1 © Development Dimensions Intl, Inc., MMV. All rights reserved. 1 Succession Planning Overview...

1© Development Dimensions Int’l, Inc., MMV. All rights reserved.

1

Succession Planning Overview

STATE ACTION FOR EDUCATION LEADERSHIP PROJECTSuccession Planning Conference

March 11, 2005Delaware Technical & Community College

Loren AppelbaumSenior Consultant

Development Dimensions International, Inc.

C O M P E T I T I V E A D V A N T A G E. R E A L I Z E D.


2

Outline for discussion

Organizational Context/Need

Transitional Challenges & Roles

The Success Profile

Framework for Succession Planning

Identifying Potential

Diagnosing Strengths and Development Needs

Development Planning

Key Decisions

Realizing results


3

Trends in Leadership Succession Planning

• Accelerated development of highest potentials, vs. replacement planning

• Accountability at senior leadership levels, vs. HR (not a spectator sport)• Drive toward talent acquisition, development integrated into overall

talent management approach• Holistic approach (success profiles)• Stronger focus on identifying highest potentials against relevant,

objective criteria• Earlier identification of talent for longer term growth, development,

succession• Board level interest in leadership development• Sarbanes-Oxley influence • Need for efficiencies in leadership assessment and delivery;

leveraging use of technology


4

“The thing that wakes me up in the middle of the night is not what might happen to the

economy or what our competitors might do next, it is worrying about whether we have

the leadership capability and talent to implement our global strategies.”

David Whitman, Chairman/President/CEO, Whirlpool Corporation


5

Increasing Failure—Decreasing Confidence

Two thirds of all major companies worldwide have replaced their CEO at least once since 1995.

- Drake Beam Morin Inc.

Four in ten leaders fail within the first 18 months on the job.

- Manchester Consulting


6

Readiness

75% of companies worldwide are not confident in their ability to fill strategic leadership positions over the next five years.


7

Conference Board StudyDeveloping Business Leaders for 2010

• Exponentially heightened senior leadership requirements – Influence/communication – Extraordinary strategic thinking– Tolerance for ambiguity – Talent Development

• Need to identify potential– “The hard part” – Only 34% report effective practices– Accuracy essential, but the “hows” are

elusive


8

Risk of DerailmentRisk of Derailment

Among approximately 6,000 respondents, 2/3 reported that their current leader displays behaviors that could derail his/her career.

- Development Dimensions International, 2001


9

Organizational ReadinessOrganizational Readiness

68% of organizations surveyed report that they are not prepared to deal with the leadership crisis.

- Development Dimensions International, 2001


10

Leadership Development and Succession Planning is a Top Priority

Top 5 management issues; up 25%(700 Global Executives, Conference Board, 2002)

78%: Most Important/Top 5 Business Success Factors

(950 Executives, CEO Magazine/CCL, 2002) 91%: Top Enabler for Business Growth (Global CEOs, Conference Board, 2002) 47%: Major Business Priority (150 Global Corporations, Conference Board/DDI,

2002)


11

When it’s working…

Work groups with strong leaders are 37% more likely to outperform other work groups, and are more satisfied, engaged, and loyal.

- Leadership Forecast Study, DDI, 2003


12

Implications

Now more than ever, business conditions dictate that leaders who are less prepared for senior leadership will be placed into senior leadership roles. To avoid leadership failure and its effects, organizations will need systems, processes, and tools which prepare these leaders to manage the challenges they will soon face.


13

What are the highest priority strategic

challenges facing the Delaware school

system?


14

What do those challenges suggest in

terms of the leadership talent needed

within the system?


15

ENSUREREADINESS

INVENTORYTALENT

Talent Optimization Approach

V I S I O NV I S I O NStrategic PrioritiesStrategic Priorities Cultural PrioritiesCultural Priorities

Leadership ImperativesLeadership Imperatives

BusinessLandscape

TalentNeeded

GamePlan

SuccessSuccessProfileProfile

Communication Accountability Skill Alignment MeasurementCommunication Accountability Skill Alignment MeasurementInsurancePolicy

CapacityCapacityNeedsNeeds

Select/DeploySelect/DeployTalentTalent

Focus/DriveFocus/DrivePerformancePerformance

IdentifyIdentifyPotentialPotential

AssessAssessReadinessReadiness

AccelerateAccelerateDevelopmentDevelopment


16

Transitional challenges faced when moving into senior leadership roles

• Span of Influence• Tactical Control• Consequences of Failure• Business Scope• Visibility• Constituents


