Anda di halaman 1dari 12

Evolve Your Organization:

Strategic Succession Planning

Tues, Oct 27, 2015


2:45-3:45 (60 min)

Brent Pederson, Hay Group


1.306.359.0181, brent.Pederson@haygroup.com

Agenda & Timeframes


Topic

Timeframe

Why Succession Matters

2:45-2:55 (10)

Traditional vs Progressive Approaches

2:55-3:05 (10)

The Process: 3 Phases

3:05-3:20 (15)

Big Succession Questions & Discussion

3:20-3:35 (15)

Assessing & Developing Talent

3:35-3:45 (10)

2015 Hay Group. All Rights Reserved

Hay Group: Quick Facts & Figures

88

2600

Top 50

#1

Offices in 47 countries

Employees worldwide

Global Consulting
Firm

Leadership
Development

2015 Hay Group. All Rights Reserved

1. Why Succession Matters

Why Succession Mattersto a Board of Directors


Disney Dissidents Slam Board For Handling of CEO Search
The Hollywood Reporter.com
Charles Schwab CEO Transition Ends With All the Grace of an 18-Car
Pileup
BusinessWeek Online
After Years of Speculation, AIGs Greenberg Announces What Amounts
to a Succession Plan
Forbes.com
Succession Woes Continue to Dog Coca-Cola
BusinessWeek Online
Lessons From McDonalds Tragedy: Always Have a Succession Plan
In 9-11, over 400 corporate vice-presidents lost their lives
Wall Street Journal Online
5

2015 Hay Group. All Rights Reserved

Why Succession Mattersto CEOs and Senior Leaders


Over 50% of companies have no replacement plans in place for key
positions other than CEO
Canadian Chief HR Office Survey on CEO Succession

Only one in five CEOs confident that current approaches to talent


management can deliver leaders the business requires
Hay Group/Human Resources Magazine (UK) Survey

41% of business owners want to exit their business in the next 5 years. Are
you ready?
CFIB Report

81% of global companies rate succession as #1 future human capital


challenge
Hay Group/SHRM Survey

90% organizations worldwide have succession management


as top corporate priority

Corporate Leadership Council Report

2015 Hay Group. All Rights Reserved

Why Succession Mattersto HR


1. Every year people get 1 year older (simple demographics).
2. Pensions plan returns have been impacted by economic cycles yet
people can/will only put off retirement for so long.
3. Societal & medical advances allow people to live (and work) healthier
for longer.
4. Do we have the right people, at the right time, with the right skills, in
the right locations?
5. Creating opportunities for emerging leaders to retain them.
6. Knowledge transition from current to emerging talent.

2015 Hay Group. All Rights Reserved

Why Succession MattersTo Shareholders


35% of institutional investors valuation attributable to
non-financial measures
n

Management Capability:
Capability of management team
are leaders appropriately prepared
for key positions?

Attracting and Retaining Talent:


Does company have talent to
deliver against current/ future
business plans?

35%

Likelihood of Strategy to
Create Value

Strategy Execution

Innovativeness and Ability to


Adapt

Brand

Reputation

Source: Mavrinac & Siesfeld , Measuring Intangible Investments


2015 Hay Group. All Rights Reserved

In the past, the supply of potential leaders


exceeded the demandnot today
Then:

Supply of experienced leaders > Demand for experienced leaders

Now:

Supply of experienced leaders < Demand for experienced leaders


2015 Hay Group. All Rights Reserved

Succession planning
is critical to the
sustainability of an
organization.

Why Succession Matters: Strategic Drivers


1. Fundamental accountability of senior leadership
2. Regulatory requirement
3. Deliverable to Board of Directors
4. Pending retirements and aging workforce
5. War for talent
6. Focus on building (vs buying) talent
7. Aligned with strategic measures (ex: Engagement, Leadership
Development)
8. Supports effective movement and development of staff
9. Very vulnerable to key person loss

2015 Hay Group. All Rights Reserved

11

2. Traditional vs
Progressive Approaches

Traditional vs Progressive Approaches


Traditional Succession Plans
Often resemble a hockey draft
High emphasis on face time and who is popular and well known
Lack criteria
9 box grids mapping performance and potential
Emphasize potential (people) but potential for what (job)?
Focus overly on supply via pools of people
Overly complex and die under their own weight
Tends to be a paper activity
Leading Practices
Simple Yet Powerful
Time Efficient
Practical
Sustainable
Balances Supply and Demand
Easily Scaled Out Further
13

2015 Hay Group. All Rights Reserved

Succession Planning: Benefits in 7 Areas


Outcomes of improved talent
management

Talent Aligned to the Business: The organization has a plan for


top talent that is responsive to current needs and risks, and also
anticipates the future needs of the business.
Mission Critical Roles Identified: Mission critical roles are filled by
the best individuals for that role and for the business.
Depth of Talent Pool Defined: Senior leaders understand the
depth of the talent pool and the associated strengths and risks.
Future Leaders Targeted: Potential leaders of the organization are
identified and are ready to step into leadership roles when called
upon.
Risk Clearly Appraised: Senior leaders understand the risks and
benefits associated with a possible hire, move or promotion.
Leaders Successfully Transitioned: Talented people are
positioned for success and their risk of failure both personal and
organizational is minimized.
Talent ROI Measured: The organization understands the value of
its investment in top talent.
14

2015 Hay Group. All Rights Reserved

Succession Planning: Aligning Business, Work, People

Business
Context

Jobs in context of
the business, and
implications for
role requirements

2015 Hay Group. All Rights Reserved

Strategy, business model,


structure and culture
the environment in which
work gets done

Talent
Work Roles

People

The capacity of
people in
relation to role
demands

15

Two sides to the succession management equation

Demand

Supply

Ability to identify
risks/benefits of
talent moves

Helps answer the question, Potential, for what?


