Succession Planning: An Integrated Approach to Workforce Planning and Development. Council on Accreditation Conference July 18, 2016 Mike Markovits
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1 Succession Planning: An Integrated Approach to Workforce Planning and Development Council on Accreditation Conference July 18, 2016 Mike Markovits 2014
2 About AchieveMission MISSION Dramatically increase the impact achieved by nonprofits and the social sector by enhancing the sector s perception and practice of human capital management VISION By 2030 human capital management best practices will be at least as widely accepted and practiced as are logic models, strategic planning and program evaluation TEAM Strong human capital management business (Mercer, Hewitt, GE, IBM) and nonprofit (Taproot, Independent Sector, Teach for America, Jumpstart, Citizen Schools, etc.) experience Priority sectors: Education, Philanthropy, Human Services, International
3 What Is Human Capital Management? Processes for Building & Managing Leadership & Organizationto Achieve Strategy & Mission Impact HUMAN CAPITAL PROCESSES LEADERSHIP & ORG STRATEGY & IMPACT Activity Build & run stronger human capital processes (e.g. recruiting) Outcome Stronger leadership & organization Impact More mission impact per dollar
4 Human Capital Management Recruit Select Onboard Balanced Scorecard Goals Cascade Performance Management Outstanding Talent in Key Roles Strategy Goals Initiatives Metrics Leadership & Org Aligned Goals Human Capital Processes 1. Lead & Govern HCM Leadership & Team Talent Assessments Leadership & Prof Development Succession Management Career Development Audit, desired future, transition Diversity & inclusion Optimized Performance Board Leadership Managers HR 2. HCM Strategy & Planning HCM Strategic Plan Workforce Plan Competency Management Metrics 3. Acquire 4. Build 5. Reward & Retain Reward Philosophy Retention Plan Compensation & Benefits Intangible Rewards 6. Align, Monitor & Support 7. Culture 8. Coordinate Organizational Design Decision Making Internal Communication
5 Human Capital Management Recruit Select Onboard Balanced Scorecard Goals Cascade Performance Management Outstanding Talent in Key Roles Strategy Goals Initiatives Metrics Leadership & Org Aligned Goals Human Capital Processes 1. Lead & Govern HCM Leadership & Team Talent Assessments Leadership & Prof Development Career Development Audit, desired future, transition Diversity & inclusion Optimized Performance Board Leadership Managers HR 2. HCM Strategy & Planning HCM Strategic Plan Competency Management Metrics 3. Acquire 4. Build 5. Reward & Retain Reward Philosophy Retention Plan Compensation & Benefits Intangible Rewards 6. Align, Monitor & Support 7. Culture 8. Coordinate Organizational Design Decision Making Internal Communication
6
7 Definition Workforce Planning Based on your organization s strategy, you can anticipate your workforce needs (e.g., expansion to another city, adding an additional program, annual turnover historically in different positions). Do you have the ability to meet your anticipated workforce needs from within your organization? Succession planning is a key process to determine whether you can meet your workforce needs through the internal development and movement of talent
8 Definition Succession Management Succession management is an set of processes for identifying, selecting and managing talent to build bench strength and to ensure the readiness of that talent to move immediately into key positions when necessary. Does not work well if done only in response to an event (i.e. departure of leader) or is driven by HR. Done effectively, it enables organizations to react quickly to change and to endure difficult times. At its best, enables an organization to seamlessly merges its employees capabilities and career aspirations with org. strategy and talent needs. Many non profits do not do succession management and only 12% of for profits may have a fully developed program. Why do you think this is? What does it take to do succession management well? Source: Bersin & Associates and and Center for Creative Leadership High Impact Succession Management
9 Succession Planning Mitigates Risk Vacancy Risk Readiness Risk Transition Risk Deployment Risk Risk of critical leadership positions being left vacant Risk of underdeveloped or unprepared successors in critical positions Risk of poor assimilation of leaders into the organization or into crucial roles Risk of poor deployment of talent to execute strategy Source: Adapted from Corporate Executive Board,
10 Best Practices for Succession Management Executive leaders drive succession management, supported by HR Name key roles based on strategy, identify high potentials to prepare them Create actionable development plans Measure outcomes regularly and make adjustments Keep it Simple!
11 Distinguishing Replacement & Succession Planning Replacement planning identifies immediate understudies Replacement planning focuses on suitable replacements for top executives Replacement planning creates a short list of candidates Succession planning develops talent to move forward Succession planning leads to ease in filling vacancies throughout the organization because employees are being empowered and developed Succession planning builds a large talent pool Succession planning takes a little more time and effort from leaders, but it yields a high return
12 Succession Planning is a Process To achieve its full impact, succession planning must be thought about as an ordered business process, just like other strategic planning processes, and conducted on at least an annual basis
13 Smart Succession Tools
14 While It s a Newer HCM Practice, There are Previous Models
15 Talent Reviews are a Core Succession Planning Tool A talent review is a structured process for evaluating an organization s talent in order to understand Who has potential for other roles Plans for succession to key roles What key development actions are needed for organizational success Benefits include Linking business plans with the necessary human capital capabilities Judges the health, quality and robustness of the leadership pipeline Clarifies potential replacements for key roles Exposes where there are insufficient replacements available for key roles Identifies higher potential staff and plans to accelerate their development Identifies critical gaps in capacity and develops plans to address those gaps Leadership team dialog and calibration leading to better teamwork
16 WORKSHEET: 9 Box PERFORMANCE HIGHER Hi Professional Current Star Super Star Solid Professional Key Player Future Star Under Performer Inconsistent Player Rough Diamond Too new to rate LOWER LOWER POTENTIAL HIGHER
17 Distinguishing Levels of Performance LOW Not yet meeting expectations of someone fully competent in the role MEDIUM Meeting expectations of someone fully competent in the role. A solid and reliable performer. HIGH Exceeding your expectations of someone fully competent in the role. Delighting you. Not requiring a lot of supervision to get great results
18 What is Potential? It is an organization s view of an employee s ability to rise and succeed in more senior roles, broader responsibilities or more critical positions within an organization Agility, promotability & track record of success are indicators Agility Agility or learning agility is the willingness and ability to learn new knowledge and skills and then apply them successfully in new or different situations Promotability Promotability is the willingness and ability to take on roles of greater complexity, impact, scope, and scale. Promotable staff have the aspiration or ambition to take on greater and broader responsibility. This may include a willingness to move in order to advance one s career. Track Record of Success Track record of success is about consistently delivering results over time and in changing circumstances. What are the characteristics of people who get promoted? Does everyone understand that?
