Succession Planning in Halogen. Guide for Managers

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1 Succession Planning in Halogen Guide for Managers

2 Succession Planning Overview: Each year, Alloya conducts a succession planning review process for employees at certain levels of the company and above. The purpose of this review is to identify where individuals are in terms of readiness for career advancement in the organization. Also, it allows the manager to make an assessment which is separate from the yearly PAR process, which looks backwards at accomplishments, and instead to rate employees on their potential suitability for future career movements. This guide will outline the steps in the succession planning process, including how to complete necessary tasks in Halogen.

3 Step 1: The Talent Assessment Form: When the succession process opens in Halogen, the first step to complete, Complete talent assessments for your direct reports, will be available. Click on the step to proceed.

4 form. Then, click on the Edit Talent Assessment link for the first employee to access the

5 The Talent Assessment form consists of a series of four questions, plus a recommendation for a Talent Pool (to be discussed later), and a final comments box.

6 The first question asks for an overall assessment as to the Potential for Promotion and the individual s Current Performance. The options to choose from are based on the Performance/Potential Grid, displayed below: THE PERFORMANCE/POTENTIAL GRID Highly effective P E R F O R M A N C E Less effective High Professional HE/LP Solid Valued Contributor E/LP Lower Performer LE/LP Emerging Talent HE/MP Key Performer E/MP Inconsistent Performer (Potential Key Performer) LE/MP 7 Top Talent Rising Star 5 E/HP 8 3 HE/HP Emerging Performer (Potential Rising Star) 9 LE/HP 6 Less potential POTENTIAL Higher potential The Leadership Machine Michael M Lombardo and Robert W Eichinger Copyright Lominger International: A Korn/Ferry Company. All Rights Reserved

7 The definitions for each grid section are below. Please choose the definition that most closely matches the employee, and select that answer on the form: Top Talent The best there is and the best you have; typically in short supply but high demand. Performs well in almost everything they take on. Learns fast. Transfers learning from one area to another. Gets things done under tight deadlines. Can take on major stretch assignments. Can be promoted or moved laterally into just about any situation. A role model for inspiring and developing a diverse, unique group of people. Rising Star Consistently meets and sometimes exceeds expectations. Has the capacity to take on new and different challenges on a consistent basis. Addresses new challenges and issues with ease. Quickly gets up to speed when taking on a new assignment. Has the potential to make career changes into different situations. Effectively inspires and develops a diverse, unique group of people. Emerging Talent Consistently produces exceptional results and receives high performance ratings. Can adapt to new situations and learn new areas. Is promotable in multiple functional/technical areas or general management. Emerging Performer (Potential Rising Star) Have the potential to perform exceptionally well, but the actual playing out of the potential is in the future. They have either not had sufficient time or opportunity to demonstrate what they can do or have been inconsistent in the past. May have had one or more significant stumbles recently but still considered to have the potential to be a significant contributor. Key Performer Meets the expectations of the role. Understands and knows the current job well and enhances skills for their current job as well as the near term future. Can adapt to new situations and challenges as necessary. Comfortably assumes new jobs and roles and performs well in them in time. Likely promotable a level vertically or could move laterally within the organization. High Professional Consistently produces exceptional results and high performance ratings in a defined but focused area. Knows current job extremely well. Does not always easily adapt to new situations, particularly those outside of his/her functional area. Cell occupants are very valuable to the organization. Inconsistent Performer (Potential Key Performer) Is a valued contributor with potential but is not meeting performance expectations in current role. May be in the wrong job or a poor fit for the current situation. Solid Valued Contributor Consistently meets and may occasionally exceed expectations. Knows current job well. Does not effectively adapt to new situations. Has a narrow bandwidth in terms of professional interests / abilities. Lower Performer Is not delivering results as expected and cannot effectively adapt to new and different situations. This is the least valued cell in terms of ROI. Occupants of this cell may require performance action. Too New to Rate Employee has been with the organization up to 12 months and is too new to give an appropriate rating.

