Beyond Succession Planning The Explosive Rush to Talent Readiness

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1 HCI #HCIwebcast Beyond Succession Planning The Explosive Rush to Talent Readiness

2 HCI #HCIwebcast Today s Moderator Andrew

3 HCI #HCIwebcast T H A N K Y O U

4 HCI #HCIwebcast For a PDF copy of the slides used during this webcast, click button above.

5 HCI #HCIwebcast This presentation contains polls, to participate please use the polling widget to the side of the player. If you do not see this, please open a new tab in your browser and visit

6 HCI #HCIwebcast Today s Guest Speaker Pamela Stambaugh, MBA President, Accountability Pays.

7 Major Applications for the Talent Life Cycle Pre-hire selection Individual development/coaching Team development Succession planning Career planning Talent & Career Planning Talent Acquisition Talent Development

8 The Need for a Fresh Approach 1. Scarcity of New Talent 2. High Cost of Turn-over 3. Lack of Employee Engagement & Associated Costs, including Job Fit (Suitability) 4. Lack of Ability to Analyze Talent Readiness 5. Lack of Ability to Assess & Develop HIPO s 6. Lack of Ability to Manage the Talent Pipeline

9 1. Scarcity of New Talent According to the Center for Creative Leadership, an astonishing 66% of senior managers hired from the outside fail within 18 months. 10,000 baby boomers A DAY will reach retirement age now to 2030.

10 1. Scarcity of New Talent Over the past decade, talent has become more important than capital, strategy, or R&D. For many companies, that means that people are the prime source of competitive advantage. Talented people, in the right kind of culture, have better ideas, execute those ideas better and even develop other people better. ~War for Talent McKinsey & Company

11 2. BEYOND SUCCESSION PLANNING

12 2. The Cost of Turnover According to the Society for Human Resource Management (SHRM) the costs of turnover include four classifications: 1. Separation processing costs 2. Replacement hiring costs 3. Training new hire costs 4. Lost productivity or business costs

13 3. Lack of Employee Engagement Companies try many things, yet according to Gallup s 2013 State of the American Workplace report, 50% of employees merely put their time in. 20% act out their discontent in counterproductive ways costing the US economy approximately half a trillion dollars each year.

14 US Employee Engagement Only 30% of employees are actively committed to doing a good job. Business people and academics asked Gallup, What s more important people s natural FIT (SUITABILITY) with their role or how ENGAGED they are in their job?

15 JOB FIT is More Important Gallup s research across industries shows that engagement leads to improved profitability, productivity, customer metrics and lower turnover. But talent for a role is a requisite for success. Gallup s research reveals that about one in 10 people possess the talent to be a great manager.

16 Succession Planning Challenges 4, 5, and 6 How DO You 4. Analyze Talent Readiness of New Employees? 5. Assess & Develop HIPO s? 6. Manage the Talent Pipeline? The importance of effective succession planning is to improve the sustainability of your most valuable asset your people.

17 Historically Companies have struggled to find an effective sustainable talent management strategy. We conducted a nationwide survey that demonstrated this is an accurate depiction of today as well. Survey Purpose To assess the current state of talent management across the US.

18 5 min. to answer 13 questions 2 months gathering data through social media, direct requests ~200 respondents

19 Respondents by Industry Sector Healthcare Manufacturing Business to Consumer Business to Business Other

20 Respondents by Company Size 60%

21 Role BEYOND SUCCESSION PLANNING Timeframe HR Middle Management Consultant Upper Management

22 Poll: What method does your organization use to identify HiPos? Managers Peers Individuals Formal None

23 100% 80% BEYOND SUCCESSION PLANNING 1. How does your organization identify candidates for future development into leaders? 60% 40% 20% 58% 33% 0% Method of Identifying HIPOs for Future Development Managers Peers Individuals Formal None

24 HIPO nomination is more formalized in larger companies By Size of Organization

25 Poll: How often is the list of high potentials updated? Casually Monthly Quarterly Semi-Annually Annually

26 2. How often is the list of high potentials updated? 100% 50% 41% 22% 0% Casually Monthly Quarterly Semi-Annually Annually

27 HIPO lists are casually updated at smaller companies and annually measured at larger ones

28 3. Approximately what percentage of total employees make up the high potential candidate list? Over 70% of respondents say under 10%

29 4. Who is responsible to oversee and maintain the list of HIPOs? 50% Senior Executives

30 5. How are HIPOs career paths managed? 60% 40% 20% 0% 37% 49% 28% Eligibility Performance Not managed

31 Career paths are managed based on both eligibility and performance 45% of mid-sized companies do not manage career paths

32 6. What primary investments are being made in HIPOs to accelerate development? 100% Almost 50% of companies are throwing the book at High Potentials 50% 46% 0% Time Money Mentoring Training All of the Above

33 7. Are the succession planning processes in the company linked in any way to employee career planning processes and technology? Medium sized companies do not link their succession and career planning

34 Survey Conclusion Companies recognize the importance of talent management But they need the right system to integrate the hiring process with talent development and talent management.

