Best Practices of Succession Management and Employee RetentionClick to edit Master subtitle style
Questions To Consider...What % of your employees will retire in the next 5 years?
Questions To Consider...What % of your employees arelooking for other employment?
So…what are you planning    to do about it?
Session ObjectivesBriefly explore current trendsUnderstand succession management versussuccession planning – and the align...
Why the Interest inSuccession Planning andNumbers of people retiring and numbers of peopleentering workforceLoss of organi...
Trends and Forecasts*By 2008, more people will be leaving theworkforce than entering44% of workers aged 45-59 say they wil...
Trends and Forecasts*72% of companies predict they’ll have anincreasing number of leadership vacanciesover the next 3-5 ye...
Current Economic IssuesWorkplaces will lose high performers aseconomy strengthensCurrently, workplaces that understandfutu...
The Internal ChallengeWho is going to do the work?What knowledge are we about to lose?What skills will we lose?What tradit...
The External ChallengeThe market place for good talent will becompetitiveThe good people will be able to pick andchoose th...
Who is responsible toensure you have the people   to get the job done?
Shift from Industrial Age toInformation AgeThe Old WayHR is responsible for people managementWe provide good pay and benef...
Shift from Industrial Age toInformation AgeThe New WayAll managers are accountable for strengtheningtheir talent poolsWe s...
Questions To Reflect OnIf the dam bursts today, what is the    impact to your organization?How would you replace the peopl...
One Approach…
It’s not just about having           the bodies.  It’s about the right bodies     doing the right things. Creating an orga...
Retention:What keeps employees       happy?
Current Retention TrendsTowers Perrin (2002) Canadian study59% are open to changing jobs11% actively looking45% passively ...
Top 15 Retention Drivers       Retention Items                                              %       1.     Exciting work &...
Other Research         Retention Items         1.       Career growth, learning and development         2.       Exciting ...
Understanding the DataEmployees are looking for job growth andlearning opportunities, or they are looking fora new jobAre ...
Understanding the Data – Link       to RecruitmentAttraction is part of retention, so thisinformation also informs recruit...
Link to Employee             EngagementResearch shows positive correlation ofengagement scores with:Employee attraction an...
What is Engagement?                  Say                          Stay                        Strivet the organization to ...
Calculating Employee                         Engagement       Scores from the following six questions are used to calculat...
Succession Planning:Helping you understand    who to focus on
Q u ic k P o ll…Who has:No succession planning in place?Succession planning in place, but not sure itis, or will be, succe...
The Traditional Approach toSuccession PlanningOften highly politicalLittle thought given to what kindof leaders required i...
Results of This Approach to Succession PlanningStrategies become academic andadministrative exercises. Change happensand r...
A Different Way to ThinkAbout Succession PlanningSuccession management is a process ofensuring there are leaders and talen...
Elements of an EffectiveSuccession Management* The Gallup Organization
Succession ManagementFocus on individual developmentstrategically aligned to future visionLeadership development can ensur...
Succession ManagementA key strategic initiativeCannot be done in isolation to othercultural and people oriented initiative...
Succession ManagementFocus on integrating many elements oforganization developmentHigh level steps need to be customized f...
“There are no recipes or formulae, no   checklists or advice that describe   “reality”. There is only what we create throu...
Vision and CompetenciesAlignment to vision and strategyBusiness plan for succession initiativesSuccession and leadership a...
Need for a RoadmapImplementing succession initiativesimpacts cultureA roadmap shows how to get there  “Without a roadmap, ...
Talent Review ProcessAn interactive dialogue and discussion tosupport the performance and potential oftalent in the organi...
Talent Review ProcessRobust Talent Review (“War for Talent”):Full day on-site for each divisionDiscuss quality of incumben...
Talent Review ProcessRobust Talent Review, continued:Drive to a distribution of ratingsSpecific action plans written and f...
Talent Review RoadmapQuestionsHow far down in the organization? Whatgroups?High potentials or everyone?Replacement or pool...
P o o l ve rs us    R e p la c e m e n tIdentifying “bench weakness” (e.g.managers, technicians)Assess individualsDevelop ...
