Webinarslides 03 30 2011.Pdf
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Transcript of 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
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Submit questions as they come to mind using the Q&A feature on your screen
Meet Right Management
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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
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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
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The World is Changing
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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
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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)
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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)
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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
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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
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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
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Business Drivers for Making the Investment
Key Business Driver: To attract and retain talent
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Widespread Disparity in its Purpose
Wide variations in how organizations conceptualize succession management and the elements commonly understood to be part of the process
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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
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The Importance of Relevant Metrics
Turnover/retention statistics
Internal versus external staffing statistics
Measures of pipeline strength
Diversity statistics
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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
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Poll
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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
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Succession Management Best Practices
1. Review and Refine with Executive Leadership the Strategic Business Imperatives Required for Success
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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
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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
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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 Business Planning Process; Assess Future Leadership Capabilities
4. Reinforce the Execution of Development Plans
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Flexibility Matters
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How and where work gets done
In career choices
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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 Business Planning Process; Assess Future Leadership Capabilities
4. Reinforce the Execution of Development Plans
5. Monitor Progress Against Success Measures and Adaptingwhen Necessary
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CASE STUDY: PUTTING THEORY INTO PRACTICE
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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
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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
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CASE STUDY: PUTTING THEORY INTO PRACTICE
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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
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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]
Thank you for your time!
We’re pleased to provide you with a copy of Right Management’s white paper
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