Transcript Slide 1
Succession & Workforce Planning aligned to Strategic Business Initiatives Lorraine Webb Vice President Organizational Development Philadelphia Gas Works GVFHRA April 12, 2010 Topics Workforce Planning and Strategic Business Management Understand the elements of a successful succession plan .Linking HR initiatives to strategic business initiatives About PGW Lorraine Webb VP of Organizational Development Philadelphia’s source of safe, reliable, natural gas Our nation’s largest municipally owned natural gas utility PGW began on February 10, 1836 with 46 gas lights Today provides natural gas to the 6th largest city in the US The PGW Journey 10-12 Years ago PGW was faced with: significant debt ($1b) and potential insolvency billing systems meltdown no performance management systems, rewards or recognition programs, working or strategic knowledge of our human capital bench strength “accidental leaders” and management in transition The PGW Journey Recognized that by 2010 roughly 50% of the workforce could retire w/i 5 years 20 member senior team were and 18 of the eligible Significant drain on the organization in terms of knowledge, skill, experience and talent Extreme external pressures Risks and Challenges Risks to appropriate qualified staffing levels Staff for the Gap Identification of critical positions Compensation Employer of Choice/Good place to work Risks to loss of institutional knowledge and skills Knowledge management initiative Aligned learning opportunities created curriculums for different levels within PGW Workforce Planning Succession planning initiative identifies candidates Workforce development identifies employees at all levels for bench strength. Low Morale/Performance Performance Management System and Career Development/Employee Development Plans Build the Organization of the Future Transfer & Increase Knowledge & Skil s Staff for the Gap Communicate Communicate Communicate Develop Employees Create a Collarborative Results Oriented Culture Recognize and Celebrate Success Focused on Integrated Talent Management Staffing & Recruiting Training & Development Employee Relations Performance Management & Succession Planning How Did We Get There? “C” Suite focus: sense of URGENCY! Identify succession gaps Assessed 60+ leaders of the organization 360’s, performance reviews, development plans and coaching CEO made it clear that this was a top priority He announced to the Management Team that he would have a 360 as well as coaching Succession plan Surveyed employees anonymously as to plans for retirement Developed high potential programs Many senior people and others shared their plans often volunteered to be mentors Finally… We changed the culture by becoming strategic partners with the business What We Did Succession Planning Leadership Development Programs Strong Recruitment Efforts Formal Programs to Assess People and Talent Knowledge Transference Rotational Assignment Programs Cross Functional Assignments Affinity Groups Succession Planning: The Process Communicate Plan to Management Team Try to identify projected turnover and likely job openings Clarify and communicate what competencies will be needed Open it up - who’s interested and willing? Survey of all employees Assess competency readiness Prepare development plans Offer learning opportunities and resources Compete for “in-training” positions Employee share responsibility for career development The Process Key Deliverables Strategy Meeting Key Positions At Issue Outline Key Identify Key Deliverables Positions to Discuss process be filled and/or Plan replaced communications When will Manage needs occur? expectations Develop alternative scenarios Position Criteria Develop key criteria for each position Build on PGW competencies Inventory Internal Talent Inventory internal talent pool Use Talent Mapping Identify Succession Gaps Map Talent to needs of PGW Identify HiPo’s and associated development needs Implement Succession Plan Begin Implementation of development plans The Process • Apply succession planning process to the leadership positions at PGW • Create a list of candidates for the leadership positions • Review Essential Succession Planning Process • Set criteria for the job • Create Talent Map for candidates • Create list of potential candidates for the position who meet job criteria • Got the assistance of a third party, Career Concepts, that could lead us through the process The Philadelphia Gas Works Leadership Succession Plan The Pipeline Sample President & Chief Executive Officer A = Ready for promotion to next level or significant increase in responsibility within 12 months B = Ready in 3 years C = Primary level achieved; not likely to increase responsibilities 1 = Ready to assume role within 3 months 2 = Ready to assume role within 12 months 3 = Ready to assume role within 3 years 4 = No internal candidates; recruit Process: Key Positions at Issue Review the organization chart Does current organization design reflect future needs? Review each position, the incumbent and state the assumptions Are there alternative futures likely enough to be considered? Add positions