Succession Planning & Leadership Development: Your Utility s Bridge to the Future

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1 Successin Planning & Leadership Develpment: Yur Utility s Bridge t the Future Richard L. Gerstberger, P.E. TAP Resurce Develpment Grup, Inc West 32 nd Ave Denver, CO ABSTRACT A few years ag, a certain plititian (wh shall remain nameless!) used t talk endlessly abut building a bridge t the 21 st century. The bridge t which he referred was technlgy. As it turns ut, he was partly right: technlgy is an imprtant tl fr bth the private and the public sectr, but having a trained and experienced wrkfrce, managers and supervisrs is prving t be anther critical piece t building a successful rganizatin in the 21 st century. And at this pint f the 21 st century, changing demgraphics are demanding that having a sund leadership develpment and leadership successin planning prcess in place are f paramunt imprtance fr success, r even survival. The statistics abund as t the impact that aging baby-bmers are starting t have n the wrkfrce. T site a few, Business 2.0 magazine prjects a a shrtage f 5.3 millin skilled wrkers by 2010 and, bringing this clser t hme, American City & Cunty magazine recently cited a study that identified the average age f public wrks directrs t be 50. The wrkfrce crisis is n lnger lming; it is here. In this envirnment, it is fair t ask, are yu prepared? Wrk n this prblem has be ging n fr a number f years with a number f utilities, many f whm have taken a practive stance in managing tday s changing wrkplace. Quite simply, these leaders understand that t cntinue t meet r exceed the regulatry, custmer, financial, peratinal, and custmer gals f their utility r public wrks agency, they need t have rganizatinal cntinuity, which is nt easy with tday s aging baby bmers. The key t attaining this rganizatinal cntinuity is successin planning. We have fund time and time again that this means having a sund leadership develpment and successin prcess in place and an effective perfrmance management system t insure implementatin. What is leadership in tday s wrld, hw d we develp it, and what des it take t make a difference? Jhn Ktter in his bk, Leading Change, states that leadership..defines what the future shuld lk like, aligns peple with that visin, and inspires them t make it happen despite the bstacles. Dr. William Schneider, authr f The Reengineering Alternative and a TAP Resurce business partner, defines leadership as Creating a visin and directin fr the rganizatin and mbilizing peple t accmplish them. Dr. Schneider als indicates that t effectively develp leadership within the rganizatin it is imprtant t understand the rganizatin at its cre. 2387

2 Over the last 10 years, we have prvided leadership develpment and caching services t ver 250 managers at all levels f the rganizatin. This presentatin will discuss a cmprehensive apprach built n the fllwing fur fundamental principles: There is nt ne right way t lead (One size des nt fit all) There are fur basic appraches t leadership Sme characteristics f these appraches are similar, just implemented differently Strategic Fcus (hw the rganizatin prvides value t its custmers) determines the right apprach t leadership. Cmprehensive leadership develpment and successin planning invlves aligning leadership with the rganizatin fr which the leader is respnsible. Fr that reasn, we recmmend a fur step prcess fr effective successin planning: 1. an rganizatinal assessment, 2. a cmpetency mapping prcess cvering the effected psitins, 3. leadership training fr utility managers 4. a cmprehensive and individualized leadership develpment prcess and 5. successin plan develpment and implementatin cnsultatin. The develpment f a sund leadership develpment and successin planning prcess is a utility r public wrks rganizatin s straighest path acrss the bridge t the future and, in fact, taking this apprach is quite pssibly an rganizatin s management s best tl in ensuring lngterm measurable success fr the rganizatin, its custmers, and its emplyees. KEYWORDS Leadership develpment, plan implementatin, successin planning, results-based leadership, rganizatinal change INTRODUCTION A few years ag, a certain plititian (wh shall remain nameless!) used t talk endlessly abut building a bridge t the 21 st century. The bridge t which he referred was technlgy. As it turns ut, he was partly right. Technlgy is an imprtant tl fr bth the private and the public sectr, but having a trained and experienced wrkfrce, including managers and supervisrs, is prving t be anther critical piece t building a successful rganizatin in the 21 st century. Changing demgraphics demand the creatin f a sund leadership develpment and successin planning prcess. At this pint in the 21 st century, these tw elements are f paramunt imprtance fr the success, even survival f an rganizatin. Statistics abund as t the impact that aging baby-bmers are starting t have n the wrkfrce. T cite a few, Business 2.0 magazine prjects a shrtage f 5.3 millin skilled wrkers by 2010 and bringing this clser t hme American City & Cunty magazine recently cited a study that identified the average age f public wrks directrs t be 50. The wrkfrce crisis is n lnger lming; it is here. In this envirnment, it is fair t ask, are yu prepared? At TAP Resurce Develpment Grup we have wrked n this prblem with a number f ur clients, many f whm have taken a practive stance in managing tday s changing wrkplace. 2388

