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Succession Planning and Competency Modeling

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Succession Planning Simple replacement planning. A process that indicates possible internal replacements for critical positions. Developmental succession planning. Talent pool planning. Best practice organizations link succession planning with business strategy.

Succession Planning and Competency Modeling

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CEO SUCCESSION PLANNING
& COMPETENCY MODELING:
ENSURING LEADERSHIP AT
THE TOP


  Camico Mutual Insurance Company
  Consulting Psychologist & Executive Coach:
  Dr . Maynard Brusman
Leadership Competency and
Behavioral Description Example
o   Leadership
    Creates, communicates and reinforces a shared vision for
    areas of responsibility; drives the organization toward
    success by example and action; provides focus, resources
    and direction to the organization at all times, including
    during emergencies. Creates an environment that fosters
    creativity, innovation, productivity and customer focus.
    Earns respect and confidence of employees as well as
    internal/external customers. Puts welfare of the company
    ahead of own personal gain. Acts in accordance with the
    organization’s ethical principles. Is aware of obstacles,
    problems or issues facing, as well as achievements of,
    his/her group and effectively communicates these to senior
    management. Acts as an advocate for the needs of his/her
    team within the company.
Succession Planning
Definition
o Any effort designed to ensure the
  continued effective performance of an
  organization, division, department, or
  work group by making provisions for
  the development and replacement of
  key people for key positions and work
  activities over time.
Succession Planning
o Simple replacement planning. A process that
  indicates possible internal replacements for
  critical positions.
o Developmental succession planning.
o T alent pool planning.
o Best practice organizations link succession
  planning with business strategy.
Reasons for Succession
Management
o Business strategy can be implemented only
  if appropriately skilled and experienced
  leadership is in place.
o Decisions about filling positions are more
  accurate when candidates are internal.
o Effective succession management systems
  operate as both talent-growth and talent-
  retention mechanisms.
o Constant organizational change.
BUSINESS STRATEGY
o Optimize processes with prospects, policyholders,
  agents and vendors.
o Improve risk selection and pricing.
o Build knowledge resources and related
  communications mechanisms.
o Increase effectiveness of sales distribution channels.
o Identify and develop enhanced products and services.
o Develop and implement actions to create a talented.
  energetic and committed group of employees.
o Develop and implement plans for more targeted
  marketing and communication.

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Succession Planning and Competency Modeling

  • 1. CEO SUCCESSION PLANNING & COMPETENCY MODELING: ENSURING LEADERSHIP AT THE TOP Camico Mutual Insurance Company Consulting Psychologist & Executive Coach: Dr . Maynard Brusman
  • 2. Leadership Competency and Behavioral Description Example o Leadership Creates, communicates and reinforces a shared vision for areas of responsibility; drives the organization toward success by example and action; provides focus, resources and direction to the organization at all times, including during emergencies. Creates an environment that fosters creativity, innovation, productivity and customer focus. Earns respect and confidence of employees as well as internal/external customers. Puts welfare of the company ahead of own personal gain. Acts in accordance with the organization’s ethical principles. Is aware of obstacles, problems or issues facing, as well as achievements of, his/her group and effectively communicates these to senior management. Acts as an advocate for the needs of his/her team within the company.
  • 3. Succession Planning Definition o Any effort designed to ensure the continued effective performance of an organization, division, department, or work group by making provisions for the development and replacement of key people for key positions and work activities over time.
  • 4. Succession Planning o Simple replacement planning. A process that indicates possible internal replacements for critical positions. o Developmental succession planning. o T alent pool planning. o Best practice organizations link succession planning with business strategy.
  • 5. Reasons for Succession Management o Business strategy can be implemented only if appropriately skilled and experienced leadership is in place. o Decisions about filling positions are more accurate when candidates are internal. o Effective succession management systems operate as both talent-growth and talent- retention mechanisms. o Constant organizational change.
  • 6. BUSINESS STRATEGY o Optimize processes with prospects, policyholders, agents and vendors. o Improve risk selection and pricing. o Build knowledge resources and related communications mechanisms. o Increase effectiveness of sales distribution channels. o Identify and develop enhanced products and services. o Develop and implement actions to create a talented. energetic and committed group of employees. o Develop and implement plans for more targeted marketing and communication.
  • 7. VISION o We are: CAMICO is the leading national provider of professional liability insurance and related products and services. We are integral to CPAs in public practice and to the profession.
  • 8. MISSION o We are a policyholder owned and directed company that provides CPA’s with insurance and business risk services that address their evolving needs.
  • 9. Culture Statement TEAM VALUES q Integrity q Creativity q Openness q Teamwork q Expertise q Encouragement
  • 10. How Are Competencies Used in Succession Planning o Link and align the organization’s core competencies (strategic strengths) to job competencies. o Define high potentials o Clarify present and future competencies. o Create multi-rater assessments tailored to corporate culture.
