talent wars 2.0: transition planning · – 2012 acce convention: “winning the talent war” –...
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Talent Wars 2.0: Transition Planning Presented by: Kathy Young & Christa Tinsley Spaht Anna Buckalew & Ryan Mooney ACCE National Convention July 25, 2013 9:45–11:00 A.M.
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Agenda
• Introductions • How did we get here?
– Topic evolution – Trends and issues – Questions to consider
• What’s working and lessons learned from the field – Montgomery, Alabama – Springfield, Missouri
• Discussion
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Introductions
Kathy Young, Director of Operations and Principal Market Street Services
Christa Tinsley Spaht, Project Manager Market Street Services
Anna Buckalew, Chief of Staff
Montgomery Area Chamber of Commerce (Alabama) Ryan Mooney, CEcD, Senior Vice President, Economic Development
Springfield Area Chamber of Commerce (Missouri)
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Workshop Summary
With so many Baby Boomers in the ranks of board volunteers and top executives in your community, there may be impending leadership gaps as more people approach retirement age.
This session will explore the issue of transition planning within chambers’ volunteer leadership and communities as they deal with changing demographics.
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How did we get here? Topic evolution, trends and issues Section 2 of 4
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Today’s topic: how did we get here?
Founded in 1997, Market Street is a premier provider of community, workforce, and economic development strategic planning services throughout the United States. Our team includes skilled researchers, presenters, former practitioners, and community, workforce, and economic development experts. – 2011 ACCE convention: “Baby Boomer Economy” – 2012 ACCE convention: “Winning the Talent War” – 2013 ACCE convention: “Talent Wars 2.0: Transition Planning
Over the last 15 years, our team has worked in more than 150 communities in 33 states and abroad. Springfield, Montgomery, Austin, Nashville, Rome, Coachella Valley, Louisville, Rochester, Decatur, Omaha, Pearland… Every strategic planning process has a Steering Committee – ideally, one that is representative of the community.
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Impending Leadership Gaps From the ACCE Strategic Plan 2010–2012
“The changing nature of the profession, local economies, political landscapes and organizational management
(plus demographic realities) ensures that there will be a lively pace of turnover in the profession indefinitely.
By the start of Year Two, ACCE must systematize the efforts now undertaken solely by the CEO in facilitating
positive transitions across the nation.”
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Issue recap: Workforce Sustainability Generations by the Numbers, December 2011
Source: Market Street Services, using Moody’s population estimates
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
15 and younger 16-30 31-46 47-65 66-83 Age 84 and older
Generation Z(1996-present)
Generation Y/Millennials
(1981- 1995)
Generation X(1965-1980)
Baby Boomer(1946-1964)
Silent Generation(1928-1945)
The GreatestGeneration
(born before 1928)
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Issue recap: Baby Boomer Economy
• Retirement of the Baby Boom generation will cause critical labor shortages.
• Older Americans are working longer, increasingly in hard-to-fill public interest jobs.
• Lessened the pressure on identifying, recruiting, developing, and advancing the next generation of talent and leaders in some ways…for the short term.
• As we emerge from the Great Recession, these workforce trends that were put on hold are becoming increasingly immediate.
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Issue recap: Winning the Talent War
Adaptable strategies Retention and “plugging in” of up-and-coming talent pool Bringing back “boomerangers” Attracting and engaging newcomers (non-“born and raised”) Tapping global talent—creatively Multiple points of entry and welcoming environment—“come as you are”
Creating diverse professional and leadership advancement ladders Targeting and cultivating specific talent for community growth and prosperity Developing place-based infrastructure and amenities
Common hindrances to talent capacity Skilled workforce is aging Declining overall population Out-migration of educated young adults
Tight labor market—low unemployment
Lower relative educational attainment level
Competition with nearby, much larger metro area
Perceptions of opportunities for talent to plug in—professionally, civically, and socially
Talent gaps in emerging or growing competitive sectors
Values of in-demand talent not reflected in quality of life and community
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The “Gray Ceiling” is lifting Impact on leadership transition planning
• In every size community… – Steering Committee leadership challenges – Community survey feedback
• It impacts chambers of commerce, other community organizations, and
the private sector.
