strategies to improve employee retention in a diverse workforce part two: succession planning
DESCRIPTION
To accommodate career development and retention in today’s diverse work environment, it’s more important than ever to ensure you have key strategies in place that support the alignment of individual employee goals and development. In part one of this webinar, we discussed engaging employees through goal and development plans. In part two, we will further explore key performance strategies through the creation and development of your organization’s leadership pipeline. Having a succession plan in place for your top employees will enable you to proactively assess, rate and manage development paths so that you may fully leverage your employees’ potential for the long haul.TRANSCRIPT
Speaker: Tracy McCarthy Senior Vice President of Human Resources SilkRoad Technology
Christa Sorenson Senior Vice President of Organization and Talent Development Equity Residential
Moderator: Daniel Margolis Managing Editor Talent Management magazine
Strategies to Improve Employee Retention in a Diverse Workforce Part Two: Succession Planning
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Strategies to Improve Employee Retention in a Diverse Workforce
Part Two: Succession Planning
#TMwebinar
Daniel Margolis Managing Editor Talent Management magazine
Strategies to Improve Employee Retention in a Diverse Workforce
Part Two: Succession Planning
#TMwebinar
Tracy McCarthy Senior Vice President of Human Resources SilkRoad Technology Christa Sorenson Senior Vice President of Organization and Talent Development Equity Residential
STRATEGIES TO IMPROVE EMPLOYEE RETENTION IN A DIVERSE WORKFORCE PART TWO: SUCCESSION PLANNING
“FROM NOW ON, CHOOSING MY SUCCESSOR IS THE MOST IMPORTANT DECISION I’LL MAKE. IT OCCUPIES A
CONSIDERABLE AMOUNT OF THOUGHT ALMOST EVERY DAY.” JACK WELCH,
CEO GENERAL ELECTRIC, 1991
ObjecAve and Approach
Objec&ve: To provide you with key strategies to support and align individual development through the crea&on and development of your organiza&on’s leadership pipeline.
Approach: To share insights and successes rela&ng to prac&cal, real world solu&ons. Share different perspec&ves.
Succession: Three Approaches
Replacement Planning – Narrow focus, upper management, insurance policy, secreNve
Succession Planning – Broader focus, management or key leaders, may be interacNve or not, retenNon driven
Succession Management – Right people in the right jobs, development focus, larger talent pools, strategy driven, future needs not just replacement needs
Poll: What is the most criAcal succession management issue facing your company today?
• PrevenNng knowledge loss • Improving retenNon • Lack of bench strength in key posiNons • Replacement planning • Enhancing diversity across leadership ranks • Build breadth and depth of talent needed for the future
IdenAfying the “Why” Background • Direct markeNng • 700 people • Growing organically 25% a year • Leaders see no value in succession
management – Buy vs. Build mentality
• Employees saw no room for growth Business Opportunity • Along comes an acquisiNon opportunity…. • Let’s Do It! • Are we ready?
– Do we have the right people to be successful?
Undercover Succession Management
SWOT – Key weakness: Lack of bench strength – Key threat: Current business decline
Outcome – We didn’t go through with the acquisiNon – Leaders were highly disappointed BUT now saw the need for succession management
– We formed a Talent Review team and began an informal succession process
Succession Management Components
Why?
• Why is it important for the Company • SWOT – current and emerging changes • Determine the philosophy/approach
Determining Key PosiAons and KSAs
Talent Review Team • Cross funcNonal business unit leaders • Defined key posiNons
– Focused on posiNons and not people – Single points of failure (no back up, long learning curve)
• Defined KSA’s needed – Now (opportunity to reevaluate current staff) – For acquisiNon or other business strategy – 3 years from now
Succession Management Components
Why?
• Why is it important for the Company • SWOT – current and emerging changes • Determine the philosophy/approach
PosiNons • ID key posiNons (SPF, long learning curves, industry specific) • ID KSA’s needed to achieve strategy
Succession Management Components
Why? • Why is it important for the Company • SWOT – current and emerging changes
PosiNons • ID key posiNons • ID KSA’s needed to achieve strategy
People
• Determine how to assess employees • Determine who shall parNcipate • ID current KSA’s
Who to review? And How to assess?
2010 Talent Review Assessment Report 1. PERFORMANCE: To what degree did this leader achieve his or her performance goals this year? What contributed to his or her performance (e.g. skills, behaviors, challenges, etc.)? 2. MINDSET: Mindset: how this leader goes about his/her work and relaNonships, especially in high pressure situaNons. a. To what degree did this leader live out Equity’s 10 Ways? b. To what degree does this leader’s aLtude contribute posi&vely to moving your group forward? c. What mindsets could this leader show more of? What mindsets could this leader show less of?