  • 11. Competency Models: The Benchmarks for Succession o The best systems incorporate assessments of the individual’s leadership capabilities, adherence to the organization’s values, and capacity for development and learning in addition to performance outcomes.
  • 12. Define What You Want oJob Challenges/Preparatory experiences (what one has done). oOrganizational knowledge (what one knows). oBehaviorally defined competencies (what one is capable of). oExecutive derailers and other persona attributes (who one is).
  • 13. ALIGN BEHAVIOR with ORGANIZATIONAL STRATEGY AND VALUES o Competency models translate general messages about strategic direction and culture change into specific specific behaviors desired for individual performance.
  • 14. Well-Defined Competencies o Maintains customer trust – Listens and responds with empathy to customer issues or ideas; acknowledges customer contributions to discussion in a manner that maintains esteem. o Customer Orientation – cultivating strategic customer relationships and ensuring that the customer perspective is the driving force behind all value-added business activities. o Definition is thorough and specific and describes key actions (behaviors) a person would exhibit when effectively displaying this competency.
  • 15. How Many Competencies Are Needed? o 10-18
  • 16. Competency Domains o Interpersonal Skills o Leadership skills o Business/Management Skills o Personal Attributes
  • 17. Linking Human Resource Systems Through Competencies o Selection o Performance Management o Training/Development o Succession Planning o Organizational Alignment o Coaching
  • 18. COMPETENCY-BASED SUCCESSION PLANNING SYSTEM o A list of the positions under consideration. o Agreement among decision makers about what is required for success in each position. o A list of who’s ready now and why. o A list of who will be ready soon, developmental needs, and actions to close gaps.
  • 19. COMPETENCY MODELS o Groups of individual competencies are organized into competency models. o Identify the essential skills, knowledge, and personal characteristics needed for successful performance in a job. o Demonstrate that the behaviors and skills you identify and develop are proven predictors of success. o Identify the traits of top performers.
  • 20. OBJECTIVES OF COMPETENCY SYSTEMS oLinks interviews, appraisal, coaching, training, and compensation to vision, mission, values, and culture. oPlan for skills needed to grow organization. oCommunicate valued behaviors. oClarify the focus of leadership.
  • 21. OBJECTIVES OF COMPETENCY SYSTEMS o Focus on customer-oriented behaviors. o Close skill gaps. o Identify selection criteria for interviews. o Develop a 360- degree feedback system. o Plan for succession. o Orient manages to corporate strategy and culture.
  • 22. COMPETENCY DEFINITION oA cluster of related knowledge, skills, and attitudes that affects a major part of one’s job. oCorrelates with performance on the job. oCan be measured against standard oCan be improved via training and development.
  • 23. War for Executive Talent o High failure rate of CEO’s in recent years.
  • 24. Basketball Example: Shooting is a valid competency o The object of basketball is to score points by shooting baskets. o The related skills in knowing when to shoot, where to shoot, and how to shoot are critical to success in scoring. o Shooting has well-accepted standards of success. The goal is to make at least 50 percent of field goals, 80 percent of free throws, and 35 percent of three-point attempts. o Shooting skills can be improved by extensive practice and play.
  • 25. FOCUS ON BEHAVIOR o What skills, knowledge, and characteristics are required to do the job? o What behaviors have the most direct impact on performance and success on the job? o In selection systems, a competency model ensures that all interviewers are looking for the same set of abilities and characteristics. o For succession planning, competency models ensure that decision makers focus on characteristics relevant to success.
  • 26. MULTI-RATER 360-DEGREE FEEDBACK o Focus on the behaviors necessary to perform the job effectively. o Competency models helps ensure that feedback relates specifically to the competencies crucial to success. o Feedback provides a method of assessing a candidate’s current competencies.
  • 27. COMPETENCY MODEL PROJECT o Determine objectives and scope of project o Clarify implementation goals and standards. o Create an action plan. o What does successful performance on the job look like? Interview high performers.
  • 28. COMPETENCY MODEL TEAM o CEO o Human Resources Director o Consulting Psychologist and Executive Coach
  • 29. DEVELOPING A COMPETENCY MODEL o Determine data collection methodology. o Conduct interviews. o Perform job analysis/observations. o Analyze data and develop interim competency model.
  • 30. BEHAVIORAL LANGUAGE oThe best way to word competencies is with behavioral language that describes the things you can see or hear being done. oBehavioral language is very concrete. oA behavior is an action that you can observe, describe, and verify.
