succession planning to asq by 3p associates
DESCRIPTION
The best practices in succession planning begin with great strategic planning. It is best when linked with review of operations, sales, marketing, finance and Research and Development. We illustrate how to incorporate well defined processes in staffing planning, retirement estimates; 360 feedback, performance planning and management, compensation review; individual training and development plans and affirmative action plans. Some sections are openly shared while others, such as our high potentials ranking are highly confidential. Interdivisional and regional sharing of talent is essential. Lateral moves are frequent to departments that are not well known to the incumbent prior to promotion.TRANSCRIPT
Succession Planning Succession Planning
for Continuous for Continuous
Human Capital ImprovementHuman Capital Improvement
ASQ Buffalo Conference 2012.10.24
Brian R. Pettit
McKinsey 7S FrameworkStructure Strategy
Skills Staff
Systems Shared Values Style
McKinsey 7S Definitions1. Strategy: A coherent set of actions aimed at gaining a
sustainable advantage over competition, improving position vis-à-vis customers, or allocating resources.
2. Structure: The organization chart and accompanying baggage that show who reports to whom and how tasks are both divided up and integrated.
3. Systems: The processes and flows that show how an organization gets things done from day to day (information systems, capital budgeting systems, and performance measurement systems would be good examples).
4. Style: Tangible evidence of what management considers important by the way it collectively spends time and attention and uses symbolic behavior. It is not what management says is important, it is the way management behaves.
McKinsey 7S Definitions5. Staff: The people in an organization. Here it is very useful
to think not about individual personalities but about corporate demographics.
6. Shared Values (or superordinate goals): The values that go beyond, but might well include, simple goal statements in determining corporate destiny. To fit the concept, these values must be shared by most people in the organization.
7. Skills: A derivative of the rest. Skills are those capabilities that are possessed by an organization as a whole as opposed to the people in it. (The concept of corporate skill as something different from the summation of of the people in it seems difficult for many to grasp; however, some organizations that hire only the best and brightest cannot get seemingly simple things done where others perform extraordinary feats with ordinary people.)
McKinsey 7S ChecklistStrategy Does the strategy support either a competitive advantage or improve
our position with customers?
Structure Does the organization and divisions of labor support accomplishment of the strategy?
Systems What processes, measurements and/or information improvements are needed to make strategy execution straightforward?
Style Are the reviews, questions, rewards and recognition offered by local management in alignment with achievement of the strategy?
Staff Are we populating or do we have the right overall proportions of specific skill sets or functions or diversity needed to have the strategy succeed?
Shared Values Is the strategy consistent with one or more of the organization Strategic Imperatives? Is there anything inconsistent about the strategy and corporate values?
Skills Do all the above end up providing the organization with capabilities others may have difficulty emulating? Can we succeed where others can’t? Why?
Global Talent & Global Talent & Organization Review Organization Review
(GT&OR)(GT&OR)
Board OverviewBoard Overview
Key Topics
• Talent Management: The Call for Action
• Global Talent & Organization Review
• Strategic Elements and their Linkages
• Timeline
Supply ofLeaders
Demandfor
Leaders
Today 15 Years Forward
100%
(100%)
85%
(125%)
(150%)
(100%)
(50%)
0%
50%
100%
Su
pp
ly a
nd
Dem
and
of
Qu
alif
ied
U.S
. L
ead
ers
(To
day
= 1
00%
)
The time to act is now. Market factors constraining supply and demand will only accentuate Our Company leadership supply issues going forward.
“In 15 years, there will be 15% fewer Americans in the 35- to 45-year-old range than there are now. At the same time the U.S. economy is likely to grow at 3-4% per year … That sets the stage for a talent war.”
“Capital is accessible for good ideas and good projects. Strategies are transparent; even if you’ve got a smart strategy, others simply copy it. And the half-life of technology is growing shorter all the time … In that kind of environment, all that matters is talent.”
- Ed Michaels, McKinsey & Co.,author, The War for Talent
Market-driven leadership gap
Why Focus on Global Leadership Talent?
Our CompanyLeadership Gap
Our CompanyLeadership Gap
Skills GapSkills GapDepth GapDepth Gap
Short Term Drivers:
Long Term Drivers:
• Open critical positions• Short-term Company growth• Potential removal of
substandard performers
• Long-term Company growth (20%)
• Employees eligible for retirement
• Market constraints
• “Rapid science and technology evolution (skill gaps)
• Instituting performance management mentality
• Changing business perspectives that lead to different talent (skill set) requirements
Compounding the external constraints on leadership talent are potential gaps between Our Company’s internal needs and resources.
