Hertz at the Top: Using Assessments for Succession Planning, High Potential- and Top Team Development

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1 Hertz at the Top: Using Assessments for Succession Planning, High Potential- and Top Team Development 2011 HRPS Fall Forum October, 24, Washington, D.C. Presented by: Dr. Marilyn Buckner, NTS, Inc. Dr. Stella Malsy, The Hertz Corporation

2 We hold these truths to be self evident that all men are created equal [Martin Luther King, Jr.]

3 We hold these truths to be self evident that all men are created equal [Martin Luther King, Jr.]

4 We hold these truths to be self evident that all men are created equal [Martin Luther King, Jr.]

5 Our Destinations Today Presenters introduction The Groundwork - Global Talent Management at Hertz - A Leadership model to drive business results - The Assessment Toolbox From Theory to Praxis - How to use valid predictive external assessments to bring in new management talent - Applications for Development, Succession Planning and Top Team Development Case Studies Customers Voice Discussion and Q&A Lessons Learned 5

6 Speakers Background NTS, Inc. Dr. Marilyn Buckner is President of National Training Systems, Inc. She provides Talent Management consulting to global Fortune 500 companies in the areas of assessment, selection, high potential development and succession planning. Marilyn designed many talent management systems as Head of Global HRD for The Coca-Cola Company. She is also a former President and Chair of HRPS. NTS provides consulting in a broad spectrum of consulting: over 250 assessment tools are available from front-line to executive positions Assessment Centers Worldwide Executive Coaching with a team of international coaches Certification Training for well-known assessments Hogan, Decision Styles Leadership Training including business simulations Business Consulting: Strategic Planning, Change Management; Team Development 6

7 Speakers Background The Hertz Corporation Dr. Stella Malsy, Director Global Assessment Services, joined Hertz in 2006 after a successful career in the consulting business. She is in charge of the assessment activities at all organizational levels within Hertz. The Hertz Corporation is a subsidiary of Hertz Global Holdings, Inc. and the world's largest general use car rental brand, operating from approximately 8,500 locations in 146 countries and 23,000 employees worldwide. The number one airport car rental brand in the U.S. and at major airports in Europe, Latin America, Asia, Australia and New Zealand + locations in Africa and the Mid-East. More Brands: Global car sharing through Hertz on Demand The value-priced rental provider, Advantage Rent a Car One of the world's largest equipment rental businesses Hertz Equipment Rental Corporation 7

8 Next Destination. The Groundwork 8

9 Global Talent Management at Hertz 9

10 Assessment Process Performance Data Below Solid Strong Assessment Results Below Solid Strong Development Plan HR BP Employee Manager 10

11 The Leadership Model contributes to business success and shaping of the Hertz culture PROCESSESS STRUCTURE ROLES Description of roles in the structure to manage the processes. PERFORMANCE MANAGEMENT SYSTEM 11

12 ...it is like a GPS on the Development Journey! 12

13 Where it guides us Performance Management Succession Planning and High Potential Management 360 Leadership Process HERTZ LEADERSHIP MODL ReOrg Projects Recruitment & Selection Project Lighthouse 13

14 The Toolbox Company wide standard Serves all Leadership Levels Covers Development and Selection Usage follows a corporate policy Assessments conducted and interpreted solely by certified Psychologists Tools are mapped to our Leadership Competency Model 14

15 Benefits of using leader assessments Predicts: Helps predict leadership potential of individuals and groups and therefore the performance of the company. Objective: Provides objective valid data to add rigor to the promotion and selection process. Accelerates: Helps target and accelerate development through coaching and training individually and as groups. Self Awareness: Builds self awareness of leadership actions through a valid assessment; providing the opportunity for customized self-correction and building on strengths. Retains: Encourages retention since leaders see the company has a vested interest in an individuals development. Career Development: Helps individuals understand their career strengths. Stronger Plan: Helps create powerful development plans fueled by insight. 15

16 The Journey beyond measurement Feedback is mandatory! 3-way-development meeting - Participant is in the Driver Seat! - No successful development without an high involved Boss! - HR as facilitator and supporter Development Plan/Actions are recorded in the PMS Key to success involve all parties from the beginning on It s all about teamwork & ownership! Usage follows a corporate policy Participant HR BP Boss 16

17 Next Destination. FROM THEORIE TO PRAXIS How to use valid predictive external assessments to bring in new management talent 17

18 Comprehensive Valid Assessments Used for Selection and Development Potential: describes day-to-day leadership traits and predicts competencies Derailers: the only available measure that can tell you ahead of time if a person has derailment factors and what to do about them. Values: motivators that drive successful leaders. High Potential: Report for selection (combines 3 reports) Increase objectivity; provides comprehensive data 18

