hr pastime or critical business strategy · pdf filenot defining the business case . business...

HR Pastime or Critical Business Strategy Enabler

“An organization is nothing more than the collective capacity of its people to create value.” Lou Gerstner former CEO of IBM

Largest potential gains in revenue and profits

for business leaders came from building bench strength when looking at a variety of talent outcomes*

*CLC Talent Management Effectiveness Survey: Corporate Leadership Council Research

According to Marshall Goldsmith, on average, the executives he meets give their succession planning process a grade of C+ and they give their execution of succession plans a grade of D

How are you doing?

Time

• To plan • To develop • To fill open positions with the right people • To think further down the road

Getting Feedback and Buy-In from Others It is Hard

• Requires tough and direct conversations

Not Defining the Business Case

Business

Strategy feeds

into talent

strategy

Executive

Commitment

and

Accountability -

Reinforcement

Identify Critical

Positions

Develop

competency and

assessment

model

Assess Talent

and ID

Successors;

Calibration

Talent

Development,

Acquisition and

Planning

Metrics that

Matter

Manage

Ongoing

process and

Action Plans

Succession Planning is an

Ongoing Process

Identify the External Trends in your Business Environment

Define your Business Strategy • How do you compete?

• What do you do better than the competition?

• Can you do this without the right people?

• What is needed now and what will be needed in the future?

• What kind of culture is needed to drive success?

Feeds into the Talent Needed

Business Strategy

feeds into talent

strategy

After Sarbanes-Oxley, Boards have become more involved with succession management

Leadership Responsibility should start with CEO

Talent Expectations for leaders and managers

Hold ongoing reviews, consider talent management results as part of bonus plan or performance management ratings

Executive Commitment

and Accountability - Reinforcement

Direct strategic impact on the business; can drive

competitive advantage

High variability in performance can have major impact on

business

Critical positions may require and receive larger and/or

differentiated investment and development

Make sure the discussion is around the position not the people

Identify Critical

Positions

Position Variability in performance

Impact on strategic outcomes

Scarcity of resource

Impact on other strategic activities

Total Score

Job A

Job B

Job C

Complete the table for each job using a scale from 1 (low) to 5 (high)

Highest Total Score = Most Critical

List 3 or 4 most important sources of competitive advantage for your company – examples:

Identify relative importance by allocating 100 points among them where no two sources of competitive advantage can have equal weighting

Using this list helps you identify core, technical capabilities/positions

Michigan Ross School of Business Executive Education

• Innovation

• Quality

• Branding

• On-time Delivery

• Cost

• Distribution

• First to Market

• Relationships

• Service

Defining Characteristics

“A” Position – Strategic

“B” Position – Support “C” Position - Surplus

Scope of Authority Has direct strategic impact and exhibits high-performance variability in the position, representing upside potential

Has an indirect strategic impact by supporting strategic positions and minimizes downside risk by providing a foundation for strategic efforts, or has a potential strategic impact, but exhibits little performance variability among those in the position.

May be required for the firm to function but has little strategic impact.

Primary Determinant of Compensation

Performance Job Level Market Price

Effect on Value Creation Creates value by substantially enhancing revenue or reducing costs

Supports value-creating positions Has positive economic impact

Consequences of Mistakes May be very costly, but missed revenue opportunities are a greater loss to the firm

May be very costly and can destroy value.

Not necessarily costly.

Consequences of Hiring the Wrong Person.

Significant expenses in terms of lost training investments and revenue opportunities.

Fairly easily remedied thru hiring of replacement.

Easily remedied thru hiring of replacement

Source: “The Differentiated Workforce Transforming Talent into Strategic Impact” Adapted from “A Players” or “A „Positions‟? The

Strategic Logic of Workforce Management,” Harvard Business Review, December 2005

High Needs Development Meets Expectations Exceeds Expectations

Improve in current

role or reassign

Improve in current

role

improve in current role reconsider

Low High

Po

ten

tia

l

Performance

Prepare for future role

Develop Competency

and Assessment

Model

Hy-Vee ◦ Culture – how it drives

◦ Position Identification

Internal vs. External

Candidate Development and Assessment

Hy-Vee University ◦ Identification of Potential candidates

◦ Etc……

Mentors

Diversification tool

Reviewed External Environment, Trends and Current Performance

Redefined the Business Strategy and what Cultural

Capabilities we needed to succeed Analyzed the # of Director Level and Above Positions that we

Hired Externally the Prior Year Reviewed Current Number of Open Director and Above

Positions Calculated the Cost of Turnover

• Search agency costs • Relocation costs • Lost productivity/revenue from open positions