Folio Map   5.0               New in Position/High Potential   High Performance and Potential        3.6 Competent/ Capabl...
Id e n t if y in g H ig h        P1.0 t e n t i a l s 5.0          o       3.6      High                                  ...
Folio MapPermits participants to identify specificdevelopmental actions for employeesAssists conversations regarding nexts...
Critical Positions/People*Critical Position – A critical position in theorganization that is imperative to runningthe busi...
ExampleMulti-level ownership
Succession Management                             Retention                        ??
File it away…
Start having conversations!
Great Leaders    Make AGreat Difference
Leadership Effectiveness     and Turnover
Leadership Effectiveness     and Retention
Leadership Effectiveness            and Customer Satisfaction                      100                                    ...
Making LeadershipDevelopment WorkIdentify, inform and invest heavily in talentUse 360s to build on strengthsSet extremely ...
Senior Management RoleResponsible for succession processApprove high potentials, individualdevelopment, leadership develop...
MeasuresDefine up front what you want to achievein the broader scopeThen…once succession data gathered,define specific mea...
Possible SuccessionMeasuresBy ___ 90% of development actions completeIncrease movement of high potentials to other areasof...
Employee Conversations  What needs to happen in these conversations?
Individual DevelopmentPlanningActionsGoals and measuresFollow-up, follow-up, follow-up
More B e s tP r a c t ic e s ( H e w it t )Senior management lead the chargeManiacal focus on the best talentHigh potentia...
ChallengesTimeBuy-inLose sight of big picture – administrativenightmareEmployee/manager conversationsCultural biasesResour...
R e s u lt s o f       Im p le m e n t in gA high-performance culture that continuouslyattracts and retains the right peop...
R e s u lt s o f       Im p le m e n t in gNo “unspoken agenda” concerningindividuals’ aspirations and potentialInvestor c...
Keys to SuccessTop management must buy-in and be activeparticipantsLink succession efforts to needs andstrategic objective...
Keys to SuccessIdentify high potential talent early –devise strategies to retain that talentRecognize that effective succe...
Keys to SuccessEnsure leaders have an opportunity toapply the skills they are learningEnsure everyone is, and can be,respo...
Discussion Where should we star t?   What will be easy?  What will we stumble         over?
Resources“War for Talent” – McKinsey & Co.“Leadership Pipeline” – Ram Charan“Grow Your Own Leaders” – W. Byham“Effective S...
Employee retention.
Employee retention.
Employee retention.
Employee retention.
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Mencari karyawan berpotensi itu "mudah" tapi mempertahankan mereka itu ibarat menyusuri lorong sebuah lorong gelap nan jauh...karena hati dan pikiran manusia siapa yang menduga ? Nah dengan memahami tentang hali ini paling tidak dapat sedikit mengobati produga tersebut. Selamat Minikmati...!!!

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  • Ask for a response by a show of hands. Of those who know, how many will lose 20%? 30%? 40?
  • Pause and ask people to hazard a guess.
  • Check for understanding of A, B and C players.
  • What to do???
  • These are some of the different faces of frustration…
  • You may not necessarily want to keep every employee in the company. How do you choose who – and what – to focus on?
  • Here’s the “what”.
  • Survey conducted by Career Systems International and published in Training & Development magazine, April 2005. 7,600 respondents to the survey Interesting to note that the top 3 replies are the same today as they were at the peak of the tight labor market in 2000
  • 90% of respondent listed at least one of the first 3 items among the top 3 or 4 reasons they stayed.
  • Hewitt and other organizations have conducted numerous studies over the last ten years to assess this relationship between engagement and business results and have found the following: There is a significant link between employee engagement, customer loyalty, and profitability Engaged employees are twice as likely to be advocates of the company,its products, and services Engaged employees are more likely to stay with the company .
  • We hear a lot these days about engagement. There is a proven correlation between engagement and retention. One way of measuring engagement is through a survey developed and administered by Hewitt Associates for Report on Business magazine. At a high level here is how engagement is defined. Simply stated - if you are engaged you Speak positively… Have an intense desire to stay… Exert extra effort for our success…
  • If a high percentage of employees are positive on these six statements, this will feel like a great place to work.