technically vacant at present Start with CEO Progress through succeeding layers Iterative process Internal successors to a position, create vacancies Process: PGW Competencies Start with Core Competencies Connected to Performance Appraisals and Development Plans Does the position require candidate who is highly competent for each specific competency? Is adequate acceptable? Is the competency not critical for the position? Coaching and Developing Others Visioning Negotiation and Influence Creating a Service Culture Networking and Leveraging Disciplined Execution Adaptability and Embracing Change Professionalism Teamwork and Collaboration Smart Risk Taking Enterprise Focus Managing Others Process: Executive Attributes We had discussions early on regarding what we deemed to be Executive or Leadership attributes and what were not… Does the position require candidate who is highly gifted with these attributes? Is adequate acceptable? Is the attribute not critical for the position? Focus Intellect Charisma Communication skills Passion Culture fit Poise Appearance Process: Barrier to Success Attributes Over-managing Barriers to Success Does the position require candidates who do not have these attributes? Is a ‘mild case’ acceptable? Is the attribute not critical to the position? Insensitive Defensive Arrogant Overdependence on a single skill Key skill deficiencies Failure to build a team Failure to staff with winners Lack of composure Unwilling to adapt to differences Process: The Talent Map A way to graphically show where people are in their development Cross between performance and potential Subjective rating only – no formula Not an ends, but a means to identifying those ready to move up and helping all develop appropriately Position: _________________ Coaching and Developing Others Focus Over-managing Creating a Service Culture Intellect Insensitive Adaptability and Embracing Change Charisma Defensive Smart Risk Taking Communication skills Arrogant Visioning Passion Overdependence on a single skill Networking and Leveraging Culture fit Key skill deficiencies Professionalism Poise Failure to build a team Enterprise Focus Appearance Failure to staff with winners Negotiation and Influence Lack of composure Disciplined Execution Unwilling to adapt to differences Teamwork and Collaboration Over-managing Position Criteria - sample P e r f o r m a n c e H i g h A v e r a g e L o w Niche Player Develop for Next Level Box 4 Box 2 Accelerate Box 1 <= 5% 20% Monitor Stretch Stretch Box 7 Box 5 Box 3 Release Monitor Track and Assess Box 8 Box 6 Box 9 Low Average Potential High Legend for Sample Charts Positions with Potential Candidates No Identified Candidates Potential Candidates Below Mgmt Team Level New Positions? Draft-Sample Organization Chart OD Revised 5-5-09 Operations & Customer Affairs Senior Vice President Customer Affairs Vice President Regulatory Compliance Director Supply Chain Procurement & MBE Gas Planning & Rates Operations Operations Manager, Meter & Measurements Director, Employee Relations, Development & Supervisory Services Operations Operations Director, Credit & Collections Labor Relations & Account Management Operations Director, Field Operations & Planning Customer Service Credit & Collection Director, Com. Resource Center Vice President Vice President Director, Call Center Operations Credit & Collection Gas Management Operations Vice President Manager, Field Services Director Engineering Director, Engineering, Design, Construction & Planning Director, Engineering & Facilities Gas Control & Acquisition Director, Supply & Transportation Gas Processing Operations Manager, Distribution Director Gas Processing Gas Processing Manager, Richmond Plant Gas Processing Manager, Passyunk Plant Manager, Systems, Administration, Safety, Training, Plant Protection, OQ & Employee Relations How Organizations Derail People Defining development largely as educational experiences and job rotations Moving people so fast they never really finish a job Considering vertical movement in one area a meaningful developmental sequence Letting one failure knock someone off track Loading the fast track with people who run into trouble as strengths become liabilities Staff for the Gap Reduce time to fill (from 80 to less than 40 days!) Begin resume banking/continuous interviewing Create on-line application process Improve caliber of candidates Use down market to recruit: PGW stability and benefits Introduce state of the art recruiting including social media (i.e. Monster.com; LinkedIn, etc.) Replace passive application process with proactive resume searches, community outreach and recruitment (i.e. NSBE, SWE, Honickman, etc.) Ensure fairness Post vacancies Continue to use employee referrals wisely Ensure diversity at upper levels Retirement Survey Of approximately 1700 employees close to 20% responded Gave us an excellent lens into what people were thinking Closer to retirement, the more willing to share and provide dates Of interest were comments Union contract coming up If no changes in medical benefit plan, people would stay longer Plans are to make this an annual event during benefit