2015 Hay Group. All Rights Reserved

16

3. The Process: 3 Phases

Purpose

To support the sustainability of the organization


by proactively identifying leadership talent

2015 Hay Group. All Rights Reserved

18

The Process: 3 Phases


Phase 1:
Mobilize & Identify
Key Positions
(3 hours)

Phase 3:
Measures &
Governance
(3 hours)

Phase 2:
Talent Review
(8 hours)

Phase 1

Phase 2

Phase 3

Executive Roundtable
Discussion to Review
Talent
Discussion: Key
Succession
Questions
Role-Based Risk
Assessment
Identify Measures

Confirm Measures
Discussion: Key
Succession Questions
Establish Governance
& Maintenance
Processes
Integration Points
Going Forward:
Develop Talent

Definition & Purpose


Leading Practices
Overview of Phases
Project Plan
Identify Key Positions
Orientation to
Tracking Tool
Homework: Propose
Talent (8 hours)

19

2015 Hay Group. All Rights Reserved

Titles Dont Mean Much: Consider 3 CIOs


Advisory Roles

Collaborative Roles

Global
Enterprise
Leadership
Enterprise
Leadership

Strategic

Strategic
Alignment

Behaviours required:
client (internal) focus
team contribution/work
conceptualizing fit

Strategic
Implementation

Operational

Levels of Work

Strategy
Formation

Behaviours required:
partnering
influencing
networking

Operational Roles
Behaviours required:
results oriented
strategic perspective
leading change

In a High-Tech
Business

In a
Manufacturing
Business

In a
Research Lab

Tactical
Implementation

20

2015 Hay Group. All Rights Reserved

Avoiding Talent Snaps: Managing Stretch & Risk


Role Profile
Delivery

High

Matrix

Medium

Legend
Black Starting Point
Green Low Risk

Low

Complexity of
Strategic Challenges

Advisory

Yellow Moderate Risk

Current
Role

Red Significant Risk


Example 1

2015 Hay Group. All Rights Reserved

21

4. Big Succession
Questions & Discussion

Big Succession Questions

1
2
3
4
5
6
7

To tell or not to tell?


Recruitment: Does succession impose on the recruitment
process?
Diversity: Does diversity impose on the succession plan?
Are guarantees offered by the org? Expected from the person?
How do we build fences around our top talent?
Who do we develop?
How do we develop them?

2015 Hay Group. All Rights Reserved

23

5. Assessing & Developing


Talent

Leadership Development
n

Natural extension of the succession planning process

The ink will barely be dry on your succession plan when you will find
yourself asking, What should we do to develop & retain these
people?

Benefits of a leadership development strategy

Retention of top talent

Development for leaders

Feedback for leaders on leadership

Information to supplement the succession process

2015 Hay Group. All Rights Reserved

25

Leadership Development Strategies:


5 Common Approaches
1.

Shopping Catalog we offer stuff, people can take whatever they want

2.

Coaching Focus leaders work with coaches to develop and implement


individual development plans

3.

Corporate Approach pick a topic and go hard on that topic that year
(2015=Coaching & Feedback, 2016=Teams, 2017=Leading Change, etc.)

4.

Leadership Assessments have leaders complete an assessment tool(s),


attend a workshop to debrief results and develop action plans, re-assess
12-18 months later

5.

Formal Leadership Development Program (LDP) take a cross section of


leaders (current, emerging, succession, non-succession), step them through
a structured experience over a 12 month period (2-3 assessment tools, 3-4
core content modules on various topics, a series of coaching sessions,
corporate recognition) most common approach

2015 Hay Group. All Rights Reserved

26

On Development

Most organizations choose to develop


their whole management team, while
throwing extra development at names
mentioned in the succession plan.

2015 Hay Group. All Rights Reserved

27

The Science of Leadership


How Leaders Drive Results

Competencies

Leadership 70%
Styles

Employee
Engagement

30%

Results
Balanced
Scorecards /
Dashboards

2015 Hay Group. All Rights Reserved

28

Manager Competency Portfolio (MCP) Model

2015 Hay Group. All Rights Reserved

29

The 6 Leadership Styles

2015 Hay Group. All Rights Reserved

30

10

Talent Dashboard Sample A


John Smith

E=mc2

Behavioural
Technical
competencie competencie
s
s

Ability

Performance

Education

Experience

Overall

80100%
6080%

Above
target in
some
areas

6080%
4060%

At target
Below
target

2015 Hay Group. All Rights Reserved

31

Talent Dashboard Sample B

2015 Hay Group. All Rights Reserved

32

Succession planning
is critical to the
sustainability of an
organization.

11

3 Key Messages

1
2
3

Succession Planning: Highly Strategic for HR


Keep the Process Simple and Sustainable
Leadership Development is the Natural Extension

2015 Hay Group. All Rights Reserved

34

Succession Planning: How Can We Help?


1. Implementing A Succession Plan
2. Auditing Your Existing Approach
3. Enhancing Your Existing Approach
4. Leadership Assessments
5. Leadership Development

2015 Hay Group. All Rights Reserved

35

Questions

12