succession planning 3p associates

[email protected] • www.3Passociates.com * ph.716.909.2657

Presented to:Organization Development Network of WNY

Succession Planning

By:

Pete WendelBrian Pettit

http://www.3passociates.com/

McKinsey 7S FrameworkStructure Strategy

Skills Staff

Systems Shared Values Style

McKinsey 7S Definitions1. Strategy: A coherent set of actions aimed at gaining a

sustainable advantage over competition, improving position vis-à-vis customers, or allocating resources.

2. Structure: The organization chart and accompanying baggage that show who reports to whom and how tasks are both divided up and integrated.

3. Systems: The processes and flows that show how an organization gets things done from day to day (information systems, capital budgeting systems, and performance measurement systems would be good examples).

4. Style: Tangible evidence of what management considers important by the way it collectively spends time and attention and uses symbolic behavior. It is not what management says is important, it is the way management behaves.

McKinsey 7S Definitions5. Staff: The people in an organization. Here it is very useful

to think not about individual personalities but about corporate demographics.

6. Shared Values (or superordinate goals): The values that go beyond, but might well include, simple goal statements in determining corporate destiny. To fit the concept, these values must be shared by most people in the organization.

7. Skills: A derivative of the rest. Skills are those capabilities that are possessed by an organization as a whole as opposed to the people in it. (The concept of corporate skill as something different from the summation of of the people in it seems difficult for many to grasp; however, some organizations that hire only the best and brightest cannot get seemingly simple things done where others perform extraordinary feats with ordinary people.)

McKinsey 7S ChecklistStrategy Does the strategy support either a competitive advantage or improve

our position with customers?

Structure Does the organization and divisions of labor support accomplishment of the strategy?

Systems What processes, measurements and/or information improvements are needed to make strategy execution straightforward?

Style Are the reviews, questions, rewards and recognition offered by local management in alignment with achievement of the strategy?

Staff Are we populating or do we have the right overall proportions of specific skill sets or functions or diversity needed to have the strategy succeed?

Shared Values Is the strategy consistent with one or more of the organization Strategic Imperatives? Is there anything inconsistent about the strategy and corporate values?

Skills Do all the above end up providing the organization with capabilities others may have difficulty emulating? Can we succeed where others can’t? Why?

Smaller Family Owned Companies

• Add Pete’s slides here

Global Talent & Organization Review

(GT&OR)

Board Overview

Key Topics

• Talent Management: The Call for Action

• Global Talent & Organization Review

• Strategic Elements and their Linkages

• Timeline

Supply ofLeaders

Demandfor

Leaders

Today 15 Years Forward

100%

(100%)

85%

(125%)(150%)

(100%)

(50%)

0%

50%

100%

Supp

ly a

nd D

eman

d of

Qua

lifie

dU

.S. L

eade

rs (T

oday

= 1

00%

)

The time to act is now. Market factors constraining supply and demand will only accentuate Our Company leadership supply issues going forward.

“In 15 years, there will be 15% fewer Americans in the 35- to 45-year-old range than there are now. At the same time the U.S. economy is likely to grow at 3-4% per year … That sets the stage for a talent war.”

“Capital is accessible for good ideas and good projects. Strategies are transparent; even if you’ve got a smart strategy, others simply copy it. And the half-life of technology is growing shorter all the time … In that kind of environment, all that matters is talent.”

- Ed Michaels, McKinsey & Co.,author, The War for Talent

Market-driven leadership gap

Why Focus on Global Leadership Talent?

Our CompanyLeadership Gap

Skills GapDepth Gap

Short Term Drivers:

Long Term Drivers:

• Open critical positions• Short-term Company growth• Potential removal of

substandard performers

• Long-term Company growth (20%)

• Employees eligible for retirement

• Market constraints

• “Rapid science and technology evolution (skill gaps)

• Instituting performance management mentality

• Changing business perspectives that lead to different talent (skill set) requirements

Compounding the external constraints on leadership talent are potential gaps between Our Company’s internal needs and resources.

