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Talent pipeline approach to career and succession management: Dr Stanley Arumugam 2006 Knowledge Resources Conference

Career Succession Management Aug 06

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Page 1: Career Succession Management Aug 06

Talent pipeline approach to career and succession management:

Dr Stanley Arumugam2006Knowledge Resources Conference

Page 2: Career Succession Management Aug 06

Presentation overview

Career and Succession Management PrinciplesThe succession management challenge

Understanding supply and demand dynamics

Identifying and assessing your leadership talent pool

How can you grow your succession pool

Key success factors for succession management

Sasol Career and Succession Management Case ExamplesBusiness case informing supply-demand dynamics

Using the Leadership Pipeline as a framework

Bursary and graduate development – feeding the talent pipeline

ALDP – building leadership capacity through accelerated development

Page 3: Career Succession Management Aug 06

Succession management – a key business issue

Page 4: Career Succession Management Aug 06

The succession challenge

Strategy vs. Succession

Dangerous assumptions made by executives:

Assume leadership is a givenLeadership only exists at the topImported leadership provides instant capacityTalent is infinitely resilient and will rise to any challenge

Page 5: Career Succession Management Aug 06

Succession – Relay

individuals > teams

what > how

now > legacy

patriarchy > stakeholder

great companies

lessons learned

Page 6: Career Succession Management Aug 06

Six mistakes that can undermine succession management

MISTAKES

1. Focus people’s development on a specific job (replacement planning)

2. Inaccurate identification of potential leaders

3. Poor diagnosis of development needs ‘one size fits all’

4. Having a limited range of development solutions

5. Development plans are never put into action

6. No ongoing support and reinforcement by senior management

SOLUTIONS

1. Build a robust system of talent pools to meet immediate and emerging business needs

2. Be more systematic in selection 3. Results based vs. competency

based diagnosis4. Be more creative in identifying

development options5. Ownership by immediate manager

and mentor 6. Senior management must drive

the system

Managing succession risk !

Page 7: Career Succession Management Aug 06

What leadership capacity is available ?

“Lieutenants in good standing

The CEO’s ‘network’

High priests

Emerging leaders

Old warriors

Catalysts

Leadership supply and demand

Capacity is a question of who has the skills for a particular task and how much time they have to spend on it”

Page 8: Career Succession Management Aug 06

Strategies for building a strong leadership pipeline

Growth strategies

1. Career management - leaders

2. Structured leadership development involving action learning

3. Purposeful rotation into challenging job assignments

4. Shadowing more experienced leaders in valued roles

5. Bursary and graduate development

6. Leading change and transformation projects

7. Accelerated leadership development programmes

Acquisition strategies

1. Proactive recruitment

2. Headhunting for critical posts

3. JV leadership mobility

4. Industry and national partnerships

5. Turnaround leadership

6. Leadership catalysts

Growing Talent Pools

Example: GE – Fortune 500

Page 9: Career Succession Management Aug 06

Growing internal talent pools

Ref: DDI

Page 10: Career Succession Management Aug 06

Sasol’s integrated value chain

Exploration and Production

Syngas Production

Fuel products

Co-products

Chemical products

Fisher Tropsch Conversion

coal

natural gas

feedstock

crude oil

Refine & blendFuel components

Chemical processesChemical

components

3rd party producer

Source: Sasol

planning

picking

preparing

placing

performing

Page 11: Career Succession Management Aug 06

Employment Value Proposition key strategy for growing the talent pipeline

People

Organisation Work

Opportunity

Rewards

5 EVP

Categories

Increase the size of the available talent pool

Increase individual-organisational fit

Improve employee commitment and retention

“organisations with managed EVP’s are able to effectively source from more than 60% of the labour market” CLC 2006

Page 12: Career Succession Management Aug 06

Business case: career and succession management Strategic “themes”

