Succession Planning

Identifying & Developing High Potential Leadership Talent A Tutorial Presented to IPMAAC Orlando, Florida 5-20-2005

Charles Brooks Georgia Merit System Workforce Planning bro@gms.state.ga.us 404-314-1976 1

180 160 140 120 100 80

70 19

90

80

10

US A
00 20

200

35- to 44-year-olds in the U.S.

Index 1970 = 100

=1

5%
19 19

220

USA

Germany

UK

20

Italy

2 US Bureau of Census, International Database

20

20

dr

Shrinking of Traditional Leadership Pools

op

Consider
Between 1970 and 1980
Workforce Segment Aged 25-34 increased 72.4% Workforce Segment Aged 55-64 increased 5.5%

Between 1996 and 2006

Workforce Segment Aged 25-34 Will Decrease by 8.8% Workforce Segment Aged 55-64 Will Increase by 54% 3

Do you have this problem?

60% of Georgias workforce is over 40 years of age? 21% of all Georgias managers can retire in the next 5 years? 20% of Georgias employees are currently eligible to retire?
4

What about this?

43% of Georgias employees have less than 5 years of service? 45% of new hires in 1999 left state government within 5 years? $267 million cost of turnover for the 414 jobs targeted for workforce planning last year?
5

Succession Planning
National Academy of Public Administration (NAPA) provides a useful definition:
"a deliberate and systematic effort to

1. 2. 3. 4. 5.
6

identify leadership requirements, identify a pool of high potential candidates, develop leadership competencies in those candidates through intentional learning experiences, and then select leaders from among the pool of potential leaders. We add evaluate success

Georgias Flexible Succession Planning Model Georgias

Pre-plan

Communicate Plan Plan

Communicate

Identify Leadership Characteristics

Assess Bench Strength

Identify Talent

Develop Talent

Evaluate Succession Planning

Measurement Highlights pg 2

1. Pre Planning
A. Create succession planning team B. Establish program objectives C. Establish measures of success D. Establish program design E. Develop implementation plan
B & C Succession Planning Measures p 3 D Decision Guide pp 4 & 5

E Sample Workforce Strategy Action Plan pp 6 & 7

2. Communication Plan
Why is the Communication Plan Important?
Builds participant buy-in Combats Resistance Rampant misconceptions Uncontrolled releases of information Skepticism
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2. Communication Plan
Possible Measures of Communication Success
# of people attending forums # of requests for information packets # of hits to succession planning page on Intranet Survey employees Succession Planning awareness 10

3. Identify Leadership
Requirements
Competencies
Intensity Scope of Operations

Results

For Each Level in the Hierarchy

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The Hierarchy

12

The Hierarchy
CEO Executive Middle Managers

Front Line Managers

Front Line Contributors & Team Lead

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Critical Crossroads
Mega Co m missione ro r COO
Leading Function to Leading Business
to r ega Direc rM issioner o Comm

Leading Business to Leading Business Group

Director s Manager of Manager Manager e rformanc pe dividual In

Leading Managers to Leading Function

Managing Self to Leading Managers

Managing Self to Managing Others

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Charan, Drotter & Noel, The Leadership Pipeline, Jossey-Bass, SF, 2001

Levels of Leadership Accountability

Innovation Level
Growth Horizon 3 Strategic Investments To Secure Long Term Future and Enterprise Sustainability Growth Horizon 2 Build New Business For Medium Term Mission Success

Planning Resource Horizon Management 20 to 50 years 10 to 20 years 5 to 10 years Allocate investment among BU groups Allocate investment among BUs Allocate investment among functions Allocation of old & new functional investments

Results Purpose

Leadership Entire Enterprise

Customer Future Global Society

VII VI V IV

Global Enterprise Purpose Stewardship / Citizenship New Business Models Develop Future Business Systems

Prioritized Allocation Unified Business System Future Services, Products, Technologies, Customers, Markets

Giant Agency, Future Group of Regional Agencies Society Entire Business Unit Multiple Functions Future Community Future & Current Segments

2 to 5 years

Allocation Create Current 1 to III Leadership 2Accountability p 8 Levels of Processes years of people, Best Practice equip., Growth & Systems
Horizon 1 Defend & Extend Core Business

premises

Function / Groups / Teams

Current Groups

Continuous Scope II Impact Scales Others9 & 10 of Quality / pp Up to 1 material, Continuous Improvement Improvement year equip, time

Others Self

Current group Current single

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Service

Up to 3 months

Self, use of expertise

Quality

Competencies are the underlying characteristics of people that allow them to effectively perform in a job Core competency models allow agencies to identify competencies common to the success of a specific leadership level
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Identify Leadership Competency Model