3 Quite simply, these leaders understand that in rder t cntinue t meet r exceed the regulatry, custmer, financial, peratinal, and custmer gals f their utility r public wrks agency, they need t have rganizatinal cntinuity. Hwever, cntinuity is nt always easy with tday s aging baby-bmers. The key t attaining this rganizatinal cntinuity is having a sund leadership develpment and successin prcess in place and an effective perfrmance management system t insure implementatin. What is leadership in tday s wrld, hw d we develp it, and what des it take t make a difference? Jhn Ktter in his bk, Leading Change, states that leadership...defines what the future shuld lk like, aligns peple with that visin, and inspires them t make it happen despite the bstacles. Dr. William Schneider, authr f The Reengineering Alternative, defines leadership as Creating a visin and directin fr the rganizatin and mbilizing peple t accmplish them. Dr. Schneider als indicates that t effectively develp leadership within the rganizatin it is imprtant t understand the rganizatin at its cre. Over the last 10 years, TAP Resurces has wrked with many managers in a number f public wrks, utility, and ther lcal gvernment rganizatins. During that time, we have prvided leadership develpment and caching services t ver 300 managers at all levels f the rganizatin. This cmprehensive apprach is built n fur fundamental principles: There is nt ne right way t lead (ne size des nt fit all). There are fur basic appraches t leadership. Sme characteristics f these appraches are similar, merely implemented differently. Strategic Fcus (hw the rganizatin prvides value t its custmers) determines the right apprach t leadership. Cmprehensive leadership develpment and successin planning invlves aligning leadership with the rganizatin fr which the leader is respnsible. Fr that reasn, we recmmend a fur step prcess fr effective successin planning: 1. an rganizatinal assessment, 2. a cmpetency mapping prcess cvering the effected psitins, 3. a cmprehensive and individualized leadership develpment prcess and 4. successin plan develpment and implementatin. ORGANIZATIONAL ASSESSMENT It s imprtant fr managers t understand the rganizatin and cntext within which they lead. Fr this reasn, an rganizatinal assessment is an imprtant part f effective leadership develpment and critical t successin planning. This includes an in-depth understanding f hw the rganizatin prvides value t its custmers, the rganizatin s culture (hw things get accmplished r implemented), and hw leadership functins within the rganizatin. The Organizatinal Assessment prcess als lks at hw supprtive (aligned) culture and leadership as a whle are with hw the rganizatin prvides value t its custmers. It will accmplish the fllwing: 2389

4 Invlve the entire rganizatin in understanding the rganizatin and its current situatin. Enable the leadership team t get belw symptms and identify cre issues. Identify strengths and barriers t successful implementatin f a leadership develpment plan. Assess clarity f Strategic Fcus thrughut the rganizatin. TAP Resurce has develped a cmprehensive Organizatinal Assessment prcess that invlves emplyee fcus grups, Culturetek assessment (a cmprehensive, statistically validated assessment instrument that assesses fcus, culture and leadership), and a facilitated wrkshp. Emplyee Fcus Grups Culturetek Assessment Facilitated Wrkshp Figure 1. The key steps f the Organizatinal Assessment. Thrugh the assessment prcess, the leadership team will gain an understanding f the rganizatin s fcus, culture, leadership, the alignment f culture and leadership with purpse and the level f integratin amng elements f culture and leadership. If an rganizatin is nt clear abut hw it prvides value t the cmmunity and its custmers (its purpse) it will nt be particularly effective at meeting the challenges f change. Clarity f fcus r purpse must cme first fllwed by an understanding f culture and leadership. Understanding and capitalizing n rganizatinal culture is hw leaders leverage peple resurces. Dr. William Schneider, in his article Why Strategies Fall Apart in the Jurnal f Business Strategy, states that The mre business leaders learn hw t use their wn rganizatin s culture, the mre they will succeed in implementing their rganizatin s strategy. The final cmpnent f the assessment prcess is a facilitated wrkshp with the rganizatin s leadership team t review the findings and recmmendatins and develp an actin plan t guide the successin and leadership develpment prcess. The wrkshp will als address barriers that have been identified that may hinder implementatin. The infrmatin gathered during the assessment prcess is extremely valuable fr, and integrated int, the rganizatin s strategic planning prcess. CORE COMPETENCY MAPPING Cmprehensive leadership successin planning requires a clear understanding f the cmpnents f effective leadership fr the varius management psitins within the rganizatin. A wellcnstructed cmpetency map can be very helpful t the members f yur rganizatin in prviding directin and fcus t their develpment effrts. Mapping leadership attribute sets t an rganizatin s cmpetencies helps the rganizatin t identify and understand the specific leadership behavirs that each cmpetency requires. It then allws the ragnizatin t assess and 2390