8 The following aid will give more guidance on selecting the most appropriate location on the Performance/Potential grid: Performance What an employee accomplished in the past against agreed objectives and accountabilities. Key considerations: Does the employee have a pattern of delivering results in multiple jobs? o What important accomplishments can be cited from the past few years? A longer term view; not an assessment of recent performance only Potential What an employee is able to do when faced with new challenges based on how well they learn and how they apply that learning to different situations. Key consideration: Does this person demonstrate mastery of the skills and behaviors expected at this point in their career? Does this person demonstrate the capacity to master many complex skills and needed behaviors required for the next step or future points in their career? Step 1 Performance Assess your employee s performance over the long-term. The assessment should not be the result of a mathematical equation of past PAR ratings only Think broadly about facts and examples of performance in various assignments and tasks Refer to the definition of performance Try not to inflate/deflate your assessment based on their most recent assignment Determine performance rating using the definitions Performance Rating Rating Description Highly Effective (HE) Consistently produces exceptional results and exceeds performance expectations Effective (E) Consistently meets and sometimes exceeds performance expectations Less Effective (LE) Is inconsistent or less effective in meeting performance expectations X New Hire (up to 12 months) If your employee has been with us for more than 6 months and less than 12 months and you believe you can accurately evaluate them, do so. Step 2 Potential Learning agility is the key component when considering a person s potential. Learning agility is the ability to adapt, respond to, and be resourceful in the face of change; basically, how well a person adapts to the new and different. Assess your employee s potential over the long-term. People high in learning agility learn more rapidly, apply past learning in creative ways to first-time problems and add to their skills to be more effective Has this person demonstrated a mastery of the skills and behaviors expected at this point in their career?

9 Has this person demonstrated the capacity to master many complex skills and needed behaviors required for the next step or future points in their career? Potential Rating Higher Potential (HP) Medium Potential (MP) Less Potential (LP) X Rating Description Consistently demonstrates superior capabilities in new challenges as well as first time or different situations. Is a role model for leadership. Can adapt to new situations and challenges as necessary; comfortably assumes new jobs and roles and performs well in them over time. Effectively demonstrates leadership. Does not always easily adapt to new situations; may struggle in situations outside his/her functional area. Does not effectively or consistently demonstrate leadership. New hire (up to 12 months) If your employee has been with us for more than 6 months and less than 12 months and you believe you can accurately evaluate them, do so.

10 The second question, Timing of Next Promotion, will help differentiate those employees who are promotable within a shorter timeframe as compared to others. The timing is defined in relation to the next level up from the employee s current position, even if such position does not currently exist in the employee s department. In some cases the next level position will be the same as the employee s direct manager s position, in other cases it will not. For example, an employee being evaluated is currently at an AVP level, but their direct manager (i.e. the person completing the talent assessment form for the employee) is a Senior Vice President. In this instance, the next level up for the employee will be a VP level, and therefore the timing of next promotion should be in relation to this move to a VP, not the timing to become an SVP. This will help identify employees who have potential to move upwards in the organization, but may not necessarily be ready anytime soon to assume their manager s much higher position level. Please Note the Manager and Sr. Manager levels have been combined for this question.

11 After answering questions as to the Risk of Leaving and the possible Reason for Leaving, the next part of the form will require you to make an overall recommendation as to whether or not you believe the employee can potentially move into other levels in the organization in the near future. If so, choose which Talent Pool the employee should be in for promotion consideration by moving it from the Available Talent Pools field to the Recommended Talent Pools field. To do so, click on the Talent Pool name and then the Recommend button to move the selection to the right. To remove a selection, click on the name and then click the Remove button to move it back to the left. There are only two possible Talent Pools the individual can be placed in, again related to the fact that in some areas the next level of management for the employee is the same as his/her manager s position, and in other areas the direct manager s position is more levels above that. Therefore, if the employee is ready for advancement immediately, or within 1-2 years, into their relative next level of management, and that position is still below the direct manager s position, select One Level Up From Current Position as the Recommended Talent Pool. If the employee is ready immediately or within 1-2 years to assume his/her direct manager s position, select only Direct Manager s Position as the Recommended Talent Pool. If the employee is not anticipated to be ready for any advancement immediately or within 1-2 years, do not select either pool. Appendix A of this guide provides approximate definitions of each management level, and serves as a guide for decision making.

12 Lastly, note any comments relating to the Succession Planning Questions that you feel would help elaborate beyond the given questions and/or to provide a summary of the employee s potential. For example, if there is a possible Reason for Leaving that is not listed in that question s responses, select Other reason for that question, and note that specific answer in the comments box. Once the form is completed, click the Complete button at the top of the form to have the form sent to your manager for approval. Remember, the Complete button is only to be used when the form is done; if you need to save your work in progress select the Save button to save the form and come back to finish it later.

