LEADERSHIP DEVELOPMENT & SUCCESSION PLANNING Are You Ready for the Unexpected?
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1 LEADERSHIP DEVELOPMENT & SUCCESSION PLANNING Are You Ready for the Unexpected? FastForward: Proven Framework for Leadership & Professional Business Results. Accelerated.
2 ABOUT SKYE We work with human resource professionals, business leaders, and company owners on organizational development efforts to help create greater alignment of employee performance with business results: Leadership Training Executive Coaching Strategic Planning Individual & Organizational Assessments ARE YOU READY FOR THE UNEXPECTED? Challenge Developing core leadership capability to drive organizational competiveness and success Solution Leadership development and succession planning: Align the organization s human capital management plan with its strategic plan 1
3 OUR DISCUSSION 1. Review a model on the strategic aspect of leadership development and succession planning 2. Learn why organizational leadership strength is critical to the support and effective execution of a competitive strategy 3. Link HR activity and initiatives to building core leadership capability aligned with organizational strategy 4. Succession planning essentials ALIGNMENT CHALLENGE 1 Business Strategy Talent Strategy Values Culture Mission Desired Employee Profiles Short Term Goals Long Term Initiatives Plans Actual Employee Skills 2
4 THE TRANSFORMATION MODEL ENVIRONMENT Current Market Conditions Key Customers Key Competitors Key Stakeholders External Influencing Factors Market, Environment, and Technology Assumptions STRATEGY Business What Business You Are In Current Products and Services Core Competencies Current Market Position Performance Against Key Industry Success Factors Current Distinguishing Strategy Current Strategic Focus Current Objectives and Goals Organization Current Mission Current Guiding Principles Sense of Shared Vision Current Philosophy CULTURE Work Culture Norms General Morale Job Satisfaction Worker Attitudes, Behaviors, and Beliefs Attitudes, Behaviors, and Beliefs RESULTS Current Key Result Areas Current Measurement and Tracking Systems Resource Inventory: Equipment, Capital, Manpower, Materials, Technology Current Financials: Revenue, Cost Structure CORE PROCESS Physical Layout Map Core Processes Maps Support Processes Maps Key Processes Maps Key Process Variances Process Cycle Time and Efficiency Computer Delivery System STRUCTURE Organization Chart & Reporting Relationships Organization Levels & Staffing Numbers Span of Control Current Groupings Linking Mechanisms Job and Role Structures SYSTEMS Coordination Communication and Recruitment &Selection Information Sharing Orientation Decision Making and Training & Authorization Progression & Promotion Measurement & Feedback Performance Evaluation Goal Setting and Feedback Policies and Procedures Compensation Recognition ACHIEVEMENT MODEL Strategy Leadership Execution 3
5 IMPORTANCE OF LEADERSHIP STRENGTH 2 Alignment / Top down understanding and communication of mission, vision Cascading goals and objectives Delegation, empowerment, accountability, and growth Leaders teaching leaders Reinforce cultural values LEADERSHIP PRESSURES The talent pipeline often lacks sufficient numbers to replace leaders The organization's expansion goals outstrip the amount of internal talent needed Globalization and increasing technological demands make the leader's job more difficult than ever Source: Graziadio Business Report, 2007, Vol. 10. Issure 2 4
6 LEADERSHIP PRESSURES (CONT D) Problems with strategic direction, organizational alignment, and employee commitment continue to exist and are exacerbated in the current competitive environment Human resources professionals and those responsible for leadership development feel increased pressure to demonstrate value Leadership development initiatives are not integrated with business needs, and consequently, are of questionable value to internal customers. Source: Graziadio Business Report, 2007, Vol. 10. Issure 2 LINKING TALENT MANAGEMENT TO STRATEGY 3 Recruitment & Selection BUSINESS STRATEGY Rewards Career Succession Planning Talent Performance Senior Training & BUSINESS RESULTS Promotion & Advancement 5
7 PURPOSE OF TALENT MANAGEMENT Fosters a process of building leadership capability across the lines of business / support functions The emphasis is on developing a broad spectrum of talent within the management ranks so that the availability of internal talent will not be a constraint to the organization's strategic direction Identify the key leadership success factors DESIRED OUTCOMES 1. Retention and development of high potential employees 2. Builds internal staff capabilities (bench strength) for the emerging organizational demands 3. Maps various succession options 4. Facilitates developmental moves across the organization 5. Establishes a professionally managed organization with the systems in place to ensure that it will have effective leaders going forward 6
8 CHANGING NATURE OF WORK & ORGANIZATION Demographics (net-generation, diversity) Globalization Technology Redefined concept of Loyalty Challenges in differentiating high performers from poor performers Wanted rapid career progression SUCCESSION PLANNING Recruitment & Selection BUSINESS STRATEGY Rewards Career Succession Planning Talent Performance Senior Training & BUSINESS RESULTS Promotion & Advancement 7
9 A DEFINITION / SUCCESSION PLANNING A systematic effort and process of identifying and developing candidates for key leadership and professional positions over time to ensure the continuity of management and leadership in an organization WHAT IS SUCCESSION PLANNING? Constant change planning An organizational journey, not a project Ensuring continuity of leadership Identifying gaps in existing talent pool Identifying and nurturing future leaders 8
10 WHY SUCCESSION PLANNING Organizations supersede Individuals visionaries are those who groom their young talent to take the lead position and to take the cause of the organization forward To identify replacement needs To provide opportunities for high potential workers (retention) To increase pool of promotable employees To support implementation of a strategic business plan To guide individuals in their career paths To encourage the advancement of diverse groups To improve ability to respond to changing environmental demands To improve employee morale To cope with the effects of downsizing, attrition, retirements SUCCESSION PLANNING ESSENTIALS 4 Purpose and guiding beliefs Human resource forecasting Competency model/set Assessment processes Recruitment processes Individual development plans Competency development activities Incentives & rewards Retention strategies Role delineations Career paths Program evaluation mechanisms Key stakeholder involvement 9
11 SUCCESSION PLANNING MODEL Education and Training Results 1. Talent Driven culture 2. Accelerated 3. Vision for future advancement Measurability Self Competency driven Strategically Targeted Rotational Assignments Accountability Future Competencies Needed Aligned with Strategic Plan CEO/ Leadership Commitment & Involvement Ref: Effective Succession Planning / Matthew Tropiano, 2004 SUCCESSION PLANNING COMPONENTS Pre planning Communicate Communication Plan Identify Leadership Characteristics Assess Bench Strength Identify Talent Develop Talent Evaluate Succession Planning 10
12 Free Leadership Workshop May 23 rd / 8am 11:30am The use of this seal is not an endorsement by the HR Certification Institute of the quality of the program. It means that this program has met the HR Certification Institute's criteria to be pre-approved for recertification credit. Our Sponsor: Reach me at: SKYE SKYE Business Solutions David Liddell dliddell@skye-solutions.com Thank You for Your Time Today! 11
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