Career Succession Management Aug 06


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Career Succession Management Aug 06

  1. 1. Talent pipeline approach to career and succession management: Dr Stanley Arumugam 2006 Knowledge Resources Conference
  2. 2. Presentation overview <ul><li>Career and Succession Management Principles </li></ul><ul><ul><li>The succession management challenge </li></ul></ul><ul><ul><li>Understanding supply and demand dynamics </li></ul></ul><ul><ul><li>Identifying and assessing your leadership talent pool </li></ul></ul><ul><ul><li>How can you grow your succession pool </li></ul></ul><ul><ul><li>Key success factors for succession management </li></ul></ul><ul><li>Sasol Career and Succession Management Case Examples </li></ul><ul><ul><li>Business case informing supply-demand dynamics </li></ul></ul><ul><ul><li>Using the Leadership Pipeline as a framework </li></ul></ul><ul><ul><li>Bursary and graduate development – feeding the talent pipeline </li></ul></ul><ul><ul><li>ALDP – building leadership capacity through accelerated development </li></ul></ul>
  3. 3. Succession management – a key business issue
  4. 4. The succession challenge <ul><li>Strategy vs. Succession </li></ul><ul><li>Dangerous assumptions made by executives: </li></ul><ul><li>Assume leadership is a given </li></ul><ul><li>Leadership only exists at the top </li></ul><ul><li>Imported leadership provides instant capacity </li></ul><ul><li>Talent is infinitely resilient and will rise to any challenge </li></ul>
  5. 5. Succession – Relay <ul><li>individuals > teams </li></ul><ul><li>what > how </li></ul><ul><li>now > legacy </li></ul><ul><li>patriarchy > stakeholder </li></ul><ul><li>great companies </li></ul><ul><li>lessons learned </li></ul>
  6. 6. Six mistakes that can undermine succession management <ul><li>MISTAKES </li></ul><ul><li>Focus people’s development on a specific job ( replacement planning ) </li></ul><ul><li>Inaccurate identification of potential leaders </li></ul><ul><li>Poor diagnosis of development needs ‘one size fits all’ </li></ul><ul><li>Having a limited range of development solutions </li></ul><ul><li>Development plans are never put into action </li></ul><ul><li>No ongoing support and reinforcement by senior management </li></ul><ul><li>SOLUTIONS </li></ul><ul><li>Build a robust system of talent pools to meet immediate and emerging business needs </li></ul><ul><li>Be more systematic in selection </li></ul><ul><li>Results based vs. competency based diagnosis </li></ul><ul><li>Be more creative in identifying development options </li></ul><ul><li>Ownership by immediate manager and mentor </li></ul><ul><li>Senior management must drive the system </li></ul>Managing succession risk !
  7. 7. What leadership capacity is available ? <ul><li>“ Lieutenants in good standing </li></ul><ul><li>The CEO’s ‘network’ </li></ul><ul><li>High priests </li></ul><ul><li>Emerging leaders </li></ul><ul><li>Old warriors </li></ul><ul><li>Catalysts </li></ul>Leadership supply and demand Capacity is a question of who has the skills for a particular task and how much time they have to spend on it”
  8. 8. Strategies for building a strong leadership pipeline <ul><li>Growth strategies </li></ul><ul><li>Career management - leaders </li></ul><ul><li>Structured leadership development involving action learning </li></ul><ul><li>Purposeful rotation into challenging job assignments </li></ul><ul><li>Shadowing more experienced leaders in valued roles </li></ul><ul><li>Bursary and graduate development </li></ul><ul><li>Leading change and transformation projects </li></ul><ul><li>Accelerated leadership development programmes </li></ul><ul><li>Acquisition strategies </li></ul><ul><li>Proactive recruitment </li></ul><ul><li>Headhunting for critical posts </li></ul><ul><li>JV leadership mobility </li></ul><ul><li>Industry and national partnerships </li></ul><ul><li>Turnaround leadership </li></ul><ul><li>Leadership catalysts </li></ul>Growing Talent Pools Example: GE – Fortune 500
  9. 9. Growing internal talent pools Ref: DDI
