Succession Planning: Filling and Developing the Pipeline Robert L. and

Succession Planning: Filling and Developing the Pipeline Robert L. and Carolyn N. Turknett Turknett Leadership Group 2310 Parklake Drive, Suite 500 Atlanta, GA 30345 770.270.1723 www.turknett.com

The Shoemaker and the Factory

What is Succession Planning? A systematic process designed to: 1. 2. 3. Identify key leadership positions and hard-to-fill positions Identify the critical competencies that employees in those positions require Prepare for their replacement to ensure the continued ability of an organization to meet its strategic goals and supporting objectives

Succession Processes Succession Replaceme Succession Managemen nt Planning Planning t Identificatio n of Successors Yes Yes Yes Developme nt of Successors Little or none Yes Yes (often Talent Pools) Managerial Levels Top two or three Top two or three All, including any key positions

Where are we now? Current State: Demographic Challenges: The average age is . percent are over 59 years of age. The average length of service is . What worries you: If you had to grow your leadership team by 50% in 60 days, could you? “I know exactly what it takes to be promoted in this company.” Would 75% answer yes? Knowledge loss? Hard to fill positions? Current practices: Using Nine-box? Talent review discussions? Clear development plans for high potentials?

Key Definitions Concept Definition Critical or Feeder Roles Roles that require planning because they feed into senior management or are critical to organization success Development al Roles Roles that provide excellent developmental experience High Potential Someone who has been identified as having the ability to advance Nine-Box (9Box) Grid Tool used to plot current performance and future potential of a segment of the workforce Talent Pool A group of people being prepared for higher-level roles Talent Review Broad review of talent to identify candidates for development to higher levels. Usually involves group discussion at multiple levels.

Basic Succession Management Cycle Definition of Strategy and Competencies needed for the Future Talent Review High Potential Identification Assessment and Gap Analysis Development Planning and Leadership Development Define for Future Review Talent ID High Potentials Assess Develop

The Problem of Alignment Define for Future Learning Talent & Succession Planning Leadership Development Staffing & On-Boarding In many organizations, each HR service area operates in its own “silo” Performance Management Compensation Silos in HR Emphasis on programs vs. outcomes Emphasis on discrete vs. integrated approaches #1

Define for Future Competencies Create Alignment CORE & FUNC. COMPETENCIES Job Descriptions Career Development Structured Behavioral Interviews Selection & Succession Systems Training Leadership Development (e.g., 360) Performance Management

Define Strategy and Competencies Needed Define for Future Picture the future and define strategy Define values Define competencies needed for the future Core Leadership Functional

Competencies Define for Future Competencies are important knowledge, skills, abilities, behaviors, and other characteristics required to perform a job successfully Core Competencies are relevant to the entire organization, and Align with the values of the organization Align with the strategy of the organization Functional Competencies are specific to a position Leadership Competencies are the competencies specific to leaders in the organization All Competencies are: aligned to the specific requirements of the job customized by organization level

Define for Future Competencies are Defined Behaviorally #4 Defined via behavioral anchors Describe expected performance at various levels of position Focus on observable/verifiable behavior Set a “standard of effectiveness” Help calibrate ratings of performance across raters Ensure alignment and accountability

Review Talent Talent Calibration and Talent Review A bottoms up approach – each manager completes potential and performance assessment of each direct report (feeds 9-box) Must have already clearly defined performance standards and markers of potential specific to the organization In calibration meetings groups of managers discuss ratings and come to consensus on individuals – must cite specific behavioral evidence In the Talent Review meetings senior leaders discuss organization direction, the identified high potential talent, diversity, and development plans. Some assessment may occur between calibration meetings and review.

