Millennial Workforce and Succession Planning
HCUL - May 17, 2018
Lisa SuttonSVP, Human Resources
2 ǀ 4/30/2018
Millennial Workforce
3 ǀ 4/30/2018
“The future promise of any nation can be directly measured by the present prospects of its youth”
- John F. Kennedy
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Generations Defined
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Millennials: Deeper Dive
Who are they?
What makes them different?
How to attract and retain them?
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Common Millennial Myths
Lazy
The Me
Generation
Too Connected to
Technology
Expect
Too Much
Job Hoppers
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Too ConnectedWhen it comes to communication about their career plans and progress, 96% of Millennials wants to talk face to face just as 95% of their non-Millennial counterparts do.
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Millennials are Lazy Actually, competition is “what gets them up in the morning”
58% of Millennials admit to comparing their performance to peers vs. 48% of workers in other generations
Millennials are equally committed to their work as their more senior colleagues
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Millennials Expect MoreMillennials have grown up not expecting their employers to meet all of their needs, including job security, and don’t see themselves working for one company for their entire career.
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Millennials are the “Me Generation”
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Millennials Are Job Hoppers…or are they “experience” hoppers?
53% believe that internal job opportunities are desirable, nearly the same as other generations.
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Millennial Truths
Well-Traveled More Diverse
Socially
Connected
Purpose Matters
Technology
Smart
Learners
Well-Educated
Work-life
Alignment
Untethered
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What Millennials Want Most Purpose
Development and advancement
Ongoing feedback and coaching
Flexible work schedules
Managers who care about and appreciate them
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Purpose Linkage to “People Helping People”
NCUF’s Leveraging the CU Difference
Provide time off for volunteer opportunities
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Development and Advancement
Provide broadening experiences
Discuss career aspirations
Consider rotational assignments
Invest in their development
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On-Going Feedback and Coaching
Revisit annual appraisal process
Daily, weekly, monthly conversations
Positive coaching
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Flexible Work Schedules
Revisit PTO allowance for competitiveness
Identify core hours, flex on start and end times
Support work at home or work during non-traditional times
Leverage technology
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Managers Who Care and Appreciate
Show that you care about them as individuals
Learn who they are, their causes, their dreams
Find out what engages them most
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Questions?
Succession Planning
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Agenda
Board Succession
Succession Plan Process
Tools and Best Practices
Assessing Current State
Internal Succession
Succession Plan Process
Talent Review Process
Individual Development Plans
Tools and Take Aways
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Board Succession
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Assessing Your Current State
Required Skills
Outside Influences
Managing Gaps
Diversity
Culture
Does each Board member
understand the strategic &
regulatory shifts affecting
the organization in near term?
What skills &
competencies does the
Board need to best oversee the
organization’s challenges?
Does the Board
represent diverse
membership?
Does the Board have an
effective & ongoing
evaluation process to
assess the full Board &
individual directors?
Are there action plans &
timelines in place to manage
& close identified gaps?
Performance Management
Has the Board assessed its
culture & is this a key
consideration in recruiting &
selecting new directors?
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Board Composition Matrix
Director AChair/CEO
Director B
Director C
DirectorD
DirectorE
DirectorF
DirectorG
DirectorH
DirectorI
GAPS/ Average
FUNCTIONAL EXPERTISERecent Large Company CEO • • • •Recent Large Company CFOLed Major Business Unit • • • • • • • •M&A Transactions • • • • •Data & Analytics •Technology • • • •Qualified Financial Expert •Regulatory/Compliance •Financial Services/Cards • • • • •INDUSTRY EXPERIENCEInsurance • •Asset ManagementConsumer/B2C Digital • •Automotive OEMBOARD SERVICEOther Industry Boards 0 0 3 1 3 0 2 3 0Gender M F F M F M M F M 55% MAge 56 51 59 60 60 61 63 67 68 60.5Board Tenure 6.5 0.3 4.9 4.9 9.9 3.9 9.9 20.9 11.9 8.1
Significant Gap (0-1)Knowledge Covered (2-3) Considerable Strength (4+)
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Board Succession Planning Process
Determine Position Needs
Identify Skills & Competencies
Plan for Retirements &
Timing
Select PotentialInternal
Successors
Assess Candidates
Select & Onboard New
Directors
Create & Execute Development
Plans
Evaluate Succession Plan Succession planning is an
ongoing process & should be evaluated frequently
Recruit directors with a focus on essential skills & competencies
Onboarding & training is as important as recruiting process for a successful term
Board Succession Process
Key Takeaways
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Board Succession Slate
Role Chair Vice Chair Treasurer Secretary Board Member
Incumbent J. Smith S. Jones L. Quinn P. Hollis M. Reed
Ready Now(Any skill gaps can be closed in new role)
S. Jones - - - -
Ready in 1 – 2 years(Can be “ready now” with 1
year of targeted development in current
role)
M. Reed - M. Reed - -
Ready in 3 – 5 years(Will require at least 2 years
targeted development in current role to be “ready
now”)
- L. Quinn - - -
Emergency Replacement(Seasoned leader – chosen
only if no “ready now” candidate is available)
S. Jones M. Reed P. Hollis M. Reed -
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Effective Board Framework
Strategic Alignment
Culture
People & Composition
Key Elements of Board Leadership
Strive for strategic alignment of the Board’s goals & those of the organization
Identify desired state, diversity targets, etc.