Components of the Gap
Leadership Depth
732
150
15Le
ad
ers
hip
Be
nc
h S
tre
ng
th (
Nu
mb
ers
)Growth could create significant leadership strains within Our Company
Management Leadership Executive Leader
1000
Present Leadership
897 leaders from Manager to Executive Leader
Traditional external training
PerformanceEvaluation
Special projects
Developmental jobs
Speed of job moves
Role models
Assessment-based Feedback on strengths & weaknesses
Informal coaching and feedback from boss
360-degree feedback
Mentoring
(career path advice)
Individual learning
Traditional internal training
Nontraditional learning programs
Importance to self-development: rated “absolutely essential” or “very important” (%)
Executive Education(#3 impact*)
Developmental assignments (#1 impact*)
Individual Feedback/Coaching(#2 impact*)
Eff
ecti
ven
ess
of im
ple
men
tati
on:
rate
d “
exce
llen
t” o
r “v
ery
good
” (%
)
0 10 20 30 40 50 60 70 80 90
0
20
30
40
10
50
60
70
80
*Reference: For Your Improvement by Mike Lombardo & Robert Eichinger
Response from executives in 50 large US companies (McKinsey study)
Developing Leaders: Effectiveness of Interventions
What is the Global Talent & Organization Review?
A Process that:Aligns human capital with business objectives resulting in focused organization development and greater effectiveness Matches appropriate talent to organization structure to achieve resultsEvaluates the strengths and developmental needs of:– the current organization, and– its leaders and potential leaders
Includes:• Results in human capital action plans to position the
organization for greater success in the future
Integrated Talent Management that Aligns Human Capital to Achieve Organizational Results
360 feedback Performance Management
Global Talent &Organization
Review Meetings
Compensation Review
Linked Linked LinkedTraining &
Development
Builds an high performing workforce necessary to achieve our strategic imperatives Facilitates the selection of the right leaders for growing/acquiring new and existing businessCreates a performance culture of continuous human capital improvementProvides opportunity for “cross-pollination” of leaders between functions/segments/international locations
For Our Company:
Build Leadership Bench to drive Performance & Innovation in Science, Technology and Biological Understanding
For People who LeadAllows for more accurate decision-making around employee promotion, placement, development, reward and recognition of top talent
Creates a succession plan for leadership rolesAssesses key individuals according to results, behaviors and potentialEvaluates succession depth across global sites, functions, and businessesMeasures leadership retention and execution of leadership action plans
How does Our Company benefit?
Global Talent & Organization ReviewGlobal Talent & Organization ReviewFor Performance and InnovationFor Performance and Innovation
ABC Region, Division, Local Facility
Strategic Organization Overview
• Last year Re-cap • Current Year Strategic Priorities• Organization Structure• Systems & Processes• Performance Capability• Organization Culture
• % of Sales• % Growth• Key new hires• Key promotions
• Six sigma look at ABC Process
• Need higher efficiency in XYZ
Last Year Re-cap
Accomplishments Opportunities
Takeaway Box
OVERALL BUSINESS STRATEGIES/OBJECTIVES
GT&OR IMPLICATIONS
Strategic Priorities/HR Implications
Takeaway Box
New Year Strategic Priorities/GT&OR Implications
Position TitleLocation
Position TitleLocation
Organization Structure
Takeaway Box
Position TitleLocation
Position TitleLocation
Position TitleLocation
Position TitleLocation
Position TitleLocation
Position TitleLocation
Position TitleLocation
Position TitleLocation
Position TitleLocation
Position TitleLocation
Position TitleLocation
Position TitleLocation
Position TitleLocation
Position TitleLocation
Position TitleLocation
Position TitleLocation
Position TitleLocation
Key Changes
•
•
•
Organization Structure: Management Layers & Spans
Management Layers
Strengths
• • •
President
Vice President
Director
Manager
Team Leader
IndividualContributor
c
TitleNumber of
IncumbentsNumber of Direct Reports
Average Range (min-max)
(#)
(#)
(#)
(#)
(#)
(#)
Weaknesses
• • •
Go Forward Actions
• • •
Months in Position (Avg)
Span of Control
(#-#)
Takeaway Box
(#-#)
(#-#)
(#-#)
(#-#)
(#-#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
(#)
Systems & Processes
Key Processes Process Effectiveness Factors New
Product Intro
Account Mgmt / Team Sales
Funnel Mgmt
Marketing (Sales
Support)
Customer Service
Fulfillment
Current Assessment Identified Gaps
a) World-Class Design -- Is the process a benchmark for other companies?
b) Integrated - Is the process aligned with other relevant functions?
c) Metrics – Can the process be tracked & measured?
d) Systems Capable – Is the process digitized?
e) User-Friendly – Is the process simple and intuitive to use?
