wws presentation - succession planning
TRANSCRIPT
Molly Morales HR Terroir
www.hrterroir.com 707-‐225-‐4641
November 16, 2011
Grow Your Own
Road Map • What is Succession Planning? • Common Approaches to Succession Planning
• Indicators and Trends that influence Succession Planning
• Key Learning's
Talent Management PlaMorm
Retain
ANract Develop
SUCCESSION PLANNING
TALENT MANAGEMENT
Talent Management focuses on integraQng efforts to aNract, develop and retain the best people currently in the company
Succession Planning focuses on developing internal talent to meet future organizaQonal requirements
It’s about building sufficient bench strength and preserving the insOtuOonal memory embedded in veteran performers at all levels who posses specialized knowledge about the way the organizaOon works.
Succession Planning is a process for idenQfying and developing internal people with the potenQal to fill key leadership posiQons in the company
Succession Planning in AcQon
• Training others
• Mentoring • Variety-‐of-‐job assignments
• Formal training • Temporary or special project assignments
• Crisis intervenQon
• Observing in higher-‐level meeQngs • Serving on an external evaluaQon
• Task force assignments • Receiving or giving job-‐related coaching
• Temporarily stepping in to serve in a more senior role • Self Study
Succession Planning Gains Importance • The Need for Speed
• A Seller's Market for Skills • Reduced Loyalty Among Employers and Workers
• The Importance of Intellectual Capital and Knowledge Management
• The Importance of Values and Competencies
• The Growing AcQvism of the Board of Directors
• Growing Awareness of SimilariQes and differences in Succession Issues Globally
Common Approaches to Succession Planning
Talent Review Process
Performance
The performance input is derived from the most recent Annual Performance Review: -‐ Outperformed -‐ Added Value -‐ Needs Improvement
X
Future Capability
Future capability is an assessment involving mulQple factors to indicate an individuals ability to grow and succeed in more senior or criQcal roles
PotenOal
PotenQal is assess by using a matrix to plot performance and future capability. The assessment output informs succession planning for business criQcal roles.
=
Talent Assessment is calibraQon process that provides inputs from Managers about their individual team members performance, behavior
and competence against company standards
IdenQfy & Assess Talent
Plan for Succession Develop Talent for
Future Roles
Internal Talent Pool Future Poten
Oal
High High Performer 2 (1-3 years)
High Performer 3 (6-12 months)
High Performer 4 (highly
promotable)
Medium Under Performer
Medium
Key Performer 2 (3-5 years) Achieve All
Key Performer 3 (3-5 years) Sustain HP
Key Performer 4 (1-3 years)
Low Under Performer
Low
Good Performer 2 (Coach+ Improve)
Good Performer ( G&D + HLP3
Good Performer 4 (grow & develop)
1 2 3 4
Improvement Needed
Achieved Most Achieved All Exceeded ExpectaQon
Current Performance
HP –PotenQal KP –Expert GP –Great in Current Role UP-‐ Role, Goals and Behavior
Workforce Planning
Succession Planning assesses potenOal vacancies in leadership and other posiOons and readiness of current staff to assume the posiOons, idenOfying mentoring and leadership training gaps and having the right leadership in place at every level of the organizaOon.
Workforce planning is a methodical process of strategically aligning human capital with business direcQon. The process includes the enQre workforce determining future needs, indenQfying gaps between the present and the future, developing and implemenQng soluQons and evaluaQng the results.
Replacement Planning Replacement planning idenQfies back ups for specific successors limiQng the risk of immediate and unplanned loss of key incumbents-‐as happened on a large scale when the Twin Towers of the World Trade Center collapsed
Succession Planning is a proacQve and aNempt to ensure the conQnuity of leadership by culQvaQng talent from within the organizaQon through planned development acQviQes Qed to the company’s strategic plan.
Succession Mapping Succession mapping categorizing individuals by potenQal succession role and Qmeframe.