35 Bersin by Deloitte Findings 86% of companies say they have no analytics capabilities in the HR function. Moreover, 67% rate themselves as "weak" at using HR data to predict workforce performance and improvement. Despite the efforts within many companies to improve succession planning, the overall pipeline for leaders is weak. Large companies, especially, are guilty of not priming the pump, with successors identified for just 10% of their firstlevel leaders and 19% of their midlevel leaders.

36 Bersin By Deloitte BEYOND SUCCESSION PLANNING

37 Sustaining a Succession Planning Strategy with the 4 Pillars D We must begin with critical Decision points E Eligibility factors are key in assessing the talent pool S The most difficult to assess is the JOB FIT, also called Suitability P The 4 th pillar provides a snapshot of an individual s Performance level

38 D = Decisions What level of confidentiality or transparency will be provided to all employees? Has the board been informed and engaged in the strategy? Will the strategy be restricted to just High Potential (HiPo) candidates, and at what levels? Or is it open to all employees? Will career planning be integrated in the process? Will the approach be replacement planning, focusing on specific jobs and geographies, or talent pool driven, where the approach fosters development of a talent pipeline resulting in a broad base of candidates for any and all jobs? Will it be an employee-driven system in which employees can explore options, express interest in certain opportunity areas, input their credentials and be an ongoing transparent process to encourage engagement? Or will the system be centrally controlled with employees participating on an invitation basis? Will the approach be integrated with external recruiting capabilities or be restricted to internal talent? What documented goals will be established? These could include: Mitigate the increasing costs and effort of external recruitment Improve employee engagement and retention Meet the career development expectations of employees

39 E = Eligibility for the Next Role Consideration must be given and weighted for areas such as: Education level Experience Certifications Global experience (if needed) Geographic preferences

40 E = Eligibility for the Next Role Skills Do you have highly skilled needs? What is the cost of losing those skills? What is the impact of those skills on your business success? Examples of potential vulnerability: engineers, chemists, seasoned managers, analytics specialists, etc.

41 S = Suitability (Job Fit) The most difficult area to assess, and typically the most neglected or poorly done, is the job fit, or Suitability, best measured with a formal assessment process and with technology. Motivation for the job Attitudes Interests Work preferences Work values Interpersonal skills Fit with their supervisor

42 S = Suitability (Job Fit) People are hired because they CAN do the job (eligibility), they leave or are fired because they DON T do the job (suitability). Hard data on the squishy people stuff (suitability) is available for making keep/don t keep decisions and for managing the career paths of incoming and high potential employees.

43 P = Performance Now Performance ratings should be accounted for in the overall assessment of the employee. In addition, key questions like the following may be considered. Has the individual: Demonstrated strong operational performance in a variety of areas? Established a cadence of personal accountability? Taken initiative and demonstrated strong leadership competency? Managed employee performance effectively (if in a management position)?

44 How is your high potential doing in his or her current role? Who is measuring that performance? How reliably? 9 Boxes is still opinion-based. Who is keeping track of their career trajectory and their desires? Millennials care very much about this. How reliably? P = Performance Now

45 Poll: What would you consider the biggest obstacle to implementing a program that would take you beyond your current succession planning process? The TIME that it would take The MONEY that it would require Managing your RISKS related to a change Executive level support Other

46 Integrated Approach Career Planning Talent Pipeline & Succession Management

47 Employee Career Planning

48 Talent Analytics Dashboard

49 For complimentary white paper: The 4 Pillars of Effective Succession Planning Redefining Traditional Models Download: Contact Us 888/

50 HCI #HCIwebcast Questions? Pamela Stambaugh, MBA President, Accountability Pays.

51 HCI #HCIwebcast Additional Resources The 4 Pillars of Effective Succession Planning: Redefining Traditional Models Do You Have a Plan to Fill Your Talent Pipeline in the Critical Years Ahead? Asking the Right Questions: How to Get ROI on Customer Surveys To Assess or Not Assess - The Dilemma! The Pitfalls and How to Avoid Them Look for more exceptional

52 HCI #HCIwebcast Thank You Visit us at for more

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