Business Strategy

feeds into talent

strategy

Senior Leaders have performance goals and objectives

specific to talent development and upgrade/acquisition

BU Leaders, HR Partners, CEO, CHRO Review of Succession Planning and

Talent Management and Upgrade Process

Senior Leadership Calibrates Talent Assessments and ID‟s Successors

MANAGERS Perform Talent Assessments

LEADERSHIP TEAM Identification and Alignment of Critical Positions

CEO Active Involvement and Accountability

Executive Commitment

and Accountability - Reinforcement

ID of Critical Positions

Understanding of company‟s cultural capabilities

Consideration of motivation, ability and engagement

Performance and Potential

Definition of competencies and derailers

Defined promotability and retention risk assessments

Develop Competency

and Assessment

Model

22

Motivation

Ability Engagement

23

Motivation Extent in which an employee wants: • Prestige and recognition in the

organization • Advancement and influence • Financial rewards • Work-life balance • Overall job enjoyment

Ability Engagement

Motivation

Resources • Employee career goals in

SAP Talent Profile • Regular development

conversations

24

Ability A combination of characteristics and learned skills to carry out day-to-day work: • Mental and cognitive ability • Emotional intelligence • Interpersonal skills • Functional and technical skills

Motivation

Ability Engagement

Resources • Employee competency

self-assessment in Skills Profile

• Performance history

25

Engagement Includes four elements of commitment: • Emotional commitment to the

organization • Rational commitment – a belief that

staying with organization is in the employee‟s self-interest

• Discretionary effort • Intent or desire to stay

Motivation

Ability Engagement Resources • Regular performance and

development discussions

26

Promotability Scale: Highly promotable (HP): Seen as having the ability and motivation to be

promoted two levels within five years. Include in succession planning. Promotable within 2 (P2): Seen as having the ability and motivation to be

promoted one level within two years. Include in succession planning. Promotable within 5 (P5): Seen has having the ability and motivation to be

promoted one level within 5 years. Include in succession planning. Lateral Development (LD): Consider for lateral move within the next 12 months

to broaden experience base and potentially enhance long-term promotability. Include in succession planning.

Well Placed (WP): Continue development in current role based on employee‟s

expertise and motivation. At risk: Not meeting current performance expectations; may be due to poor job

fit or poor performance.

31

Possible Ratings:

32

Possible Ratings:

33

Required – Indicate Next Position

34

Possible Ratings:

Talent development plans put into place for

• Internal successors listed for critical positions

• Individuals identified as promotable/lateral development

Talent acquisition plans put into place to diversify existing capabilities and fill in gaps

Action plans put into place for individuals “At Risk” as assessed

“Stay” discussions initiated where retention risks identified

Leaders and managers accountable for owning in partnership with HR

Tools to use throughout the year

Review action plans

Talent Development,

Acquisition and Planning

Consider experiences needed • Manage large groups of people

• Make significant decisions

• Work on cross functional teams

• Work in customer/client facing role

• Launch new business, initiatives or programs

• Assign a mentor – inside or outside the company

• Strong P&L knowledge

Consider knowledge/credentials needed

Create accountability for success in new roles (internal and external hires)

360 assessment tool

Talent Development and Planning

Name

Title

% Promotable: 0%

Name (WP)

Title

Bench Strength: .25

% Promotable: 0%

RN and/or 1-2 yrs: 1

Name (WP)

Title

Bench Strength: 1.00

% Promotable: NA


Name (WP)

Title


% Promotable: NA


Name (WP)

Title

Bench Strength: .75

% Promotable: 0%


Name - Open

Title


% Promotable: 17%


Name (WP)

Title


% Promotable: NA


Name (P2)

Title

Bench Strength:0.00

% Promotable: 0%

RN and or/1-2 yrs: 0

Name (WP)

Title


% Promotable: NA


Name (WP)

Title


% Promotable: NA


Name (At Risk)

Title


%Promotable: 0%


Name (LD)

Title


% Promotable: NA


Name (WP)

Title

Bench Strength: .25

% Promotable: NA


Name (WP)

Title

Bench Strength: .75

% Promotable: NA


Name (WP)

Title

Bench Strength: .25

% Promotable: NA


Name (WP)

Title

Bench Strength: 0

% Promotable: 33%


Name (At Risk)

Title

Bench Strength: 0

% Promotable: 0%


Name (LD)

Title

Bench Strength: 0

% Promotable: 33%


Name (WP)

Title

Bench Strength: .75

% Promotable: 0%


Name (WP)

Title

Bench Strength: .75

% Promotable: NA


Name - Open

Title


% Promotable: NA


Name (WP)

Title

Bench Strength: .75

% Promotable: NA


Name (WP)

Title

Bench Strength: .75

% Promotable: 0%


KEY

Indicates Critical Position

Metrics that Matter

Percentage of externally sourced successors versus internally sourced

Total number of internal succession candidates considered for open positions

Critical turnover - % of high potential employees leaving is higher than average or low potential employees

Time to fill critical positions

Cost of external hires versus internal promotions/development

What questions are you trying to answer or what decisions are you trying to make?