  • What keeps employees happy – and keeps them with an organization – is influenced by all interactions they have within the organization. Retention, therefore, is part of the larger organizational system.
  • Now we’re going to move into the “who”. How do you know who to focus on? Who are the people who most influence organizational success? Who are the people who have the skills – or POTENTIAL TO DEVELOP THE SKILLS – that you’ll need next year, or 2 or 3 years from now? A succession planning or succession management process can help you to answer these questions.
  • Ask for a show of hands.
  • Succession planning helps to identify top talent within your organization. With this approach, forms were often completed, put in a binder and placed on a shelf.
  • Challenge is not the model – it’s what goes on in the organization during implementation. Bumps up against other elements – culture, performance, having conversations, and, change ORG. TALENT REVIEW – assess both current performance and leadership potential. Key here is ability to have meaningful conversations NOTE: some organizations start with replacement SP and move to SM (integration of LD) later…but there still needs to be assessment on current performance and future Leadership. Some try pilots in one department the first year, or key levels only. Need to determine
  • J&J example
  • Ensure replacements for these positions/people
  • So, how do you take the information gathered through succession management and translate it to retention?
  • You can file it away…
  • Talk to those people you’ve identified as having potential. Are they happy? What do they need? Think about the lists of employee retention items and ask questions about those items. Make sure they know how valued they are! Data from exit interviews consistently reveals that employees who leave organizations did not know how valued they were. Often, they had no idea they were viewed as being in succession for a more responsible role. This is where investing in developing leaders at all levels in the organization can really help. Managers need help having these types of conversations. They need to develop coaching and mentoring skills to ensure successful development of their team.
  • Research reported in the book, The Extraordinary Leader, by Zenger and Folkman (2002). Conclusive evidence that good leaders produce good results for their organizations. In fact, good leaders are more effective than bad leaders in almost every dimension, including improving productivity, employee retention, enhancing customer service, and creating high levels of employee commitment. These next few slides show the impact of the best and worst leaders on achieving bottom-line results. On the “X” axis we have leadership effectiveness shown in percentiles.
  • Specific measures can include: Decrease turnover of high potentials Increase movement of high potentials to other areas of company Decrease spending on ? Training Leadership development ROI Decrease recruitment costs Develop lower performers to higher level – or – terminate low performers by…. Measure productivity Change reward systems to attract and retain high performers - Broad scope measures By ? Year increase high potential leaders by __ Over ? Years, increase high potential retention by __ Leadership skills in management group will increase… Decrease turnover Known as best company – attract high potentials
  • No promises, honest, frequent
  • Employee retention.

    1. 1. Best Practices of Succession Management and Employee RetentionClick to edit Master subtitle style
    2. 2. Questions To Consider...What % of your employees will retire in the next 5 years?
    3. 3. Questions To Consider...What % of your employees arelooking for other employment?
    4. 4. So…what are you planning to do about it?
    5. 5. Session ObjectivesBriefly explore current trendsUnderstand succession management versussuccession planning – and the alignment toemployee retentionUnderstand best practice processes andexamine a few of the tools andmethodologies being usedDiscuss the roadblocks and benefits ofimplementationExplore how to get started
    6. 6. Why the Interest inSuccession Planning andNumbers of people retiring and numbers of peopleentering workforceLoss of organizational memorySkills shortages are acuteRetention of talentFuture of work – different needs for generations ofemployeesWhat else?
    7. 7. Trends and Forecasts*By 2008, more people will be leaving theworkforce than entering44% of workers aged 45-59 say they willretire before 6510% of workers aged 50-59 who leave fulltime jobs, move into part time within 2 years1/3 of workers aged 50-59 who leave full timejobs, move back into full time* Statistics Canada research
    8. 8. Trends and Forecasts*72% of companies predict they’ll have anincreasing number of leadership vacanciesover the next 3-5 years76% of those same companies are “lessthan confident” in their abilities toadequately staff these positions* Corporate Leadership Council research (reported by The Gallup Organization)
    9. 9. Current Economic IssuesWorkplaces will lose high performers aseconomy strengthensCurrently, workplaces that understandfuture skills needed are having difficultyrecruitingRecruitment strategies are strengtheningRetention of talent is increasinglybecoming a “hot” issue
    10. 10. The Internal ChallengeWho is going to do the work?What knowledge are we about to lose?What skills will we lose?What traditions will change? Is this good?
