Succession Management

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1 Succession Management Positioning Yourself as a Destination Employer Organization Michael K. Koenecke PHR/SHRM-CP HR Consulting Lead Destination Employer Institute

2 Our Journey MEASURE Organizational Talent ANALYZE Today s Talent Market IMPLEMENT Development & Skill Attainment FORECAST Competencies Traits & Skills MAP Succession & Bench Developme nt Strategy MONITOR Succession Pipelines

3 Succession Planning Systematic process for defining and filling future management needs Developing talent to meet the needs of the business for the future Flexible, long term development of key positions within your organization

4 Reasons for a Succession Plan Identify and pipeline highly talented individuals Alignment- Business goals - Future talent needs Continuous development Minimizing intellectual capital loss Narrows competency gaps Object measurement of promotability Avoid Hit by a bus tragedies

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6 Succession Management 101

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8 MEASURE Organizational Talent Make-up of your current employee group Eligible/future retirees Entry Level Bench Mid Level Bench Key positions Upper Mgmt./Executive Current Competencies KSA s

9 Case Study Ag Retailer Average Retirement Rate Demographic Make-Up Entry Level Bench Mid Level Bench Key Positions Upper Mgmt Executive Near Retirement

10 Discussion What is a key position within your organization your developing future leaders for?

11 FORECAST Competency/Traits Competencies - Skills, behaviors, and attitudes that lead to high performance Prepare and grow leaders to match the requirements for position. KEY-Align competencies to the organization s mission, vision, values, and business strategy.

12 Are successors qualified for the right reasons?

13 Case Study Competency Benchmarking Mid Level Facility Manager Group (2011) Benchmarking/Forecasting 67 research-based competency library Scientifically validated 19 career stallers/stoppers 21 leadership characteristics for success 5 career derailment characteristics Customized for specific competencies

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15 Case Study Competency Cont.. 1. Leadership Ownership 1. Senior Leaders defined desired competencies 2. Customized 360- Target Facility Managers (16) 1. Outcomes Identified: Positives + Drive for results, Customer Focus, Integrity & Trust, Organizing, Decision Making, Work/Life Balance Competency Gaps Managing/Measuring Work, Building Effective Teams, Motivating Others, Confronting Direct Reports, Delegation, Process Management

16 Case Study Competency Cont..

17 Competency Benchmark What s our goal: Leadership competencies and technical/functional skills - Link through job descriptions, assessments, learning and development, succession planning, and career-pathways. IDP s Mentoring Align with key stakeholders External technical training/skills/competency training

18 Discussion What are the competency traits desired for your key positions being developed for future leaders?

19 2 nd Benchmark Criteria Personality Trait Indicator Mid Level Facility Manager Group Provides insights to drive performance Measures natural personality compared to personality traits needed to be successful for a given job Accurate data quantifying the motivating needs and behavioral drives Compliant for hiring practices Basic Traits DOMINANCE, EXTROVERSION, PATIENCE, FORMALITY Benchmarked Personality Criteria Managers assessment Assertive, Persuasive, Fast-Paced, Driving, & Careful

20 Lower Than Average NORM Higher Than Average AVERAGE LO 3 LO 2 LO 1 LO 1 HI (Extremely Low) (Very Low) (Moderately Low) (Moderately High) Submissive Humble Unassuming Confident 2 HI (Very High) Assertive 3 HI (Extremely High) Arrogant HI THE CONTINUUMS A B C D Docile Self-effacing Meek Easily- Withdrawn Shy Secretive Remote Deeply Reserved Volatile Extremely Impatient Extremely Tense Sloppy Free-wheeling Undisciplined Disrespectful Rebellious Undependable Timid Unobtrusive Mild Retiring Reflective Selfconscious Imaginative High-Strung Very Impatient Intense Fast-paced Driving Careless Frank Nonconforming Obstinate Unselfish Agreeable Peaceful Reserved Quiet Serious Sincere Introspective Tense Impatient Quick Restless Casual Independent Informal Uninhibited Independent Competitive Self-Starter Friendly Persuasive Sociable Talkative Optimistic Relaxed Patient Stable Methodical Calm Accurate Careful Thorough Selfdisciplined Dutiful Individualistic Resourceful Venturesome Innovative Outgoing Stimulating Fluent Enthusiastic Socially Extroverted Passive Slow Deliberate Unhurried Precise Cautious Expert Fussy Worrier Formal Entrepreneuria l Domineering Belligerent Gregarious Highly Persuasive Loquacious Good Mixer Superficial Lethargic Very Slow Unresponsive Placid Perfectionist Anxious Respectful Conforming Inflexible A B C D

