Succession Planning 3P Associates

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Succession Planning requires the the integration of performance planning and evaluation with metrics on soft and hard skills; a clear yard stick for assessing future potential; likelihood of key …

Succession Planning requires the the integration of performance planning and evaluation with metrics on soft and hard skills; a clear yard stick for assessing future potential; likelihood of key contributor loss; action items to bring poor contributors up to speed or reassignment or removal; the overall business strategic planning process.

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  • 1. Succession Planning Presented to: Organization Development Network of WNY By: Pete Wendel Brian Pettit Brian@3Passociates.com • www.3Passociates.com * ph.716.909.2657
  • 2. McKinsey 7S Framework Structure StrategySystems Shared Values Style Skills Staff
  • 3. McKinsey 7S Definitions1. Strategy: A coherent set of actions aimed at gaining a sustainable advantage over competition, improving position vis-à-vis customers, or allocating resources.2. Structure: The organization chart and accompanying baggage that show who reports to whom and how tasks are both divided up and integrated.3. Systems: The processes and flows that show how an organization gets things done from day to day (information systems, capital budgeting systems, and performance measurement systems would be good examples).4. Style: Tangible evidence of what management considers important by the way it collectively spends time and attention and uses symbolic behavior. It is not what management says is important, it is the way management behaves.
  • 4. McKinsey 7S Definitions5. Staff: The people in an organization. Here it is very useful to think not about individual personalities but about corporate demographics.6. Shared Values (or superordinate goals): The values that go beyond, but might well include, simple goal statements in determining corporate destiny. To fit the concept, these values must be shared by most people in the organization.7. Skills: A derivative of the rest. Skills are those capabilities that are possessed by an organization as a whole as opposed to the people in it. (The concept of corporate skill as something different from the summation of of the people in it seems difficult for many to grasp; however, some organizations that hire only the best and brightest cannot get seemingly simple things done where others perform extraordinary feats with ordinary people.)
  • 5. McKinsey 7S ChecklistStrategy Does the strategy support either a competitive advantage or improve our position with customers?Structure Does the organization and divisions of labor support accomplishment of the strategy?Systems What processes, measurements and/or information improvements are needed to make strategy execution straightforward?Style Are the reviews, questions, rewards and recognition offered by local management in alignment with achievement of the strategy?Staff Are we populating or do we have the right overall proportions of specific skill sets or functions or diversity needed to have the strategy succeed?Shared Values Is the strategy consistent with one or more of the organization Strategic Imperatives? Is there anything inconsistent about the strategy and corporate values?Skills Do all the above end up providing the organization with capabilities others may have difficulty emulating? Can we succeed where others can’t? Why?
  • 6. Smaller Family Owned Companies• Add Pete’s slides here
  • 7. Global Talent &Organization Review (GT&OR) Board Overview
  • 8. Key Topics• Talent Management: The Call for Action• Global Talent & Organization Review• Strategic Elements and their Linkages• Timeline
  • 9. Why Focus on Global Leadership Talent? The time to act is now. Market factors constraining supply and demand will only accentuate Our Company leadership supply issues going forward. 100% 100% “In 15 years, there will be 15% fewer Americans in the 85% 35- to 45-year-old range than there are now. At the same time the U.S. economy is likely to grow at 3-4% Supply of per year … That sets the stage for a talent war.”Supply and Demand of Qualified 50% Leaders U.S. Leaders (Today = 100%) 0% “Capital is accessible for good ideas and good projects. Strategies are transparent; even if you’ve got a smart strategy, others simply copy it. And the half-life of Demand technology is growing shorter all the time … In that (50%) for Leaders kind of environment, all that matters is talent.” (100%) - Ed Michaels, McKinsey & Co., (100%) author, The War for Talent (125%) (150%) Market-driven Today 15 Years Forward leadership gap