  • 31. THE PURPOSE OF COMPETENCIES q Performance q Culture change q Training and development q Recruitment and selection q Business objectives/competitiveness q Career/succession planning
  • 32. THE PURPOSE OF COMPETENCIES o Skills analysis o Flexibility o Clarity of role o Integrating HR strategy
  • 33. The 12 Most Common Competencies o Communication o Achievement o Customer focus o T eamwork o Leadership o Planning and organizing
  • 34. The 12 Most Common Competencies o Commercial/business awareness o Flexibility/adaptability o Developing others o Problem solving o Analytical thinking o Building relationships
  • 35. Begin with the End in Mind o Vision exercise o Board members take their five year objectives and identify which behaviors CEO will need to demonstrate to achieve them.
  • 36. Why Executives Fail o Decline in business performance. o Insensitive, cold, aloof. o Betrayed success. o Over-managing. o Poor at choosing staff. o Overly ambitious. Center for Creative Leadership
  • 37. CEO SUCCESS o Track record o T echnical or business competence o Outgoing, charming o Loyalty to management o Willingness to lead
  • 38. FINALIZING AND VALIDATING COMPETENCY MODELS o Conduct surveys to test model. o Analyze survey data and refine model. o Validate the model to determine the correlation of the competencies with those of top performers. o Finalize the model.
  • 39. ALIGN BEHAVIOR with ORGANIZATIONAL STRATEGY AND VALUES o Competency models translate general messages about strategic direction and culture change into specific specific behaviors desired for individual performance.
  • 40. Competency Models: The Benchmarks for Succession o The best systems incorporate assessments of the individual’s leadership capabilities, adherence to the organization’s values, and capacity for development and learning in addition to performance outcomes.
  • 41. How Are Competencies Used in Succession Planning o Link and align the organization’s core competencies (strategic strengths) to job competencies. o Define high potentials o Clarify present and future competencies. o Create multi-rater assessments tailored to corporate culture.
  • 42. Define What You Want oJob Challenges/Preparatory experiences (what one has done). oOrganizational knowledge (what one knows). oBehaviorally defined competencies (what one is capable of). oExecutive derailers and other persona attributes (who one is).
  • 43. Well-Defined Competencies o Customer Orientation – cultivating strategic customer relationships and ensuring that the customer perspective is the driving force behind all value-added business activities. o Maintains customer trust – Listens and responds with empathy to customer issues or ideas; acknowledges customer contributions to discussion in a manner that maintains esteem. o Definition is thorough and specific and describes key actions (behaviors) a person would exhibit when effectively displaying this competency.
  • 44. How Many Competencies Are Needed? o 10-18
  • 45. Competency Domains o Interpersonal Skills o Leadership skills o Business/Management Skills o Personal Attributes
  • 46. Visioning Exercise o Characterize the organization’s specific future challenges and opportunities. o Describe the kind of CEO the organization will need to solve problems, overcome barriers, take advantage of opportunities, and manage change.
  • 47. Linking Human Resource Systems Through Competencies o Selection o Performance Management o Training/Development o Succession Planning o Organizational Alignment o Coaching
  • 48. COMPETENCY-BASED SUCCESSION PLANNING SYSTEM o A list of the positions under consideration. o Agreement among decision makers about what is required for success in each position. o A list of who’s ready now and why. o A list of who will be ready soon, developmental needs, and actions to close gaps.
  • 49. COMPETENCY MODELS o Groups of individual competencies are organized into competency models. o Identify the essential skills, knowledge, and personal characteristics needed for successful performance in a job. o Demonstrate that the behaviors and skills you identify and develop are proven predictors of success. o Identify the traits of top performers.
  • 50. OBJECTIVES OF COMPETENCY SYSTEMS oLinks interviews, appraisal, coaching, training, and compensation to vision, mission, values, and culture. oPlan for skills needed to grow organization. oCommunicate valued behaviors. oClarify the focus of leadership.
  • 51. OBJECTIVES OF COMPETENCY SYSTEMS o Focus on customer-oriented behaviors. o Close skill gaps. o Identify selection criteria for interviews. o Develop a 360- degree feedback system. o Plan for succession. o Orient manages to corporate strategy and culture.
  • 52. COMPETENCY DEFINITION oA cluster of related knowledge, skills, and attitudes that affects a major part of one’s job. oCorrelates with performance on the job. oCan be measured against standard oCan be improved via training and development.
  • 53. War for Executive Talent o High failure rate of CEO’s in recent years.
  • 54. Basketball Example: Shooting is a valid competency o The object of basketball is to score points by shooting baskets. o The related skills in knowing when to shoot, where to shoot, and how to shoot are critical to success in scoring. o Shooting has well-accepted standards of success. The goal is to make at least 50 percent of field goals, 80 percent of free throws, and 35 percent of three-point attempts. o Shooting skills can be improved by extensive practice and play.