For Each Level of Leadership: Identify Subject Matter Experts (SMEs) Define Common Responsibilities Identify Competencies Associated with Common Responsibilities Determine the Most Important Competencies Identify the Levels of Competencies Needed to Successfully Perform
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Senior Leadership Competency Model pp 11

Balanced Leadership Results Employees & Teams Customers Processes Business & Mission
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Balanced Results Survey pp 12

. Assess Bench Strength

Measures an organizations ability to fill critical vacancies from within Basis measure of SP success

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Sample Bench Strength Assessment

Targeted Positions Position # Leadership Level # of People Ready Now Positions with at least 1 person Ready Now # of People Ready in 1-2 years (Optional) Positions with at least 1 person ready in 1-2 years (Optional)

HR Director Director of Construction Customer Service Manager HR Manager

01 02 03 04

MidLevel Senior FrontLine MidLevel

0 3 2 0 X X

1 4 3 0

X X X

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. Identify Pool of High Potential Potential

Potential

Future work potential is based on accumulated skills and experience as evidenced by past achievement, ability to learn new skills and willingness to tackle bigger, more complex or higher quality assignments.
Charan, Drotter & Noel, The Leadership Pipeline, Jossey-Bass, SF, 2001

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Hi Potential Pool
Commissioner Multi-Function/Division Managers Middle/Function Managers Frontline/Team/Project Managers Individual Contributors & Team Leads 22
Byham, WC. (2004) Taking Your Succession Management Plan into the 21st Century: A Whitepaper, Pittsburgh: Development Dimensions International, Inc.,

Identify High Potential Pool

Combine competencies and results
Talent = Talent = Doing the right things Getting the right results

f(Competencies x Results) [(GC + CSE) (SoI)] [BR] - D

[(Generic Competencies + Career-Specific Expertise) x (Scope of Impact)] x [Balanced Results] - given no derailers

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Talent Assessment Process

PRE-SCREEN
Assess against pre-established minimum entry requirements

FORMAL ASSESSMENT
Assess against pre-established leadership characteristics

Self-Nomination Management Nomination 24

Competency Scope of Operation Leadership Results

Performance-Potential Grid Talent Matrix

Doing the right things
~20% ~70% C C B/A B A B/A Based on competency ~10% D B B intensity and scope scores ~10% ~70% ~20% Acting the right Getting the right results way Based on balance results scores Manifesting the values AND reviews of results HOW one Expected distribution & how one performs stacks up compared to others How WELL one performs 25

Talent Matrix
Doing the right things
Diamond in the Rough?
Loose Cannon? Problem child?

Future All Around Star

Consistent Star
Fully developed Excellent in role Needs more responsibility

7 Future Utility Player Utility Player

Solid citizen Adequate in role

3 Utility Pro
Fully competent in role Still developing Nearly ready for more responsibility

8 Take action now

Not developing Not competent No potential In wrong job Move out

5 Future Pro
Still developing Not yet exceptional in role Has potential to improve Monitor development

2 Technical Pro
Fully competent in role Reached their potential

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Getting the right results

Who would you promote to the open position?

Open

B B

A A

C C

C C

C C

B B

A A

A A

Identifies talent gaps functional, geographic, diversity mix, etc. Reveals scale of recruiting needed in the next year or two Identifies any issues/challenges affecting the talent pool

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development shortfalls, retention problems, weakness in the value proposition, etc.

The War for Talent

Affirmation and Differentiation
Performance / Potential Grid
High

PO PO
Potential
(Competency Proficiency & Scope of Impact)

HI PO
LO PO & MID PO

PO PO PO PO PO PO
Balanced Results
High

Low Low

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(Employees, Processes, Customers, & Mission Outcomes) Adapted from Michaels, et al, War for Talent, 2001

Career Record

All Employees Talent Management

Performance Record

Combines Succession Planning and Employee Development Executive

Discussion & Decision Differentiate Workforce

Individual Development Plan (IDPs)

Objective Assessment Process 29

Hi-Pos Accelerated Leadership Development Processes

Nelson, S (2003)Talent Management: How To Do More With Less, OD Summit Showcase/Presentation, Cambridge MA: Linkage, Inc. Nelson, S (2003)Talent Management: How To Do More With Less, OD Summit Showcase/Presentation, Cambridge MA: Linkage, Inc.

Talent Assessment Program

Product Demonstration

Talent Assessment Program

Menu
Click on any of the following to experience a demonstration of Talent Assessment Program

Administering Multi-Rater MultiSurveys

The GMS Survey of Leadership Potential

Survey Results and Program Outputs

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Talent Assessment Program

Administering Multi-Rater Surveys

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The first step to administering assessments for succession planning with TAP is creating an assessment.

