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Surviving the “Retirement Wave”— Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18, 2009 Dr. Frank Benest Palo Alto, CA (650) 444-6261 [email protected]

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Page 1: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

Surviving the “Retirement Wave”—Lessons Learned in

Preparing the Next Generation of Finance Directors

CSMFO Annual Conference

San Francisco

February 18, 2009

Dr. Frank Benest

Palo Alto, CA

(650) 444-6261

[email protected]

Page 2: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

Let’s Start with 2 Questions:

1. In the minds of line employees and support staff, what are the images of the work of senior management?

2. From your perspective, what are the rewards, benefits, and joys of senior management?

Page 3: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

Overview

Demographic Crisis for Local Government Focusing on Talent Development Importance of People Skills Succession Planning Obstacles Ten Lessons Learned Resources and Questions

Page 4: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

The Demographic Crisis

• The Numbers80 million Baby Boomers (1946-1964) leaving

economy50 million Gen Xers (1965-1981) replacing

them

• Large “Talent Replacement Gaps”

Page 5: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

Age Distribution of Gov. &Private Sector Workers – 2001

0

5

10

15

20

25

30

<25 25-34 35-44 45-54 55-64 65+

Gov.Private

Page 6: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

City of Palo AltoOrganization Chart

City Manager

Asst City Mgr

Asst to the CM

Asst to the CMExec Asst to CM

Office Specialist

Public Comm Mgr

Office Specialist - Reception Desk

Administrative Asst

Director, CSD (#

Director, ASD

Director Libraries

Fire Chief

Dir Human Res

Dir Pln/Com Envn

Dir PW/Cty Eng

Director Utilities

Police Chief

City Manager’s Office

Page 7: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

City of Palo AltoOrganization Chart

Page 8: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

City of Palo Alto’s “Retirement Wave”

50% of Management and Professional Employees are eligible to retire in three years

35% say they will definitely retire

Page 9: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

Talent Development

The GoalsCreate “leader-full” organizationDevelop a pool of talent able and ready to

step into leadership positions at top levels and throughout organization

Page 10: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

Talent Development

Historic ViewTalent Development = classroom training

Contemporary ViewTalent Development = series of “stretching” job experiences coupled with helpful and candid coaching

Page 11: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

The Importance of People Skills

Top Mgmt

Mid Mgmt

An

alytic SkillsTechn

ical Skills

Peo

ple S

killsLower Mgmt

80 percent of management failure is related to poor people skills

Technical S

kills

Peo

ple S

kills

Page 12: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

Succession Planning--Key Steps--

1. Identify key talent2. Assess readiness to advance3. Offer array of development opportunities

Examples: Cal-ICMA Coaching Program

Management Talent Exchange Program Action Learning Teams Interim or Special Assignments

4. Create development plans5. Monitor progress

Page 13: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

“What are the barriers in my organization to undertaking an

effective talent development and succession planning effort?”

Page 14: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

Barriers

•Early retirement•Few monetary incentives to move up•No one perceives rewards and joys of leadership•“Quiet Crisis”•Talent development is not a primary responsibility of senior managers•Management is overwhelmed with “adminis-trivia”•Few leadership development and coaching programs to support succession planning•Over emphasis on technical training and knowledge

Page 15: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

Ten Lessons Learned

1. Ensure leadership from top

2. Make “talent development” a primary responsibility of senior managers

3. Target efforts but make development opportunities available to all

4. Integrate “growing leaders” into strategic plan

5. Go beyond classroom training to provide job experiences that stretch aspiring leaders

Page 16: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

Ten Lessons Learned (con’t)

6. Provide array of opportunities

7. Align all organization systems

8. Partner with governing board and unions

9. Place responsibility on employee

10.Allow mistakes

Page 17: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

Resources Cal-ICMA Coaching Program

www.cal-icma.org

Municipal Management Associations and/or International City/County Management Associationwww.mmanc.org or www.mmasc.org www.icma.org

Management Talent Exchange Program www.cityofpaloalto.org/mtep

Contact Frank Benest at [email protected]

and request:

Case Study: Palo Alto’s “Growing Our Successors” Initiative

Page 18: Surviving the “Retirement Wave”—Lessons Learned in Preparing the Next Generation of Finance Directors CSMFO Annual Conference San Francisco February 18,

• Questions?

• Perplexing Issues?

• Concerns?

Thank you!www.frankbenest.com