This provides the organizaQon a “health based ”view of the succession map.
Green -‐ 2 immediate successors and strength in the pipeline for 1+ years. Yellow -‐ 1 immediate successor and strength in the pipeline for 1+ years. Red -‐ No immediate successor and lack of depth in pipeline for 1+ years.
Business CriQcal Talent Pools Business CriOcal Roles
Business criQcal roles are roles that have a significant impact on customer relaQonships requiring specific skills that are difficult to develop or replace
Business CriOcal Developmental Roles Are development roles that are considered to be an ideal posiQon to grow and develop talent before moving onto a larger or more business criQcal role.
Business CriOcal and Developmental help to idenOfy leadership roles throughout the organizaOon versus using posiOon Otles or organizaOonal charts.
ReQrement ForecasQng
Name Dept Job Code
Pay Grade
ClassificaOon DOB 2011 2014 2017
Sally Sue HR 035 5 Benefits Manager 1975 36 39 42
Johnny Joe TR 052 6 TR Manager 1964 48 51 54
Mic May Sales 046 6 District Manager 1936 65 68 71
Tom Tidy HR 035 6 CompensaQon Mgr 1975 36 39 42
Get your CEO’s A/en1on – Conduct a rolling three year re1rement assessment which assist in forecas1ng specialized knowledge of experience that is walking out the door.
William J. Rothwell Effec1ve Succession Planning
Career AspiraQon Process
Personal A_ributes & AspiraOon
High Driven and demonstrates a willingness to grow into a larger role
Medium Willingness to grow in current or larger role with moderate sense of urgency
Low LiNle or no willingness to grow in current or larger role
Technical Competency
High Highly competent and capable of delivering above requirement of the role
Medium Competent and capable of delivering the requirements of the role
Low Limited or developing competency and capability for delivering the requirements of the role
Career AspiraQons indenQfies the individuals intenQon to move up in the company can be used in Succession Planning for planning and analysis.
Wine Industry Skills Matrix
“There is no one universal approach that works well across all companies, rather effecOve companies match their succession strategies to their business. William J. Rothwell
Effec1ve Succession Planning
Indicators and Trends
US Department of Labor Napa County Workforce Investment Board
Looking at California's aging workforce. Baby boomers are expected to re1re soon, and companies should be seriously thinking about succession planning. The recession gave lots of companies a "re1rement" cushion because a significant number of employees delayed their re1rement, but as the economy recovers, many of these employees will leave. Companies that aren't planning for this shiU may find themselves struggling to fill crucial posi1ons.
-‐ Al Gore
Supply-‐Demand = Reality Supply • StaQsQcally fewer people to fill
jobs – Over the next 15 years, there
will be a 15% decline in the number of 35-‐44 year olds
• Aging Workforce • Widespread reQrements of the
baby boom generaQon • Reduced loyalty • ImpaQence of Gen X and Gen Y
Demand • New skills and capabiliQes are in
demand for industries across the globe
• War for Great Talent • Sellers Market for skills • Need for Speed
Reality • Hiring external candidates is slow • You many not find the right skills • External hiring requires lots of
training
SoluOon – Grow Your Own • IdenQfy high talent individuals • Promote employee development • Refine company planning • Establish talent intelligence
What’s Happening Locally?
North Bay Business Journal
• Less than 20 percent of execuQves surveyed in a naQonal poll said that they had selected a successor.
• Of the 1,400 Chief Financial Officers who parQcipated in the April survey from Robert Half InternaQonal, 83 percent said they had not idenQfied a successor.
• Four out of five of those responding said they had no plans for leaving their role.
