This document discusses talent management and succession planning strategies. It outlines five key components of talent management: strategic recruitment, engaged performance, compensation alignment, career development, and succession planning. Each component is described in 1-2 sentences. Succession planning aims to identify high-potential employees and develop a pipeline of future leaders by understanding key role competencies and identifying development needs. A systematic selection process using clear criteria is recommended to accurately identify potential successors. Individual development plans should be created to address gaps and prepare employees for future roles. High potential pools can be established based on organizational levels to focus development efforts.
2. Talent Management
Strategic
Recruitment
Succession Engaged
Planning Performance
Career Compensation
Development Alignment
3. Talent Management (TM)
TM is a strategic approach to managing human capital throughout the employee's career cycle by selecting, developing, retaining, and transitioning
your workforce.
1. Strategic Recruitment
• Involves evaluating the knowledge, skills, and abilities that are needed to be successful on the job, as well as, the tangible
value each position adds to your company's success. The evaluation of the job establishes the position specific competencies
which are then used for selection of employees through a structured selection process.
1. Engaged Performance
• Enables managers and employees to establish challenging line-of-sight goals, accurately evaluate performance on a
continuous basis, with recognition and reward systems aligned with strategic vision, mission and objectives of the organization.
3. Compensation Alignment
• Using compensation to attract, retain and motivate employees to achieve business goals.
• Allocates salary and incentive to retain top performers and ensure their compensation is competitive in order to reduce flight
risk.
• Provides flexibility to business managers while adhering to corporate standards.
• Aligns compensation with performance.
4. Career Development
• Establishes an environment that enables the delivery and provides accountability for your company's initiative to develop your
workforce and facilitate the movement of employees throughout the company. Your organization should have systems and
structures in place that allow you to target each employee’s development, create plans for development, capture employees’
past experiences, and project each employee’s career path and goals.
5. Succession Planning
• Deepens the talent pool so that your company's leadership is equipped with the necessary skills & experiences to meet and
exceed future business needs.
• Ensures that high-impact positions are filled with high-performing employees, and develop a pipeline of future leaders.
• Understands the competencies required for success in key roles.
• Identifies high-potential employees.
• Develops effective programs to address competency gaps.
4. Do You Need a Succession Plan?
Several common symptoms may indicate a need:
1. A retention risk analysis conducted to estimate projected departure dates
for each individual in workforce or work group.
2. No way to quickly respond to sudden losses of key talent. If
a key person is suddenly lost due to death, disability or resignation, it may take a
long time to find a suitable replacement.
3. The time it takes to fill positions is too long, i.e., perceived by
managers to, i.e., time-to-fill metric--.
4. Managers at one or many levels complain they have trouble
finding people ready for promotion or willing to accept promotions as vacancies
occur.
5. Workers complain that promotion decisions are made
unfairly or capriciously.
6. Women, minorities, etc., not adequately represented at
various levels and in various functions throughout the organization.
7. Critical turnover in high potential workers leaving Vs the
number of fully successful (average) workers leaving.
6. TYPICAL METHOD I
Rely heavily on chance observations of people.
CEO observes a manager making a presentation and
subsequently draw conclusions about the person’s abilities
and future with the company.
Chance observations offer, at best, only a glimpse into a
person’s talents.
What about possible successors who could be equally or
better qualified, but didn’t have an opportunity to display
their talents while an executive was looking on?
7. TYPICAL METHOD II
Ask senior executives throughout your
organization to nominate High Potential
Successors.
The nomination process often has one or more of these
fundamental flaws:
• The criteria for selection are not clear.
• The standards against which people are evaluated vary from one unit to another
within a division or vary from one division to another division.
Some nominators may be conscientious about submitting
names and supporting documentation, while others who
don’t want to give up their best people, may play games,
e.g.,
• Naming an individual who just started an expatriate assignment, knowing full
well that the person can’t be transferred out of the division.
• Hiding best people and submit names of people they wouldn’t mind losing.