Review Talent 9-Box Talent Grid Continuing investment Growth Potential Accelerated Growth Potential (May be recently promoted) High investment, help improve performance 2/3 High investment and/or promote/give more responsibility Monitor Solid Growth Potential Monitor Stable Growth Potential 1/3 1/2 Need to demand performance1/1 improvements May be in wrong job or at wrong level. Consider reassignment. Needs Improvement Continuing investment Continuing investment 3/3 These “stars” are ready for an assignment at a higher organizational level – challenge them. 2/2 High investment, accelerate 3/2 skill development 2/1 Minimal investment but continue to reward, retain3/1 Meets Expectations Past Performance Exceeds Expectations

Review Talent Must Define Potential: Common Criteria for Potential Potential Criteria Description Learning Agility Ability to learn from experience, selfreflect and grow, adapt to change, etc. Social Skills Basic social ability – emotional intelligence Demonstratio Demonstration of the organization’s values; integrity and character n of Values/ Character Motivation to Advance High energy, wants to move to higher levels Likelihood to Advance Ability to succeed at higher positions within a specified amount of time Markers of potential are essential for senior leadership but more difficult to develop.

Talent Values Low to High Review GE Adaptation – Operational Excellence AND Values are Important Restart (Second Opportunity) Reward/Promote (Leaders of the Future) Remove (Easy) Remove (Sends a message) Results Low to High

Identify High Potentials Growth Potential ID High Potentials Charles Darwin Janis Joplin Stanley Kubrick Gene Siskel Thomas Jefferson Albert Einstein Louis Pasteur Henry Ford John Kennedy Natalie Wood Marie Curie Helen Keller Mary Cassatt Neil Armstrong James Dean Bruce Lee Marilyn Monroe Katie Couric Johnny Carson Charlie Chaplin Winston Churchill Napoleon Bonaparte Past Performance

ID High Potentials Johnson & Johnson Folio Map The TheFour FourLenses* Lenses* High 4 Potential Potential Assessment Assessment Size of Circle Potential Assessment 3 People PeopleDevelopment Development Codes Codes 5 – Outstanding 4 – Superior 3 – Competent 2 – Needs Improvement 1 – Unacceptable MT SR Performance Performance Results Results Position’s Position’sLevel Level ofofAccountability Accountability 4 5 4 3 4 2 3 Low Low Performance Results High

ID High Potentials Put CHARACTER at the core. Turknett Leadership Character Model

Assess Assessment and Gap Analysis Assessment against core, leadership and functional competencies Gap Analysis for each person and for each position Sample Assessment tools: 360 Degree Feedback Hogan – Leadership Potential Hogan – Leadership Challenges Hogan – Values & Preferences Watson Glaser – Critical Thinking Turknett – Leadership Level interview Structured Behavioral Interview Assessment Center may be included

Develop Plan for Development Create a specific developmental plan for each high potential Can include: Movement to a developmental role Cross-functional projects or teams Stretch assignments Mentors Executive Coaching Action learning projects University programs, etc. Inclusion in special leadership development processes

Sample Leadership Development Process Develop Organization Organization Core Core Competencies Competencies Team Team A A General General Session Session Leadership Leadership Character Character and and Leader Leader Levels Levels Continuing Lenses Team Team A A General General Session Session Team Team B B Knowing Knowing Yourself Yourself Team Team C C Individual Individual Coaching Coaching Sessions Sessions Knowing Knowing Others Others (Teamwork) (Teamwork) Team Team B B Team Team C C Team Team A A General General Session Session Leading Leading Effectively Effectively Team Team B B Team Team C C Individual Individual Coaching Coaching Sessions Sessions General Sessions - conducted with entire group in one location. The focus is on character as the foundation of leadership, and on Leader Level development using constructive-developmental theory, reinforcing the key organizational messages and developing the particular critical competencies essential to successful leadership in the organization. Senior leaders can serve as teachers or providers of content and values. Individual Coaching - Focused on feedback and real learning and growth from assessment. Includes 360-degree feedback, personality assessment feedback, and work on development plans, with character and level of development as a continuing lens. Action Learning Teams – Small groups focus on projects identified as useful to the business. Teams learn about the business and also focus on working effectively together. Results are usually presented to senior leadership.