  10. 10. Sasol’s integrated value chain <ul><li>planning </li></ul><ul><li>picking </li></ul><ul><li>preparing </li></ul><ul><li>placing </li></ul><ul><li>performing </li></ul>Exploration and Production Syngas Production Fuel products Co-products Chemical products Fisher Tropsch Conversion coal natural gas feedstock crude oil Refine & blend Fuel components Chemical processes Chemical components 3 rd party producer Source: Sasol
  11. 11. Employment Value Proposition key strategy for growing the talent pipeline Increase the size of the available talent pool Increase individual-organisational fit Improve employee commitment and retention “ organisations with managed EVP’s are able to effectively source from more than 60% of the labour market” CLC 2006 People Organisation Work Opportunity Rewards 5 EVP Categories
  12. 12. Business case: career and succession management Strategic “themes” Financial Operational Organisation Workforce requirements Labour market realities Workforce strategies Growth Globalisation Gearing EVA GTL/CTL hubs Integrated chemicals business SA growth Operational safety Joint ventures Shared services Integrated facilities ± 1000 secondees > 6000 local hires Leadership in complex environments Technical skills and experience Transformation GTL industry growth DG shortage in SA SA growth, projects Global skills shortage Accelerated sourcing Leadership development Technical development Retention Skills transfer Organisational health Multifaceted diversity Retirement waves New ventures Existing business Transformation Succession Management 10 Year People Planning
  13. 13. Assessing leadership capacity <ul><li>Sasol Leadership Pipeline </li></ul><ul><li>Sasol 9 Box Talent Review </li></ul><ul><li>health of the leadership pipeline </li></ul><ul><li>critical talent pools and supply dynamics </li></ul><ul><li>understanding our internal talent </li></ul>Ron Everest (8) Simone Shelly(11) Frank Moodley(12) Andy Dlamini(12) Vukani Mlaluka (5) George Masondo(7) Mastery Doreen Selebe(5) Brian Bennet(6) Bev Jensen(4) Trever Naidoo(9) Bongi Ntuli(6) Growth Toya Tambo(1) Cynthia Sithebe(2) Mpho Zondi(5) David Noko (5) James Briggs (7) Sarah Morobe(3) Turn Potential Exceptional 4-5 Full Performance 3 Not yet full 1-2   3 Year PERFORMANCE (Track record and behaviours) # 1 # 3 # 5 # 6 # 4 # 2 1. Manage Self 2. Manage Others 4. Functional Manager 6. Group Manager 3. Manage Managers 7. Enterprise Manager 5. Business Manager
  14. 14. Identifying, selecting and developing leaders Corporate Talent Review Pipeline-9 Box BU Dept SBU Division CBP’s <ul><li>Career & Succession </li></ul><ul><li>Assessment </li></ul><ul><li>What? </li></ul><ul><li>performance </li></ul><ul><li>potential </li></ul><ul><li>How ? </li></ul><ul><li>Performance Review </li></ul><ul><li>Pipeline CDI </li></ul><ul><li>Psychometrics </li></ul><ul><ul><li>CPA </li></ul></ul><ul><ul><li>Style </li></ul></ul><ul><li>Outcome? </li></ul><ul><li>PDP </li></ul><ul><li>Career Coaching </li></ul><ul><li>Talent Management </li></ul><ul><li>Strategies </li></ul><ul><li>Leadership development </li></ul><ul><li>Purposeful rotation </li></ul><ul><li>New assignments </li></ul><ul><li>Re-deployment </li></ul><ul><li>Coaching roles </li></ul><ul><li>Shadowing roles </li></ul><ul><li>Project management </li></ul>10 Year People Plan
  15. 15. Risk & opportunities strategies Supply and Demand Mitigation Plans Macro Supply Macro Demand Sasol Demand ↑ Gap ↑ Talent War Potential Risk to Sasol CSI Partnership (Growing the pipeline) Focus on English, Maths & Science education Schools participating: FY 05/06: N = 80 FY 06/07: N = 150 Alignment to ensure dedicated talent pipelines Strategic Talent Planning ’ 10 year people plan’ Growth Strategy & People Planning Graduate Spend EE Targets Business Growth Needs Retention Risks BU ownership 6-12% turnover Key Levers: Org Culture, Remuneration, Challenging Work Retention Plans Graduate Development 2 x 18 month rotational programme CBP/BU ownership <ul><li>Building the national skills pool </li></ul><ul><li>Align to National Skills Initiative (JIPSA, AGISA) </li></ul><ul><li>New Talent Pool </li></ul><ul><li>Unemployed Graduates </li></ul>National Skills Partnership Dedicated Sasol Employee Bursary Scheme ‘EVP’ Internal & External PR and Comms Increase Employment Brand Equity Technical Skills Bursaries Increasing business need for technicians, technologists Strategic Recruitment Supply 2005 Supply 2006 N = 500 81 Bursaries N = 1678 195 Bursaries 335%
