Transcript High Impact Succession Management

INNOVATIONS IN
SUCCESSION MANAGEMENT
METHODS AND APPLICATIONS
Steven T. Hunt, Ph.D., SPHR
Director of Business Transformation
E-mail: [email protected]
Agenda
I. What is high impact succession management?
II. Major succession management questions
1)
2)
3)
4)
5)
What are the business goals?
Who to include in the process?
How to evaluate talent?
How to develop talent?
How to deploy the process?
III. Conclusion
2
High Impact Succession Management
Replacement Planning
– Who should replace this person if they leave?
– Depends on creating lists of available candidates
High Impact Succession Management
• How can we maintain a steady supply of high performing talent in pivotal
roles across the organization?
• Depends on aligning
–
Career Development to help employees achieve their full potential
–
Performance Management to evaluate and improve the effectiveness of
employees in their current role
–
Recruiting to fill positions with the best available talent
–
Workforce planning to anticipate and prepare for future talent needs.
–
Compensation to incent people who develop high potential talent and to
encourage high potential talent to remain with the company
Effective succession management integrates
multiple talent management processes
Objectives
Appraisal
Employee
Profile
(Jan.)
(April/May)
Objective
Setting
(April/May)
Performance
Appraisal
(Feb./Mar.)
360-degree
Assessment
for HPPs
Strategic
Staffing
Career
Develop.
Assessment
On-going
Succession Planning
(July/Aug.)
(Jan.)
HPP/
9-Block
(Sept.-Oct.)
Succession
Planning
Career
(Dec./Jan.)
Development
Planning
(Nov./Dec.)
4
From Jim Irvine
Nissan, Inc.
Technology makes this integration possible
• Effectively collecting
and tracking talent
information
• Sharing data across
processes
• Providing access to
tools for identifying,
evaluating &
developing talent
5
Question 1. What are the goals of succession
management and how can you measure them?
Question 1. What are the goals of succession
management and how can you measure them?
Succession Impact
Identify candidates for key
roles
Rapidly fill positions
More accurate staffing
decisions
Accelerate development
Increased employee
engagement & retention
Shared expectations about
talent & performance
Increase diversity in key
positions
Retain critical organizational
expertise
Succession Metrics
% of key positions filled
Time to fill for key roles
Turnover rate of high potential
employees
Business Outcomes
Retention of high performers
Quality of leadership
Market share
% of positions filled with
internal promotions
Profit and Loss
% of employees with career
development plans
Decreased litigation
# of “ready now” candidates
identified for key roles
% of employees with certain
demographics in key roles
Employee engagement scores
New product innovations
Consistent production output
and quality
Customer satisfaction
…other things relevant to nonHR leaders
1. What are the goals of succession management
and how can you measure them?
• What is the benefit of effective succession
management from the perspective of:
–
–
–
–
Leaders
Managers
Employees
Human Resources
• What metrics will show that your succession
management process is working:
– In six months?
– In one year?
– In three years?
Question 2. What positions and people will be
included in the succession management Process?
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Moving from person to process based
Succession Management
Person Based Succession
Asks: “who do I need to replace and who
do I know that can replace them?
Emphasizes filling currently open
positions
Decisions largely based on “who you
know”
Pressures leaders to change jobs to fit
the needs of the available candidates
Rewards leaders who horde top talent so
they have it when they need it
Moving from person to process based
Succession Management
Person Based Succession
Process Based Succession
Asks: “who do I need to replace and who
do I know that can replace them?
Asks: “what are the pivotal jobs in the
company and where can we find the
talent to perform these jobs”
Emphasizes filling currently open
positions
Emphasizes planning and maintaining a
steady supply of talent for ongoing
workforce demands
Decisions largely based on “who you
know”
Decisions based on clearly defined
criteria for assessing potential
Pressures leaders to change jobs to fit
the needs of the available candidates
Enables leaders to develop candidates to
meet the requirements of the job
Rewards leaders who horde top talent so
they have it when they need it
Encourages leaders to share talent with
confidence that equal or better talent
will be shared with them
2. What positions and people will be
included in Succession Management?
• What are the key positions in the organization?
– Pivotal roles: where small differences in performance
have large impacts on profitability
– Critical roles: that are crucial to keeping the business
running
– Developmental roles: that are instrumental to
preparing employees for pivotal and critical roles
• What people are consider as potential candidates for
these positions?