5 develp its leadership talent using a set f develpment tls. The prcess f cmpetency mapping invlves the fllwing: Gain a thrugh understanding f each cmpetency. Get as much infrmatin as yu can abut each cmpetency, including a detailed descriptin f it, the ratinale behind chsing it, and the expected utcmes f develping it. Identify specific examples f bservable behavir that wuld r wuld nt ccur if peple were demnstrating the cmpetency. Given yur cmpetency map and the leadership attribute sets, determine the attributes that wuld be mst invlved in develping and demnstrating each cmpetency set. It s imprtant t keep the list f leadership attributes fr each cmpentency set as shrt as pssible, including nly the sets that wuld be the key behaviral cmpnents f the cmpetency. Leadership Develpment Due t the very nature f leadership, effective develpment is an individualized training prcess that cnsists f the fllwing activities. Leader Assessment. TAP Resurce uses a 360 assessment system that prvides cmprehensive infrmatin t individual managers and supervisrs abut their leadership attributes. By cmbining this infrmatin with the culture and strategy data already btained frm the Organizatinal Assessment, we establish the fundatin fr the creatin f individualized leadership develpment plans. The 360 leadership evaluatin prcess is a nn-judgmental assessment prcess invlving individual managers, peers, direct reprts, and supervisrs. Leadership & Successin Training. A tw-day leadership training wrkshp is prvided that cvers the basics f leadership in different types f rganizatins. This is a key piece f successin planning in that this will enable all f the rganizatin s managers and supervisrs t be wrking frm a cmmn knwledge and methdlgy base, ensuring cntinuity int the future as retirements and ther staff turnver ccur. The prgram will cver the fllwing tpics: Leadership fundamentals. The fur cre leadership types. Review the integratin f leadership and perfrmance management. Beginning develpment f individual leadership develpment plans. Individual LEA Feedback and Unit Develpment Needs Sessins. A facilitated meeting is held with each and their supervisr t review the infrmatin btained frm that individual s leadership assessment. The meeting will cver bth the leadership attributes f the individual and the implicatins f leadership within the culture and strategic purpse f bth the leader's rganizatin and the larger rganizatin. Team LEA Feedback Sessins. The Leadership Team will be given team behavir feedback and areas fr develpment will be identified. This will include recmmendatins fr imprving team functining and verall leadership alignment. 2391

6 Develp Individual Leadership Develpment Plans. Each leader participating in the leadership develpment planning prcess will design a preliminary plan fr his r her individual develpment. Once the leader and the leader s supervisr have agreed n the preliminary plan, cnsultants will assist leaders t integrate develpment needs f their unit. SUCCESSION PLANNING AND IMPLEMENTATION A cmprehensive successin plan shuld be created fr bth the larger rganizatin and fr each divisin within that rganizatin; this will ensure alighment f leadership thrughut the rganizatin. The develpment f a sund leadership develpment and successin planning prcess is a utility r public wrks rganizatin s straighest path acrss the bridge t the future and, in fact, taking this apprach is quite pssibly an rganizatin s management s best tl in ensuring lngterm measurable success fr the rganizatin, its custmers, and its emplyees. 2392

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