13 Step 2: Approving Talent Assessment Forms (Next-level Managers Only): 4450 Weaver Parkway Warrenville, IL Next level managers may have their own talent assessment forms to complete for their direct reports, but will also need to approve the forms completed by their direct reports. This step is listed as Approve talent assessments written by direct reports. Click on the step to proceed.

14 A list of employees whose forms are awaiting approval will be listed. Click on the Review link for a given employee to see the form.

15 When reviewing forms, remember that the Annotation option, previously included in PAR and Goal forms, is available here too. Approving managers can make notations for either the succession planning question sections or the final comments section that, when sent back to the direct manager, will be viewable. If the form needs to be modified, select the Send Back to Author button. The form completion step will re-open on the direct manager s side of Halogen for them to make changes and resubmit. It is advised to let the direct manager know via phone or when a form is sent back. If the form is acceptable, click the Approve button.

16 Step 3: Manager Final Signature: After the approving manager approves the form, the direct manager will have one final step to complete in the process. This step is to do a final sign-off of the talent assessment, and will be listed as Manager signature. Click on the link to proceed.

17 Managers with employees whose forms have been approved will have a link to select that is titled Click on this Link to Sign-Off. Click the step link to proceed, and then on the popup window that appears click Ok to perform the sign-off. To the right of this will be link to display and review the talent assessment form, indicated by an icon in the shape of a circle with an arrow inside. As an alternative, you may also click on this icon to display a pdf of the talent assessment itself, and then take one final look before clicking the Sign-Off button at the top of the form. This is the last step in the process.

18 Manager View of Talent Assessment Results: Managers will be able to view their employees completed Talent Assessment forms. The form is accessed by the manager via the Past Talent Assessments link after choosing My Direct Reports.

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20 Select the appropriate arrow-in-circle icon next the Talent Assessment process name (this process will be labeled 2011 Succession Planning ) to view the form.

21 Appendix A: The following charts will help when deciding if a person is ready for a given Talent Pool. It lists common attributes present for employees at each level of management. This is to be used only as a guide for decision-making: Measure Leadership Role Developing People & Organization Specialized Knowledge Impact Problem Solving Judgment Project Scope Freedom to Act Manager Manages daily activities of employees in an assigned area; acts as an advisor to subordinates to meet schedules and resolve technical problems Provides immediate supervision to a group of employees, assigning tasks and checking work at frequent intervals. Suggests and recommends developmental and training opportunities for individual contributors and immediate workgroup Sufficiency in a discipline to identify obstacles to productivity and solve problems within own area Incumbent's input may be solicited during strategic planning Works on problems in similar situations that are typically solved by simple choice among learned alternatives. Resolves day-to-day problems using generally defined processes; Follows processes and operational policies in selecting methods and techniques for obtaining solutions Exercises judgment within clear, well-defined general policies, guidelines, and practices in selecting methods and techniques for obtaining solutions; Develops and administers schedules and performance requirements Typically manages the activities of a single section or department that is highly specific with regard to objective and content. Responsible for results in terms of costs, methods, and employees. Accountable for planning, scheduling, and resources allocation. May be responsible for a functional area and not have direct reports Determines employee schedules, daily assignments, and overtime. Interprets and executes policies and procedures that typically affect subordinate organizational units. Recommends modifications to operating policies Decision Quality Erroneous decisions, failure to achieve goals results in additional costs and personnel and serious delays in schedule and may impact short term goals of department Financial Responsibility Building Relationships Influence Contributes to development and administers budgets, schedules, and performance standards for functional area within the prescribed budgetary objectives of the department Frequently interacts with subordinates, members, and/or functional peers; may interact with senior management on occasion; interactions normally involve matters between functional areas Often must lead a cooperative effort among members of a (project) team