19 POTENTIAL: Ambition Team Player vs. Initiator Ambition High Score Overview: Related to initiative, competitiveness: leadership. The degree to which a person seem self-confident, leader-like, energetic. Competencies: Results Leadership, Demonstrates Initiative, Leading Courageously Role implications: Taking initiative is important for driving performance and coaching others to excellence. Need to allow twoway communications with team. Positive: Energetic/competitive Leader-like and mature Takes initiative Negative: May intimidate staff Involved in office politics May not listen to others and gain their input Restless and forceful Thought Questions? Are there team/silo conflicts because too competitive? Do you communicate expectations over and over? Do you drive yourself and others too hard (unproductively)? 19

20 DERAILER Bold (vs. Participative) Bold (Overly Confident/arrogant): Overly self- confident, could be seen as having feelings of entitlement. Unwilling to admit mistakes or listen to advice or feedback Positive: Self-confidence and Optimism are associated with leadership success Downside: May not allow enough input into decisions (research shows participative leaders outperform other leaders). Development: Use Win-win negotiations, I others negative as well as positive input and do not rely entirely on your ideas --.Remember the book Good to Great humble leaders outperformed others (Engagement) Question: (If High) Can you give an example of when you were a follower when the situation required this style? In work situations, how do you find the balance between being task focused and coming on too strong? 20

21 Values - Power Motivators Challenging assignments Produce results, be industrious Win and b eat the competition Drive projects to completion Evaluate in terms of accomplishments Strategic about pursuing goals Motivated by competition and achievement Staff motivated by tough assignments Organizational Fit Leadership Implications 21

22 Decision Styles & Emotional Competence A test that is so valid it can be used for selection; however, most often used for coaching success. It predicts the leadership style that the top 20% of successful leaders in the world have. With coaching, a leader can change one s score for even higher performance. Provides more predictive behavior beyond the personality traits. 22

23

24 Definition of Decision Styles versus

25 Definition of Decision Styles versus

26 Next Destination. APPLICATIONS 26

27 Assess Team and/or Department Talent DECISION STYLE Report Sample 1 Factor Flexible Adaptable - Blue =Below 33% were too low in using adaptable in public or cross-functional settings, low winwin skills +Red=On target level 56% combined borderline scores (4-<5) and (5 to <6) scores are showing right levels of Flexible = being open to input, listening and collaborative ++Green High 11% C-Level is 6 to 7 (High range) 27

28 Coach Individuals and Team VP, Global Talent Management, Karl-Heinz Oehler used assessment to work with the top teams. Over successive years used multiple assessment to build awareness and structure team sessions Customized feedback reports on the 360 and Hogan with development actions and coaching Each year added new tools: Decision Styles and Emotional Competence and Conflict Skills to continue to develop leaders with new insights 28

29 Succession Planning/Talent Review Group reports using the 3 personality assessments (potential, derailer, values) helped structure succession planning review meetings and validate true potential Objective assessment brought rigor to the Talent discussions Sample using color coding: Green=on target Yellow=needs development Red=does not meet Strong Fit Range CANDIDATES SCALES KC FA AG JH MJ MP DM CS FV MM MO HOGAN PERSONALITY INVENTORY(Below 10 and Above 90 is a weak fit) Adjustment Ambition 87 *100 *100 * * Sociability Interpersonal Sensitivity Prudence Inquisitive *91 76 *98 * * Learning Approach Hogan Development Survey (0-69 percentile indicates strong fit; Moderate Fit; greater than 89 percentile indicates weak fit) (Derailers) 0-69 Excitable Skeptical Cautious Reserved Leisurely High Potential Profile Factors (70-89 Percentile indicates strong fit; less than 70 percentile indicates moderate fit; greater than 89 is weak fit) Bo1d * *98 * Mischievous *99 *97 48 * *93 * Colorful *97 85 * *99 * Imaginative *95 * Diligent Dutiful Hogan Development Survey (0-69 percentile indicates strong fit; Moderate Fit; greater than 89 percentile indicates weak fit) OVERALL FIT FOR GENERAL MANAGEMENT **Fit Rating M OD- MOD+ STRG STRG STRG STRG M od+ STRG STRG STRG STRG Percentile Ranges (HPI, HDS) Strong Fit (Green) Moderate Fit (Moderate) Weak Fit (Red) Extremes = below 10% or above 90% Rating Code ` High Potential Profile Factors **Fit rating for general management * Although high, still a positive High Potential factor if no derailer behaviors are observed. 29