A succession planning coordinator or assigned committee member can create a custom survey based on the level in the organization that is being targeted for succession planning. Click here to see the Assessment Wizard.

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To setup an assessment for a group of candidates for selection into a development pool for senior leadership, Executive/Senior Leadership is selected in this step.

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Depending on which organizational level an assessment is targeting, the Assessment Wizard provides the corresponding competency model.

TAP is preloaded with leadership competency models which are based on an analysis of leadership needs in state government in Georgia.

If a preloaded competency model needs to be modified for an organizations specific needs, that option can be selected here.

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Candidates with the highest with average scores ranking in the upper percentile ranges For example, if 10% for both Potential and Results. is selected here, only
candidates with scores in the top 10% for both Potential and Results will appear in the top right box of the Talent Matrix.

Upper percentile ranges are set using this drop-down menu. This pre-sets the Talent Matrix display and related assessment leadershipThe default setting is 15%. potential are those reports.

10.0 15.0 20.0 25.0 33.3

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GMS_SrLdr_Assmnts_FY06 Assessment_0384

In the final step, the Assessment Event can be given a custom name for ease of reference within the application and to provide meaning when the event is seen on reports or communicated in meetings. Click on the Assessment Name box to enter a custom name for this Assessment Event.

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Once an assessment has been created, individuals may be linked to the assessment as a candidate or a rater using the Add/Edit Employee Data features accessed with this button on the main menu.

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Talent Assessment Program

GMS Survey of Leadership Potential

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After an assessment has been created and after candidates and raters have been entered into the program, raters may login and complete assessment surveys.

This button is clicked to begin an assessment survey.

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Raters select the candidate they will be rating. In the candidate selection drop-down box, raters will see only candidates that have been assigned to rate. Click here to continue.

Jim Benson Diane Anderson Diane Anderson Jim Benson

Indicate relationship.

Click Start to begin survey.

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The first of three sections is the Competency Assessment. The Competency Assessment measures competency proficiency.

Competency items are included based on the competency model selected when the assessment is created.

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Competency items mirror competencies in Georgias competency dictionary, G-COMPS.

Each Competency Assessment item is an actual competency definition from the G-COMPS dictionary.

Response options are the behavioral indicators from G-COMPS rating scales, which are specific to each particular competency.

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The second section is the Scope Assessment. The Scope Assessment measures Scope of Impact.

Scope items are included based on the competency model selected when the assessment is created.

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Scope items mirror competencies in Georgias competency dictionary, G-COMPS.

Each Scope Assessment item is an actual competency definition from the G-COMPS dictionary.

Response options present the levels of impact from G-COMPS impact scales, which are specific to each particular competency.

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The last section is the Results Assessment. The Results Assessment measures Balanced Results.

Survey items from the results domain are presented in a Balanced Scorecard framework.

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The last section is the Results Assessment. The Results Assessment measures Balanced Results.

Survey items from the results domain The four Balanced Results categories areinclude (1) Employee Outcomes, presented in a Balanced Scorecard framework. (2) Process Outcomes,

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The last section is the Results Assessment. The Results Assessment measures Balanced Results.

The categories include Employee (3) Customer Outcomes and Outcomes, Process Outcomes, (4) Business Results/Cost Outcomes.

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Raters use this 5-point scale to rate the Candidate in achieving each result item. Raters are asked to base responses on actual results achieved or produced.

This is the last page of the survey. Raters click Finish to submit survey responses.

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Talent Assessment Program

Survey Results and Program Outputs

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Multiple users can can view and/or print scoring results from multi-rater assessments. Click here to view assessment results

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Sr_LdrShp_FY05

Frontline_FY05 Frontline_FY05 Mid_Mgt_FY05 Mid_Mgt_FY05 Sr_LdrShp_FY05 Sr_LdrShp_FY05

Click here to see This report provides assessment results a table viewfor a particular of Assessment Event. assessment scores.

Assessment results are viewed by Assessment Event. Each Assessment Event includes candidates being considered for development at different levels In table within the organization. view, the report

can be sorted by Name, Potential or Results. Click the Sort By box to sort by Results.

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Sr_LdrShp_FY05

This report provides To see these individuals in a table view of a Matrix view, click the assessment scores. Matrix button.
Last Name Last Name Potential Potential Results Results

In table view, the report can be sorted by Name, Potential or Results. These individuals have the highest average ratings for the Click the Sort By box to the survey. Results section of sort by Results.

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Sr_LdrShp_FY05

Scroll down to view Scroll down to view entire Talent Matrix entire Talent Matrix Area. To scroll down, Area. To scroll down, click here. click here.