22 Supervision Received Receives pre-determined work assignments with specific objectives and established goals; work is reviewed and measured based on completion for adequacy in meeting functional area's objectives and schedules Measure Leadership Role Developing People & Organization Specialized Knowledge Impact Problem Solving Judgment Project Scope Freedom to Act Decision Quality Financial Responsibility Building Relationships Sr. Manager Manages employees and/or professionals in an assigned area, develops work plans and procedures to meet operational objectives Recognizes/identifies individual developmental needs and collaborates with individuals to create developmental plans Sufficiency in a discipline to provide training and development of others in methods, techniques, and practices within own area On occasion, will participate in strategic planning within own area affecting immediate operations Works on problems in differing situations that typically require searching for solutions within a field of learned things. Resolves operational problems that impact the effectiveness of own area; Implements strategic policies when selecting methods, techniques, and evaluation criteria for obtaining results Exercises judgment within broadly defined policies, principles, or practices in selecting methods, techniques, and evaluation criteria for obtaining results; Establishes and assures adherence to budgets, schedules, work plans, and performance requirements Manage one or two areas that are relatively homogeneous in nature and are of complex scope; accountable for results in terms of cost/ schedule/ quality, ensuring operational requirements are met; May be responsible for a functional area and not have direct reports Determines procedures to execute administrative policies and achieve operational goals. Establishes operating policies and procedures. Interprets, executes, and recommends modification to organizational policies. Erroneous decisions, failure to achieve goals results in additional costs and personnel and critical delays in schedule and may jeopardize department or functional area Contributes to development and administers budgets, schedules, and performance standards for functional area within the prescribed budgetary objectives of the department Regularly interacts with subordinates, functional peers, members, and/or senior management; interactions normally involve the ability to gain acceptance or change thinking regarding situations concerning several functional areas; may concern other company divisions or units Influence Supervision Received Often must lead a cooperative effort among members of a (project) team Receives assignments in the form of objectives; work is reviewed and measured based on completion for adequacy in meeting functional area's objectives and schedules

23 Measure Leadership Role Developing People & Organization Specialized Knowledge Impact Problem Solving Judgment Project Scope Freedom to Act Decision Quality Financial Responsibility Building Relationships AVP Provides leadership to first-line supervisors and professional staff; may manage two or more work units through subordinates; sets objectives for functional area and promotes effective goal achievement Anticipates developmental needs and creates developmental opportunities within workgroup that supports an environment for ongoing staff development Sufficiency in a field to provide strategic managerial perspective and guidance within own area; may extend to other areas Participates in strategic planning and decision making that impacts immediate operations within own functional areas Works on complex problems in differing situations that typically require evaluation of criteria and identifying solutions within a broad field of learned things. Resolves complex problems that have implications within own area and may have implications to other areas Exercises judgment within broadly defined policies, principles, or practices and evaluation of impact across a functional segment/area of the business; Develops budgets, schedules, and performance requirements to accomplish business goals Simultaneously oversee two or more areas that are of complex scope; accountable for development of methods/techniques, evaluation criteria, managing results/staffing and costeffectiveness Determines procedures and improve methods to execute administrative policies and achieve operational goals. Establishes operating policies and procedures. Interprets, executes, and recommends modification to organizational & some company-wide policies. Erroneous decisions, failure to achieve objectives results in critical delays in schedule and may jeopardize functional, division, or company operations Responsibility for developing and ensuring budgets, schedules, and performance standards for a few functional areas are realistically set and attained Regularly interacts with subordinates, functional peers, members, and senior management; may interface with executive management; interactions involve the ability to gain acceptance or change thinking regarding sensitive and critical situations concerning several functional areas and other company divisions/units; May involve negotiations of fundamental matters Influence Supervision Received Develop relationships with key internal/external clients to support business needs Receives assignments in the form of short-term to long-term plans and strategies; work is reviewed and measured based on meeting organization's schedules and objectives from a short-term perspective

24 Measure Leadership Role Developing People & Organization Specialized Knowledge Impact Problem Solving Judgment Project Scope Freedom to Act Decision Quality Financial Responsibility Building Relationships Influence Supervision Received Vice President Functional/Line leader who provides direction to a large functional area or line of business with departments that have a singular focus or which are homogenous in nature. Develops functional or line objectives, policies and programs Develops and implements an overall strategy to prepare for and sustain long-term individual and organizational development Seasoned proficiency to provide business and industry expertise to cross-functional areas Develops/redesigns organizational strategies and provides overall direction for functional areas/lines of business. Contributes to the formulation and achievement of long-term business plans and objectives Work on abstract problems in unique situations that require intricate analysis, and evaluation of ambiguous factors. Direct the resolution of highly complex, unusual, or abstract business problems across functional or organization lines; Through assessment of intangible variables, identifies, and evaluates fundamental issues, providing strategy, and direction for assigned functional areas Exercises judgment within broadly defined policies, principles, or practices and its impact on overall strategic objectives of the company; Requires in-depth knowledge of functional areas, business strategies, and the company's goals Oversees a large functional area or line of business with departments that have a singular focus or are homogenous in nature; directs the execution of business strategies Makes determination of what needs to be done to drive implementation of innovative ideas/processes, etc. Establishes organizational policies in function or line of business. Contributes to establishing and recommending modifications to company-wide policies Erroneous decisions, failure to achieve objectives results in significant short term and possibly long term impact on the company's overall success Responsibility to ensure budgets, schedules, and performance standards for functional areas/lines of business are realistically set and attained Regularly interacts with members, senior and executive level management concerning organizational issues; interactions require negotiations of extremely complex, critical, and controversial matters; influences policy-making; influences and persuades senior/executive level leaders Focus on building strategic relationships with key internal and external member to support business needs Receives assignments in the form of long-term plans and strategies; work is reviewed and measured for desired results from a short-term and long-term perspective