North Bay Business Journal October 2011
Napa County Workforce Investment Board Highest Replacement Jobs Difficulty Finding Qualified
Applicants Specific Knowledge and Skills
• Finance, AdministraQon • Winemaking & ViQculture • Finance and IT • Hospitality (Visitor Center) • Packaging Dept. • ProducQon Workers • Packaging and Warehouse • Retail Employees • Shipping/Receiving • TasQng Room Staff • Tractor Drivers • Vineyard • OperaQons (Cellar) • Wine Educators • Drivers (Warehouse) • Customer Service
• ATF Compliance Jobs • Maintenance Mechanics • Customer Service • Enologist • AccounQng Analyst • Vineyard Mechanic • ProducQon Workers • Quality Control Tech • BoNling Line Workers with Experience • Lab Tech • Restaurant Manager • IT/SAP/CSI/ERP • ViQculturist • Retail Employees • Shipping and ProducQon • Shipping/Receiving • Vineyard
• Common Sense • ANenQon to Detail • Computer Skills • CommunicaQon & Math Skills • Supervisory AbiliQes for ProducQon Jobs • Manufacturing Skills • Knowledge of the English Language • People with good work ethic • Professional Phone EQqueNe, Data Entry Skills, MS Word and Excel ApplicaQons Skills • Reading, WriQng and General EducaQon • Vineyard Mechanical Skills, Compliance Knowledge
New Employees with Basic Skills
New Employees with Workforce Skills
Succession Planning is an Investment
Succession Planning is an Investment Growth = Investment x (Fit + Talent)
Talent
Natural apQtude or skill
Fit
Possessing the requisites, qualiQes or skills to undertake something competently
Investment
The act of devoQng Qme, effort or energy to a parQcular undertaking with the expectaQon of a worthwhile result
Investment = CommunicaQng expectaQons, measuring results and providing informaQon on our score keeping process. Providing Qmely rewards & recogniQon, performance evaluaQons and understanding what’s important to them.
+ x
”Leaders have the same obliga1ons to protect the human resource asset base for the shareholders as they do to protect the balance sheet of the corpora1on.”
Lester Korn Korn Ferry Interna1onal
Key Learning's
Build a culture that transcends your leadership
Build a management team and company culture that embraces your vision and shares your passion
Great companies, build great leaders that can excel without them.
Transi<on proac<vely
Choose people who can take over your du<es, not your personality
Along with the many lives that were lost, "the FDNY esQmates that it lost 4,440 years of experience the day of the aNacks” In the past, the second highest-‐ranking person would typically succeed the CEO. Since many senior level managers died on 9/11, the surviving managers of the organizaQons that suffered the most losses had to confront the reality that key talent and brain-‐power were gone forever, but they also had to cope with gaping holes in their management structure. They immediately had to idenQfy posiQons, competencies, and skills that they needed just to stay afloat.
Failure to achieve SP, in some cases, may have contributed to the short-‐comings in the command and control aspects of crisis management during 9/11
La TorQlla Factory, Santa Rosa, CA 31 years in OperaQon
• Business psychologist listened and managed the feelings and emoQons of the family, assisQng them in learning how to negoQate and compromise to work together.
• The plan outline the process in steps to go from 110 percent to zero, allowing for the gradual change in role and the development plans to be completed.
• TransiQon planning developed for key relaQonships to build confidence in the successor.
• Long Qme qualified advisors assisted in idenQfying issues that were key to the business.
• Qualified people were on board and family members were assessed for readiness and qualificaQons to run the business.
• Open communicaQon with the enQre family to help everyone understand their role.
Succession Planning Improves the BoNom Line
• Ensures Qualified Supply of Talent • More EffecQve Leadership • Improves ProducQvity
• Transfers Knowledge to Replacement Workers
• Increases RetenQon • Links Workforce to Strategic
DirecQon
Molly Morales HR Terroir
www.hrterroir.com 707-‐225-‐4641
November 16, 2011
Business ConQnuity
Sustainability
Grow Your Own
CulQvate Talent
Bench Strength
Preserving InsQtuQonal Memory
Specialized Knowledge About How it Works
Retaining Culture & Values
Intellectual Capital
Knowledge Management