  • 10. Components of the GapCompounding the external constraints on leadership talent are potentialgaps between Our Company’s internal needs and resources. Our Company Leadership Gap Depth Gap Skills Gap Short Term • Open critical positions • “Rapid science and Drivers: • Short-term Company growth technology evolution • Potential removal of (skill gaps) substandard performers Long Term • Long-term Company growth • Instituting performance Drivers: (20%) management mentality • Employees eligible for • Changing business perspectives retirement that lead to different talent (skill • Market constraints set) requirements
  • 11. Leadership DepthGrowth could create significant leadership strains within Our Company 1000 Present Leadership Leadership Bench Strength (Numbers) 732 150 15 Management Leadership Executive Leader 897 leaders from Manager to Executive Leader
  • 12. Developing Leaders: Effectiveness of Interventions Developmental Individual Feedback/Coaching Executive Education assignments (#1 impact*) (#2 impact*) (#3 impact*) 80 Response from executives in 50 large US companies (McKinsey study) 70 Special Developmental 60 projects jobs Speed of job 50 moves Assessment-based Role Traditional Performance Feedback on models 40 external Evaluation strengths & 360-degree training weaknesses feedback 30 Traditional internal Informal training Individual coaching and learning Mentoring feedback from 20 (career path boss Nontraditional advice) learning 10 programs 0 0 10 20 30 40 50 60 70 80 90 Importance to self-development: rated “absolutely essential” or “very important” (%)*Reference: For Your Improvement by Mike Lombardo & Robert Eichinger
  • 13. What is the Global Talent &A Process that: Organization Review? Aligns human capital with business objectives resulting in focused organization development and greater effectiveness Matches appropriate talent to organization structure to achieve results Evaluates the strengths and developmental needs of: – the current organization, and – its leaders and potential leaders Includes:Results in human capital action plans to position the organization for greater success in the future Compensation Global Talent & Review Performance Linked Linked 360 feedback Linked Organization Management Training & Review Meetings Development Integrated Talent Management that Aligns Human Capital to Achieve Organizational Results
  • 14. How does Our Company benefit?For People who Lead Allows for more accurate decision-making around employee promotion, placement, development, reward and recognition of top talent Creates a succession plan for leadership roles Assesses key individuals according to results, behaviors and potential Evaluates succession depth across global sites, functions, and businesses Measures leadership retention and execution of leadership action plansFor Our Company: Builds an high performing workforce necessary to achieve our strategic imperatives Facilitates the selection of the right leaders for growing/acquiring new and existing business Creates a performance culture of continuous human capital improvement Provides opportunity for “cross-pollination” of leaders between functions/segments/international locations Build Leadership Bench to drive Performance & Innovation in Science, Technology and Biological Understanding
  • 15. Global Talent & Organization Review For Performance and Innovation ABC Region, Division, Local Facility
  • 16. Strategic Organization Overview • Last year Re-cap • Current Year Strategic Priorities • Organization Structure • Systems & Processes • Performance Capability • Organization Culture
  • 17. Last Year Re-cap Accomplishments Opportunities• % of Sales • Six sigma look at• % Growth ABC Process• Key new hires • Need higher• Key promotions efficiency in XYZ Takeaway Box
  • 18. Strategic Priorities/HR Implications New Year Strategic Priorities/GT&OR ImplicationsOVERALL BUSINESS STRATEGIES/ GT&OR IMPLICATIONS OBJECTIVES Takeaway Box
