Webinarslides 03 30 2011.Pdf

Managing SuccessionCreating Sustainable Leadership Bench Strength For An Uncertain Future

Presented by: Michael Haid, Senior Vice President Talent Management, Right Management

Moderated by:Shari Fryer, President, Shari Fryer & Associates

11:00am to 12noon ET, March 30, 2011

Overview

Key Trends

Defining Succession

Benefits

Global Insights

Best Practices

Case Studies

Discussion

2 © 2011 Copyright Right Management

Submit questions as they come to mind using the Q&A feature on your screen

Meet Right Management


Talent and career management experts

Leaders in the creation and delivery of services that enable our clients to win in the changing world of work

Wholly-owned subsidiary of Manpower Inc.

Founded in 1980

Serve 80% of Fortune 500 and 70% of Global 500

Poll


Do you have future leaders identified for critical roles in your organization?

o Yes, for all critical roles

o Yes, for most but not all critical roles

o Yes, for some critical roles

o No, not for any critical roles

Poll No. 1

Key Trends Impacting Succession in an Unpredictable Business Climate

“Companies often acknowledge that leadership development is important

but rarely back that up with action.”

David Larcker, Professor at Stanford Graduate School

of Business, as reported in the Wall Street Journalon January 24, 2011


The World is Changing

7

Demographics/Talent Mismatchis deepening as working age population declines and nature of work changes

TechnologicalRevolutionshave power to change where, when and how we work

IndividualChoiceexercised by those and most in demand skills

RisingCustomerSophisticationrequires businesses to work in new ways, driven by innovation, value and efficiency

© 2011 Copyright Right Management

The Consequences of a Weak Pipeline

More than half of companies can’t name a successor to CEO (Source: Stanford University)

Succession management dwindles down the ranks:

– More than half of companies implement succession management for their most senior executive levels

– Fewer than 40% include mid-level managers

– 11% include first-line supervisors

– Only 12% of programs are integrated with talent management, performance management or employee development

(Source: Bersin & Associates)


The Pressure is On!

40% of corporate board members are unsatisfied with succession plans

(Source: Egon Zender)

Organizations that include middle managers or even all employees in succession planning have significantly higher sales growth than those who only focus on top management

(Source: CedarCrestone HR Systems Survey)


Defining Succession

Succession ManagementThe comprehensive approach to systematically identifying, assessing and developing talent for future critical roles throughout the organization to ensure continuity and effective organizational performance

Succession PlanningThe identification of successors in line for specific positions, focused primarily on only the very top levels of leadership

High PotentialsIndividuals at various levels within the organization identified as having significant “upside potential,” but who may not be immediately slated as successors or may have a somewhat longer timeline for development

Widespread disparity in definition; inclusion of hi-pos is a distinction from what most others do in this area


Benefits from Making the Investment

Succession Management

Builds your bench strength of talent

Enables critical roles and skills to be tracked

Improves employee retention and minimizes unwanted turnover

– Loss of intellectual capital

– Increased stress on remaining employees

– Loss of productivity

– Vacancy costs until position is filled

– Inability to sustain business growth

– Impact on customer loyalty and competitive position

– Failure to meet business objectives

Lowers recruiting and onboarding costs

Engages your employees in their own internal career development

Plans long-term organizational health and strategic viability

Avoid cost of rebooting separate and distinct succession planning benefits


Global Insights on Current Practices

About the Study

43 organizations from 10 industries

42% were multinational

91% had made efforts to implement some components of succession management; only 9% had a formal process


Business Drivers for Making the Investment

Key Business Driver: To attract and retain talent


Widespread Disparity in its Purpose

Wide variations in how organizations conceptualize succession management and the elements commonly understood to be part of the process


Requirements of an Effective Process

Essential

86% An effective system for assessing/evaluating talent

37% The commitment of leaders

30% Learning and development interventions that are integrated with succession efforts

25% A strong link to business strategy

Non-Essential, but Nice to Have

30% To select and utilize technology based on process design, rather than allowing functional limitations of technology drive the process

20% Want learning and development interventions that are integrated with succession efforts


The Importance of Relevant Metrics

Turnover/retention statistics

Internal versus external staffing statistics

Measures of pipeline strength

Diversity statistics


Conclusions…

Clear opportunity exists to hard-wire succession efforts to business strategy, and to strengthen accountability for delivering on commitments made during the talent review/succession management processes


Poll


Compared with a year ago, has there been any change in your organization's approach tomanagement succession planning?

• Yes, we made it a higher priority

• No, we have always made it a priority

• Yes, we made it a lower priority

Poll No. 2

Best Practices

Replacing People

• HR-led “task” or “process” to replace “key” talent

• Business strategy and values not integrated

• “Now and next 3 years” perspective

• Not tied to business impact

• Linear

• Strategic business imperative

• Leader-led in collaboration with HR

• Considers the talent needed to match the future vision of the business

• Shaped by environment and culture, driven by strategy

• Parallel processes

Long-Term Viability

It Requires a Shift in Mindset


Succession Management Best Practices

1. Review and Refine with Executive Leadership the Strategic Business Imperatives Required for Success




2. Determine Critical Roles Required to Achieve the Business Imperatives





3. Conduct Systematic Talent Reviews Integrated with the Business Planning Process; Assess Future Leadership Capabilities





3. Conduct Systematic Talent Reviews Integrated with Business Planning Process; Assess Future Leadership Capabilities

4. Reinforce the Execution of Development Plans


Flexibility Matters

26

How and where work gets done

In career choices





3. Conduct Systematic Talent Reviews Integrated with Business Planning Process; Assess Future Leadership Capabilities

4. Reinforce the Execution of Development Plans

5. Monitor Progress Against Success Measures and Adaptingwhen Necessary


CASE STUDY: PUTTING THEORY INTO PRACTICE

28

Succession Management Ensures Continuity of Leaders and Sustained Organizational Performance

Client

A large financial investment firm

Situation

Rapid growth necessitated new business strategies and talent capable of driving that strategy


The RightGPS Framework

GUIDED DESIGN

Define the Strategic Business Imperatives

Establish Organizational Performance Expectations

Assess Organization Capabilities & Resources

Determine Critical Roles & Success Profiles

Design Talent Review Process; Align with Talent Management

Conduct Talent Review as a Business Process

Assess Individuals and Provide Feedback on Performance

Plan & Implement Development Approaches

Select for Placement & Promotion

Monitor Progress & Measure Results

StrategyOrganizational Performance

Structure, Capacity & Capability

LeadershipPeople, Systems & Processes

CUSTOMIZED IMPLEMENTATION


CASE STUDY: PUTTING THEORY INTO PRACTICE

30

Succession Management Ensures Continuity of Leaders and Sustained Organizational Performance

Client

A large financial investment firm

Situation

Rapid growth necessitated new business strategies and talent capable of driving that strategy

Results

C-suite provided with summary of combined strengths in light of current business environment

Talent viewed as an enterprise-wide resource

Growth with new business ventures and trading practices

Competitive advantage


Questions?

Managing SuccessionCreating Sustainable Leadership Bench Strength for an Uncertain Future

Presented by: Michael Haid, Senior Vice President Talent Management, Right [email protected]

Moderated by:Shari Fryer, President, Shari Fryer & [email protected]

mailto:[email protected]

mailto:[email protected]

Thank you for your time!

We’re pleased to provide you with a copy of Right Management’s white paper


Documents

Webinarslides 03 30 2011.Pdf