for optimal composition; with the right people
Identify behaviors, dynamics & environment that
support the Board’s desired culture
Establish structure, supporting committees, agenda & meetings as well as
interim information flow in a documentedprocess
Structure & Process
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Assessing Board Culture
Source: Russell Reynolds Associates Board Culture & Behaviors Survey
Prepared & Engaged
Current & Open
Builds Trust & Respect
Investor Savvy
Independent & Avoids Groupthink
Asks the Right Questions
Sound Business Judgement
Constructively Challenges
Character & Courage
Foundational BehaviorsBase behaviors exhibited by the most effective Boards
Differentiating BehaviorsDistinguishing behaviors exhibited by the most effective directors
Identifying Leadership Behaviors Demonstrated by the Most Effective Directors
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Best Practices & Tools
Formalize your succession planning strategy
Develop matrix to assess future needs
Develop succession slates
Revisit term limits & exit clauses
Evaluate Board & individual effectiveness(assessments)
Address gaps
Increase diversity
Establish ongoing training & development for directors
Consider sponsorshipof high-potential candidates
Incubator for developing next directors
Structure & Process People & Composition Culture
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Internal Succession
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PSCU’s Succession and Hi-Potential Strategy
VISION:• An organization that is confident in its pipeline of employees, with high
potential to grow into people-leadership roles, to deliver today and strategically position PSCU for tomorrow.
MISSION:• Identify and develop employees with high-potential to grow into people-
leadership roles in order to retain & engage top talent and feed our succession pipeline.
STRATEGY:
• We will enable the growth of identified high-potential employees in ways that promote opportunity for individual, organizational, cross-functional and industry-specific development.
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Internal Succession Planning Process
Conduct Talent Review
Identify & Assess High Potentials
Identify Potential
Successor Roles
Identify Key Roles, Skills & Competencies
Slot Successors Against Key
Positions
Determine Successor Readiness
Create & Execute IDPs
Check Progress & Repeat
Succession planning is an ongoing process & should be conducted every 12-18 months
Accelerate and heavily invest in development of high potential talent
IDPs should focus on 2-3 competencies and key experiences
Progress against IDP goals needs to be measured
Internal Succession
Process
Key Takeaways
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Talent Review 9-Box
Performance
Po
ten
tial
Budding TalentDemonstrates high potential
but not performing well in
current role
Mismatched TalentDemonstrates low
performance and limited
potential OR new to role
Accomplished TalentDemonstrates satisfactory
performance but lacks
potential to advance
Valued TalentDemonstrates satisfactory
performance with moderate
potential to advance over
time
Rising TalentDemonstrates high potential
with satisfactory
performance
Prime TalentConsistently demonstrates
high performance & potential
Versatile TalentDemonstrates high
performance with moderate
potential to advance
Expert TalentDemonstrates consistent
high performance with
limited potential for upward
mobility
Unconfirmed TalentLimited potential to advance
and has not fully met
performance expectations
in current role
15 12/14/16
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Internal Succession Slate
Role SVP, IT SVP, Sales SVP, MarketingSVP Service
DeliverySVP,
Operations
Incumbent D. Smith N. Jameson C. Cook J. Davis L. Jones
Ready Now(Any skill gaps can be closed in new role)
T. Jones - M. McDaniel - -
Ready in 1 – 2 years(Can be “ready now” with 1
year of targeted development in current
role)
P. King B. Scott - P. King S. Ride
Ready in 3 – 5 years(Will require at least 2 years
targeted development in current role to be “ready
now”)
J. Thompson N. Davidson F. Saunders J. Thompson J. Thompson
Emergency Replacement(Seasoned leader – chosen
only if no “ready now” candidate is available)
L. Jones C. Cane B. Scott L. Jones J. Davis
Leadership Competencies
Agility Development X
Service Collaboration
Acumen X Savvy
Drive Courage
9-Box Placement
B. Scott: Individual Development Plan - 2018
PROGRAM Y/N TO DO
360̊
CHOICES
ESCI Y
D2L
ADVANCED DEGREE
MENTOR
WILLING TO RELOCATE?
Identified as Successor on Slate?
Potential Successor Role(s)
SVP, XYZ
Successor Development Area
Successor Development Activities
Developing Others (Development)
Complete the Executive Leadership Portfolio 360 degree assessment, and select at least one area from “Building Commitment” to further develop
Assess and prepare IDPs for all direct reports and actively coach for success
Acumen Participate in CU Principles and Philosophies Course and GAC.
X
YES NO
XN
Y
N
Y
N
Y
Y
N
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