• It is a systemic issue with roots in pre-K–12 leadership development programs and career education.
• It will affect the competitiveness of your community.
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What’s next? BLS employment projections for 2010–2020
• Jobs openings: 54.8 million
• While creation of new jobs will lead to many openings, more than half of future job openings—61.6 %—will come from the need to replace workers who retire or otherwise permanently leave an occupation.
• In 4 out of 5 occupations, openings due to replacement needs exceed the number due to growth. Replacement needs are expected in every occupation, even in those that are declining.
Source: U.S. Bureau of Labor Statistics, Employment Projections: 2010-2020 Summary
New Jobs: 22.4 million
Replacements: 33.7 million
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What’s next? Major cultural differences between the emerging and exiting workforce
United States Cultural Generational Gap, 2012
Source: U.S. Census Bureau, Population Estimates
56.3%
79.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Age 0-17, white alone Age 65+, white alone
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Change
“A competitive world has two possibilities for you:
you can lose, or if you want to win, you can change.”
Lester C. Thurow, Former Dean MIT Sloan School of Management
• Are the changing demographics of your community represented in your leadership structures?
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Source: BoardSource Nonprofit Governance Index
• Gender and experience diversity have grown significantly while age and racial/ethnic diversity have stalled.
Board Diversity by Race/Ethnicity, 1994–2012
The growing cultural gap Evident in nonprofit board composition
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So, what are we supposed to do about it? Lack of awareness…or lack of action?
In a survey of young nonprofit professionals: • Most nonprofit organizations are aware of popular talent development and
retention tactics, but few actually implement them successfully. 1. Building bench strength 2. Diversifying 3. Structural change 4. Succession planning
• Among these 4 tactics, succession planning had the lowest rate of implementation (12.7% of all organizations surveyed).
– Among those actually implementing, it also had the lowest rate of effective implementation (46.2%).
• Building bench strength and succession planning were by far the top-ranked leadership development tactics in terms of positive potential impact, according to young nonprofit professionals.
Source: Young Nonprofit Professionals Network and the Annie E. Casey Foundation, “Good in Theory, Problems in Practice: Young professionals’ views on popular leadership development strategies”
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What value do younger generations (Gen X and Y) add to your board?
Passion for the mission
Results-oriented thinking
Access to new networks and donors
Fresh perspectives on old problems
In the past, what has kept your organization from adding younger generations to its board? Skepticism about the need to have younger generations on board Uncertainty of where to find younger board members Preference for a C-suite or corporate officer on the board Concerns not fitting in with the rest of the board/isolation
Source: BoardSource, “Next Generation and Governance: Report on Findings” (followup to 2007 Nonprofit Governance Index)
So, what are we supposed to do about it? Do these responses sound familiar?
In a 2007 survey of nonprofit CEOs and senior staff:
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Leadership succession planning The basics
It can be difficult to identify successful models in leadership succession development in chambers and communities, since these best practice models frequently don’t present themselves as such. They are found woven throughout a community’s or organization’s:
• Language • Toolkit • Programs • Structures (micro and macro) • Strategy and implementation roles/accountability • Performance metrics and ROI considerations
• What is the overarching and imbedded culture and approach to
leadership succession in your community? • Do members, investors, and other funders embrace the function of
community and board leadership planning?
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Contrary to popular headlines, your next generation of leaders isn’t doomed
“The Why-Worry Generation”
“What's Worrying Millennials? Pretty Much Everything”
“Why Millennials Are Spending More Than They Earn, and Parents Are Footing the Bill”
“Millennials Are Better Savers Than Boomers, Gen-X”
“Truth About Millennials: Less Entitled and More Cynical than You Think”
“Millennials Still Optimistic in Tough Times”
“The Idled Young Americans”
“Millennials Are the New Pioneers”
“Do Millennials Stand a Chance in the Real World?”
