Succession Planning: Preparing for The Perfect Labor Storm

ROUGHROADAHEAD

Succession PlanningPreparing for the Perfect Labor Storm

Copyright 2011. Ira S Wolfe. Duplication or reproduction prohibited without permission.

Trends that should be keeping executives awake at night

The New "Normal": the state of talent management 2011

Emerging Best Practices: from metrics to social media

Questions?

Agenda

4 4

11

22

33

Copyright 2011. Ira S Wolfe. Duplication or reproduction prohibited without

permission.

What is the Perfect Labor Storm?

Convergence of demographic, socio-economic and

technologic trends that are working together to produce

true disruptions in the workplace.


WHAT SHOULD BE KEEPING EXECUTIVES AWAKE AT NIGHT?


Mega-Trends

• Aging But Active Population• Smart Technology• Data Deluge• “Superstructured” Organizations• New Media• Globalization

Source: Institute for the Future


Demographic Trends

• Graying of America (and developed world)• 5 (or more) Generations Living• Diversity Up• Birth Rate Down• Breadwinners Flipped


Societal Trends

• Economic volatility up• Education failing• Definition of “marriage” changing• Definition of “work” changing• Definition of “career” changing


Effect On The Workplace


How can we attract skilled workers?

How can we keep the talent we have?

How can we attract and/or develop leaders?

How can we develop competitive enterprise wide bench strength?

STATE OF TALENT MANAGEMENT 2011-2012


Lots of Lip Service


Engagement Down


• 32 percent of American workers are considering leaving their organization - a 40 % increase since 2005;• Another 21 percent says they are not looking to leave but are dissatisfied; • That means that more than half of all employees (53 percent) have mentally checked out of work.

Source: Mercer Consulting; similar results from Blessing White survey

Skill Gaps


• 51 % report that growth could be impacted by the loss of talent in key skill areas; (Towers Watson)

• 38 % cite an inability to attract necessary talent; (Towers Watson)

• 52 % of U.S. employers are reporting difficulty filling mission critical positions within their organizations, up from 14 percent in 2010. (Manpower)

Heidrick & Struggles/ Stanford University


•Over 50% of US and Canadian companies can not name a successor in their organization’s chief executive officer.•39% of the respondents have no viable internal candidates.•Only 50% have any written documentation detailing skills required for the next CEO. •Only 19% have well established benchmarks to measure internal candidate skills.•Only 50% of companies provide onboarding or transition support for newly named CEOs.

Korn / Ferry


• 98 percent of companies believe a CEO succession plan to be important BUT…•…Only 35 percent currently have one in place.•49 percent haven’t had one in place for the last three years.

Reasons Why Succession Planning Fails …


• Successors leave;• Incumbent doesn’t leave;• Successor doesn’t perform;• Succession planning is considered an HR function, not a strategic imperative.• Focus on current, not future, skills.• No measurement.

• HR & MGT make it too (bleep) complicated.

EMERGING BEST PRACTICES

From Metrics to Social Media


Definition


Succession planning is a process whereby organizations ensure that employees are recruited and/or developed to fill each key role within the organization.

The objective of succession planning is to ensure that the organization (or a unit of the organization) continues to operate effectively when individuals occupying critical positions depart.

Source: State of Iowa Workforce Planning document

Succession Planning


• Is only part of workforce planning;• Focuses on tomorrow; most talent management efforts focus on today;• Assures appropriate bench strength;• Prepares organization to replace departing staff seamlessly in critical positions; • Is strategic; • Is about sustainability, not staffing..

Succession Planning Is NOT


• Just an HR exercise;• About staffing;• Just focused on the C-level;• A technique to plan individual career advancement opportunities or a reward for high performers;• A one-time event or even an annual event;• Perfect.

Best Practices: 6 Steps• Align Succession Planning/Talent Management with business strategy• Identify key roles necessary to execute the strategy.• Identify required human capital skills and competencies.• Identify means to assess current skills, gaps, and future hires.• Identify sources for skilled or high-potential employees (internal and external).• Implement retention strategies to retain skills and high-potential employees.Copyright 2011. Ira S Wolfe. Duplication or reproduction prohibited without permission.

3 Step Jump Start• Align Succession Planning/Talent Management with business strategy

• Identify key roles necessary to execute the strategy.• Identify required human capital skills and competencies.• Identify means to assess current skills, gaps, and future hires.• Identify sources for skilled or high-potential employees (internal and external).• Implement retention strategies to retain skills and high-potential employees.


#1 What Makes A Role Critical?

• Key task• Specialized leadership• Geographic• Potential high turnover job classes

What are the key roles in your organization today?What will be the key roles in your organization tomorrow?Copyright 2011. Ira S Wolfe. Duplication or reproduction prohibited without permission.

Typical Compeatency Model


• Decisive Judgment• Driving for Results •Championing Change• Planning and Organizing• Integrity• Managing Others• Coaching Others• Relationship Management

#2 Future Competency Model

•Dealing with ambiguity•Dealing with paradox• Innovative thinking•Critical thinking•Social Intelligence•Situational adaptability•Cross-cultural competency


•Computational Thinking•New Media Literacy•Transdisciplinary literacy •Design mindset•Cognitive Load Management•Virtual Collaboration

Sources: Lominger and Institute for the Future

#3 How Do You Assess Potential?

1. Personality Tests (5-Factor)2. General Mental Abilities3. Motivators and Values4. Behavioral Style5. Multi-rater (360)6. Past Experience?

Future: Gaming simulation, virtual reality


One Final Comment…Social Media is changing the way employers will recruit, retain, and engage employees and candidates.


If you are not integrating social media into your marketing and branding, no

amount of time, money, and resources will overcome the power of social networking – “word of mouth on steroids.”

SummarySuccession planning requires a vision of the future, a strategy to get you there, and skilled workers and leaders to execute.

Organizations are creating succession and competency models based on yesterday’s functions, not skills that are needed now and in the future.

You won’t succeed by hiring and promoting today’s top talent but those individuals with the potential to perform tomorrow.


Questions? More Information?

Ira S WolfePresident , Success Performance [email protected]: 410-941-2345

Stay current with hiring and workforce trends. Subscribe to one of my blogs:http://www.workforcetrends.comhttp://blog.super-solutions.comhttp://www.geeksgeezersgooglization.com

QUESTIONSAHEAD


http://www.super-solutions.com/

http://www.workforcetrends.com/

http://blog.super-solutions.com/

http://www.geeksgeezersgooglization.com/

http://www.facebook.com/preemploymenttests

http://www.linkedin.com/in/iswolfe

http://www.twitter.com/hireauthority

Succession Planning: Preparing for The Perfect Labor Storm

Business

Transcript of Succession Planning: Preparing for The Perfect Labor Storm