola>lity up •  Educa>on failing •  Defini>on of “marriage” changing •  Defini>on of “work” changing •  Defini>on of “career” changing


Effect On The Workplace


How can we a]ract skilled workers?

How can we keep the talent we have?

How can we a]ract and/or develop leaders?

How can we develop compe>>ve enterprise wide bench strength?

STATE OF TALENT MANAGEMENT 2011-2012


Lots of Lip Service


Engagement Down


•  32 percent of American workers are considering leaving their organiza>on -‐ a 40 % increase since 2005; •  Another 21 percent says they are not looking to leave but are dissa>sfied; •  That means that more than half of all employees (53 percent) have mentally checked out of work. Source: Mercer Consul>ng; similar results from Blessing White survey

Skill Gaps


•  51 % report that growth could be impacted by the loss of talent in key skill areas; (Towers Watson)

•  38 % cite an inability to a]ract necessary talent; (Towers Watson)

•  52 % of U.S. employers are repor>ng difficulty filling mission cri>cal posi>ons within their organiza>ons, up from 14 percent in 2010. (Manpower)

Heidrick & Struggles/ Stanford University


• Over 50% of US and Canadian companies can not name a successor in their organiza>on’s chief execu>ve officer. • 39% of the respondents have no viable internal candidates. • Only 50% have any wri]en documenta>on detailing skills required for the next CEO. • Only 19% have well established benchmarks to measure internal candidate skills. • Only 50% of companies provide onboarding or transi>on support for newly named CEOs.

Korn / Ferry


•  98 percent of companies believe a CEO succession plan to be important BUT… • …Only 35 percent currently have one in place. • 49 percent haven’t had one in place for the last three years.

Reasons Why Succession Planning Fails …


•  Successors leave; •  Incumbent doesn’t leave; •  Successor doesn’t perform; •  Succession planning is considered an HR func>on, not a strategic impera>ve. •  Focus on current, not future, skills. •  No measurement.

•  HR & MGT make it too (bleep) complicated.

EMERGING BEST PRACTICES

From Metrics to Social Media


Definition


Succession planning is a process whereby organiza>ons ensure that employees are recruited and/or developed to fill each key role within the organiza>on.

The objec>ve of succession planning is to ensure that the organiza>on (or a unit of the organiza>on) con>nues to operate effec>vely when individuals occupying cri>cal posi>ons depart. Source: State of Iowa Workforce Planning document

Succession Planning


•  Is only part of workforce planning; •  Focuses on tomorrow; most talent management efforts focus on today; •  Assures appropriate bench strength; •  Prepares organiza>on to replace depar>ng staff seamlessly in cri>cal posi>ons; •  Is strategic; •  Is about sustainability, not staffing.

Succession Planning Is NOT


•  Just an HR exercise; •  About staffing; •  Just focused on the C-‐level; •  A technique to plan individual career advancement opportuni>es or a reward for high performers; •  A one-‐>me event or even an annual event; •  Perfect.

Best Practices: 7 Steps •  Align Succession Planning/Talent Management with business strategy •  Iden>fy key roles necessary to execute the strategy. •  Iden>fy required human capital skills and competencies. •  Iden>fy means to assess current skills, gaps, and future hires. •  Iden>fy sources for skilled or high-‐poten>al employees (internal and external). •  Implement reten>on strategies to retain skills and high-‐poten>al employees. Copyright 2011. Ira S Wolfe. Duplica>on or reproduc>on prohibited without permission.

3 Step Jump Start •  Align Succession Planning/Talent Management with business strategy

•  Iden.fy key roles necessary to execute the strategy. •  Iden.fy required human capital skills and competencies. •  Iden.fy means to assess current skills, gaps, and future hires. •  Iden>fy sources for skilled or high-‐poten>al employees (internal and external). •  Implement reten>on strategies to retain skills and high-‐poten>al employees.


#1 What Makes A Role Critical?

•  Key task •  Specialized leadership •  Geographic •  Poten>al high turnover job classes

What are the key roles in your organiza>on today? What will be the key roles in your organiza>on tomorrow? Copyright 2011. Ira S Wolfe. Duplica>on or reproduc>on prohibited without permission.

Typical Competency Model


•  Decisive Judgment •  Driving for Results • Championing Change •  Planning and Organizing •  Integrity •  Managing Others •  Coaching Others •  Rela>onship Management

#2 Future Competency Model

• Dealing with ambiguity • Dealing with paradox •  Innova>ve thinking • Cri>cal thinking • Social Intelligence • Situa9onal adaptability • Cross-‐cultural competency


• Computa>onal Thinking • New Media Literacy • Transdisciplinary literacy • Design mindset • Cogni>ve Load Management • Virtual Collabora>on

Sources: Lominger and Ins>tute for the Future

#3 How Do You Assess Potential?

1.  Personality Tests (5-‐Factor) 2.  General Mental Abili>es 3.  Mo>vators and Values 4.  Behavioral Style 5.  Mul>-‐rater (360) 6.  Past Experience?

Future: Gaming simula>on, virtual reality


One Final Comment… Social Media is changing the way employers will recruit, retain, and engage employees and candidates.


If you are not integra>ng social media into your marke>ng and branding, no

amount of >me, money, and resources will overcome the power of social networking – “word of mouth on steroids.”

Summary Succession planning requires a vision of the future, a strategy to get you there, and skilled workers and leaders to execute. Organiza>ons are crea>ng succession and competency models based on yesterday’s func>ons, not skills that are needed now and in the future. You won’t succeed by hiring and promo>ng today’s top talent but those individuals with the poten>al to perform tomorrow. Copyright 2011. Ira S Wolfe. Duplica>on or reproduc>on prohibited without permission.

Questions? More Information?

Ira S Wolfe President , Success Performance Solutions www.super-‐solu>ons.com iwolfe@super-‐solu>ons.com Phone: 410-‐941-‐2345 Stay current with hiring and workforce trends. Subscribe to one of my blogs: h]p://www.workforcetrends.com h]p://blog.super-‐solu>ons.com h]p://www.geeksgeezersgoogliza>on.com

QUESTIONS AHEAD


succession planning: preparing for the perfect labor storm

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