Bridging the Gap in Corporate Succession Planning

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Corporate-wide concerns exist about the potential acceleration in retirement rates. This concern is putting increased pressure on human resource professionals in the area of succession planning. Leaders are struggling to formalize succession management strategies in preparation of anticipated leadership turnover. The challenge is that many organizations do not have formal talent identification and development programs. While companies continue to informally discuss career paths at performance appraisal time, they lack the most fundamental tool in succession planning—enabling employees to express formal interest in career choices. These career choices are not documented, analyzed, or aggregated for succession planning purposes, making it near impossible to assess information on the “depth of talent pools.”

This webinar serves as a springboard to help companies use best practices to prepare their workforce for the future and better manage the impact of turnover. In this webinar, you will learn how other organizations are:

Systematically identifying and developing internal talent for future roles,
Ensuring the performance management process integrates succession planning, and
Maximizing talent identification and readiness through formal career pathing.

See more at: http://tinyurl.com/ne5m5al

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Bridging the Gap in Corporate Succession Planning

  1. 1. CHALLENGES • The percentage of executives eligible for retirement is 50% and for non-executives is 40%. Q U I C K S TAT S Revenue $5B with goals to hit $10B by 2016 Employees • No formal succession planning process in place to prepare for anticipated turnover. 9,000 FTEs Product Profile 60 Products from tractors to valves Offices 100 offices internationally ©2013 TalentGuard
  2. 2. The concern about potential retirement prompted the company to develop a formal succession plan. ©2013 TalentGuard
  3. 3. Meet Sarah ©2013 TalentGuard ©2013 TalentGuard
  4. 4. A.K.A ©2013 TalentGuard
  5. 5. Ms. HR ©2013 TalentGuard
  6. 6. Sarah needed to gain perspective ©2013 TalentGuard
  7. 7. Sarah solicited input from more than 40 leaders ©2013 TalentGuard ©2013 TalentGuard
  8. 8. 4 questions were explored ©2013 TalentGuard
  9. 9. 1. How does the organization currently identify leadership talent? 2. How are employees currently developed for future positions? 3. What are we doing right and what can we improve? 4. What factors could help or hinder the successful implementation of a formal succession plan? ©2013 TalentGuard
  10. 10. Sarah also created a current snapshot of leader positions ©2013 TalentGuard
  11. 11. Current Staff Eligible for Retirement Now Eligible for Retirement 2016 % Now % 2016 Executives 50 25 31 50% 62% Senior Managers 400 160 196 40% 49% Mid-Level Managers 1654 595 715 36% 43% Supervisors 160 33 51 21% 31% • • • • These figures include all positions. Average retirement age across the four groups is 63. Lack of data on who will remain past retirement eligibility. Limited identification and definition of what constitutes a critical role. ©2013 TalentGuard
  12. 12. Based on all of the data… ©2013 TalentGuard
  13. 13. Sarah collaborated with management to bridge the gap in corporate succession planning ©2013 TalentGuard ©2013 TalentGuard
  14. 14. 3 strategies spring boarded the succession plan. ©2013 TalentGuard
  15. 15. ©2013 TalentGuard
  16. 16. ©2013 TalentGuard
  17. 17. Strategy 1 Talent Identification Use Job-Based Competencies ©2013 TalentGuard
  18. 18. ACHIEVE FULL USE OF COMPETENCIES • Need to incorporate behavioral competencies into all talent management processes. • Need to develop standardized job competencies so that employees understand must-haves for various positions. • Ensure that training is tied to both behavioral and job competencies for targeted development. • Ensure managers are adequately trained to coach employees and give feedback. ©2013 TalentGuard
