HUMAN RESOURCES & SUCCESSION PLANNING AT YOUR AIRPORT

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1 HUMAN RESOURCES & SUCCESSION PLANNING AT YOUR AIRPORT ACI-NA Airport Board Members & Commissioners Conference June 9, 2014 Jeanette Saunders Ricky Smith Cleveland Airport System

2 Are you prepared to replace your current & future leaders, at what cost?

3 1 in 5 organizations are unprepared for key leadership departures. Results: Business objectives are placed on hold. Business performance suffers. Increased cost to organization.

4 Statistics say that in the next three years, as many as 75% of your organizations top performers will leave the organization for greener pastures.

5

6 Turnover costs up to 3x the salary (separation, replacement, training) Senior Executive $360,000 Mid-level management $195,000 Salaried employees $150,000

7 Workforce Planning & Talent Management Strategy

8

9 Strategic Workforce Planning Model Leadership Vision Mission Values GCG Identification & Workforce Planning SWOT Retention & Engagement Career Management & Succession Planning Culture of High Performance & Sustainable Talent Recruitment & On-boarding Performance Evaluation & Compensation Learning & Development

10 Succession Planning Business Value Lower cost Lower risk Higher retention Higher productivity

11 What Succession Planning Is Not A Static Plan Simply Promoting Within Rewarding Seniority Tossing Merit to the Wind

12 Succession Planning is A part of a larger integrated workforce plan. A guarantee that the organization has a leadership plan in place for success in the future.. Assurance that employees have development opportunities to hone their leadership skills. Preparing 2-3 internal candidates for each critical position.

13 Cleveland Airport System Case Study The Problem: In 2006, the capacity of the workforce did not meet the business needs of the Cleveland Airport System. The organization lacked a documented strategic direction, and therefore, it had a dysfunctional organizational structure, and a misalignment and/or void of talent in certain key functions.

14 Actions Taken: Stakeholder Assessment Restructured the Organization Developed 4-year Strategic Plan ( ) Developed Workforce Plan Developed Strategic Integrated Talent Management Model (STMM)

15 Established Infrastructure to Support STMM Talent Acquisition & Onboarding Performance Evaluation & Compensation Learning & Development Career Management & Succession Planning Employee Engagement & Retention Employment Branding Program Expansive Recruitment Strategy Competency-based Screening New Hire Development & Evaluation Organizational Performance Management Competency-based Performance Evaluations Market-based Salary Structure Employee Recognition Program Cleveland Airport System University (CAS U) Individual Development Plans (IDPs) Integrated Talent Management Application Job Profiles Position Risk/Retention Assessment Leadership Education and Development Program (LEAD Academy) Employee Engagement & Climate Survey Council of Committees Employee Appreciation Activities Corporate Wellness Program

16 CAS Succession Planning Steps Annual Risk Assessment Retirement Eligibility & Likelihood Incumbent Separation Risk Position Criticality Internal Assessment of Bench Strength Performance, potential, readiness Determine Succession Planning Strategies LEAD Academy Three level competency-based leadership development Number of available participant slots per level determined by annual risk assessment Competitive participant selection process

17 CAS Succession Planning in Action Chief of Planning of Engineering Hired as staff engineer in Promoted to Engineering & Construction Manager in Beneficiary of LEAD Academy s Executive Development program. Chief of Administration & Performance Management Hired as Organizational Development Manager in Beneficiary of leadership coaching and mentoring. Building Maintenance Manager 13-year building maintenance employee on 3 rd shift. Beneficiary of leadership mentoring, coaching, and LEAD Academy. Administrative Services Manager Hired as staff employee in a different division in Beneficiary of coaching and LEAD Academy. Airport Planning Coordinator Hired in 2012 as a leadership risk mitigation strategy. LEAD Academy current participant, and as of last month performing as Acting Airport Planning Manager.

18 The Outcomes Reduced mid-level & executive management turnover costs by 22%, saving $357k over a 3-year period. ACI- ASQ score increased from 3.55 in 2007 to 3.97 in In 2010 ACI-ASQ awarded CLE Most Improved Airport in North America. Employee engagement increased by 18% to a 78% employee engagement rate, and labor grievances reduced by 83%. Increased senior management female diversity by 167% to a 33%. Increased senior management minority diversity by 189% to a 48%. Internal promotions increased from 12% in 2007 to 44% in 2013.

19 Business Advantage Staff Quality Organizational Performance & Talent Sustainability Competitive Advantage

20 Take-Aways Sustainable Leadership Commitment Strategic Direction Alignment Diversity Expansion Commitment Part of Larger Workforce Planning & Talent Strategy Periodic Position Risk Assessment (9 15 mos.) On-going Development Opportunities for All Coaching Mentoring Stretch Exercises Formal Training Workforce Engagement

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