“What Millennials Want Most: A Career That Actually Matters”
“Millennials: The Next Greatest Generation?”
“Are Millennials the Screwed Generation?”
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Source: Matt Bors, “Can we stop worrying about milliennials yet?” CNN.com, July 9, 2013
Contrary to popular headlines, your next generation of leaders isn’t doomed
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“I am on the cutting edge of technology.”
“I have opportunities in my country to become an entrepreneur or develop
and bring an idea to
market.”
“I believe I can make a local difference.”
“I am very optimistic about my
future,” and “My country’s best days are
ahead.”
“Millennial” Leaders
Defined by opportunity, optimism, and technology.
11% of respondents to Telefónica’s Global Millennial Survey
Source: Telefónica Global Millennial Survey (2013)
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The new generation of leaders
• Drawn to more collaborative, network-driven leadership models ….rather that individual heroes
• Feel collaboration across sectors is very important …but don’t necessarily know the people, leaders, or methods to facilitate this collaboration
• Do you have a team- or network-based approach to identifying and
cultivating new leaders? • Do your current leadership awards and programs promote, recognize,
and celebrate effective collaboration? • Are future leaders being mentored in accordance with their values? Source: Trish Tchume, “A Field Guide for Recognizing Millennial Leadership” (January 2013) and American Express NGen Fellows Final Report (2010)
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Typical chamber leadership opportunities
• What else is your chamber doing within and beyond these structures? • Do “future and emerging” leaders want to lead these structures as they
stand now?
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Corporate leadership trends Board evolution
• The average age of Boards of Directors is increasing. – Current studies cite 62 as the average age.
• Directors are sitting on boards longer.
– 35% of 2012 respondents have served on their boards for over 10 years.
• Boards are getting smaller. – In 2011, the average board size was 10.7 members, down from 11.1 in
2001.
Source: PwC, “Insights from the Boardroom 2012”
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Corporate leadership trends How do these apply to the chamber world?
• Activist engagement and heightening intensity o Pressure on CEOs for short-term/immediate results o Pressure for specific value from actions o Strategic impact and expectations becoming a larger part of agendas
• New economy guidance o Not filling seats with only top executives o Populating their ranks with information leaders and management intelligence on emerging
trends in the changing economy—e.g. big data, information security, customer engagement, supply chain management, digital innovation, strategic talent development
Source: The Koblentz Group, “Board Alert: Trends for Directors,” May 2013
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Top 5 missing or insufficiently represented skill sets or areas of expertise missing on corporate boards
1. Technology (39%)
2. International/global (27%)
3. Industry knowledge (20%)
4. Succession planning (17%)
5. Sales and marketing (16%) • What bright or new spots in your local economy or talent are not
represented in your leadership structures?
Use your succession and leadership development culture to build new capacity, rather than solely replace existing spots
Source: Heidrick & Struggles and WomenCorporateDirectors, “2012 Board of Directors Survey”
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Evolving Through High-Level Transitions Jumping the S-Curve
Seek to Evolve Continually, Not Just to Replace
• High-performing organizations evolve the organization by evolving the top team first.
• This pattern of continual renewal opens opportunities for talented emerging leaders and team members to climb the ranks—and discourages them from jumping ship.
• Beyond the top seats in your chamber and community, how are you planning transitions within your committees, programs, target business councils, etc.?
Source: Paul Nunes and Tim Breene, Jumping the S-Curve: How to Beat the Growth Cycle, Get On Top, and Stay There. Accenture High Performance Business Research, 2010.
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Evolving Through High-Level Transitions Jumping the S-Curve
Create the Right Candidate for the Right Moment
• Succession and leadership development must be designed to create a variety of candidates and then selecting the candidate who is not simply “the best” but the best for the circumstances of the organization or community at the time and where the organization or community is heading.