  19. 19. LEADERSHIP COMPETENCY MODEL Accountability Adaptability Communication Conflict Resolution Cultural Sensitivity Decisiveness Development Orientation Ethics Political Acumen Risk-taking Service Orientation Strategic Agility Team Orientation Vision BEHAVIORAL ROLE-BASED Competencies are based on the technical aspects of the job role. Channel Strategy Corp. Advertising Event Management Market Research Marketing Comm. Mkt. Strategy Product Development Measurement Product Management Media Relations Public Relations Positioning Business Acumen Consistency Connection Decision-Making Confidence Decisiveness Initiative Integrity Listening Persistence Personal Drive Realistic Goal Setting ©2013 TalentGuard
  20. 20. JOB ROLE PROFICIENCY LEVELS (MARKETING SPECIALIST – MUST HAVES) Proficiency Levels Per Job Competency Channel Strategy Corporate Strategy Event Management Basic (Level 1) Intermediate (Level 2) Advanced (Level 3) Managing internal and external interfaces (e.g. with other channel groups and functional departments, relationships with channel partners and manufacturers of complimentary products). Design competitive positions and strategies that capitalize on corporate strengths; Ability to review information about meeting or similar events including historical data, e.g., surveys, evaluations ©2013 TalentGuard
  21. 21. JOB ROLE PROFILE – MUST HAVES Requirements for Role Role Position(s) Business Unit US Retail Geographic Location World Headquarters Job Grade C Pay Scale 50K – 75K Time to Proficiency • Minimum education required: Bachelor degree • 3+ years of experience Marketing Specialist 18 Months Where would individuals come from? Junior Analyst Where would individuals move to? Retail Execution Manager Analyst, Customer Development Business Development Job Description • Provide analysis of all customer specific reports leveraging our third party broker’s information to ensure consistency and linkage to Sales objectives in total and by team. • Work with WHQ Sales Team and Retail Team to develop reports that measure retail execution progress versus joint business plans. • Owns regular and consistent communication of retail reports comparing objectives for customer and/or geography behaviors linking our third party broker’s information to joint business plans. • Supports training and be knowledgeable of our third party broker’s system ensuring universal usage into objective setting and measurement of in store results. Behavioral • Business Acumen • Connection • Confidence Job-Based • Channel Strategy (Level 1) • Corp. Advertising (Level 2) • Event Management (Level 2) Qualifications • Certification in Marketing • Spanish Preferences • Willingness to travel • Experience in global role • Willingness to live abroad ©2013 TalentGuard
  22. 22. Strategy 2 Talent Identification Enable employees to express their career interests ©2013 TalentGuard
  23. 23. Meet Jill ©2013 TalentGuard
  24. 24. ©2013 TalentGuard ©2013 TalentGuard
  25. 25. A.K.A… ©2013 TalentGuard
  26. 26. Customer Success Guru ©2013 TalentGuard ©2013 TalentGuard
  27. 27. High Performer. Intelligent. Solid track-record. Skilled in her job. ©2013 TalentGuard
  28. 28. Jill is… ©2013 TalentGuard
  29. 29. Jill has no way to express her career interests. She believes that management doesn’t understand all of her talents. ©2013 TalentGuard
  30. 30. DEVELOP A MECHANISM FOR EMPLOYEES TO DOCUMENT, ASSESS & ANALYZE THEIR… • SKILLS • EXPERIENCES • QUALIFICATIONS • PREFERENCES ©2013 TalentGuard ©2013 TalentGuard
  31. 31. Sarah implemented three tools ©2013 TalentGuard
  32. 32. Talent Profile Information ©2013 TalentGuard ©2013 TalentGuard
  33. 33. Competencies Assessment Form ©2013 TalentGuard ©2013 TalentGuard
  34. 34. Career Interest Preference Form ©2013 TalentGuard ©2013 TalentGuard
  35. 35. Strategy 1 Talent Identification Create a Career Pathing Tool ©2013 TalentGuard
  36. 36. Customer Success Director Jill’s Current Role 85% Account Manager 70% Customer Success Manager 60% Marketing Manager 65% Business Analyst Jill wants to see 3 career moves out ©2013 TalentGuard