30 Next Destination. Case Studies 30

31 Case 1: Hire the Best Talent The Opportunity: Find the best fitting talents for an Accelerated Leadership Programme out of well educated and high skilled population 14 short listed applicants (Graduates MBA) / 5 positions to fill Final Decision making was based on performance of predefined characteristics as - Ravens score above average - Hogan results aligned to our leadership model - Performance and authenticity in the interview Result - With the mixed approach we were able to select the best fitting 5 out of All 5 accepted and started the ALP ( and still there ) - Additional 3 candidates were offered other Jobs in the organization (2 agreed) Follow up - Feedback about the assessment results was provided to all 7 hires within their on boarding - All 7 agreed that the Hogan results described their personality & style very well and they will use these insight to work on their development. 31

32 Map Competencies to Valid Assessments Competencies THOUGHT LEADERSHIP * 1.Strategic Thinking 2.Insightful Judgment 3.Global Perspective *Raven measures EXECUTION LEADERSHIP 1.Agility & Adaptability 2.Personal Accountability 3.Trust & Integrity RESULTS LEADERSHIP 1.Demonstrates Initiative 2.Process Excellence 3.Passion for Customer Service & Stakeholder Success 4.Leading Courageously PEOPLE LEADERSHIP 1.Effective Communication 2.Drives Collaboration 3.Builds Talent HPI Potential HDS Derailers MVPI Values Decision Styles & EC Inquisitive Imaginative Science Integrative & Hierarchic (operating) Prudence Diligence Commerce Decisive Ambition Bold Power Decisive; Hierarchic-(Expert) Interpersonal Sensitivity Few Derailers Affiliation Flexible & Integrative (Role) 32

33 Case 2: Lighthouse Leaders The Opportunity: Support current Location Managers of a Lighthouse- Location to enhance their Leadership style to the next level to be prepared for future challenges Volume: Sept. YTD 75 Location Manager did complete the assessments Efficient Self-service process established for results and feedback delivery Output - Individual reports with strengths and development needs - Heathchart per Location provides overview to local HR and Management - Development Kit Results - Main Strength Drives Execution - Main Development area Drives Collaboration Follow up - Development Plan to be completed within 45 wd - Ongoing monitoring 33

34 Case 2 SAMPLE REPORT Lighthouse Leaders 34

35 Next Destination. Customers Voice 35

36 Feedback about Assessments The assessment experience will help the participants improve their leadership skills. 60,0% 50,0% 50% 50% 50% 48% 50% 40,0% Strongly Agree 35% Agree 30,0% 30% 28% Somewhat Agree Somewhat Disagree Disagree Strongly Disagree 20,0% 16% 13% 10,0% 10% 10% 0,0% 4% 4% 3% 0% 0% 0% 0% 0% 0% 0% 0% 0% Sen. Leader HR BP Manager Participant 36

37 Feedback about Assessments Overall I would recommend an assessment intervention to a colleague as a valuable tool to drive em ployee development. 50,0% 45,0% 40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% Strongly Agree Agree Somew hat Agree Somew hat Disagree Disagree Strongly Disagree 0,0% HR Manager Participant 37

38 Feedback about Assessments I will take the assessment results into consideration during upcoming hiring-/ succession decisions. 60,0% 50,0% 50% 50% 40,0% 30,0% 40% 30% 39% 35% Strongly Agree Agree Somewhat Agree Somewhat Disagree 20,0% 20% 22% Disagree Strongly Disagree 10,0% 10% 4% 0,0% 0% 0% 0% 0% 0% 0% 0% 0% Sen. Leader HR BP Manager 38

39 Original Quotes The process is great [Senior Leader] This was my first experience in a live assessment exercise such as this. Excellent development tool. [Participant] I enjoyed it, was an exhilarating experience The assessment process is beneficial as part of an overall development plan. The role-playing exercises were the most valuable part. [Manager] Overall the assessment concept is a good one a really needed in today's business environment. I feel the feedback give after the process was completed needs to be taken onboard with the view of enhancing the effectiveness. It was a good first step, it is my hope that some (live) training programs will develop around the assessments. [HR BP] The actual assessment was handled very well and I felt comfortable the entire day. It also helped me develop my skillset. [Participant] The latest assessments resulted in timely feedback, some feedback took too long but the results were good,...timeliness is extremely important. [Senior Leader] 39

40 Today s final destination. Lessons Learned Q&A 40

41 Lessons Learned It s all about teamwork Ownership is critical at all Levels from Top to the bottom! The importance of a targeted talent strategy linked to critical talent pools Valid assessments build credibility Sustainability is a challenge Discussion: What are your lessons learned? Q&A 41

42 Contact Dr. Stella Malsy,

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