Components of the Gap

Leadership Depth

732

150

15Lead

ersh

ip B

ench

Str

engt

h (N

umbe

rs)

Growth could create significant leadership strains within Our Company

Management Leadership Executive Leader

1000

Present Leadership

897 leaders from Manager to Executive Leader

Traditional external training

PerformanceEvaluation

Special projects

Developmental jobs

Speed of job moves

Role models

Assessment-based Feedback on strengths & weaknesses

Informal coaching and feedback from boss

360-degree feedback

Mentoring(career path advice)

Individual learning

Traditional internal training

Nontraditional learning

programs

Importance to self-development: rated “absolutely essential” or “very important” (%)

Executive Education(#3 impact*)

Developmental assignments (#1 impact*)

Individual Feedback/Coaching(#2 impact*)

0 10 20 30 40 50 60 70 80 90

0

20

30

40

10

50

60

70

80

*Reference: For Your Improvement by Mike Lombardo & Robert Eichinger

Response from executives in 50 large US companies (McKinsey study)

Developing Leaders: Effectiveness of Interventions

What is the Global Talent & Organization Review?

A Process that:Aligns human capital with business objectives resulting in focused organization development and greater effectiveness Matches appropriate talent to organization structure to achieve resultsEvaluates the strengths and developmental needs of:– the current organization, and– its leaders and potential leaders

Includes:Results in human capital action plans to position the organization

for greater success in the future

Integrated Talent Management that Aligns Human Capital to Achieve Organizational Results

360 feedback Performance Management

Global Talent &Organization

Review Meetings

Compensation Review

Linked Linked LinkedTraining &

Development

Builds an high performing workforce necessary to achieve our strategic imperatives Facilitates the selection of the right leaders for growing/acquiring new and existing businessCreates a performance culture of continuous human capital improvementProvides opportunity for “cross-pollination” of leaders between functions/segments/international locations

For Our Company:

Build Leadership Bench to drive Performance & Innovation in Science, Technology and Biological Understanding

For People who LeadAllows for more accurate decision-making around employee promotion, placement, development, reward and recognition of top talentCreates a succession plan for leadership rolesAssesses key individuals according to results, behaviors and potentialEvaluates succession depth across global sites, functions, and businessesMeasures leadership retention and execution of leadership action plans

How does Our Company benefit?

Global Talent & Organization ReviewFor Performance and Innovation

ABC Region, Division, Local Facility

Strategic Organization Overview

• Last year Re-cap • Current Year Strategic Priorities• Organization Structure• Systems & Processes• Performance Capability• Organization Culture

• % of Sales• % Growth• Key new hires• Key promotions

• Six sigma look at ABC Process

• Need higher efficiency in XYZ

Last Year Re-cap

Accomplishments Opportunities

Takeaway Box

OVERALL BUSINESS STRATEGIES/OBJECTIVES

GT&OR IMPLICATIONS

Strategic Priorities/HR Implications

Takeaway Box

New Year Strategic Priorities/GT&OR Implications

Position TitleLocation


Organization Structure

Takeaway Box


















Key Changes•

•

•

Organization Structure: Management Layers & Spans

Management Layers

Strengths

•

•

•

President

Vice President

Director

Manager

Team Leader

IndividualContributor

c

TitleNumber of

IncumbentsNumber of Direct Reports

Average Range (min-max)

(#)

(#)

(#)

(#)

(#)

(#)

Weaknesses

•

•

•

Go Forward Actions

•

•

•

Months in Position (Avg)

Span of Control

(#-#)

Takeaway Box

(#-#)

(#-#)

(#-#)

(#-#)

(#-#)

(#)

(#)

(#)

(#)

(#)

(#)

(#)

(#)

(#)

(#)

(#)

(#)

Systems & Processes

Key Processes Process Effectiveness Factors New

Product Intro

Account Mgmt / Team Sales

Funnel Mgmt

Marketing (Sales

Support)

Customer Service

Fulfillment

Current Assessment Identified Gaps

a) World-Class Design -- Is the process a benchmark for other companies?