Metrics that Matter

Business Case: Connects Business Strategy and Needs into Talent Strategy

Should be ongoing and dynamic as business is

Executive Level Commitment and Accountability

Reinforce the Importance of Talent Development and Acquisition throughout Organization

Identification of and Agreement on Critical Positions

Assessment of Current Talent and Identification of Successors

Calibration and Discussion

Targeted Talent Investments, Development and Planning

Internal

External

Measure what Matters

Ongoing Management through the Four Succession Risks

Vacancy Risk - focus on most vulnerable and critical areas of business

Readiness Risk - provide needed development experiences and enable movement across company

Transition Risk - understand transition derailers, manage expectations of new hires and create accountability for success in roles

Portfolio Risk - ensure talent is aligned and deployed against evolving business priorities

Example of a Succession Planning Checklist

Manage vacancy risk – focus succession efforts by

translating business strategy into talent strategy

Manage readiness risk by providing needed development experiences and enabling movement across the organization

Manage transition risk by understanding derailers, manage expectations and create accountability for success in roles

Manage portfolio risk by effectively aligning and deploying talent against evolving business priorities

2006 Corporate Executive Board

Manage Ongoing

Process and Plans

Employee Information

Name: Current Job Title:

Date of Meeting/Interaction: Individual/s Providing Feedback:

Cultural Capabilities – Provide any feedback on behaviors related to our cultural capabilities

Tenaciously Resourceful

Dynamically Responsive

Passionately Aligned

Leadership Competencies: Ratings: (N/A – Not Applicable, IE – Ineffective, SE – Somewhat

Effective, E – Effective, VE – Very Effective, O – Outstanding)

Business Acumen: Dealing with Ambiguity: Decision Quality:

Developing Direct Reports and

Others: Drive for Results: Interpersonal Savvy:

Managerial Courage: Managing Vision and

Purpose: Managing and Measuring Work:

Describe purpose for rating/s above, be as specific as possible:

Functional Competencies:

Derailers: List any of the following you witnessed and explain what you witnessed:

Betrayal of Trust, Defensiveness, Lack of Ethics and Values, Failure to Staff Effectively, Insensitive to

Others, Performance Problems

Leadership Competencies Rating:

N/A – Not Applicable IE – Ineffective SE – Somewhat Effective E – Effective

VE – Very Effective O - Outstanding

Name of Individual

Bu

sin

es

s A

cu

me

n

Dea

lin

g w

ith

Am

big

uit

y

Dec

isio

n Q

ua

lity

Deve

lop

ing

Dir

ec

t

Rep

ort

s &

Oth

ers

Dri

ve

fo

r R

es

ult

s

Inte

rpe

rso

na

l S

avvy

Ma

na

ge

ria

l C

ou

rag

e

Ma

na

gin

g V

isio

n &

Pu

rpo

se

Ma

na

gin

g &

Me

as

uri

ng

Wo

rk

Pri

ori

ty S

ett

ing

Pro

ble

m S

olv

ing

Str

ate

gic

Ag

ilit

y

Cultural Capabilities Rating: N/A, IE, SE, E, VE, O

Derailer Assessment Rating:

NP – Not a Problem PNP – Probably Not a Problem NS – Not Sure PP – Probably a Problem DP – Definitely a Problem NEI

– Not Enough Information

Name of Individual

Te

na

cio

us

ly

Re

so

urc

efu

l

Pa

ss

ion

ate

ly

Ali

gn

ed

Dyn

am

ica

lly

Re

sp

on

siv

e

Dera

ile

rs:

Be

tra

ya

l o

f

Tru

st

De

fen

siv

en

es

s

La

ck

of

Eth

ics

& V

alu

es

Fa

ilu

re t

o S

taff

Eff

ec

tive

ly

Ins

en

sit

ive

to

Oth

ers

Pe

rfo

rma

nc

e

Pro

ble

ms

Business Strategy - Current and Future Needs, External Environment

Succession Management – Link Business Strategy into Talent Strategy:

Commitment, Assessment, Actions, Measurement

Talent Development and Retention - how and where should we target

our development investments? What experiences are needed? How are we

communicating to employees?

Talent Acquisition - what skills, capabilities and gaps did we identify that

we might want to find externally?

Performance Management - how are we defining, measuring and

rewarding work performance – does it tie to strategy? Do we consider

talent management performance for managers and leaders?

In Real Time, how do we keep this front of mind versus quick fix solutions when openings occur?

Not just an HR responsibility

Calibration – does it sound easy? It‟s not!

Assessment Tools

Employee Ownership

How and what should you communicate?

How do you build breadth at the entry to mid level roles?

What about positions that aren‟t critical?

Generational differences and expectations

Define your culture and business needs • Use your company‟s culture – don‟t force it

What is your process today? • Can – should you develop internal candidates?

Do you have senior leadership enthusiastic support and accountability?

Discussions are crucial for success – amongst leaders, with employees, etc.

Model Succession

Evaluate

Plan

Review

Evaluate

hr pastime or critical business strategy · pdf filenot defining the business case . business...

Documents