17

Span of Influence

FROM Single team/ Single team/

function function managementmanagement

Small-group Small-group communicationscommunications

FROM Single team/ Single team/

function function managementmanagement

Small-group Small-group communicationscommunications

TO Multiple team/ Multiple team/

function managementfunction management Large, multi-group Large, multi-group

communicationscommunications

TO Multiple team/ Multiple team/

function managementfunction management Large, multi-group Large, multi-group

communicationscommunications

Common Reactions: Unclear expectations, strategic confusion Slow to build partnerships, alliances Difficulty navigating political environment


18

Tactical Control

FROM Involvement in day-Involvement in day-

to-day operationsto-day operations Direct impact on Direct impact on

group outputsgroup outputs

FROM Involvement in day-Involvement in day-

to-day operationsto-day operations Direct impact on Direct impact on

group outputsgroup outputs

TO Detachment from Detachment from

day-to-day day-to-day operationsoperations

Indirect impact on Indirect impact on group outputsgroup outputs

TO Detachment from Detachment from

day-to-day day-to-day operationsoperations

Indirect impact on Indirect impact on group outputsgroup outputs

Common Reactions:Common Reactions: Reluctance to delegateReluctance to delegate Desire for personal recognition for group successDesire for personal recognition for group success Do-it-yourself solutionsDo-it-yourself solutions


19

Consequences of Failure

FROM Limited-scale Limited-scale

consequencesconsequences Unit-specific Unit-specific

countermeasurescountermeasures

FROM Limited-scale Limited-scale

consequencesconsequences Unit-specific Unit-specific


TO Large-scale Large-scale

consequencesconsequences Organization-wide Organization-wide


TO Large-scale Large-scale

consequencesconsequences Organization-wide Organization-wide


Common Reactions:Common Reactions: More personal stressMore personal stress Unrealistic demandsUnrealistic demands Negative outlookNegative outlook


20

Business Scope

FROM Basic unit Basic unit

responsibilityresponsibility Limited number of Limited number of

inputs/ variablesinputs/ variables

FROM Basic unit Basic unit

responsibilityresponsibility Limited number of Limited number of

inputs/ variablesinputs/ variables

TO Organization-wide Organization-wide

accountabilityaccountability Broader business Broader business

judgment neededjudgment needed Many variablesMany variables

TO Organization-wide Organization-wide

accountabilityaccountability Broader business Broader business

judgment neededjudgment needed Many variablesMany variables

Common Reactions:Common Reactions: Financial “cramming”Financial “cramming” Overemphasis on financial variablesOveremphasis on financial variables Poor business judgments Poor business judgments


21

Visibility

FROM Limited visibilityLimited visibility Derailers disguisedDerailers disguised Less cultural impactLess cultural impact

FROM Limited visibilityLimited visibility Derailers disguisedDerailers disguised Less cultural impactLess cultural impact

TO Wide visibilityWide visibility Derailers visibleDerailers visible Greater cultural Greater cultural

influence – derailers influence – derailers mimicked by manymimicked by many

TO Wide visibilityWide visibility Derailers visibleDerailers visible Greater cultural Greater cultural

influence – derailers influence – derailers mimicked by manymimicked by many

Common ReactionsCommon Reactions:: Cultural damage; propagation of derailersCultural damage; propagation of derailers Unwanted turnoverUnwanted turnover Executive failureExecutive failure


22

Constituents

FROM Focus on team/ Focus on team/

small groupsmall group Objectives set by Objectives set by

supervisorsupervisor

FROM Focus on team/ Focus on team/

small groupsmall group Objectives set by Objectives set by

supervisorsupervisor

TO Focus on broader Focus on broader

organizationorganization Objectives Objectives

self-imposedself-imposed

TO Focus on broader Focus on broader

organizationorganization Objectives Objectives

self-imposedself-imposed

Common ReactionsCommon Reactions:: Narrow focus; lack organization-wide visionNarrow focus; lack organization-wide vision Organizational stagnation, lack of progressOrganizational stagnation, lack of progress