Financial

Operational

Organisation

Workforce requirements

Labour market realities

Workforce strategies

Growth Globalisation Gearing EVA

GTL/CTL hubs

Integrated chemicals business SA growth Operational

safety

Joint ventures

Shared services

Integrated facilities

± 1000 secondees

> 6000 local hires

Leadership in complex environments

Technical skills and experience

Transformation

GTL industry growth

DG shortage in SA

SA growth, projects

Global skills shortage

Accelerated sourcing

Leadership development

Technical development

Retention

Skills transfer

Organisational health Multifaceted diversityRetirement

waves

New ventures Existing businessTransformation

Succession Management

10 Year People Planning

Page 13: Career Succession Management Aug 06

Assessing leadership capacity

Sasol Leadership Pipeline Sasol 9 Box Talent Review

3 Year PERFORMANCE (Track record and behaviours)

  Not yet full1-2

Full Performance3

Exceptional4-5

Po

ten

tial

Tu

rn

David Noko (5)James Briggs (7)Sarah Morobe(3)

Mpho Zondi(5) Toya Tambo(1)Cynthia Sithebe(2)

Gro

wth

Bongi Ntuli(6) Brian Bennet(6)Bev Jensen(4)Trever Naidoo(9)

Doreen Selebe(5)

Ma

ste

ryAndy Dlamini(12)Vukani Mlaluka (5)George Masondo(7)

Frank Moodley(12) Ron Everest (8)Simone Shelly(11)

health of the leadership pipeline

critical talent pools and supply dynamics

understanding our internal talent

# 1# 1

# 3# 3

# 5# 5

# 6# 6

# 4# 4

# 2# 2

1. Manage Self

2. Manage Others

4. Functional Manager

6. Group Manager

3. Manage Managers

7. Enterprise Manager

5. Business Manager

Page 14: Career Succession Management Aug 06

Identifying, selecting and developing leaders

Corporate

Talent Review

Pipeline-9 Box

BU

Dept

SBU

Division

CBP’sCareer & Succession

AssessmentWhat?• performance• potential

How ?

Performance Review

Pipeline CDI

Psychometrics

CPA

Style

Outcome?

PDP

Career Coaching

Talent Management

Strategies

• Leadership development• Purposeful rotation• New assignments• Re-deployment• Coaching roles• Shadowing roles• Project management

10 Year People Plan

Page 15: Career Succession Management Aug 06

Risk & opportunities strategies

Supply and Demand Mitigation Plans

Macro Supply

Macro Demand

Sasol Demand↑ Gap

↑ Talent War

Potential Risk to Sasol

CSI Partnership

(Growing the pipeline)

Focus on English, Maths & Science education

Schools participating:

FY 05/06: N = 80

FY 06/07: N = 150Alignment to ensure

dedicated talent pipelines

Strategic Talent Planning

’10 year people plan’

Growth Strategy & People Planning

Graduate

Spend

EE Targets

240

185

99

23

246

207

103

23

207

175

81

17

199

161

86

18

256

193

116

23

0

100

200

300

400

500

600

2003 2004 2005 2006 2007

White African Indian Coloured

Business Growth Needs

Retention Risks

BU ownership

6-12% turnover

Key Levers:

Org Culture, Remuneration,

Challenging Work

Retention Plans

Graduate Development

2 x 18 month rotational

programme

CBP/BU ownership

Building the national skills pool

Align to National Skills Initiative (JIPSA, AGISA)

• New Talent Pool

• Unemployed Graduates

National Skills Partnership

Dedicated Sasol Employee Bursary

Scheme ‘EVP’

Internal & External PR and Comms

Increase Employment Brand Equity

Technical Skills Bursaries

Increasing business need for technicians, technologists

Strategic

Recruitment

Supply 2005 Supply 2006

N = 500

81 Bursaries

N = 1678

195 Bursaries

335%

Page 16: Career Succession Management Aug 06

ALDP Candidate Mapping on the Integrated Managerial / Technical Pipeline

# 1# 1

# 3# 3

# 5# 5

# 6# 6

# 4# 4

Manage Business

ManageGroup

Manage Multi-function

Manage Self Expert/Consultant

Manage Others

ManageEnterprise Function

Manage Self Operational

# 2# 2

Manage Self Technical/Professional

Manage Function

Manage Managers

ManageEnterprise

# 7# 7

ManageEnterprise

Sub-Function

Quality

Service

Practice

Strategy

7

5

9

5

N=26

Page 17: Career Succession Management Aug 06

The End – Questions ?

[email protected]: 011-4413148Group HRD – SASOL