Transcript Slide 1
American Association of Blacks in Energy
May 20, 2010
Genevieve (Gen) Tuchow
VP, Human Resources
American Electric Power
How AEP is building it’s future leadership talent
bench
Evolving talent planning from reactionary
succession planning to more proactive talent
development
Engaging leadership in identifying and developing
future leadership talent
Accelerating the development of a leadership
talent pool
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Company Overview
5.2 million customers in 11 states
Industry-leading size and scale of assets:
Size
Industry
Rank
~37,700 MW
~39,000 miles
~213,000 miles
#2
#1
#1
Asset
Domestic Generation
Transmission
Distribution
Source: Company research
Coal & transportation assets
◦ Control over 9,000 railcars
◦ Own/lease and operate over 2,900 barges &
80 towboats
◦ Coal handling terminal with 20 million tons
of capacity
Over 21,000 employees
AEP Generation Portfolio
Coal
Gas
Nuclear
Hydro
Wind
68%
23%
6%
2%
1%
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Do we have the leadership
talent needed to execute AEP’s
strategies today and in the
future?
Purpose - Provide AEP a sustainable supply of quality leaders
at all levels to meet challenges today and tomorrow
Overall …
◦ Create shared understanding and development of talent at AEP
◦ Foster the diversity of AEP’s talent pool
◦ Embed structure, support and accountability for talent
development
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All AEP
Employees
Past Performance &
Leadership Potential Factors
Leadership
Talent
Pool
Current year’s
considerations
Targeted
Development
• Contains all AEP employees
• Performance Management Review, Individual
Development Plans, etc. used to further develop
these individuals
• Contains approximately 15% of AEP population
• Individuals highly regarded and believed to have
the ability to be successful in a leadership position
at least one level higher than current position
• Replacement Planning used to further develop /
prepare these individuals
• Once a year a subset of the leadership talent pool
selected to participate in Targeted Development
• Nominated by business unit leaders and confirmed
by senior executives
• Individuals believed to have the ability to be
successful in a leadership position at least two levels
higher and in other business units
• Special assessments, mentoring, stretch
assignments, etc. used to develop these individuals
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Selected From
Preparing For
• Senior VP
• Chairman
Emerging
Senior
Executives
• President
• Vice President
• Director
• Manager
• Supervisor
Emerging Bus.
Unit Leaders
• Non-exempt leaders
• President
• Vice President
• Director
Emerging Mid-Level
Leaders
• Manager
• Superintendent
• Ind. Contributors
• Professionals
• Other EC Roles
• Senior VP
• Superintendent
• First Level Manager
• EVP, Senior VP
Emerging Front-line
Leader
• First Level Manager
• Supervisor
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Talent Review and
Nomination
Individual
Career Discussions
Track Progress
Monthly – Mentor reviews
Quarterly – Talent Board Updates
Annually – Process metrics
Participant selection and
mentor assignment.
Success
Profile
Success
Profile
MENTORING
PROGRAM
Participate in Development
Activities
Assessment
Kick-Off
Meeting
HR Strategy & Development
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Program
Orientation & Kick-off
Create Development Plan
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Ensure ongoing quality of leadership Success Profiles (e.g.,
future focus, clarity, relevance, etc.)
Select a given year’s participants
Guide mentor matches
Match development opportunities across the organization to
development priorities of pool members
Review the development plans of pool members for a higher
level perspective
Monitor and reinforce development progress of pool members
Champion the process and talent with other organization
leaders
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Increasing supply of leaders.
Jump-started organization’s developmental focus.
Talent development as key responsibility vs. “nice to do.”
Shaping a development culture (e.g., candid career
discussions, ownership of development, selection criteria,
etc.).
Adapting process within operating units for those
expected to rise only within their group.
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Leadership Level
Emerging Sr. Executive:
Emerging Business Unit Leader:
Emerging Mid-level Leader:
Emerging Frontline Leader:
Retention
Job Moves
(lateral/promotions)
x
x
x
x
71%
58%
66%
12%
Cross-unit
Achieved
moves
Level
64%
21%
35%
23%
16%
16%
0%
8%
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"We've seen a remarkable increase in the self-awareness of
[targeted development participants]."
"This has been an excellent start in our challenge to build our
future leaders."
"The structure has helped."
“There is an observable difference in many of our participants.”
"We've all gotten exposure to individuals that we otherwise
would not have had."
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Key benefits include the "softer" aspects: visibility of talent,
relationships among pool members, interaction with senior
leaders, etc.
Executive involvement key.
Participant selection is a work in progress.
Selection of the “right” mentors and coaches essential.
It can be done.
It’s never over!
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