Transcript 13th Annual Farmer Cooperatives Conference SUCCESSION

13th Annual Farmer
Cooperatives Conference
SUCCESSION PLANNING
Jim Hoyt
Vice President
Strategic Planning & Corporate Services
GROWMARK, Inc.
Drivers of Change
Mission
Vision
Values
Actions
Objectives
Strategic Direction
Goals
Strategic Issues
Priorities
Internal
Assessment
Strategies
Success Factors
Measurement
Reporting
Alignment
Primarily Board
Board & Staff
Primarily Staff
Strategic Planning Process
STRATEGIC DIRECTION
In support of our vision and mission, we will:
1. Foster a strong member system.
2. Grow and expand in and from our core businesses.
3. Expand our marketing territory.
4. Foster vertical integration opportunities which create
strategic advantages for the GROWMARK System.
5. Pursue acquisitions, mergers, or business alliances.
Strategic Issue
System Leadership Succession Development
It is essential that we work proactively to deepen our
bench strength for key System leadership
responsibilities.
Goal: Extend the corporate depth chart in three
additional vice presidents’ areas and implement the
CDR tool to individuals identified as “ready” and/or
“development” employees.
Goal: In conjunction with member cooperative boards
of directors, create and recommend individualized
plans for the development and succession of board
leadership.
Are You Ready For
Key Leadership:
 Retirements
 Unexpected Departures
 Long-term Illness
 HBBT
Employee Demographics
Age Buckets
20-35
23.9%
36-45
18.5%
46-55
29.5%
55-60
16.8%
61+
11.1%
Drivers of Change
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Aging leadership team
Complexity of business
Changing business models
Experience exodus
 Institutional memory/accumulated knowledge
Workforce demographics
Specialization
Available and skilled talent pool
Competition for best talent
Gen X – capabilities and expectations
Succession Planning
Project or Process
 Assessment of:
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Current leadership talent
Future leadership needs
Current bench strength and gaps
Increasing bench strength
Development programs
– Individual
– Group
Depth Chart
 Key positions
 Key people
• Ready now
• Development needed
 Mid-management and up
 Honesty – openness – agreement
Depth Chart Example
Member Services
Regional
Manager
(4)
Member
Services
Admin.
STAR
Energy
Mgr.
Illini FS
GM
New
Century
GM
AgVantage
GM
GL
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RS
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FS
PARTNERS
GM
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CG
BK - (cdr)
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KM - (cdr)
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5
GN- (cdr)
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5
FC
5
TS
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SN
5
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DL
5
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5
JK - (cdr)
5
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5
5
5
5
TA - (cdr)
5
5
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Development Plan
 Are you using traditional and creative
development programs?
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Individual and experiential
Special project assignments
Cohort groups
Job rotations
360 evaluation and profiling
Mentoring
Diversity
CEO/VP sign off
Questions
 Do you know your bench strength in key
positions--mid-management and up?
 Are you rounding future leaders’ experience?
 Do employees know they are in a
leadership development process and
what is expected? Do they want to be?
 Are you attracting an appropriate percent
of external talent?
 Are you comfortable with “just in time”
leadership?
Shared Responsibility
• Board:
– Strategic Plan
– Risk Management
– Expect – Understand – Monitor
• Senior Management:
– Plan Design
– Cultural Acceptance
– Implementation
– Active and noticeable participation
• Mid Management:
– Identify and mentor – Ensure development – Special projects
– Look for opportunities
• Cross-train
• Job rotations
Board Succession
Ask the tough questions
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Do you have a formalized succession plan?
Who are potential directors for your board?
Is a directorship an endowment?
What is the “right” length of time to serve?
Should directors serve as officers until
retirement from the board?
• What is best for your cooperative?
Succession Planning
“Skate to where the puck is going to be”
The GREAT ONE