–
–
–
–
Based on current job or role
Based on specific qualifications
Based on manager and/or self-nomination
Why not include everyone who works for you?
Question 3. How will candidates be
identified, qualified, and evaluated for roles?
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What makes someone a good candidate?
Aspirations, mobility,
constraints
Career Goals
(What employees
WANT TO DO)
Learning Agility
(What employees CAN
DO)
Cognitive, Social,
& Change capablities
Technical
Qualifications (What
employees HAVE DONE)
Skills and experiences
Common types of evaluation criteria
Qualification Criteria
– Requirements: time in current role, citizenship requirements, current position,
etc.
– Nomination process: manager recommendation, self identification, etc.
“Hard” Criteria
– Career Goals & Constraints
• Job interests, geographic mobility
– Skills & Experiences
“Soft” Criteria
– Job Relevant Competencies
– Learning Capabilities
• Cognitive Ability, Social/Relationship Skills, Dealing with Change
Commitment Criteria
– Turnover risk
– Support for company mission and values
Building an employee scorecard
16
Comparing succession candidates
Question 4. How will candidates be developed?
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Question 4. How will candidates be developed?
Stretch assignments
Doing things people
have not done before
5
Where people
realize their
potential
4
3
2
1
1
2
3
4
5
Critical assignments
Doing things that are important
to business success
4. How will candidates be developed?
Most
Effective
Developmental job
assignments
a) Will “hi pos” be formally notified?
b) How will managers be incented
to develop candidates?
I
m
p
a
c
t
Action learning/stretch
work assignments
Active mentoring
relationships
360 feedback
& coaching
Independent
training
Least
Effective
High potential
leadership programs
(leadership academies)
Informal
feedback
Leadership support
Question 5. How can you ensure adoption of
Succession Methods?
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Takes about 3 years to turn succession from
an “event” to a way of doing business
Impact
Transformation
Talent mgmt practices aligned
to specific business needs
Talent management processes
evaluated & predicted based
on well-defined data analytics
Integration/Consolidation
Well-defined and widely
adopted methods and tools
Automation
Technology enabled talent
management processes
Manual
Basic processes defined for
managing talent
Undefined
Talent decisions based on local
knowledge & practices
Strategic Change: Platform for
strategic change and optimal
utilization of talent
Operational Insight: Datadriven insights for
understanding, monitoring ,
and improving talent
Comprehensive: Methods
effectively supporting major
talent management needs
Efficiency: Efficient &
consistent methods; able to
monitor usage
Standardization:
Defined methods, often
inefficient & inconsistently used
Confusion & underutilization:
Uncontrolled; inefficient; high risk
treatment of employees
Organization Maturity
22
5. How can you ensure adoption and use of
Succession Methods?
Common Reasons for resisting Succession Management
• Senior Leaders: Must use a consistent and transparent process to promote
talent. Cannot base decisions solely on “intuition”. Must defend talent choices.
–
What incentives are in place to ensure senior leadership embraces, supports and actively
participates in the process?
• Managers: Must nominate and risk losing their best people to another part of the
business. In return, they will get people not fully ready for the open position who
may be unfamiliar to them.
–
How are managers rewarded for developing talent for other parts of the company?
• Employees: Are evaluated and labeled. Pressure on high po’s to achieve
superior results. Low po’s feel undervalued with no career future.
–
How are people treated if they do not qualify or do not want to be high po’s? What assurances
do employees have that they might become a high po’s in the future?
• Human Resources: Must comply with processes from “corporate”. May resist
methods that they feel are not right for their group our department.
–
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What methods do local HR professionals have that will allow them to influence or modify the
process to ensure it aligns with local cultural and business needs?
Final thoughts on getting started
• Start small and build over time, but have a roadmap
for scaling
– Create methods that allow you to measure who is or is
not following the process
• Leverage and integrate existing talent management
processes;
– Collect data once and use it multiple times
• Take action based on evaluations;
– Succession planning without development is just “taking
inventory”
• Give employees and managers an incentive to
actively participate in the process
Thank you for your time and
attention!
For more information:
a) E-mail me at “[email protected]”
b) SuccessFactors white paper “The Five Key Questions for Creating High Impact
Succession Management Programs” (www.successfactors.com)
c) Interviews on Business Execution Radio: http://www.successfactors.com/podcast