Examples Start-up – who will lead? Professional services firm – who succeeds? Mid-sized company – little succession management experience Mid-sized company – advanced systems

Mid-sized Company – New to succession planning Informal nomination of high potentials Assignment of mentors Discussions with senior leaders One-day training programs Minimal assessment

Mid-sized Company – Advanced HR practices Identification of high potentials through a rigorous talent review Extensive specification of competencies Complete assessment on all competencies (360, personality assessment, structured interviews) Planning for each senior management position Tailored development plans for each person

Some questions to be answered Who will lead the succession planning initiative at your organization? How will the process be linked to strategy? What are your core competencies? How is management involved in succession planning? What are your critical positions? Key developmental positions? How is “high potential” defined? What is your talent review process for identifying employees with strong potential and for identifying organization gaps? How will calibration occur? How will high potential employees be assessed? How will hi-pos receive developmental feedback? How will development planning be done? Will the process be open? Will high potentials know they have been identified?

Additional Tool - Capability Grid Critical Skills /Task/ Knowledge Site design Project Management – construction Utility load forecasting GIS Etc. Ready Now Ready 6-18 months Jan S., Bill M. Susan F., Marshall T.

Suggested Reading Berger, Lance A. and Berger, Dorothy R. The Talent Management Handbook: Creating Organizational Excellence by Identifying, Developing, and Promoting Your Best People. Columbus, Ohio: McGraw Hill, 2003. Berke, David. Succession Planning and Management: A Guide to Organizational Systems and Practices. New York: Center for Creative Leadership, 2005. Bower, Joseph L. “Solve the Succession Crisis by Growing Inside-Outside Leaders,” Harvard Business Review, Nov 2007. Byham, William C., Matthew J. Paese, and Audrey B. Smith. Grow Your Own Leaders: How to Identify, Develop, and Retain Leadership Talent. New York: FT Press, 2002. Charan, Ram. “Ending the CEO succession crisis,” Harvard Business Review, Nov 2007. Charan, Ram, Stehpen Drotter, and James Noel. The Leadership Pipeline: How to Build the Leadership Powered Company. New York: Jossey-Bass, 2000. Cohn, Jeffrey, Rakesh Khurana, and Laura Reeves. “Growing Talent as if Your Business Depended On It,” Harvard Business Review, October 2005. Fulmer, Robert F. “Choose Tomorrow’s Leaders Today: Succession Planning Grooms Firms for Success,” Graziadio Business Report , Vol. 5, Issue 1, 2002. Karaevli, Ayse, and Hall, Douglas Tim. “Growing Leadership for Turbulent Times: Is Succession Planning up to the Challenge?,” Organizational Dynamics, Vol. 32, 2003. Krishnan, Ravi. “Easing the Exodus: Innovative personnel strategies can combat the loss of technical skills,” Power Engineering, June 2006. Ready, Douglas A. How to Grow Great Leaders. Harvard Business Review, Dec 2004.

Lyn Turknett Bob Turknett Carolyn (Lyn) Turknett is President and Co-founder of Turknett Leadership Group. She earned a BS in mathematics and an MA in sociology, with special emphasis in organizational sociology, from the University of Georgia. Her specialty is organizational assessment and change, executive team development, and ethical leadership in rapidly changing environments. Lyn is an active member of several professional associations, including the Society for Human Resource Management, and is an active community volunteer. She serves on the board of United Way of Metropolitan Atlanta, is an elder in the Presbyterian Church, and enjoys “grandmothering” in any spare time. Dr. Robert (Bob) Turknett is the CEO and co-founder of Turknett Leadership Group, a 22 year-old consulting firm specializing in succession planning, CEO consulting, executive development, talent management and organization effectiveness. Best known for their work in character-based leadership, Bob and Lyn Turknett are co-authors of “Decent People Decent Company," creators of the Leadership Character Model , and hosts of the annual Leadership Character Awards. Along with a staff of business and IO psychologists, they help companies build cultures of character and accountability and prepare for longterm success. Bob is a member of Atlanta Rotary, a strong supporter of United Way, an avid golfer, and the proud grandfather of Jules and Tucker.