25 Measure Leadership Role Developing People & Organization Specialized Knowledge Impact Problem Solving Judgment Project Scope Freedom to Act Decision Quality Financial Responsibility Building Relationships Influence Supervision Received SVP/Chief Senior Functional/Line leader who provides direction to several functions or lines of business with complex departments. Develops functional or line objectives, policies and programs with companywide; leads achievement to support company strategy Sets strategic direction for sustained individual and organizational development Extensive knowledge to provide functional/line expertise to lead the organization to achieve its mission and objectives Develops organizational strategies and policies and authorizes implementation and administration; provides overall direction for the functions or line areas through other senior level managers; strategies and policies often have company-wide impact. Leads the formulation and achievement of long term business plans and strategies Works on problems with little or no precedent; requires intricate analysis; may consider new concepts or approaches. Provides overall direction to resolve highly complex, unusual, or abstract business problems across functional/line; identifies and evaluates complex issues; may lead the development of new concepts and approaches to provide solutions to problems Uses judgment to determine new or modified policies, principles and practices with have broad impact on the company or major business unit; impact may often affect company-wide operations; requires expert knowledge of functional area, business strategies and company goals Oversees a significant function or line of business which includes several varied sub-functions or complex departments. Develops and authorizes execution of business strategies Establishes organizational policies for the functional/line area of the company. Makes final decisions on operational issues affecting realm of responsibility. Subject to broad guidance and general policies of top executive Erroneous decisions, failure to achieve objectives results in serious long-term impact on the company's overall success Through reporting managers, develops the functional/line budgets and schedules and performance standards; approves and authorizes budgets and performance standards Interacts internally and externally with executive level management requiring negotiation of extremely difficult matters to influence policy making. Effectively coordinates actions with peers. Focus on building strategic relationships with key external members to derive product and service excellence Receives assignments in the form of business strategies and longterm goals; work is reviewed and measured for desired overall results and ability to bring about change in the organization from a considerably long-term perspective

26 Measure Leadership Role Developing People & Organization Specialized Knowledge Impact Problem Solving Judgment Project Scope Freedom to Act Decision Quality Financial Responsibility Building Relationships Influence Supervision Received Chief Executive Recognized as top influential leader who provides direction to diverse and complex functions; develops company-wide strategies, organizational objectives and leads the overall achievement of strategies and objectives Sets strategic direction for sustained individual and organizational development Mastery of functional/line theories, principles or complex methods or expert proficiency obtained through broad seasoning Develops organizational strategies, objectives and policies; authorizes company-wide implementation and administration; provides overall strategy and direction for the functions or line areas through other senior level managers. Leads the formulation and achievement of long term business plans and strategies Works on problems with little or no precedent; requires intricate analysis; may consider new concepts or approaches. Provides overall direction to resolve highly complex, unusual, or abstract business problems across functional/line; identifies and evaluates complex issues; may lead the development of new concepts and approaches to provide solutions to problems Uses judgment to determine new or modified policies, principles and practices which will have company-wide impact; requires mastery of theories and principles along with expert knowledge of multiple subfunctions or complex disciplines, business strategies and company goals Oversees broad organizational area(s)) with responsibility for setting strategy; develops and authorizes execution of strategic objectives Establishes company-wide policies for the functional/line of business area of the company. Makes final decisions on operational issues affecting realm of responsibility. Subject to broad guidance and general policies of top executive or board Erroneous decisions, failure to achieve objectives results in serious long-term impact on the company's overall success Through reporting managers, develops the functional/line budgets and schedules and performance standards; approves and authorizes budgets and performance standards Interacts internally and externally with executive level management requiring negotiation of extremely difficult matters to influence policy making. Focus on building strategic relationships with key external members to derive product and service excellence Assignments are business strategies and long-term goals

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