  16. 16. ALDP Candidate Mapping on the Integrated Managerial / Technical Pipeline Quality Service Practice Strategy 7 5 9 5 N=26 # 1 # 3 # 5 # 6 # 4 Manage Business Manage Group Manage Multi-function Manage Self Expert/Consultant Manage Others Manage Enterprise Function Manage Self Operational # 2 Manage Self Technical/Professional Manage Function Manage Managers Manage Enterprise # 7 Manage Enterprise Sub-Function
  17. 17. The End – Questions ? [email_address] Phone: 011-4413148 Group HRD – SASOL
  18. 18. Keys to best practice succession management   <ul><li>Smooth transitions. </li></ul><ul><li>2. The ‘ right ’ developmental assignments. </li></ul><ul><li>3. Meaningful appraisals and feedback. </li></ul><ul><li>4. Appropriate selection criteria. </li></ul><ul><li>5. A range of good choices. </li></ul> Robert Fulmer is academic director for Duke Corporate Education.Email:
  19. 19. Increasing internal leadership capacity <ul><li>Reconfigure leaders roles and responsibilities. Few job descriptions call upon post holders to utilize their full potential. Much latent leadership energy can be liberated by redefining roles. </li></ul><ul><li>Create a network to integrate leadership energies. While reconfiguration involves structural change, networking is about association between people with like interests. </li></ul><ul><li>Align and realign leaders around the essentials. People behave according to their beliefs, not what they might have agreed to in a meeting. </li></ul><ul><li>Raise leaders aspirations. Visions of a brighter future are uplifting </li></ul><ul><li>Improve leaders resilience. While people can adapt their approach and style to some extent…leaders are often thrown into situations where their knowledge does not apply and their style is inappropriate </li></ul>
  20. 20. Demand for leadership capacity can be reduced <ul><li>There are two key ways to inhibit demands on leadership without sacrificing the goal of transcending ordinary performance: </li></ul><ul><li>1. Limit demands in non-essential matters. Senior executives often spend time on activities that add little value or have nothing to do with wider performance aims. </li></ul><ul><li>2. Design the change program to conserve and build capacity. It can be tempting to call for all hands on deck and launch as many parallel initiatives as there are people to lead them. </li></ul>
  21. 21. Waves of critical initiatives <ul><li>“ We have found that the wisest course is to sequence initiatives carefully and launch in the best wave only those most critical initiatives that have adequate leadership capacity driving them. This means structuring, timing, and staffing initiatives wisely:” </li></ul><ul><li>Structuring involves determining the scope of the project, how it relates to other initiatives, and, above all, how tackling this one best might shed light on how to approach other projects with greater economies in time and money. More importantly, tackling the right one will unleash more energies in the organization, thus moderating if not reducing the leadership burden. </li></ul><ul><li>Timing presents a tough judgment call: how long should leaders be given to come up with an initial answer, mobilize the organization, and institutionalize the new way? Sound judgment is needed in deciding not only how long leaders will take to complete a given task, but also how much stretch they can absorb. </li></ul><ul><li>Staffing then becomes critical. It means selecting the right leader for the right task and pending opportunities to build more potential capacity into the first wave so that younger talents can be coached to lead later efforts. </li></ul><ul><li>Finding opportunities to build more potential capacity into the first wave will allow younger talents to be coached to lead later efforts </li></ul>
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