8. SYSTEMATIC SELECTION
To make your talent identification process as accurate as
possible, your organization should have a systematic
selection process with a uniform set of criteria against which
candidates for accelerated development can be evaluated.
Criteria may include:
1. A history of job success, as evidenced by measures of revenue growth,
process improvements, or innovation.
2. Proven leadership.
3. Motivation for top management and demonstrated actions to get there.
4. Displayed business acumen/ entrepreneurial ability.
5. Evidence of strategic thinking.
6. Modeling your organization values.
7. Development of others.
9. STEP ONE
While Human Resources and other parts
of the organization must participate,
leadership responsibility for succession
planning rests with your CEO.
If your CEO does not favor systematic
succession planning, it cannot be
successful.
10. DEVELOP A STRATEGY
Q. What is the objective of the strategy?
Possible Answer:
To have one or more qualified internal
candidates prepared to assume each key
leadership position.
11. HOW WILL YOU MEASURE SUCCESS?
Possible Answer:
The number of qualified internal candidates
prepared to assume each leadership
position by December 2010.
12. What Critical Positions In The
Succession Plan Are Affected By
This Process?
Possible Answer:
Mid-Level, Senior, & Executive Management .
13. COMPETENCY MODELS
Competency models provide blueprints of the
talent to build at present and in the future.
In short, a competency model describes "what
should be" for such hierarchical levels as
executives, managers, supervisors,
salespersons, technical professionals, and
others.
Let’s look at the following model:
• Cultural Competencies
• Job-Specific Competencies
• Key Job Responsibilities
• Organization Knowledge
• Job Challenges
• Executive De-railers
14. Identifying Competencies
1. Cultural competencies
Assessing current corporate culture may determine how it needs to change in
the future. This allows you to develop a set of cultural related leadership
criteria and development approaches. Some examples include Change
Leadership, Establishing a collaborative environment, Entrepreneurship, and
Marketplace Acumen.
2. Job-specific competencies
What one is capable of, i.e., the clusters of behavior, knowledge, technical
skills, and motivation that are important to success in senior management.
Identify competencies that correlate with job success.
3. Key job Responsibilities
The major components of position should be listed in a well-written job
description. Identify most important responsibilities or accountabilities of job.
Few jobs have more than six key responsibilities. If you have more, you’re
probably listing minor tasks that are performed to accomplish a key
responsibility.
15. Identifying Competencies (Cont’d)
4.Organization Knowledge
Functions, processes, systems, products, services, or technologies of your
organization that a manager must understand. For example, a candidate
might be assessed in terms of his or her knowledge of company products,
how the R&D process operates, or the function of the Quality Department.
5. Job Challenges
Kinds of situations that someone entering management should have
experienced or at least been exposed to. Examples include carrying a key
functional assignment through from beginning to end; being heavily involved
with a merger, acquisition, strategic alliance, or partnership opportunity;
implementing plans to cut costs or control inventories; negotiating
agreements with external organizations; operating in high-pressure or high-
visibility situations.
6. Executive De-railers
Personality traits that might cause an otherwise effective senior leader to fail
on-the-job. These would include being approval dependent, argumentative
(defensive), arrogant, attention-seeking (self-promoting), avoidant
(procrastinator), addresses issues covertly, eccentric, imperceptive,
impulsive, perfectionist, (micromanager), risk-averse, and volatile.
16. ASSESS BENCH STRENGTH
1. Determine critical leadership positions that have
at least one person ready to successfully assume
role and responsibilities of each position.
1. Assess high potential managers' strengths,
weaknesses, and succession readiness.
2. Identify leadership planning gaps and develop
action plans for improving the capabilities of
select managers and professionals.
3. Implement a high-impact coaching/mentoring
program for the personal development of future
leaders. Continue to observe, assess and
challenge these key employees to better
understand potential advancement options.
17. Assess Individual Potential for success
at higher levels of responsibility.
– Unlike past or present-oriented performance
management, potential assessment focuses on the
future.