  • 19. Organization Structure Position Title Location Position Title Position Title Position Title Position Title Position Title Position Title Location Location Location Location Location Location Position Title Position Title Position Title Position Title Position Title Position Title Location Location Location Location Location Location Position Title Position Title Position Title Position Title Position Title Position Title Location Location Location Location Location LocationKey Changes••• Takeaway Box
  • 20. Organization Structure: Management Layers & Spans Management Layers Span of Control Number of Number of Direct Reports Months in Title Incumbents Average Range (min-max) Position (Avg) President (#) (#) (#-#) (#) Vice (#-#) (#) President (#) (#) Director (#) (#) (#-#) (#) Manager (#) (#) (#-#) (#) c Team (#) Leader (#) (#) (#-#) Individual (#) Contributor (#) (#) (#-#)Strengths Weaknesses Go Forward Actions• • •• • •• • • Takeaway Box
  • 21. Systems & ProcessesProcess Key Processes Current Assessment Identified GapsEffectivenessFactors New Account Funnel Marketing Customer Product Mgmt / Mgmt (Sales Service Intro Team Support) Fulfillment Salesa) World-Class • • Design -- Is the process a benchmark for other companies?b) Integrated - Is the • • process aligned with other relevant functions?c) Metrics – Can the • • process be tracked & measured?d) Systems Capable • • – Is the process digitized?e) User-Friendly – Is • • the process simple and intuitive to use?Process Improvement Required: = Total overhaul = Moderate improvements = Minimal improvements Takeaway Box
  • 22. Performance Capability Sales MarketingT T Expert Anderson, LoriE Expert Anderson, Lori Ball, BethC Ball, Beth E Smith, HenryH Smith, Henry C White, DaveN White, Dave HI NC IA Intermediate C Averi, LisaL . Averi, Lisa A Intermediate Bulkley, Abe . Bulkley, Abe L Smith, Lori Smith, Lori Black, Mike Black, Mike SST TR RE Basic E N BasicNG G Brown, JohnT T House, MaryH H Jones, Steve Basic Consultative Strategic Executive Limited Basic Advance d SALES STRENGTH MARKETING STRENGTH Degree Legend Phd = Red MS = Blue MBA = Bold Takeaway Box
  • 23. Performance Capability (cont’d) Business Acumen ServiceT Expert Anderson, Lori Expert Anderson, Lori Ball, Beth TE Smith, Henry Ball, Beth EC Smith, Henry White, Dave CH White, Dave HN NI IC Averi, Lisa CA Intermediate Bulkley, Abe Averi, Lisa . A ImmediateL Bulkley, Abe . Smith, Lori L Smith, Lori Black, MikeS Black, Mike ST TR RE Basic EN Basic Brown, John NG G Brown, JohnT House, Mary T House, MaryH Jones, Steve H Jones, Steve Limited Basic Sophisticated Basic Functional Expert BUSINESS ACUMENT SERVICE STRENGTH STRENGTH Degree Legend Phd = Red MS = Blue MBA = Bold Takeaway Box
  • 24. Organization Culture Culture Global Regional Site Dimensions Identity – Employees identify with the company as a whole L H L H L H rather than specific work group or field of expertise Direction – Organization L H L H L H creates clear objectives and performance expectations Control – Number of rules and regulations and amount of L H L H L H direct supervision used to oversee and control employees Communication Patterns – Organization L H L H L H communication is restricted to formal hierarchy of authority Integration – Units are L H L H L H encouraged to operate in a coordinated manner • • Observations • •24 Takeaway Box
  • 25. Organization Chart Promotability Legend Results Rating Behavior Rating * = High Potential O = Outstanding % 4 = Role Model % Avg. Time in Position (in mo.) ___ + = Promotable V = Achiever % 3 = Very Effective % Avg. Length of Service (in mo.) ___ = = Grow in Position Position P = Performer % 2 = Effective % Males ___ Minority Name - = Placement Issue P-3 I = Improve. Required % 1 = Improve. Required % Females ___ ? = Too New = Months in Position: Length of Service Date: Position Position Position Position Position Position V-3 Name O-3 I-1 O-2 P-2 P-2 Name Name Name Name Name + Months in Position: * Months in Position: - Months in Position: + Months in Position: = Months in Position: = Months in Position: Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date: V-2 Position P-2 Position Position Position Position Position Name P-3 I-2 O-4 P-2 Name Name Name Name Name * Months in Position: ? Months in Position: + Months in Position: = Months in Position: + Months in Position: ? Months in Position: Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date: Position I-1 Position P-2 Position O-2 Position I-1 Position P-2 Position v-3 Name Name Name Name Name Name - Months in Position: ? Months in Position: + Months in Position: - Months in Position: = Months in Position: + Months in Position: Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date: Length of Service Date: Takeaway Box25