21 Personality Continuum

22 Case Study Personality Trait Cont Baseline Criteria Natural Self

23 Discussion What are the needed personality traits desired for Operations Management for your organization?

24 ANALYZE Today's Talent Market Skilled Labor Pool Shrinking Best Candidates Already Employed Mobility Barrier Are our locations of business inviting to match their desired needs? National Unemployment (May) 5.4% Local? Labor Force Shifting Boomers by 2020, result in significantly lower labor participation rates Ag Sector Projections USDA 54,400 annual openings through 2015 needed, post graduate

25 Today's Talent Market - U.S. Unemployment U.S. Rate 5.5% May 2015

26 MAP Succession/Bench Development Strategy Internal Talent Interns Trainees High Potentials Key Positions Supervisors/Mgmt. Performance Mgmt. System Performance Appraisals 360 Feedback Peer reviews Nine Block Ratings

27 Succesison/Bench Development Strategy Cont.. External Talent Local Workforce High or Low in skill or competency needed? Passive Candidates Best in class Already hired If a potential successor, do they know? College/University New ideas/new talent Tradeshow/Conferences Resume Database Time/Energy? Executive Search Firms

28 Succession/ Bench Development Strategy Cont.. Points To Consider Recruitment Reach Local, Regional, National Cost/Benefit Impact Internal/External Recruitment/Selection Program Maximizing your performance management system Use of multiple, objective measurement tools Referral Programs #1 at 46% retention after 1one year #1 source for new hire quality Source Staffing.org 2011

29 Succession/Bench Development Strategy Cont.. Consider the following: Predictability of job performance Increased to 92% when talent selection included three or more scientifically validate objective instruments Competency 360 Survey Personality Trait Predictor Ability/Aptitude Testing Can we afford to hire and promote EE s based just on a Gut Feeling

30

31 IMPLEMENT - Development & Skill Attainment A company with a competency-based model trains employees who lack competencies in certain skills and builds upon them based on career development needs and needs of the business to survive. incorporating competencies into your training clearly distinguish company and job competency benchmarks within your organization Employees have a clear roadmap Behaviors Attitudes encouraged Needed competencies for each position.

32 IMPLEMENT - Development & Skill Attainment Coaching/Mentoring Bi-weekly follow meetings Shadowing Teaching opportunities Include individual follow ups between the employer/successor and individual being succeeded

33 IMPLEMENT - Development & Skill Attainment Learning Transfer Set measurable and tangible targets for improvement Allow opportunities for successor to execute new skills in work environment Project assignments Follow ups with CEO or Key Stakeholders in talent development program Drive accountability Improve unity in senior levels commitment to succession planning

34 Discussion How are you measuring what to develop in your future successors today?

35 MONITOR Succession Pipelines Performance Appraisals Peer Reviews IDP s Follow through w. mgmt/candidate discussions Career Discussions Evaluate/Re-Evaluate Competency, Skills, Trait factors Top Grading

36 Destination Employer Succession Model MEASURE Organizational Talent ANALYZE Today s Talent Market IMPLEMENT Developmen t & Skill Attainment FORECAST Competencies Traits & Skills MAP Succession & Bench Development Strategy MONITOR Succession Pipelines

37 How are you influencing your future successors?

38 Contact information Michael K. Koenecke PHR/SHRM-CP HR Consulting Lead Destination Employer Programing PH:

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