– Some means must exist to examine the talent
available for future possibilities--and advancement.
18. Development Grid
H
I CELL 3 CELL 1
G
“C” Players
H “A” Player “A” Player
Loose Canon
Star Potential Star/Hi-Potential
Provide Feedback to Participants
Actively Develop For Next Level of Actively Develop For Next Level of
P Leadership Leadership
O
T
E CELL 2
N “C” Players “B” Players
T Problem Child Average Performer “A” Player
I Solid Citizen
A Provide Feedback to Participants Provide Feedback to Participants
L KEEP MOTIVATED Actively Develop For Next Level of
Leadership
“C” Players “B” Players “B” Players
Poor Performer Slow poke Cash Cow
Provide Feedback to Participants Provide Feedback to Participants Provide Feedback to Participants
KEEP MOTIVATED KEEP MOTIVATED
L
O
W
Low RESULTS High
19. Candidate Assessment Report
H
I
G
H
John Cameron
Amanda Jones Matt Delaney
John Smith
Sally Filet Janet Gross
Alice Wonder
P
O
T
E
N Tom Miller
T Jane Doe Billy Evans
Jerry Palmer
I Bill Jones Scott Ritter
A
L
Gene Turnkey Mathis Masterson
No Candidates
L
O
W
Low RESULTS High
20. Ongoing Individual
Development Planning.
Once it is clear what present and future gaps exist
for individuals as a result of performance
assessment and potential assessment, some
means should be established to help them
prepare for the future by narrowing those gaps.
Individual workers and their immediate
supervisors should jointly devise a plan to help
individuals develop and prepare for possible future
promotions.
21. Individual Development Action Plans
IDAP
Determine developmental activities to address
individual learning needs with an IDAP for each
pool participant.
Examples of developmental suggestions might include
books to read, classroom courses to attend, online courses
in which to participate, on-the-job assignments to seek out,
and action learning projects that bring together groups of
people to solve practical business problems while
simultaneously permitting the means by which to build
competence in new areas.
1. Direct towards closing critical gaps & leveraging important
strengths of the organization
2. Focus on preparing for next level of leadership
3. Structure to create logical sequence of learning
22. DEVELOPMENT ACTIVITIES
Cell 1
High Potential/High Results IDAPT
Identify lead roles within key assignments (typically there
are only a select few of these) to engage participants in
functioning at greater level of scope (i.e., magnitude, time &
complexity) than current position.
For example:
1. job rotations
2. action learning
3. task force leader
4. committee chair
23. DEVELOPMENT ACTIVITIES
Cell 2
Med Potential/High Results IDAPT
Identify active role (but not leader) within key assignments.
1. Stretch at a different pace than participants in cell #1.
2. Engage participants to function at greater level of
scope (than current position).
3. Provide coach to help achieve results
4. Provide mentor to improve proficiency levels of
competencies
24. DEVELOPMENT ACTIVITIES
Cell 3
High Potential/Med Results IDAPT
Identify active role (but not leader) within key assignments.