19 Distinguishing Levels of Potential LOW This person will likely focus on developing mastery of their current job or leave the field. MEDIUM Has the ability to do more. For example, could add additional responsibility in current role or take on new role. HIGH Could be promoted above the current role with an expected ability to manage and lead other staff, leading a pillar/function, etc
20 Managing Different Staff Profiles Performance Assessment Low Moderate High Retain Strong appreciation and ongoing informal feedback. Develop in place. Provide opportunities, build on what they do best. Give opportunity to coach and develop others in area of expertise. Manage or Move Assess root cause of low performance: motivation, environment, knowledge, skill? Consider moving to another type of role. Performance improvement plan. If other options exhausted/not viable, transition out of organization Stretch or Promote Quickly prioritize for highprofile leadership opportunities (launching something new, leading a turnaround or overhaul). Provide opportunities for wide exposure. Shadow senior leaders in skill gap areas. Develop Lots of feedback. Break work into segments and identify next steps. Strong project support for planning, engaging stakeholders, identifying pitfalls. Strong milestone and end of project reviews to adjust work and support learning. Focused skill training as needed. Low Moderate High Potential Assessment
21 Pitfalls to Avoid
22 Worksheet: Successor Chart First row From inside our organization Second row From outside the org (alumni staff, volunteers, BOD, partners, etc.) Incumbent Ready Now 1 Job Away 2 Jobs Away Your Name, Your Role name name FOR TOP POTENTIAL SUCCESSORS: GAPS/WORRIES &DEVELOPMENT Person Strengths Concerns Action Person X Person Y Person Z
23 Utilizing Talent Review Output Based on where employees are in the 9 box and where they appear (or not) on Successor Charts, YOU have a perspective about their future organizational opportunities. Your perspective is valuable. It may or may not be consistent with the employee s own aspirations or assessment of future prospects. That s okay
24 Career & Succession Driven Development Plans Nine-box & Successor Chart 2. Find overlap with employee s career aspirations 3. Identify gaps that limit the employee s ability to take on new responsibilities or successfully compete for new roles 4. Build individual development plans with the employee to close those gaps
25 Retention Planning Doing Talent Reviews will help you identify who is most critical to retain Those who are higher performers and who have more potential tend to be the people most critical to retain in any organization Once you have identified who is most critical to retain, then you need to understand what motivates them to stay at your organization When you are talking with your staff members about their individual development plans, also talk with the people who are critical to retain about what would most motivate them to stay at your organization As part of individual development plans, include actions that would increase likelihood of retention for those identified as critical to retain
26 Risk of Inadequate Workforce Planning In the absence of conducting Talent Reviews on at least an annual basis, the risks to your organization include: Decreased retention of key personnel, especially those staff with the most potential to advance to bigger roles in your organization Increased reliance on recruiting to meet workforce needs with the associated recruiting and onboarding costs and time delays
27 Questions and Discussion Thank You Mike Markovits
28 THE POWER AND PROMISE OF HUMAN CAPITAL SAMPLE CLIENTS A nonprofit s ability to successfully pursue its mission is almost entirely determined by the capabilities of its human capital all of the people who work directly to help an organization advance its mission. Leading and managing the essential players comprehensively and holistically is the best way to reliably increase efficiency, stability, scalability and results. The activities of human capital management, from planning, recruiting, hiring and onboarding to supervising, developing, engaging, retaining and compensating, when strategically orchestrated, ensure that a nonprofit achieves the three essential characteristics of highperforming organizations: ACHIEVEMISSION SERVICES TO INCREASE SOCIAL IMPACT Leading nonprofits and foundations have retained AchieveMission to guide them in enhancing their leadership development capabilities, improving their human capital management processes, and engineering the cultural shifts required for these efforts to be successful. Our approaches have proven particularly helpful for organizations navigating major inflection points and managing significant organizational change. Some of the most common of these pivot points are Implementing new strategic plans. Innovative plans require organizations to reassess their leadership, management and cultures in order to succeed in reinventing themselves and engaging in bold pursuits. Pursuing rapid growth. Organizations seeking to scale need to quickly evolve their practices in order to manage and develop larger, more complex, diverse and distributed teams. Managing executive transitions. New CEOs and COOs often need help in shifting leadership teams, management processes and organizational culture to align with their long-term visions. LEARN MORE AT or call AchieveMission is a nonprofit, 501(c)(3) consulting firm with a vision: to develop a highperforming social sector that embraces and exemplifies best practices in management and leadership. Our consultants are leaders in human capital management and have held senior level talent-related positions in nonprofit and for-profit organizations. Visit us online at achievemission.org or call for more information. Copyright 2016 AchieveMission, Inc. All rights reserved. Boston New York Washington San Francisco
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