Professional Documents
Culture Documents
Questions To Consider...
What % of your employees will retire in the next 5 years?
Questions To Consider...
What % of your employees are looking for other employment?
58%
Of employees are open to move to other organizations
Session Objectives
Briefly explore current trends Understand succession management versus succession planning and the alignment to employee retention Understand best practice processes and examine a few of the tools and methodologies being used Discuss the roadblocks and benefits of implementation Explore how to get started
Succession planning
Succession planning is: The process of ensuring a suitable supply of successors for current and future senior or key jobs arising from business strategy, so that the careers of individuals can be planned and managed to optimize the organisations needs and the individuals aspirations.
Who is responsible to ensure you have the people to get the job done?
Questions To Reflect On
If the dam bursts today, what is the impact to your organization? How would you replace the people, knowledge, lost productivity?
One Approach
Its not just about having the bodies. Its about the right bodies doing the right things.
To retain me, youve got to help me advance, keep the good people, and provide competitive pay.
%
48.4 42.6
3.
4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
41.8
31.8 25.1 23.0 22.0 17.0 16.5 16.0 13.6 12.6 10.5 10.3 7.7
Other Research
Retention Items
1. 2. Career growth, learning and development Exciting work and challenge
3.
4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
Hewitt and other organizations have conducted numerous studies over the last ten years to assess this relationship between engagement and business results and have found the following:
There is a significant link between employee engagement, customer loyalty, and profitability Engaged employees are twice as likely to be advocates of the company,its products, and services Engaged employees are more likely to stay with the company.
What is Engagement?
There is a proven correlation between engagement and retention.
Say
Speak positively about the organization to co-workers, potential employees and customers.
Stay
Have an intense desire to be a member of the organization.
Strive
Exert extra effort & are dedicated to doing the very best job possible to contribute to the organizations business success.
Engagement
Simply stated - if you are engaged you Speak positively Have an intense desire to stay Exert extra effort for our success
Scores from the following six questions are used to calculate the engagement score:
I would, without hesitation, highly recommend this organization to a friend seeking employment. Given the opportunity, I tell others great things about working here. It would take a lot to get me to leave this organization. I hardly ever think about leaving this organization to work somewhere else. This organization inspires me to do my best work every day. This organization motivates me to do more than is normally required to complete my work.
Say
Stay
Strive
What keeps employees happy and keeps them with an organization is influenced by all interactions they have within the organization. Retention, therefore, is part of the larger organizational system.
Quick Poll
Who has: No succession planning in place? Succession planning in place, but not sure it is, or will be, successful? A successful succession planning initiative?
Often highly political Little thought given to what kind of leaders required in the future Done secretly Focus on putting names in boxes (replacement) Few conversations held
Succession Management
Focus on individual development strategically aligned to future vision Leadership development can ensure that the potential identified through succession process is realized Result is long-term leadership sustainability through attraction, retention and development of talent
Succession Management
A key strategic initiative Cannot be done in isolation to other cultural and people oriented initiatives in the organization More than just putting names in boxes
Succession Management
Focus on integrating many elements of organization development High level steps need to be customized for each organization Leadership Pool approach is gaining in popularity (identifying all potential employees vs. positional replacements)
There are no recipes or formulae, no checklists or advice that describe reality. There is only what we create through our engagement with others and with events.
(Margaret Wheatley, Leadership and the New Science)
Challenge is not the model its what goes on in the organization during implementation. Bumps up against other elements culture, performance, having conversations, and, change ORG. TALENT REVIEW assess both current performance and leadership potential. Key here is ability to have meaningful conversations some organizations start with replacement SP and move to SM (integration of LD) laterbut there still needs to be assessment on current performance and future Leadership. Some try pilots in one department the first year, or key levels only. Need to determine
Succession and leadership aligned to the vision, critical business issues/skill gaps Executive commitment Develop leadership competencies Develop a succession management roadmap
Folio Map
5.0
New in Position/High Potential High Performance and Potential
Outplacement
3.6 Performance
5.0
Low
J JJ J J J J J J J J J JJ J J JJ JJ J J J J JJ JJ J J J J J J J JJ J J
J J
J J J J J J J
3.6
Our leadership Talent Pool The bar is a rating of 3.6 or above on potential Must be at least competent in each of the Standards of Leadership 1.0 High
Performance
Folio Map
Permits participants to identify specific developmental actions for employees Assists conversations regarding next steps Shows progress from year to year
Critical Positions/People*
Ensure replacements for these positions/people
Critical Position A critical position in the organization that is imperative to running the business. Key strategic importance to have back fill. Critical Person A critical person in the organization which would result in a significant adverse impact on the business if the person left. * Johnson & Johnson definitions
Example
Multi-level ownership
CEO Reviews plan to monitor corporate future President/Sr. VP Review functional plans & Develops Company level plan Functional Area/Company Managers Identifies high potentials across area Drafts succession plan Manager Discussion with employee & functional manager re. development/succession Employee Create Development Plans & Performs Leadership Assessment
Succession Management
Retention
take the information gathered through succession management and translate it to retention?
File it away
Talk to those people youve identified as having potential. Are they happy? What do they need? Think about the lists of employee retention items and ask questions about those items. Make sure they know how valued they are! Data from exit interviews consistently reveals that employees who leave organizations did not know how valued they were. Often, they had no idea they were viewed as being in succession for a more responsible role.
This is where investing in developing leaders at all levels in the organization can really help. Managers need help having these types of conversations. They need to develop coaching and mentoring skills to ensure successful development of their team.
14
Leadership Effectiveness
good leaders produce good results for their organizations. In fact, good leaders are more effective than bad leaders in almost every dimension, including improving productivity, employee retention, enhancing customer service, and creating high levels of employee commitment. These next few slides show the impact of the best and worst leaders on achieving bottom-line results. On the X axis we have leadership effectiveness shown in percentiles.
79 51
19
Bottom 10%
Middle 80%
Top 10%
Leadership Effectiveness
Leadership Effectiveness
Measures
Define up front what you want to achieve in the broader scope Thenonce succession data gathered, define specific measures, timing and accountability. Measure regularly. Track development of talent, and their progress, regularly over the long term. Assign accountability to managers for progress, assign mentors, reward
Specific measures can include: Decrease turnover of high potentials Increase movement of high potentials to other areas of company Decrease spending on ? Training Leadership development ROI Decrease recruitment costs Develop lower performers to higher level or terminate low performers by. Measure productivity Change reward systems to attract and retain high performers -
Employee Conversations
Challenges
Time Buy-in Lose sight of big picture administrative nightmare Employee/manager conversations Cultural biases Resource issues that arise
Keys to Success
Top management must buy-in and be active participants Link succession efforts to needs and strategic objectives of the business Minimize paperwork and bureaucracy Make succession and leadership development a constant preoccupation
Keys to Success
Identify high potential talent early devise strategies to retain that talent Recognize that effective succession management is not fast Spend time to evaluate results and provide feedback to stakeholders
Keys to Success
Ensure leaders have an opportunity to apply the skills they are learning Ensure everyone is, and can be, responsible for their own development Ensure effective role modeling of leadership excellence Measure behaviour change
Discussion
Where should we start? What will be easy? What will we stumble over?
Resources
War for Talent McKinsey & Co. Leadership Pipeline Ram Charan Grow Your Own Leaders W. Byham Effective Succession Planning W. Rothwell Love Em or Lose Em Kaye & JordanEvans Centre for Creative Leadership www.ccl.org Statistics Canada www.statcan.ca/ The Extraordinary Leader Zenger & Folkman