1. Stretch at a different pace than participants in cell #’s
1&2
2. Engage participants to function at greater level of
scope (than current position)
3. Provide coach to help achieve better results (for
example: Serve as a subcommittee chair on a multi-
functional team)
4. Identify mentor to improve proficiency levels of
competencies
25. DEVELOPMENT ACTIVITIES
Others
Med Potential/Med Results IDAPT
Encourage self directed growth & development
1. Identify a coach to help achieve results
2. Identify mentor to improve proficiency levels of
competencies
3. Identify assignments, special projects with
broader/bigger role than current level
4. Provide other development opportunities
5. Keep Motivated
26. Development Grid
H
I Cell 3 “A” Player Cell 1 “A” Player
G Actively Develop For Next Level Of Leadership Actively Develop For Next Leadership Level
“C” Players Identify active role (but not leader) within key Identify lead roles within key assignments
H
Provide Feedback to Participants assignments. Stretch at a different pace than (typically there are only a select few of
Encourage self directed growth & development participants in cell #’s 1 & 2. Engage participants
Provide coach to help achieve better results
these) to engage participants in functioning
to function at greater level of scope (than current
Identify smaller role in assignments or special at greater level of scope (i.e., magnitude,
position). Provide coach to help achieve better
projects at current level. Provide opportunities time & complexity) than current position. For
results For example: Serve as a subcommittee
P for development or training chair on a multi-functional team example: job rotations, action learning, task
O force leader, committee chair
T
E “C” Players “B” Players Cell 2 “A” Player
N Provide Feedback to Participants Provide Feedback to Participants Actively Develop For Next Leadership Level
T Encourage self directed growth & development Encourage self directed growth & Identify active role (but not leader) within key
IA • Coach to help achieve better results • Identify development. Identify a coach to help achieve assignments. Stretch at a different pace than
L smaller role in assignments or special projects results & mentor to improve proficiency levels participants in cell #1. Engage participants to
at current level. Encourage participant to find of competencies. Identify assignments, special function at greater level of scope (than current
a mentor to improve proficiency levels of projects with broader/bigger role than current position). Provide coach to help achieve results
competencies level. Provide other development opportunities and mentor to improve proficiency levels of
Keep Motivated competencies
“C” Players
“B” Players “B” Players
Provide Feedback to Participants
Provide Feedback to Participants Provide Feedback to Participants
Encourage self directed growth &
Encourage self directed growth & development Encourage self directed growth & development •
development. Mentor & train to improve
Mentor & train to improve proficiency levels of Mentor & train to improve proficiency levels of
proficiency levels of competencies.
competencies. Provide additional learning/ competencies. Provide additional learning/
L Provide additional learning/ development
development opportunities at current level (e.g., development opportunities at current level (e.g.,
opportunities at current level (e.g.,
O seminars, workshops) Provide opportunities for seminars, workshops) Provide opportunities for
seminars, workshops). Provide
W opportunities for involvement in special
involvement in special projects Keep Motivated involvement in special projects Keep Motivated
projects
LOW RESULTS HIGH
27. Implement Individual Development
Action Plan Tactics (IDAPT)
1. Benchmark best practices
2. Identify a structured set of sequential developmental
activities
3. Identify multiple developmental strategies
4. Identify cafeteria-style activities
5. Identify how system will allow proficient people to “test
out”
6. Identify how annual development activities and
competency updates will be obtained
7. Identify if everyone is to go through the same
developmental strategies, or, will developmental
strategies be customized based on individual gaps,
and how this will be accomplished
28. High Potential Pools
Depends on number of positions, and organization’s ability to
support development, which includes:
1. Management’s available time.
2. Availability of coaches & mentors.
3. Number of prime developmental assignments.
Top
Pool I Management
Middle
Management
Supervisory Pool II
Management
Individual Contributors
29. The number of pools may reflect how a company
is organized.
For example, a Pool in your organization may be established to fill Single
Business Unit management positions, while a pool of mid-level managers
might be designated to fill a range of corporate positions.
CORPORATE
SBU SBU SBU
I II II
30. Establish Accountability
& Evaluate results
– Identify Persons Responsible for Executing
Individual Development Action Plan Tactics
(IDAPT)
– Track IDAPT progress
– Assign Individual(s) Responsible for Auditing
Results
Executive Team & (HR) Staff person
31. Talent Management Business Impact
A Systems • Attract & Hire Top Quality Talent
Approach
• Develop Future Leadership
• Pipeline
Strategic
• Fill Key Positions w High
Recruitment Performers
• Build A Culture of Performance
• Engage & Retain Employees
Succession Engaged
Planning Performance
Career Compensation
Development Alignment
32. MANUFACTURERS’ ASSOCIATION
OF SOUTH CENTRAL PENNSYLVANIA
160 Roosevelt Ave
York Pa 17401
www.mascpa.org
JIM BAKER
SR CONSULTANT
HR SERVICES
717-781-4070