23

Leadership Succession Planning Requires…

• A pipeline of talent with the necessary skills and experiences to meet these challenges

• Leaders who can effectively execute key roles required at senior leadership levels

• Identification and alignment on a leadership success profile driven by the organization’s strategy and future direction


24

The Success Profile


25

Talent Optimization Approach

ENSUREREADINESS

INVENTORYTALENT

V I S I O NV I S I O NStrategic PrioritiesStrategic Priorities Cultural PrioritiesCultural Priorities

Leadership ImperativesLeadership Imperatives

BusinessLandscape

TalentNeeded

GamePlan

Communication Accountability Skill Alignment MeasurementCommunication Accountability Skill Alignment MeasurementInsurancePolicy

CapacityCapacityNeedsNeeds

Select/DeploySelect/DeployTalentTalent

Focus/DriveFocus/DrivePerformancePerformance

IdentifyIdentifyPotentialPotential

AssessAssessReadinessReadiness

AccelerateAccelerateDevelopmentDevelopment

SuccessSuccessProfileProfile


26

DDI’s Leadership Blueprint®


27

A Leadership Success Profile Needs to Consider the Whole Person

PERFORMANCE

EXPERIENCE

What I have done

COMPETENCIESWhat I am capable of

KNOWLEDGE

What I know

PERSONALATTRIBUTES

Who I am


28

Competencies (Examples)(What one is capable of)

• Applied Learning• Business Acumen• Gaining Commitment• Coaching/Teaching• Communicating with Impact• Initiating Action• Developing Strategic Relationships• Empowerment/Delegation• Establishing Strategic Direction• Learning Orientation


29

Job Experiences (What one has done)

• Operate in a high-pressure or high-visibility situation

• Implement an organizational-wide change• Develop and implement a plan to cut costs• Involvement with negotiating labor agreements,

contracts• Become heavily involved with a strategic alliance, or

partnership opportunity• Negotiate agreements with external organizations• Manage a downsizing


30

Organizational Knowledge (What one knows)

• Functions• Processes (R&D, budgeting, selection etc.)• Systems• Services


31

Personal Attributes/Enablers (Who one is)

• Adjustment• Ambition• Sociability• Interpersonal Sensitivity• Prudence• Inquisitiveness• Learning Orientation


32

Personal Attributes/Derailers (Who one is)

• Approval Dependent• Argumentative (Defensive)• Arrogant• Attention Seeking (Self-Promoting)• Avoidant• Eccentric• Imperceptive• Impulsive• Perfectionistic (Micromanager)• Risk Averse• Volatile


33

Leadership Failure…

• What do you think is the greatest cause of senior leadership failure? – Lack of knowledge (didn’t know enough)?– Lack of experience (never tried before)?– Skills/competency deficiencies (not enough

practice)?– Personal attributes/derailers (not cut out for

it)?


34

LeadershipSuccess

What I know

What I have done

What I can do

Who I am

LeadershipFailure

Didn’t know enough

Never tried before

Not enough practice

Not cut out for it

Knowledge

Experience

Competencies

Personal

Attributes

Factors


35

Implications for Succession Planning

• Developing and gaining alignment on the right success profile is critical

• Leadership challenges and roles need to be addressed in development planning

• The approach needs to provide highest ROI


36

Identifying Identifying PotentialPotential

Success ProfileSuccess Profile

Diagnosing Diagnosing Dev’t NeedsDev’t Needs

Prescribing Prescribing SolutionsSolutions

Ensuring Ensuring DevelopmentDevelopment

Reviewing Reviewing ProgressProgress

Pla

nnin

gP

lann

ing

Acceleration PoolsAcceleration Pools

Building Leadership Succession Planning Approach


37

Succession Management Approach

Clarify Terms: Replacement Pools vs. Succession Planning

Replacement: Can fill a specific position “tomorrow”

Succession: Developing people for target levels who could fill a variety of positions


38

Traditional approach to succession

Function A Function CFunction B

TraditionalReplacement

Planning


39

Succession Planning Approach (using Acceleration Pools)

Acceleration Pool

Organization Need BOrganization Need A Organization Need C

40

Acceleration Pools

Senior Leaders

Middle Leaders

First-level Leaders

Individual Contributors

A Subset of People Being Identified for Accelerated A Subset of People Being Identified for Accelerated DevelopmentDevelopment


41

Identifying Potential


42

Leadership Potential Factors*

S U S T A I N E D P E R F O R M A N C E +

*Research Foundation

Bray & Howard, DDI, McCall et al, Personality Based Research, Collins, Hogan & Hogan, etc.