• •

b) Integrated - Is the process aligned with other relevant functions?

• •

c) Metrics – Can the process be tracked & measured?

• •

d) Systems Capable – Is the process digitized?

• •

e) User-Friendly – Is the process simple and intuitive to use?

• •

= Total overhaul

= Moderate improvements

= Minimal improvements

Process Improvement Required:

Takeaway Box

Performance Capability

Takeaway Box

.

Advanced

Expert

Intermediate

Limited

Basic

TECHNICAL

STRENGTH

MARKETING STRENGTH

Brown, John

Jones, Steve

Anderson, LoriBall, Beth Smith, HenryWhite, Dave

House, Mary

Basic

Averi, Lisa Bulkley, AbeSmith, Lori Black, Mike

.

Executive

Expert

Intermediate

Basic

Basic

TECHNICAL

STRENGTH

SALES STRENGTH


Consultative

Averi, LisaBulkley, AbeSmith, Lori Black, Mike

Strategic

Sales Marketing

Degree LegendPhd = RedMS = BlueMBA = Bold

Performance Capability (cont’d)

Takeaway Box

.

Expert

Expert

Immediate

Basic

Basic

TECHNICAL

STRENGTH

SERVICE STRENGTH

Brown, John

Jones, Steve


House, Mary

Functional


.

Sophisticated

Expert

Intermediate

Limited

Basic

TECHNICAL

STRENGTH

BUSINESS ACUMENT STRENGTH

Brown, John

Jones, Steve


House, Mary

Basic


Business Acumen Service

Degree LegendPhd = RedMS = BlueMBA = Bold

24

Organization Culture

Identity – Employees identify with the company as a whole rather than specific work group or field of expertise

Direction – Organization creates clear objectives and performance expectations

Control – Number of rules and regulations and amount of direct supervision used to oversee and control employees

Communication Patterns – Organization communication is restricted to formal hierarchy of authority

Integration – Units are encouraged to operate in a coordinated manner

Global Regional Site

L H

L H

L H

L H

Culture Dimensions

Takeaway Box

L H

L H

L H

L H

L H

L H

L H

L H

L H

L H

L H

•

•

•

•

Observations

25

PositionName Position

Name

PositionName

PositionName

Months in Position:Length of Service Date:

PositionName

PositionName

PositionName

PositionName

PositionName

PositionName

PositionName

PositionName

PositionName

PositionName

PositionName

PositionName

PositionName

PositionName

PositionName

Organization ChartPromotability Legend

*

*

+

+

+

+

+

=

- = =

? ?

? --

=














=Months in Position:Length of Service Date:





Takeaway Box

- = Placement Issue

+ = Promotable

= = Grow in Position

* = High Potential

? = Too New

Avg. Time in Position (in mo.) ___Avg. Length of Service (in mo.) ___Males ___ Minority Females ___

Results Rating

O = Outstanding %

V = Achiever %

P = Performer %

I = Improve. Required %P-3

V-3 O-3 I-1 O-2 P-2 P-2

V-2 P-2 P-3 I-2 O-4 P-2

I-1 P-2 O-2 I-1 P-2 v-3

Behavior Rating

4 = Role Model %

3 = Very Effective %

2 = Effective %

1 = Improve. Required %

+

26

.