• When major changes, disruptions, and cycles impact your community or chamber, is your leadership pipeline still the right fit?
Source: Paul Nunes and Tim Breene, Jumping the S-Curve: How to Beat the Growth Cycle, Get On Top, and Stay There. Accenture High Performance Business Research, 2010.
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“If the pace of change inside the organization is slower
than the pace of change outside the organization… the end is near.”
Jack Welch, Retired CEO
General Electric
Don’t allow a leadership gap to turn into a leadership void!
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What’s working and lessons learned from the field Section 3 of 4
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What’s working and lessons from the field Is this the formula?
YP networks Alumni groups Leadership programs Committees Board
membership
Leadership transition planning
Greater Austin
Technology Partnership
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Are you leading by example?
• Does your Board include young professional leaders? • Does the demographic composition reflect your community? • Is your talent attraction strategy about filling jobs or finding
your future leaders? • Does your talent development strategy focus on retention
and long-term engagement?
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Lessons Learned Montgomery and Springfield
Springfield Area Chamber of Commerce – Springfield, Missouri
Montgomery Area Chamber of Commerce – Montgomery, Alabama
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Anna Buckalew Chief of Staff
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Montgomery, Alabama Background
• Montgomery is in the central “River Region” of Alabama. – City’s population is 205,293 and the metro area (four counties) is 377,149
• The Chamber serves 1,800 member businesses with a full-time staff of 42. – Chamber programs include the small business development center, convention and visitors bureau,
community development, and economic development. • Major employers include
– Maxwell-Gunter Air Force Base – State of Alabama – Hyundai Motor Manufacturing Alabama – Alfa Insurance
• Alabama State University, Auburn University at Montgomery (AUM), Troy University’s Montgomery Campus, Air University, Faulkner University
• Montgomery Biscuits baseball, Alabama Shakespeare Festival, Montgomery Museum of Fine Arts
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Montgomery, Alabama Evolution of Imagine a Greater Montgomery
• Chamber seen as the “go-to” organization but plagued by the challenges of operating in a community with:
– Deep-rooted racial tension and mistrust – Poorly-performing public schools – Negative image of the city perpetuated by residents and outsiders alike that were hurting
future opportunities.
• Bold leadership and the Imagine a Greater Montgomery process helped deal with deep systemic challenges
• Stakeholders feedback drew attention to key issues including – The importance of continuing to build bridges across divides – The region must engage a broader set of leaders – including youth, women, minorities, and
Montgomery area residents of many nationalities – in order to ensure a smooth transition into a changing, diverse reality.
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Montgomery, Alabama Imagine a Greater Montgomery goals
1. Champion Education and Develop Competitive Regional Talent
2. Strengthen and Diversify the Montgomery Regional Economy
3. Transform Montgomery’s Image and Quality of Place 4. Embrace Diversity and Build Leadership Capacity
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Montgomery, Alabama Recommendations and Progress
• Broadening the base of leadership and civic capacity by reaching out to women, minorities, and young professionals
– Strengthening Montgomery’s leadership development program
– Launching a young professionals group
– Leveraging diversity as an asset
• Building positive perceptions of quality of place and downtown development
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Imagine Strategy
Goal 4:
Embrace Diversity and Build Leadership Capacity
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Imagine Strategy
Young Professionals
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Imagine Strategy
Diversity as an asset
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Imagine Strategy
Leadership Montgomery Project: Montgomery 2.0
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Imagine Strategy
Goal 4:
Embrace Diversity and Build Leadership Capacity
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Anna Buckalew Chief of Staff
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Ryan Mooney, CEcD Senior Vice President, Economic Development
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Springfield, Missouri Background
• Springfield is located in Greene County, Southwest Missouri – City’s population is 152,191 and the MSA is over 444,000 – 88.7% white; average age is 36.7; PCI for MSA is $33,302 – Job growth rate – 2.6%; Unemployment – 5.7%
• The Springfield Area Chamber of Commerce has nearly 2,000 member businesses and organizations
– Employees of Chamber member businesses total more than 100,000 – Businesses with 25 or fewer employees comprise nearly 80 percent of membership – The Springfield Business Development Corporation is the Chamber’s economic development subsidiary – 24 staff members (6 in economic development)
• Home to Bass Pro Shops, O’Reilly Auto Parts, and several other corporate headquarter operations
• Missouri State University • Two major healthcare systems
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Springfield, Missouri Strategic Planning Process and Community Talent Development
• The 25- to 34-year-old age group is growing rapidly in the Springfield area - in metro Springfield, young professionals compose a larger percentage of the total population (15 percent) than the national average (13.3 percent).