  • 55. FOCUS ON BEHAVIOR o What skills, knowledge, and characteristics are required to do the job? o What behaviors have the most direct impact on performance and success on the job? o In selection systems, a competency model ensures that all interviewers are looking for the same set of abilities and characteristics. o For succession planning, competency models ensure that decision makers focus on characteristics relevant to success.
  • 56. MULTI-RATER 360-DEGREE FEEDBACK o Focus on the behaviors necessary to perform the job effectively. o Competency models helps ensure that feedback relates specifically to the competencies crucial to success. o Feedback provides a method of assessing a candidate’s current competencies.
  • 57. COMPETENCY MODEL PROJECT o Determine objectives and scope of project o Clarify implementation goals and standards. o Create an action plan. o What does successful performance on the job look like? Interview high performers.
  • 58. COMPETENCY MODEL TEAM o CEO o Human Resources Director o Consulting Psychologist and Executive Coach
  • 59. DEVELOPING A COMPETENCY MODEL o Determine data collection methodology. o Conduct interviews. o Perform job analysis/observations. o Analyze data and develop interim competency model.
  • 60. BEHAVIORAL LANGUAGE oThe best way to word competencies is with behavioral language that describes the things you can see or hear being done. oBehavioral language is very concrete. oA behavior is an action that you can observe, describe, and verify.
  • 61. THE PURPOSE OF COMPETENCIES Performance q Culture change q Training and development q Recruitment and selection q Business objectives/competitiveness q Career/succession planning
  • 62. THE PURPOSE OF COMPETENCIES o Skills analysis o Flexibility o Clarity of role o Integrating HR strategy
  • 63. The 12 Most Common Competencies o Communication o Achievement o Customer focus o T eamwork o Leadership o Planning and organizing
  • 64. The 12 Most Common Competencies o Commercial/business awareness o Flexibility/adaptability o Developing others o Problem solving o Analytical thinking o Building relationships
  • 65. Begin with the End in Mind o Vision exercise o Board members take their five year objectives and identify which behaviors CEO will need to demonstrate to achieve them.
  • 66. Why Executives Fail o Decline in business performance. o Insensitive, cold, aloof. o Betrayed success. o Over-managing. o Poor at choosing staff. o Overly ambitious. Center for Creative Leadership
  • 67. CEO SUCCESS o Track record o T echnical or business competence o Outgoing, charming o Loyalty to management o Willingness to lead
  • 68. FINALIZING AND VALIDATING COMPETENCY MODELS o Conduct surveys to test model. o Analyze survey data and refine model. o Validate the model to determine the correlation of the competencies with those of top performers. o Finalize the model.
  • 69. EMOTIONAL INTELLIGENCE & LEADERSHIP o Recent research ranks emotional intelligence competencies as more important to leadership success than traditional attributes.
  • 70. Top Five Leadership Competencies o Vision o Strategic Thinking o Relationship Building o Execution o People Development
  • 71. Emotional Intelligence is the ability to… o recognize our own feelings and those of others, motivate ourselves, and manage emotions well in ourselves and in our interpersonal relationships.
  • 72. EI vs. IQ o Ei is the vision to create the future. o EI is a skill. Skills can be learned. o Employees in an emotionally intelligent company empowered to contribute fully. o Emotionally intelligent organization creates innovative products & services, and exceptional customer loyalty.
  • 73. EI key to success in the business world o EI is the ability to bring people together and motivate them. o EI is the trust to build productive relationships. o EI is the resilience to perform under pressure. o EI is the courage to make decisions. o EI is the strength to persevere through adversity.
  • 74. RESEARCH o Up to 90% of the difference between outstanding and average leaders is linked to emotional intelligence. EI is twice as important as IQ and technical expertise combined, and is four times as important in overall success. o Research by the Center for Creative Leadership found the primary cause of derailment in executives involves deficits in emotional competence. 1. Change 2. Teamwork 3. Interpersonal Relations
  • 75. Visioning Exercise o Characterize the organization’s specific future challenges and opportunities. o Describe the kind of CEO the organization will need to solve problems, overcome barriers, take advantage of opportunities, and manage change.
  • 76. Action Learning & Planning o Dialogue on how you envision the requisite leadership qualities of the President/CEO position of CAMICO essential to world-class performance now and in the future. Include how these characteristics are aligned with the organizations strategy, mission, vision, and values.
  • 77. CEO Succession Management & Competency Modeling Team o T eam members o Process o Input mechanisms
  • 78. Dr . Maynard Brusman Consulting Psychologist & Executive Coach Working Resources P .O. Box 471525 San Francisco, California 94147 T el: 415-546-1252 E-mail: mbrusman@workingresources.com Web Site: http://www.workingresources.com Subscribe to Working Resources Newsletter: http://www.workingresources.com Visit Maynard's Blog: http://www.workingresourcesblog.com