Role Model

Outstanding

Performer/Achiever

Improvement Required

ImprovementRequired

RESULTS

BEHAVIOR

9 Block Talent Summary

Brown, John -

Jones, Steve -

Anderson, Lori *Ball, Beth +Smith, Henry ?White, Dave +

House, Mary =

Promotability Legend

- = Placement Issue

+ = Promotable= = Grow in Position

* = High Potential

? = Too New

Effective/Very Effective

Takeaway Box

Averi, Lisa =Bulkley, Abe +Smith, Lori ?Black, Mike =

Leadership Development

• Improvement Required – Planned Actions• High Potential/Promotable Vitality – Planned Actions• Critical Contributors – Any Career Band• Succession Depth – Top Positions• Current & Future Talent Needs

(Bus. Segment/Comm. Operations Region/Global Function)

Timing of the planned actions: Use quarter/year designation (i.e. 4Q04)

Improvement Required – Planned Actions

Name PositionLocation

Career Band

Results - Behavior

Rating

Months in CurrentPosition

Length of Service

Date(Months)

Planned Actions/Timing: (developmental job assignment, training, redeployment, mentoring, out placement, etc.)

Retention Risk: Green = O.K. Yellow = Caution Red = High

Timing of next best move and planned actions: Use quarter/year designation (i.e. 4Q04)


High Potential/Promotable Vitality –Planned Actions


Career Band

Results - Behavior

Rating

Months in currentPosition

Length of Service

Date(Months)

RetentionRisk

Next Best Move

(Specific Title)& Timing

Planned Actions/Timing: (developmental job assignment, training, redeployment, mentoring, relocation preferences/ restrictions, etc.)

Retention Risk: Green = O.K. Yellow = Caution Red = High

Timing of next best move and planned actions: Use quarter/year designation (i.e. 4Q14)


Critical Contributors – Any Career Band


CareerBand

Results - Behavior

Rating

Months in CurrentPosition

Length of Service

Date(Months)

RetentionRisk

Next Best Move

(Specific Title)& Timing

Planned Actions/Timing: (developmental job assignment, training, redeployment, mentoring, relocation preferences/ restrictions, etc.)

31

Succession Depth – Top PositionsPosition: Vice President of Marketing Incumbent: Gerald Moser [g]

Jack Black [g] B

Sarah Parker [~] B

Mike Davis [g] C

Position:Incumbent:

Position:Incumbent:

Position:Incumbent:

Position:Incumbent:

Position:Incumbent:

Position:Incumbent:

Position:Incumbent:

Position: Director of AdvertisingIncumbent: Megan Millen [~]

Jake DeLong A

Jessica Jones [~] [^] [g] A

Katie Hines [~] C

Ready for Position

B = 1-2 years

A = Now

C = 3-5 years

Position:Incumbent:

Demographics

[^] = Minority

[~] = Female

[g] = Global experience

Results Rating

O = OutstandingV = AchieverP = PerformerI = Improve. Required

Behavior Rating

4 = Role Model3 = Very Effective2 = Effective1 = Improve. Required

A-4

O-3

A-3

A-2

O-2

V-3

P-3

Takeaway Box

32

Bus.Seg./Commercial Operations Region/Global Function

Current Open Requsitions Owners & Timing

Europe Director of Marketing Dole/Carter 4Q13

Position Opening Length: Green <45 days Yellow 46-75 days Red >75 days

Takeaway Box

Current & Future Talent Needs

Planned Headcount & Anticipated Turnover

Incumbents

Director of Engineering 4Q14 Jim Roads

Current Talent Needs Anticipated Future Talent Needs

Bus.Segment/ Commercial Operations Region/Global Function

Leadership Talent

Bench Strength

Systems & Processes

Structure Skill Mix

Strategy Business Results

Overall Status

Comments

•

•

•

•

•

•

•

•

•

•

Green = OK Yellow = Caution Red = Concern

Organization Assessment Summary

Takeaway Box

[email protected] • www.3Passociates.com * ph.716.909.2657 * People, Passion, Productivity, Profits

About Us3P Associates was founded in 2004 to continuously improve people; their passion, productivity, processes and profits.Human Resources Consulting from 3P Associates includes:•Team Building•Training in Leadership, Communication, Productivity•Employee Relations Investigation & Resolution•Employee Handbooks, On-boarding•Performance Management Systems•HR Audit and Strategic Process Improvement•HR Onsite Services: Short & long Term•Career Coaching & Resume ReWork™

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