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Sr_LdrShp_FY05

The Talent Matrix sorts candidates based on multirater assessment scores for Potential and Results.

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This view allows you to quickly and easily see which candidates received the highest ratings in both Potential and Results. These candidates have high-potential for future leadership positions in your organization.

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An Individual Assessment Report is printed when you double-click on any candidates name. To see a sample of an Individual Assessment Report, click here.

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Click the Next Click the Next button to continue. button to continue.
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Sr_LdrShp_FY05

To view a sample of a To view a sample of a printed report for the printed report for the Talent Matrix, click here. Talent Matrix, click here.

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Click the Next Click the Next button to continue. button to continue.
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Click here to toggle back Click here to toggle back to Table view. to Table view.

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Sr_LdrShp_FY05

To view a sample of a To view a sample of a printed report for the printed report for the table view of the table view of the Candidate Assessment Candidate Assessment Report, click here. Report, click here.

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Click the Next button Click the Next button to continue. to continue.
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Talent Assessment Program

Product Demonstration

 Pool gets structured development activities Targeted to close individual gaps Develop for job levels not specific jobs
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Where Learning Takes Place

b jo sk 4 Primary Approaches s, ta g& n n io ts, ori hing t rk al Ment ac ta en n ro m io l wo ion ips Co s h b gn ct a g, fes ns Jo si , a , re ro tio % ni n s s ce g P la 3 a r in ar re -le tu o rn Re 1 f a E ec al L le orm ing F n Key rai 13% T Assig nmen Off the job ts onal fessi ns, Pro iatio Activities ssoc , etc. A 13% C MA A IP

61%

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GROW GREAT LEADERS

High

Company effectiveness

Stretch/ developmental jobs

Feedback/ mentoring Formal training Low Low High

Importance to learning

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Source: War for Talent 2000 survey

Development Matrix
Link to Ft & PT Job Assignments Cross-Functional Move Coach / Develop Coach / Develop Move Out-next year To continue towards To be an exceptional To a larger job at the full performance performer same or next layer Develop for current role Develop for current role Move em or loose em 7 3 Develop for future role 1

Input for development discussion

Within-Function Move
Coach / Develop To be an exceptional performer Develop for current role Move Out - next 1-2 yrs To a job at the same level Plan multiple moves Ensure pay is sufficient 5 Develop for future role 2

Coach / Develop for current role To become fully performing

Move/Promotion Not Considered

Leverage mastery for Coach / Develop Coach / Develop for benefit of the To become fully Development Grid pp 13 performing or current role organization Move out - next 12 To be an better performer Develop for current role months 9 6 4

RIF?

Input for performance discussion

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Link to Reward (Base Salary, Performance Increase )

10 Great Part-Time Assignments

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 70 Re-launch a product or service thats failing. Launch a new product or service Manage a fix-it/turnaround Manage a rapidly expanding product/ service Prepare & make a strategic proposal to top management Take on an assignment where others have failed Manage a start-up Create a new product/ service from scratch Manage an unpopular change Chair a multi-functional team solving a tough issue
Courtesy of R. Eichinger-Lomininger Ltd.

Open

B B

A A

C C

C C

C C

B B

A A

A A

Who should be assigned a mentoring role?

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5.

Hire Managers & Leaders

Standard merit-based hiring event Match people to jobs based on competency profile fit May have to look outside your organization
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The War for Talent

Performance / Potential Grid
High

PO PO
Potential
(Competency Proficiency & Scope of Impact)

HI PO
LO PO & MID PO

PO PO PO PO PO PO
Balanced Results
High

Low Low

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(Employees, Processes, Customers, & Mission Outcomes) Adapted from Michaels, et al, War for Talent, 2001

Evaluate Succession Planning

Collect, analyze, and interpret data on effectiveness of communications and succession development
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Measures of Success
1. One or more well-qualified internal candidates are prepared and ready to assume each key job (i.e., ready list) 2. A record of successful promotions (or lateral placements); few people fail 3. Few superior performers leave the organization because of lack of opportunity

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Subjective Measures
EXAMPLES:
1. 2. 3. 4. 5. workforce perception of discrimination--ethnic, gender, age, etc. perceptions of fairness understanding the promotion and placement process morale & employee satisfaction scores perceptions of a clear career path, development options

6. stakeholder perceptions of managerial and executive competence 7. 8. confidence in primary and alternative candidates perceptions of bench strength for key positions.

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References pp 14

Lets Do it Again!
Charles Brooks Georgia Merit System Workforce Planning bro@gms.state.ga.us 404-314-1976 77