enrollment Talent Replenishment Overview Where We Are Today Two thirds of the union positions can be backfilled through union progressions and many middle management positions are also part of a career progression path. But PGW is clearly vulnerable as to those positions that require extensive on the job training and technical knowledge. Areas of vulnerability include Operations, Gas Management, Customer Affairs, Finance and Regulatory Affairs Develop Employees Automate systems Geo Learning LMS SuccessFactors Applicant Tracking system Add management tools Career Development (CDP) Performance Improvement (PIP) and Employee Development Plans (EDP) Time and Labor System ADP HRIS System Education and Training EEOC and Staff train all management employees in harassment prevention, accommodations and respect Learning and Development open to all PGW employees English as a Second Language classes offered on site Community College classes on site Tuition Reimbursement Leadership Development PGW As Employer of Choice Goal: Employer of choice Change culture, diverse and inclusive Realignment —best of old; add new Worklife balance Purpose: Ensure talent to meet objectives of company in an environment with few financial rewards as well as sustaining a diverse and inclusive culture Task: To attract and retain the best, management needs to manage Partner in staffing; evaluate through first year focus and probationary period Actively coach and mentor Provide performance feedback, honest evaluations and realistic career development plans Develop Employees--Programs Leadership Development program--2 cycles Ed2Go CCP @ PGW provides work-life balance for employees PGW Training Series, taught by PGW employees, gives ‘facilitators’ exposure Boot camp Tuition reimbursement Buddies Mentoring and coaching Ongoing succession planning New talent assessment program Establishment of an development/assessment center In house training aligned to organizational need Educational and aspirational survey PGW Career Development Initiative Mandatory for all management employees Forward thinking Learning opportunities Stretch goals For all employees at the proficiency level 400+ Fosters a “developmental” mindset with supervisors Create a Collaborative and Results Oriented Culture Union/Management relationship based upon transparency and trust Management and Union probably have the most productive relationship in the history of the Company Implemented a win/win negotiation process between Management and Union Reduced grievances/arbitrations Union involvement and input for company initiatives. Introduced mediation training for both Union and Management in an effort to amicably resolve issues. Six Sigma, affinity groups Knowledge Transference Program Small cross functional team conducting pilot Line management, OD and BT Program is a collaborative effort and includes identifying key processes We document via a videographer (college intern) Interviews Update of policies and procedures Employees are concerned about knowledge transference Pride in their work and the company Belief and feeling that their work is unique EDP’s and PIP’s Mandatory for all employees with ratings between 2.76-2.99 Preemptive measure Assist employee avoid Performance Improvement Plan Mandatory for employees with rating less than 2.76 Collaborative process with Supervisor/OD Meetings at the 30,60,90 day milestones Less than 5% of management population Failure to successfully complete results in termination Educating the organization on key HR business initiatives Legacy retreat Drexel PGW mini MBA program CCP and Finance Assessing what organization needs on an annual basis Surveys and interventions The PGW Journey Now Significantly higher ratings on Wall Street Raised customer collection rates (86% v 98%) New CEO entered succession plan 5 years ago and succeeded at year 4 fully prepared Successfully managing rate of attrition; an integrated talent acquisition and management process in place Guided by HR/OD metrics aligned to business The right people are in the right jobs and the organization has depth of talent (despite a strict residency requirement) Awards received for Human Capital Management/Sales & Marketing Credibility with external stakeholders Successes Named HR Department of the Year 2009 Named one of the nation’s top diversity employer Rapidly reestablishing “employer of choice” status Reduced costs associated with training delivery Labor relations ( reduction of arbitrations) Zero external fact findings substantiated What’s Next? Formal Talent Assessment Program Understand employees’ aspirations Employees often don’t know how to manage their careers or which next steps to take Need to manage employee’s expectations Everyone with a degree is not getting promoted Must replace in kind mentality as opposed to re-thinking alternative models i.e. administrative assistants versus analysts Dearth of good candidates within lower grades Need additional training, education and exposure Is a 1% turnover rate (absent retirements) a good thing? Ongoing retirements Market improvement coupled with new raises poses retention issues QUESTIONS?