    11. 11. The External ChallengeThe market place for good talent will becompetitiveThe good people will be able to pick andchoose their working environmentHow do we create an organization in wherepeople want to stick around?
    12. 12. Who is responsible toensure you have the people to get the job done?
    13. 13. Shift from Industrial Age toInformation AgeThe Old WayHR is responsible for people managementWe provide good pay and benefitsRecruiting is like purchasingDevelopment happens in training programsWe treat everyone the sameSource: “War for Talent”
    14. 14. Shift from Industrial Age toInformation AgeThe New WayAll managers are accountable for strengtheningtheir talent poolsWe shape our workplace, jobs, and strategy toappeal to talented peopleRecruiting is like marketingWe fuel development through stretch jobs,mentoring and coachingWe affirm our people, but invest differently inA, B, and C playersSource: “War for Talent”
    15. 15. Questions To Reflect OnIf the dam bursts today, what is the impact to your organization?How would you replace the people, knowledge, lost productivity?
    16. 16. One Approach…
    17. 17. It’s not just about having the bodies. It’s about the right bodies doing the right things. Creating an organization ofwhich people want to be a part.
    18. 18. Retention:What keeps employees happy?
    19. 19. Current Retention TrendsTowers Perrin (2002) Canadian study59% are open to changing jobs11% actively looking45% passively looking“To retain me, you’ve got to help me advance, keepthe good people, and provide competitive pay….”
    20. 20. Top 15 Retention Drivers Retention Items % 1. Exciting work & challenge 48.4 2. Career Growth, Learning & Development 42.6 3. Working with great people & relationships 41.8 4. Fair pay 31.8 5. Supportive management/great boss 25.1 6. Being recognized, valued & respected 23.0 7. Benefits 22.0 8. Meaningful work, making a difference & contribution 17.0 9. Pride in organization, its mission & product 16.5 10. Great work environment / culture 16.0 11. Flexibility 13.6 12. Autonomy, creativity and a sense of control 12.6 13. Job security & stability 10.5 14. Location 10.3 15. Diverse, changing work assignments 7.7Source: Career Systems International, 2005
    21. 21. Other Research Retention Items 1. Career growth, learning and development 2. Exciting work and challenge 3. Meaningful work, making a difference and a contribution 4. Great people 5. Being part of a team 6. Good boss 7. Recognition for work well done 8. Fun on the job 9. Autonomy, sense of control over work 10. Flexibility – for example, in work hours and dress code 11. Fair pay and benefits 12. Inspiring leadership 13. Pride in organization, its mission and quality of product 14. Great work environment 15. LocationSource: Love ‘Em or Lose ‘Em, 1999
    22. 22. Understanding the DataEmployees are looking for job growth andlearning opportunities, or they are looking fora new jobAre you offering the items on these lists toyour employees?As managers in your organization, how manyof these items do you believe are within yourcontrol?
    23. 23. Understanding the Data – Link to RecruitmentAttraction is part of retention, so thisinformation also informs recruitment practicesEmployees will be attracted to organizationsthat have well-developed mentoringprograms, career development initiatives, andjob enrichment opportunities
    24. 24. Link to Employee EngagementResearch shows positive correlation ofengagement scores with:Employee attraction and retentionEngagement scores also have a positivecorrelation with:Customer satisfactionRevenue growth and shareholder returnsEmployee productivityEmployee attendance
    25. 25. What is Engagement? Say Stay Strivet the organization to co-workers, potential employeesmember of the organization. possible to contrib Have an intense desire to be a and customers. very best job Exert extra effort & are dedicated to doing the Engagement
    26. 26. Calculating Employee Engagement Scores from the following six questions are used to calculate the engagement score:uld, without hesitation, highly recommend this organization to a friend seeking employment.n the opportunity, I tell others great things about working here. Sayuld take a lot to get me to leave this organization.dly ever think about leaving this organization to work somewhere else.organization inspires me to do my best work every day. Stayorganization motivates me to do more than is normally required to complete my work. Strive
    27. 27. Succession Planning:Helping you understand who to focus on
    28. 28. Q u ic k P o ll…Who has:No succession planning in place?Succession planning in place, but not sure itis, or will be, successful?A successful succession planning initiative?
