Planning for Leadership Succession: The Board s Role in Talent Management
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1 Planning for Leadership Succession: The Board s Role in Talent Management Minnesota Community Action Partnership 2014 Annual Conference Seth M. Finestack, MS, CPF, Senior Manager 1 Learning Objectives Three Parts: 1. Define leadership succession and talent management 2. Learn best practices in planning for and executing a successful ED transition 3. Identify roles for the Board in talent management 2 Board s Role in Talent Management 1
2 About Me 3 About You What is your Board role? Executive Committee Personnel or Finance Committee Other Committee Report to it Interested or other Why is CAA Succession critical to you and your Community? 4 Board s Role in Talent Management 2
3 Plans are worthless, but planning is everything. Dwight D. Eisenhower 5 Community Action Governance Board Duties 6 Board s Role in Talent Management 3
4 Basic Nonprofit Success Factors Clear organizational goals aligned to mission Defined performance measures Capable, dedicated personnel and management Accurate accounting and control measures Reasonable constraints on activities Effective, capable board of directors An audit committee or other non-staff directed oversight body that focuses on organization finances 7 7 Keys to a Successful Board DIRECT the organization in the best interests of its owners (taxpayers) PROTECT the interests of the organization s owners/members RESPECT the members by listening, communicating, and understanding their interests REFLECT on the organization s performance SELECT talented people to lead the organization as Officers and Directors EXPECT top performance from each director INSPECT the CEOs performance The Imperfect Board Member Discovering the Seven Principles of Governance Excellence by Jim Brown, Published by Jossey Bass 8 Board s Role in Talent Management 4
5 Succession and Talent 9 Questions for Us 1. What is succession management? 2. What is talent management? 3. Why is talent management critical to succession? 10 Board s Role in Talent Management 5
6 Succession Management Defined Development Identification A systematic and defined process to ensure continuity for key positions by identifying and developing roles and people to fill them Key Position Continuity 11 Talent Management Defined Succession Planning The process of identifying highpotential employees and developing them in preparation for advancement into key positions for success of the agency Leadership Development 12 Board s Role in Talent Management 6
7 Issues to Consider Vision and strategic goals Linked to performance expectations and staff development needs Needed leadership and talent capabilities Current state and availability of talent with these capabilities Developmental activities and assignments 13 This is not about an Executive Search Replacement Planning Reactive Risk Management Replacing/Substituting Unstructured Approach Exclusive Rigid Succession Planning Pro-Active Talent Management Renewing/Energizing Organized Alignment Inclusive Flexible 14 Board s Role in Talent Management 7
8 The Case for Succession Planning 15 Three Response Options 1. Intensify efforts to hire hard-to-find and increasingly expensive people outside the organization (i.e. strangers) 2. Do nothing and experience a competitive decline (i.e. fail as a Board) 3. Tap into the quality people already in the organization and grow the future leaders (!) 16 Board s Role in Talent Management 8
9 Are You Ready? 17 Succession Cornerstones 18 Board s Role in Talent Management 9
10 Cornerstone 1: Define Competencies Identify and define the knowledge, skills, and abilities required for each role or level of work 19 Job Profiles with Competencies Provides a unifying framework within organizations Serves as a building block toward an integrated human resource system by identifying the capabilities required to perform successfully within an organization (by role or level of work) Generates thinking about what the role or level should be tomorrow (2 to 5 years out), versus over-examining what it is here today 20 Board s Role in Talent Management 10
11 Define Competencies Customer Orientation Effective performers stay close to customers. They view the organization through the eyes of the customer and go out of their way to anticipate and meet needs. They continually seek information and understanding regarding the customer s perspective and environment. Source: OSI - Polaris Competency Model 21 Define Competencies Establishment of Proficiency Levels Significant 1 Gaps Gaps Proficient Exceeds 2 3 Significantly 4 5 Exceeds Bottom 3-5% Top 3-5% NOTE: What is a Gap for one job or level may be Exceeds for another 22 Board s Role in Talent Management 11
12 Sample Approach Competencies for a new ED: 1. Determine who defines and decides 2. Create an ad hoc Board committee 3. Review the current job description and other supporting documents 4. Interview your incumbent ED 5. Select core and role-specific competencies and proficiencies for the future ED role 6. Update the job description and supporting documents 7. Proceed to Assess Talent! 23 Cornerstone 2: Assess Talent Evaluate your talent and analyze fits and gaps for short- and long-term needs 24 Board s Role in Talent Management 12
13 Talent Assessment Tension Potential Performance 25 Talent Assessment Tension 26 Board s Role in Talent Management 13
14 Sample Approach Talent Assessment for a new ED: 1. Agree on competencies, proficiencies, essential functions, and minimum requirements 2. Pre screen for education and experience minimum requirements* 3. Understand each individual s motivations, interests and intentions 4. Evaluate aspirations, learning agility, leadership behaviors and track record (i.e. Potential) 5. Assess evaluations, feedback from others, work samples, and outcomes (i.e. Performance) 6. Plot or list out all of the possible matches 7. Score and/or document fits and gaps * TEST YOUR ASSUMPTIONS 27 Cornerstone 3: Develop Talent Create personalized development plans linked to vision and succession strategy 28 Board s Role in Talent Management 14