  37. 37. Jill’s Current Role to Marketing Manager Match 60% Functional Work Competencies Needs Assessment RATING GAP • Ask Questions Indicator description. x • Collects Relevant Information Indicator description. x • Uses Systems Indicator description.  Market Understanding RATING GAP Prospecting Management RATING GAP Networking Strategies RATING GAP ©2013 TalentGuard
  38. 38. WITH THIS INFORMATION, MANAGEMENT CAN: • See the types of roles that interest employees • Gain a better understanding of the depth of the talent pools • Understand role readiness, skill gaps and timeline to fill gaps. • Search for employees with specific skills, qualifications and preferences. ©2013 TalentGuard
  39. 39. ©2013 TalentGuard
  40. 40. Strategy 2 Employee Development Identify critical paths to key roles ©2013 TalentGuard
  41. 41. SARAH’S 5 QUESTIONS… 1. Which positions are most critical in achieving current and future goals? 2. Which positions, if vacant, could cause harm to the organization? 3. Which positions require specialized skills and/or knowledge? 4. Which positions have been hard to recruit for? 5. Do projected labor shortages exist for skills that you need in the future? Resource: Succession Planning Readiness Tool ©2013 TalentGuard
  42. 42. DEFINED CRITERIA FOR KEY POSITION SELECTION Defining Characteristics “A” Position Strategic “B” Position Support “C” Position Surplus Scope of authority • Has strategic impact • Exhibits high performance • Focuses on upside potential • Has indirect strategic impact • Minimizes downside risk • Creates foundations • May be required for firm to function • Little discretion in work Primary detriment Performance Job Level Market Price Effect on value creation Enhances Revenue or Reduces Costs Supports Value Creation Has Minimal Economic Impact Consequences of mistakes Very Costly Somewhat Costly Can Destroy Value Minimal Consequence Consequences of the wrong person Significant Expense Easily Remedied via Replacement Easily Remedied via Replacement Adapted from The Differentiated Workforce, Pg. 60 ©2013 TalentGuard
  43. 43. Key (A) Position areas are Identified ©2013 TalentGuard
  44. 44. 1. Customer Value Proposition Strategic Capabilities 2. 3. 4. 5. Research & Development Product Design Customerfacing Sales Marketing Leadership 1. A Chief Scientist 2. A VP Products 3. A VP Sales 4. A VP Marketing 5. A CEO 3. B Regional Managers 4. B Product Pricing Specialists 5. B Clinical Managers Strategic Positions • • • • Best product value Product variety Professional expertise Research and Development • • • • Wealth impact Competitive impact Performance Saving Lives 1. B Technical Director 2. B Product Designer ©2013 TalentGuard
  45. 45. With the Key Positions identified… ©2013 TalentGuard
  46. 46. to build critical career progression paths, enable employees to build career roadmaps and enable managers to search and identify employees for key roles Feeder Role Senior Research Analyst, Technology Manager, Researcher Critical Role Talent Pools Research Scientist Next Role Chief Scientist,VP of Research and Development Mr. (Have we identified employees (Do we have anyone ready to (Are we surfacing adequate with career interest as retire in these roles? Have we numbers of high Research Scientist?) identified successors?) potentials?) Director of Marketing, Director of Products, Director of Development Director of Sales, Director of Business Development, Director of Products, Director of Field Sales VP of Products Senior VP Products, Business Unit Manager, Divisional GM VP Sales Senior VP Sales,VP Products,VP Business Development, Business Unit Manager, Divisional GM ©2013 TalentGuard
  47. 47. Strategy 2 Employee Development Use assessment tools to identify talent pool candidates ©2013 TalentGuard
  48. 48. HOW “DEEP” DO YOU WANT THE POOL? Name Title Performance Scores Carrie H VP Sales 3.8 John A Director Sales 3.8 Mr. ©2013 TalentGuard