2010 Talent Review Assessment Report 3. SKILLSET: Equity has two criNcal leverage competencies for leaders: Adaptable to Change and Learning on the Fly. Adaptable to Change: The ability to be flexible and producNve during Nmes of change, and expects and welcomes the next change as an opportunity to improve oneself and the workplace. To what extent is this leader Adaptable to Change? What are some specific examples of how is leader was Adaptable to Change? Learning on the Fly: Learns quickly when faced with new challenges or ways of doing business To what extent did this leader demonstrate Learning on the Fly? What are some specific examples of how this leader demonstrated Learning on the Fly? 4. AREAS OF EXPERTISE: To what degree does his leader’s func&onal and industry exper&se make a value-‐added contribu&on? What is included in this leader’s toolset? (e.g. func&onal and industry exper&se, especially with processes, use of systems and tools)
2010 Talent Review Assessment Report 5. LEADERSHIP: The overall way this person approaches his/her role and contribuNons as a leader, including: • Being known as a change champion, and a curious and conNnuous learner • Sharing their funcNonal knowledge and tools generously and effecNvely with others • Having a reputaNon as a role model for the Equity way of doing business To what degree is this person demonstra&ng leadership? Provide specific details of what type of leadership this person is demonstra&ng. 6. PROMOTIONAL CONSIDERATION: A. Is this leader currently prepared/ready for a promo&on this year? B. What tells you this leader is ready for a promo&on? C. Are there any addi&onal skillsets or aWributes that contribute to this leader’s
success?
!
Succession Management Components
GAPS
• Analyze the gaps between current and future KSA needs • PrioriNze the KSA needs
How Wide is Your Chasm?
Gap Analysis • Compared needed KSA’s for key posiNons for ‘Now’, ‘AcquisiNon’, and ‘Future’ with current KSA’s based on performance scores and personal experiences – Green – Strong KSA’s – Yellow – Missing some KSA’s – Red – Weak KSA’s
• Focused on reds then yellows
Succession Management Components
GAPS • Analyze the gaps between current and future KSA needs • PrioriNze the KSA needs
AcNviNes • ID development acNviNes • ID how to integrate with other key processes
Succession Management Components
Gaps • Analyze the gaps between current and future KSA needs
AcNviNes • ID development acNviNes • ID how to integrate with other key processes
Manage • Determine how to track, manage, hold people accountable • Determine how to support parNcipants
Systems and Technology
• Technology will magnify the process – make a good process beler and a bad process glaringly obvious
• Technology can link succession development acNviNes to other employee lifecycle events
• Technology can facilitate the process and automate some tasks
• Technology can act as the system of record for all the succession management acNviNes
Technology example
Summary
• Succession Management is not an end but an integral part of the strategic planning process
• Succession Management is as much about art as it is science – no single “playbook”
• Don’t build in complexity; keep it simple to make it sNck
• Succession Management is a priority for successful companies
ADDITIONAL RESOURCES
Best PracAces in Succession Management
• Make the succession process part of your company culture – Periodic talent reviews as a part of the talent planning process – Be inclusive and develop large pools of talent rather than focusing on one or two
• Development orientaNon – Management owns succession planning/process and are accountable for developing
employees – Encourage and reward coaching and individual growth of all employees – Emphasize on-‐the-‐job development and not just classroom training(Consider job rotaNons,
mentoring) – Create progressive assignments – Help people make crucial connecNons, parNcularly management (40% fail in 18 months)
• Keep the process simple – don’t let the process dominate the discussions – Start simple – don’t bite off more than you can chew – Flexibility -‐ConNnued reinvenNon of the process as the company/environment change – A system that is easy to use
• Once a successor is in new role, there needs to be a process in place to support the person through the transiNon
– Help people make crucial connecNons, parNcularly management (40% fail in 18 months) – Leaders learn best from experience, mentors and being coached
CriAcal QuesAons
• What is it for? • Who is it for? • Who decides what? • How do they decide? • What systems and support are required? Succession management doesn’t have to be complicated and only for large corporaNons. It’s a chance to assess your organizaNons current KSA’s and determine how they will support the future of your organizaNon.
Keys to Success
• Easy to use • Flexible • Developmentally oriented • Built around conNnual reinvenNon • Aligned with strategic plan • Top leader support • Owned by Sr. Mgmt • Willing parNcipaNon • Credibility in the HR/OD FuncNon
Succession AcAviAes…to name a few
• Coaching • Real Nme learning (people learn best by doing) • Cross training • Task forces or special projects • AddiNonal job assignments • Mentoring programs • Formal training • CommuniNes of pracNce
Ideas to Overcome Lack of Management Support
• Talk their language – Compare to Sports Analogies
• Basketball Bench, Baseball Farm Team – Show the $ and Cents (Finance)
• Succession management is like interest on your investments (growing people)
– People Maintenance (OperaNons) • Just like we invest in our capital purchases (regular machine maintenance), we should do the same with our people (our number 2 expense)
Thoughbul Reading SuggesAons
• The Leadership Pipeline: how to build the leadership powered company – Ram Charan, Stephen Droler and James Noel
• One Page Talent Management: EliminaNng Complexity, Adding Talent – Marc Effron and Miriam Ort
• FYI: For Your Improvement, A Guide for Development and Coaching – Lombardo & Eichinger
Questions and Answers
Tracy McCarthy Senior Vice President of Human Resources SilkRoad Technology [email protected] Christa Sorenson Senior Vice President of Organization and Talent Development Equity Residential [email protected] For sales inquires please contact: [email protected].
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