15 Best Practices The right training at the right time for the right person Development plans for all employees, specifically high performers and hard-toreplace talent Align the performance management process/system Coach for performance (including leadership) Formal performance appraisal 1 2 per year Informal checkpoints up to 12 per year 29 Sample Approach Development Plan for a new ED Potential: 1. Communicate strengths ( fits ) and weaknesses ( gaps ) related to the future position or positions 2. Discuss timelines and opportunities to develop new knowledge, abilities and skills to close the gaps 3. Agree on goals and development opportunities; update formal goals and performance evaluations 4. Coach and provide feedback between checkpoints 5. Identify new and more challenges and opportunities aligned to the individual s needs 6. Be OKAY with the risk of losing someone 30 Board s Role in Talent Management 15
16 Cornerstone 4: Evaluate Performance Evaluate and manage performance against established goals and objectives 31 Talent and Succession Success Factors Plans alone are not enough! 5 keys to proven success: 1. Ensure the commitment and involvement of the Board and senior leadership 2. Tie the talent management process directly to the vision and goals of the organization 3. Keep it simple and inclusive 4. Create and carry out a communication plan 5. Revisit the talent and succession management plans annually and make adjustments to the process 32 Board s Role in Talent Management 16
17 Challenges to Talent Management Time for the process Engagement of the Board Buy-in from senior leaders Finding the right employees to develop Implementation and follow-through Assessment and measurement Budget to appropriately develop future leaders Losing talented employees Achieve Global & Wipfli HR Consulting 33 Write the Plan 34 Board s Role in Talent Management 17
18 Importance of a Solid Plan 1. Ensures effective talent management to achieve growth and vision/mission 2. Prepares individuals for inevitable change by developing critical competencies 3. Promotes continuity of organizational culture 4. Helps assure that good leadership development will actually happen ~ it s intentional! 5. Meets Organizational Standard 4.4 ( outlining the process for filling a permanent vacancy ) 35 A Sample Plan Outline Position 3 5 Year Succession Plan Need? HS Director The position is currently filled. Our Director plans to retire in 2 3 years. KSA Needs High Proficiency: Facilitating Information, Problem Solving, Relationship Building, Financial Acumen, Team Management Proficiency: Technology Savvy, Change Mastery, Influence, Diplomacy 10 years of early childhood management experience 5 years of progressive responsibility for outcomes/performance Minimum Bachelor s degree or educational equivalence Current Employee JANE DOE, 21 years in HS, 16 supervisory, 8 as Director Competency Strengths Problem Solving, Financial Acumen, Influence Development Needs Relationship Building, Change Mastery Development Plan Summary Candidates Strengths Development Needs JANE is being coached by BOB JONES, HR Director, to ensure she can keep pace with our current changes & continue to effectively lead the team. See next Page 36 Board s Role in Talent Management 18
19 A Sample Plan Outline Position: HS Director 3 5 Year The position is currently filled. Our Director plans to retire in 2 3 years. Succession Plan Need? KSA Needs High Proficiency: Facilitating Information, Problem Solving, Relationship Building, Financial Acumen, Team Management Proficiency: Technology Savvy, Change Mastery, Influence, Diplomacy 10 years of early childhood management experience 5 years of progressive responsibility for outcomes/performance Minimum Bachelor s degree or educational equivalence Candidates KAY FINE NORA GOOD ROY YOUNGBLOOD Strengths Experience (5) Problem Solving (4) Influence (4) Development Needs Relationship Building (2) Technology Savvy (2) Education (2) Facilitating (5) Problem Solving (5) Diplomacy (4) Financial Acumen (1) Experience (3) Change (5) Team Management (4) Education (4) Experience (1) Financial Acumen (2) Relationship Building (3) 37 Working the Plan Ensures the right people are in the right place at the right time! 38 Board s Role in Talent Management 19
20 As you contemplate succession planning, remember the changing talent pool of workers especially the aging population and the up-and-coming generation. 39 Myths About Older and Younger Workers Older Workers Want to retire Can t (or won t) learn new skills Take more sick days Have more accidents Aren t flexible or adaptable Are less productive Are expensive Aren t innovative or creative Are forgetful Younger Workers Don t want to work hard Can t (or won t) take direction Take more personal time off Have more outside hobbies Are too flexible and unreliable Are less productive Are driven by money Aren t technically sound Are too idealistic 40 Board s Role in Talent Management 20
21 Dispelling the Myths: Elders Redefining retirement and many want or need to work Non-traditional students growing at technical colleges and universities Over 45 call in sick an average of 3.1 days compared to under 44, who take 3.8 days Fewer on-the-job accidents More likely to question change based on experience; will help implement change cautiously Productivity tends to rise with age, experience, and judgment Vacation and higher wage costs are often outweighed by lower turnover 41 Dispelling the Myths: Youth Work around the clock, when encouraged and motivated Seek mentors and guidance to accelerate skills Co-mingle personal and professional goals and tasks Proactively engage others in interests and activities Highly adaptable to change; able to accomplish outcomes in non-traditional ways Driven by opportunities to achieve and prove themselves Highly educated and adept with new workforce tools, systems, and norms Work creatively and diligently to overcome barriers to common goals 42 Board s Role in Talent Management 21
22 How We Can Help Strategic Organizational Development/Human Resources (SOHR) Consulting Strategic Planning Wage Comparability Studies Process Improvement Organizational Development Growth and Change Implementation Succession Planning Professional Coaching Products Human Resources Policy and Procedure Template (HRPro) Strategic Plan Analysis Tool My Wipfli Membership Service Training On-Site Training Webinars Outsourcing Staffing Benefits 43 Please connect with me: 44 Board s Role in Talent Management 22
23 Bring me to your agency (I m local) Seth M. Finestack, MS, CPF Senior Manager sfinestack@wipfli.com Evaluation! Please turn in your evaluation as you leave. We love your feedback! Thank you! 46 Board s Role in Talent Management 23
24 For More Information Visit the Wipfli Booth for more details or Board s Role in Talent Management 24
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