Leadership Promise• Propensity to Lead

• Brings Out the Best in People

• Authenticity

Balance of Values and Results(Org. specific, future focused)

• Culture Fit

• Passion for Results

Personal Development Orientation• Receptivity to Feedback

• Learning Agility

Mastery of Complexity• Adaptability

• Conceptual Thinking

• Navigates Ambiguity


43

Diagnosing Strengths and

Development Needs


44

Diagnosis Targets

JOB FIT

CURRENT JOBPERFORMANCE

PERSONAL ATTRIBUTES

PASTEXPERIENCES

BEHAVIOR INFUTURE-FOCUSED

SITUATIONS


45

Diagnostic Tools

JOB FIT

Multi-rater surveysPerformance reviews

Inventories & Tests

BehavioralInterviews & Career

Profiles

AssessmentCenters


46



47

Development Realization…

What percentage of leaders do you think actually change their behavior after their organization implements

a leadership development program?


48

Development Realization…

A. 75%

B. 50%

C. 25%

D. 10%


49


“The Best Lessons are Those of Experience”

Based on Diagnostic Assessment and In Depth Feedback

Senior Leader Oversight Supervisor, mentor involvement Ideally, Linked to all Success Profile Factors

(experience, competencies, knowledge, derailers) Driven by Strategic organizational needs


50

Best Development Strategy?

Development Priorities (What)

Job Challenges Competencies

Organizational Knowledge Executive Derailers

Development Strategies (How)

Job or task force assignment

Short-term experiences

Training; Internships

Professional coaching


51

Closing the Development – Learning Gap

Success Profile – Whole Person View

Job SuccessJob Success

What I know

What I’ve done

What I can do

Who I am

Job FailureJob Failure

Didn’t know enough

Never tried before

Not enough practice

Not cut out for it

Knowledge

Experience

Competencies

PersonalAttributes

Job/Task Force Assignments, Training

Short-Term Experience, Job Challenges

Professional Coaching

Formal Training, Coaching

Targeting a Development Strategy


52

Developmental Support

• Supervisor, mentor and pool member:– Plan development actions

• How the skill/knowledge will be obtained• Application of the skill/knowledge• Measurement of success of application

– Determine additional development areas and appropriate development actions

• Supervisor and mentor provide coaching and support, monitor personal and retention issues

• Proof of development = successful applications


53

Prescribing Development Solutions

• Review diagnostic assessment data with key stakeholders

• Development priorities, plans determined• Individuals matched to assignments• Sponsors assigned• Follow-up plans established


54

Key Decisions for Succession Planning


55

Key Decisions

• Success Profile– What are the key Experiences and Knowledge

important for success at the Target level positions?

– What Competencies will be used? Existing model? Create new?

– Use of executive derailers?

• Diagnosing Development Needs– What diagnostic tools will be used?

• Assessment simulations?• Tests?• Interviews?• 360s?


56

Key Decisions (cont.)

• Acceleration Pools– Number of acceleration pools?– Number of acceleration pool members?– Target level for pools?

• Nomination Process, Criteria– How will the nomination process be

conducted?– What are the nomination criteria?


57


• Development Planning– Who will oversee it?

– Use of mentors, sponsors?

– Role of experiences vs. training??

– Leadership coaching?


58


• Communication Issues

– Key messages?

– Target Audiences?


59

Realizing Results – 5 Components

Communication– Key audiences

– Key messages

Accountability – Senior champion(s)

– Operation leader(s)

– Roles & deliverables

Skill– Leaders

– Sponsors/Mentors

– Managers

Alignment– Selection

– Development

– Performance Management

Measurement – Participant reactions

– % of “Ready Now” for senior roles

– Retention of talent

– Ratio of internal/external hires

– Success rates of new incumbents

– Diversity

– Time to fill key positions


60

Thank you!

Date post:	27-Mar-2015
Category:	Documents
Upload:	taylor-bolton
View:	215 times
Download:	0 times

1 © Development Dimensions Intl, Inc., MMV. All rights reserved. 1 Succession Planning Overview...

Documents