  49. 49. Research Scientist (talent pool) Candidates Candidates Candidates Mr. Ready Now? Ready 12 Months? Ready 18 Months? ©2013 TalentGuard
  50. 50. TALENT GRID FOR SUCCESSION PLANNING Potential Dimensions PERFORMANCE 5 Flashes of Potential 9 Under Performer 1 Future Leader 6 3 Transitional High Impact Contributor 7 Effective •The Talent Grid is designed according to the competency model, which demonstrates the specific skills needed to be mastered in each domain. POTENTIAL 8 Scope Change 2 Emerging Leader 4 Specialist ©2013 TalentGuard
  51. 51. TALENT DEVELOPMENT USING THE GRID Performance Dimensions PERFORMANCE 1 High Potential but Demonstrates Talent Ready for Advancement with Development Ready for Advancements Immediately 8 6 Potential to Improve Performance Potential to Take on More Responsibility 9 7 Performance Issues Highly Valued in Specific Area 3 High Performer Transferable Skill Sets POTENTIAL 2 5 4 High Performer in Key Area; Hard to Replace ©2013 TalentGuard
  52. 52. TALENT GRID Plotting Sales Employees HIGH PERFORMANCE Eddie V. John A. Carrie H. 5-Flashes of Potential OR 1-Future Leader Employee 16 6-Transitional 3-High Impact Contributor Jamie A. Troy A. Frank G. Tria B. LOW POTENTIAL 8 HIGH POTENTIAL 2-Emerging Leaders 7-Effective 9 Amy F. Allison T. Jamie A. 4 LOW PERFORMANCE ©2013 TalentGuard
  53. 53. ©2013 TalentGuard
  54. 54. Strategy 2 Employee Development Develop Formal IDPs ©2013 TalentGuard
  55. 55. • • • • Stanford Article 1 Internal Curriculum Strategy Book ISBN Sales Course 201 ©2013 TalentGuard
  56. 56. Allows for feedback, recognition and status updates • • • • Stanford Article 1 Internal Curriculum Strategy Book ISBN Sales Course 201 Improve my ability to ask better needs assessment questions with the Stanford Article 1. Identify the top 10 questions during needs analysis with Strategy Book ISBN. ©2013 TalentGuard
  57. 57. • • • • • • ©2013 TalentGuard ©2013 TalentGuard
  58. 58. ©2013 TalentGuard
  59. 59. Strategy 3 Employee Retention Communicate career path options and successes ©2013 TalentGuard
  60. 60. • Created all of the Feeder Roles and Progression Paths ©2013 TalentGuard
  61. 61. ©2013 TalentGuard ©2013 TalentGuard
  62. 62. Strategy 3 Employee Retention Provide career coaching to foster development ©2013 TalentGuard
  63. 63. External Coaching Rationale Steps for Success • Builds coaching culture • Create a coaching governance policy • Demonstrates support for development • Define the coaching methodology • Role Model Coaching Behavior • Define the coaching requirements • Define the coach selection criteria • Create coach matching system • Determine measure and ROI criteria ©2013 TalentGuard
  64. 64. Internal Coaching Rationale • Build internal coaching competency • Embedded in the culture • Teach manager new skills • Steps for Success More effective discussions Consistency of process • Scalability and cost • Visible executive staff endorsement • Develop or purchase coaching curriculum Promote coaching definition in all areas of company • Visible and intensive training program —ongoing • Determine measures of success and ROI criteria Measurement ability • Commitment of CEO and Executive Management • • • See Webinar: 5 Reasons all Manager Should be Career Coaches ©2013 TalentGuard
  65. 65. Strategy 3 Employee Retention Implement Formal Mentor Program ©2013 TalentGuard
  66. 66. • • • • ©2013 TalentGuard ©2013 TalentGuard
  67. 67. • • • • ©2013 TalentGuard ©2013 TalentGuard
  68. 68. ©2013 TalentGuard ©2013 TalentGuard
  69. 69. How to Successfully Implement Succession Planning 6 Succession Strategies to Develop Managers with a Global Mindset How To Do Succession Planning in 7 Steps Succession by TalentGuard Datasheet Succession Planning by TalentGuard Product Demo Succession Planning Consulting Services ©2013 TalentGuard
  70. 70. • • • • • Blog: blog.talentguard.com Twitter: @TalentGuard Facebook: Facebook.com/TalentGuard Linked-in Group: TalentGuard Request a Demo: http://www.talentguard.com/content/request-demo ©2013 TalentGuard

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