    29. 29. The Traditional Approach toSuccession PlanningOften highly politicalLittle thought given to what kindof leaders required in the futureDone secretlyFocus on putting names in boxes(“replacement”)Few conversations held
    30. 30. Results of This Approach to Succession PlanningStrategies become academic andadministrative exercises. Change happensand rigid plans are not applicable – a wasteof time and moneyLittle focus spent on the developmentof individuals
    31. 31. A Different Way to ThinkAbout Succession PlanningSuccession management is a process ofensuring there are leaders and talent thatcan implement the organizational visionIt requires the systematic identification ofthose individuals who have the potential toturn the vision of the organization intoreality
    32. 32. Elements of an EffectiveSuccession Management* The Gallup Organization
    33. 33. Succession ManagementFocus on individual developmentstrategically aligned to future visionLeadership development can ensure that thepotential identified through successionprocess is realizedResult is long-term leadership sustainabilitythrough attraction, retention anddevelopment of talent
    34. 34. Succession ManagementA key strategic initiativeCannot be done in isolation to othercultural and people oriented initiatives inthe organizationMore than just “putting names in boxes”
    35. 35. Succession ManagementFocus on integrating many elements oforganization developmentHigh level steps need to be customized foreach organization“Leadership Pool” approach is gaining inpopularity (identifying all potentialemployees vs. positional replacements)
    36. 36. “There are no recipes or formulae, no checklists or advice that describe “reality”. There is only what we create through our engagement with others and with events.” (Margaret Wheatley, “Leadership and the New Science”)
    37. 37. Vision and CompetenciesAlignment to vision and strategyBusiness plan for succession initiativesSuccession and leadership aligned to thevision, critical business issues/skill gapsExecutive commitmentDevelop leadership competenciesDevelop a succession managementroadmap
    38. 38. Need for a RoadmapImplementing succession initiativesimpacts cultureA roadmap shows how to get there “Without a roadmap, the likelihood is that you will focus too much attention on details and miss the ‘big picture’.” (William Rothwell)
    39. 39. Talent Review ProcessAn interactive dialogue and discussion tosupport the performance and potential oftalent in the organizationA process to look at key talent, openpositions, promotions and leadershipdevelopmentDiscussion to support shared ownership ofthe talent pool and developmentopportunities
    40. 40. Talent Review ProcessRobust Talent Review (“War for Talent”):Full day on-site for each divisionDiscuss quality of incumbentsReview individuals and the talent strengthof each unit, and discuss other issues suchas retention or recruitingRigorous, candid and open debate
    41. 41. Talent Review ProcessRobust Talent Review, continued:Drive to a distribution of ratingsSpecific action plans written and followedup for each unitAs important and intense as the budgetprocess, with real accountability and aperformance focus
    42. 42. Talent Review RoadmapQuestionsHow far down in the organization? Whatgroups?High potentials or everyone?Replacement or pool – or both?Assess on performance and potentialOther assessments required?Who will assess? Do they have the skills toassess?
    43. 43. P o o l ve rs us R e p la c e m e n tIdentifying “bench weakness” (e.g.managers, technicians)Assess individualsDevelop as pool – stretch assignments,leadership developmentTrack progress
    44. 44. Folio Map 5.0 New in Position/High Potential High Performance and Potential 3.6 Competent/ Capable High Performance/ High ProfessionalPotential 2.6 Needs Improvement Outplacement 0 3.6 5.0 Performance
    45. 45. Id e n t if y in g H ig h P1.0 t e n t i a l s 5.0 o 3.6 High Our leadership “Talent Pool J JJ J J J J The “bar” is a rating J JJ J J J of 3.6 or above on J J potential J J JPotential J J 3.6 Must be at least J J JJ J J JJ JJ J J competent in each of the Standards of JJ J J J J J Leadership J J J J J J J J J JJ 1.0 Low Performance High
    46. 46. Folio MapPermits participants to identify specificdevelopmental actions for employeesAssists conversations regarding nextstepsShows progress from year to year
    47. 47. Critical Positions/People*Critical Position – A critical position in theorganization that is imperative to runningthe business. Key strategic importance tohave back fill.Critical Person – A critical person in theorganization which would result in asignificant adverse impact on the businessif the person left.* Johnson & Johnson definitions
    48. 48. ExampleMulti-level ownership
    49. 49. Succession Management Retention ??