= Total overhaul
= Moderate improvements
= Minimal improvements
Process Improvement Required:
Takeaway Box
Performance Capability
Takeaway Box
.
Advanced
Expert
Intermediate
Limited
Basic
TECHNICAL
STRENGTH
MARKETING STRENGTH
Brown, John
Jones, Steve
Anderson, Lori Ball, Beth Smith, Henry White, Dave
House, Mary
Basic
Averi, Lisa Bulkley, Abe Smith, Lori Black, Mike
.
Executive
Expert
Intermediate
Basic
Basic
TECHNICAL STRENGTH
SALES STRENGTH
Anderson, Lori Ball, Beth Smith, Henry White, Dave
Consultative
Averi, Lisa Bulkley, Abe Smith, Lori Black, Mike
Strategic
SalesSales MarketingMarketing
Degree Legend
Phd = RedMS = BlueMBA = Bold
Performance Capability (cont’d)
Takeaway Box
.
Expert
Expert
Immediate
Basic
Basic
TECHNICAL
STRENGTH
SERVICE STRENGTH
Brown, John
Jones, Steve
Anderson, Lori Ball, Beth Smith, Henry White, Dave
House, Mary
Functional
Averi, Lisa Bulkley, Abe Smith, Lori Black, Mike
.
Sophisticated
Expert
Intermediate
Limited
Basic
TECHNICAL
STRENGTH
BUSINESS ACUMENT STRENGTH
Brown, John
Jones, Steve
Anderson, Lori Ball, Beth Smith, Henry White, Dave
House, Mary
Basic
Averi, Lisa Bulkley, Abe Smith, Lori Black, Mike
Business AcumenBusiness Acumen ServiceService
Degree Legend
Phd = RedMS = BlueMBA = Bold
23
Organization Culture
Identity – Employees identify with the company as a whole rather than specific work group or field of expertise
Direction – Organization creates clear objectives and performance expectations
Control – Number of rules and regulations and amount of direct supervision used to oversee and control employees
Communication Patterns – Organization communication is restricted to formal hierarchy of authority
Integration – Units are encouraged to operate in a coordinated manner
Global Regional Site
L H
L H
L H
L H
Culture Dimensions
Takeaway Box
L H
L H
L H
L H
L H
L H
L H
L H
L H
L H
L H
•
•
•
•
Observations
24
PositionName
PositionName
PositionName
PositionName
Months in Position:Length of Service Date:
PositionName
PositionName
PositionName
PositionName
PositionName
PositionName
PositionName
PositionName
PositionName
PositionName
PositionName
PositionName
PositionName
PositionName
PositionName
Organization Chart
Promotability Legend
**
**
++
++
++
++
++
==
-- == ==
?? ??
?? ----
==
Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
==Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
Months in Position:Length of Service Date:
Takeaway Box
-- = Placement Issue
++ = Promotable
== = Grow in Position
** = High Potential
?? = Too New
Avg. Time in Position (in mo.) ___Avg. Length of Service (in mo.) ___Males ___ Minority Females ___
Results Rating
O = Outstanding %
V = Achiever %
P = Performer %
I = Improve. Required %P-3
V-3 O-3 I-1 O-2 P-2 P-2
V-2 P-2 P-3 I-2 O-4 P-2
I-1 P-2 O-2 I-1 P-2 v-3
Behavior Rating
4 = Role Model %
3 = Very Effective %
2 = Effective %
1 = Improve. Required %
++
25
.
Role Model
Outstanding
Performer/Achiever
Improvement Required
ImprovementRequired
RESULTS
BEHAVIOR
9 Block Talent Summary
Brown, John --
Jones, Steve --
Anderson, Lori **
Ball, Beth ++
Smith, Henry ??