  • 26. 9 Block Talent Summary Anderson, Lori * Promotability Legend Outstanding Ball, Beth + * = High Potential + = Promotable Smith, Henry ? = = Grow in Position White, Dave + - = Placement Issue ? = Too New Averi, Lisa = R . Bulkley, Abe + E Performer/ Achiever Smith, Lori ? S Black, Mike = U L T S Improvement Brown, John - Required House, Mary = Jones, Steve - Improvement Required Effective/Very Effective Role Model BEHAVIOR26 Takeaway Box
  • 27. Leadership Development• Improvement Required – Planned Actions• High Potential/Promotable Vitality – Planned Actions• Critical Contributors – Any Career Band• Succession Depth – Top Positions• Current & Future Talent Needs
  • 28. Improvement Required – Planned Actions(Bus. Segment/Comm. Operations Region/Global Function) Length of Name Results - Months in ServicePosition Career Behavior Current Date Planned Actions/Timing:Location Band Rating Position (Months) (developmental job assignment, training, redeployment, mentoring, out placement, etc.) Timing of the planned actions: Use quarter/year designation (i.e. 4Q04)
  • 29. High Potential/Promotable Vitality – Planned Actions (Bus. Segment/Comm. Operations Region/Global Function) Name Career Results - Months in Length of Retention Next Best Planned Actions/Timing:Position Band Behavior current Service Risk Move (de ve lopm e ntal job as s ignm e nt,Location Rating Position Date (Spe cific Title ) training, re de ploym e nt, (M onths ) & Timing m e ntoring, re location pre fe re nce s / re s trictions , e tc.) Retention Risk: Green = O.K. Yellow = Caution Red = High Timing of next best move and planned actions: Use quarter/year designation (i.e. 4Q04)
  • 30. Critical Contributors – Any Career Band (Bus. Segment/Comm. Operations Region/Global Function) Name Career Results - Months in Length of Retention Next Best Planned Actions/Timing:Position Band Behavior Current Service Risk Move (deve lopm ental job as signm e nt,Location Rating Position Date (Specific Title) training, re de ploym ent, (M onths ) & Timing m entoring, re location prefe re nce s/ re strictions, e tc.) Retention Risk: Green = O.K. Yellow = Caution Red = High Timing of next best move and planned actions: Use quarter/year designation (i.e. 4Q14)
  • 31. Succession Depth – Top Positions Position: Vice President of Marketing Ready for Position Demographics Results Rating Behavior Rating Incumbent: Gerald Moser [g] A-4 A = Now [^] = Minority O = Outstanding 4 = Role Model O-3 Jack Black [g] B B = 1-2 years [~] = Female V = Achiever 3 = Very Effective P = Performer 2 = Effective Sarah Parker [~] A-3 B C = 3-5 years [g] = Global experience I = Improve. Required 1 = Improve. Required Mike Davis [g] A-2 C Position: Director of Advertising Position: Position: Incumbent: Megan Millen [~] Incumbent: Incumbent: Jake DeLong O-2 A Jessica Jones [~] [^] [g] V-3 A Katie Hines [~] P-3 C Position: Position: Position: Incumbent: Incumbent: Incumbent: Position: Position: Position: Incumbent: Incumbent: Incumbent:31 Takeaway Box
  • 32. Current & Future Talent Needs Current Talent Needs Anticipated Future Talent Needs Bus.Seg./Commercial Current Open Requsitions Owners & Timing Planned Headcount & Incumbents Operations Region/Global Anticipated Turnover Function Europe Director of Marketing Dole/Carter 4Q13 Director of Engineering 4Q14 Jim Roads Position Opening Length: Green <45 days Yellow 46-75 days Red >75 days Takeaway Box32
  • 33. Organization Assessment SummaryBus.Segment/ Leadership Bench Systems & Structure Skill Strategy Business Overall CommentsCommercial Talent Strength Processes Mix Results StatusOperationsRegion/GlobalFunction • • • • • • • • • • Green = OK Yellow = Caution Red = Concern Takeaway Box
  • 34. About Us 3P Associates was founded in 2004 to continuously improve people; their passion, productivity, processes and profits. Human Resources Consulting from 3P Associates includes: •Team Building •Training in Leadership, Communication, Productivity •Employee Relations Investigation & Resolution •Employee Handbooks, On-boarding •Performance Management Systems •HR Audit and Strategic Process Improvement •HR Onsite Services: Short & long Term •Career Coaching & Resume ReWork™www.3Passociates.com Brian@3Passociates.com • www.3Passociates.com * ph.716.909.2657 * People, Passion, Productivity, Profits