    50. 50. File it away…
    51. 51. Start having conversations!
    52. 52. Great Leaders Make AGreat Difference
    53. 53. Leadership Effectiveness and Turnover
    54. 54. Leadership Effectiveness and Retention
    55. 55. Leadership Effectiveness and Customer Satisfaction 100 82Ratings of Customer 80 Satisfaction (%) 60 50 40 21 20 0 Bottom 10% Middle 80% Top 10% Leadership Effectiveness
    56. 56. Making LeadershipDevelopment WorkIdentify, inform and invest heavily in talentUse 360s to build on strengthsSet extremely high expectations for yourleaders – and measure their resultsMake leadership development a long termprocess and not an eventUse the succession process as an opportunity todevelop and measure the leadership potential
    57. 57. Senior Management RoleResponsible for succession processApprove high potentials, individualdevelopment, leadership developmentDetermine success measures, next stepsand time framesDetermine management accountabilityFollow-up on actions
    58. 58. MeasuresDefine up front what you want to achievein the broader scopeThen…once succession data gathered,define specific measures, timing andaccountability. Measure regularly.Track development of talent, and theirprogress, regularly over the long term.Assign accountability to managers forprogress, assign mentors, reward
    59. 59. Possible SuccessionMeasuresBy ___ 90% of development actions completeIncrease movement of high potentials to other areasof workplaceIncrease employee engagement/satisfactionBy year 20xx, increase high potential leaders by x%Over x years, increase high potential retention by x%External measures - attract high potentials
    60. 60. Employee Conversations What needs to happen in these conversations?
    61. 61. Individual DevelopmentPlanningActionsGoals and measuresFollow-up, follow-up, follow-up
    62. 62. More B e s tP r a c t ic e s ( H e w it t )Senior management lead the chargeManiacal focus on the best talentHigh potentials are carefully identifiedCompensation is highly differentiatedAssignments drive high potentials’ growthTracking progress is critical
    63. 63. ChallengesTimeBuy-inLose sight of big picture – administrativenightmareEmployee/manager conversationsCultural biasesResource issues that arise
    64. 64. R e s u lt s o f Im p le m e n t in gA high-performance culture that continuouslyattracts and retains the right peopleStrong leaders who can develop othersMentors that can provide a legacyA culture of openness and focus
    65. 65. R e s u lt s o f Im p le m e n t in gNo “unspoken agenda” concerningindividuals’ aspirations and potentialInvestor confidence – Hay (1988) andMcKinsey (1999) studies link effective SM toincreased ROI and annual return toshareholders
    66. 66. Keys to SuccessTop management must buy-in and be activeparticipantsLink succession efforts to needs andstrategic objectives of the businessMinimize paperwork and bureaucracyMake succession and leadershipdevelopment a constant preoccupation
    67. 67. Keys to SuccessIdentify high potential talent early –devise strategies to retain that talentRecognize that effective successionmanagement is not fastSpend time to evaluate results and providefeedback to stakeholders
    68. 68. Keys to SuccessEnsure leaders have an opportunity toapply the skills they are learningEnsure everyone is, and can be,responsible for their own developmentEnsure effective role modeling ofleadership excellenceMeasure behaviour change
    69. 69. Discussion Where should we star t? What will be easy? What will we stumble over?
    70. 70. Resources“War for Talent” – McKinsey & Co.“Leadership Pipeline” – Ram Charan“Grow Your Own Leaders” – W. Byham“Effective Succession Planning” – W. Rothwell“Love ‘Em or Lose ‘Em” – Kaye & Jordan-EvansCentre for Creative Leadership – www.ccl.orgStatistics Canada – www.statcan.ca/“The Extraordinary Leader” – Zenger & Folkman
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