White, Dave ++
House, Mary ==
Promotability Legend
-- = Placement Issue
++ = Promotable
== = Grow in Position
** = High Potential
?? = Too New
Effective/Very Effective
Takeaway Box
Averi, Lisa ==
Bulkley, Abe ++
Smith, Lori ??
Black, Mike ==
Leadership Development
• Improvement Required – Planned Actions• High Potential/Promotable Vitality – Planned Actions• Critical Contributors – Any Career Band• Succession Depth – Top Positions• Current & Future Talent Needs
(Bus. Segment/Comm. Operations Region/Global Function)
Timing of the planned actions: Use quarter/year designation (i.e. 4Q04)
Improvement Required – Planned Actions
Name PositionLocation
Career Band
Results - Behavior
Rating
Months in CurrentPosition
Length of Service
Date(Months)
Planned Actions/Timing: (developmental job assignment, training, redeployment, mentoring, out placement, etc.)
Retention Risk: Green = O.K. Yellow = Caution Red = High
Timing of next best move and planned actions: Use quarter/year designation (i.e. 4Q04)
(Bus. Segment/Comm. Operations Region/Global Function)
High Potential/Promotable Vitality – Planned Actions
Name PositionLocation
Career Band
Results - Behavior
Rating
Months in currentPosition
Length of Service
Date(Months)
RetentionRisk
Next Best Move
(Specific Title)
& Timing
Planned Actions/Timing: (developmental job assignment, training, redeployment, mentoring, relocation preferences/ restrictions, etc.)
Retention Risk: Green = O.K. Yellow = Caution Red = High
Timing of next best move and planned actions: Use quarter/year designation (i.e. 4Q14)
(Bus. Segment/Comm. Operations Region/Global Function)
Critical Contributors – Any Career Band
Name PositionLocation
CareerBand
Results - Behavior
Rating
Months in CurrentPosition
Length of Service
Date(Months)
RetentionRisk
Next Best Move
(Specific Title)
& Timing
Planned Actions/Timing: (developmental job assignment, training, redeployment, mentoring, relocation preferences/ restrictions, etc.)
30
Succession Depth – Top Positions
Position: Vice President of Marketing Incumbent: Gerald Moser [g]
Jack Black [g] B
Sarah Parker [~] B
Mike Davis [g] C
Position:
Incumbent:
Position:
Incumbent:
Position:
Incumbent:
Position:
Incumbent:
Position:
Incumbent:
Position:
Incumbent:
Position:
Incumbent:
Position: Director of AdvertisingIncumbent: Megan Millen [~]
Jake DeLong A
Jessica Jones [~] [^] [g] A
Katie Hines [~] C
Ready for Position
B = 1-2 years
A = Now
C = 3-5 years
Position:
Incumbent:
Demographics
[^] = Minority
[~] = Female
[g] = Global experience
Results Rating
O = Outstanding
V = Achiever
P = Performer
I = Improve. Required
Behavior Rating
4 = Role Model
3 = Very Effective
2 = Effective
1 = Improve. Required
A-4
O-3
A-3
A-2
O-2
V-3
P-3
Takeaway Box
31
Bus.Seg./Commercial Operations Region/Global Function
Current Open Requsitions Owners & Timing
Europe Director of Marketing Dole/Carter 4Q13
Position Opening Length: Green <45 days Yellow 46-75 days Red >75 days
Takeaway Box
Current & Future Talent Needs
Planned Headcount & Anticipated Turnover
Incumbents
Director of Engineering 4Q14 Jim Roads
Current Talent Needs Anticipated Future Talent Needs
Bus.Segment/ Commercial Operations Region/Global Function
Leadership Talent
Bench Strength
Systems & Processes
Structure Skill Mix
Strategy Business Results
Overall Status
Comments
Green = OK Yellow = Caution Red = Concern
Organization Assessment Summary
Takeaway Box
[email protected] • www.3Passociates.com * ph.716.909.2657 * People, Passion, Productivity, Profits
About Us3P Associates was founded in 2004 to continuously improve people; their passion, productivity, processes and profits.Human Resources Consulting from 3P Associates includes:•Team Building•Training in Leadership, Communication, Productivity•Employee Relations Investigation & Resolution•Employee Handbooks, On-boarding•Performance Management Systems•HR Audit and Strategic Process Improvement•HR Onsite Services: Short & long Term•Career Coaching & Resume ReWork™
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