• 50,000 college students in the community provide a great talent pipeline of recent grads. • In 2009 and 2010 Market Street developed strategies for our region with one of the identified
target industries as “Young Professionals”. • Elevated our Business Retention / Expansion program in 2011 and began hearing troubling
feedback about talent. • Developed the Talent Attraction Initiative. Deliverable in Q4.
• The Strategy included four goal areas:
– Developing Our Talent – Growing Our Economy – Enhancing Our Community – Challenging Our Perceptions
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Springfield, Missouri Implementation successes and other progress to date
• The Network – City of Springfield and other community groups recruits YPs for leadership roles
via the Chamber – Young professionals “Work Crews” taking on more active role
• Diversity and inclusion efforts: – Lack of diversity in the community creating talent attraction problems for
corporations. It’s an economic development issue! – In addition to calling attention to the challenges, the Chamber executes
two sessions of Facing Racism each year. This is a two-day program in which participants learn about the history of institutional racism in the United States, share their own experiences and come to better understand how racism still affects people today. More than 40 local citizens participated in the training program in 2012.
•
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Ryan Mooney, CEcD Senior Vice President, Economic Development
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Questions and Discussion Section 4 of 4
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Wrap-Up and Takeaways
• There is no single best practice or tried-and-true formula to effective leadership succession planning.
• Next generation leadership development and organizational power shifts are not the task of a single committee or group in your organization—it is the work of every person in your chamber and community leadership.
• This work doesn’t end in 10 years, when most Baby Boomers have fully retired—leadership succession planning should be the long-term, permanent, and always-evolving work of your chamber and community.
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Change in Organizations
“To survive and succeed, every organization will have to turn itself into a change agent.
This requires the organized abandonment of things that have been shown to be unsuccessful, and the organized and
continuous improvement of every product, service and process within the enterprise.
The point of becoming a change agent is that it changes the mindset of the organization.”
Peter Drucker
The Economist November 2001
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Workshop resources online
See the ACCE Convention website: • Slides • Questions for
consideration • Additional resources
(links to all the reports we cited)
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Please stick around for the next session in this room…
Great Place to Work: Chambers! Moderator: • Eddie McBride, President & CEO, Lubbock Chamber of Commerce Speakers: • Laurie Pieper, PHR, Director of Human Resources, Greater Omaha Chamber of Commerce • Karen Riley, SPHR, Human Resource Director, Portland Business Alliance July 25, 11:15 a.m.–12:30 p.m. Meeting Room 14 and 15 Great chambers don’t just happen—they are made! Learn from these chambers who share their excellence for building top-notch teams and organizations, making their chambers a great place to work in their community.
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…If you’re not attending this one!
Measuring Success: Evolving Economic Development Metrics Moderator: • J. Mac Holladay, CCE, PCED, LM, HLM, Chief Executive Officer, Market Street Services Speakers: • Jay Byers, CCE, Chief Executive Officer, Greater Des Moines Partnership • Duane O’Neill, President and CEO, Greater Jackson (MS) Chamber Partnership July 25, 11:15 a.m.–12:30 p.m. Meeting Room 18 Jobs and capital investment are important outcomes of economic development, but the Great Recession has changed everything. Many economic development organizations are exploring new ways evaluate success and report results. In this session, we will explore innovation and changes in the economic development metrics landscape.
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