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High-Impact Talent Management Workforce, Capability & Succession Planning

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High-Impact Talent Management Workforce, Capability & Succession Planning V4 Spacing High-Impact Talent Management Headline / Subhead Vertical / Vertical Headline Subhead Workforce, Capability & Succession Planning McLean & Company is a research and advisory firm that provides practical solutions to human resources challenges with executable research, tools, and advice that will have a clear and measurable impact on your business. © 1997-2016 McLean & Company. McLean & Company is a division of Info-Tech Research Group Inc. McLean & Company 1 V4 Are you confused? I am! • Talent Management ◦ People Strategy? ◦ Workforce Planning? Headline / Subhead Vertical Spacing / Vertical Headline Subhead ◦ Succession Planning? ◦ Capability Development? ◦ Talent Development? ◦ Leadership Development? McLean & Company 2 V4 Moving Target • Talent Management was mostly for leaders ◦ There was an abundance of skilled candidates ◦ Begged the question: So are only Leaders “Talent”? ◦ Elitism trumped democratic people practices • Demographics have changed Headline / Subhead Vertical Spacing / Vertical Headline Subhead ◦ Talent is now scarce, globally ◦ Employees expect development ◦ Certain skilled roles are as important as leaders • Talent Management is now an enterprise function ◦ Focused on leader and difficult-to-fill roles ◦ This could mean most, in today’s environment ◦ Increasingly transparent and “latticed” How do you think about Talent Management in your organization? McLean & Company 3 V4 Talent Management by Bersin Strategy, Workforce Planning and Capability Management Headline / Subhead Vertical Spacing / Vertical Headline Subhead McLean & Company 4 V4 Dynamics today require a flexible and simple approach… Step 1: Establish project rationale Develop a business case for planning. Step 2: Assess the foundation Establish Assess Align and connect key HR practices to project the support the success of your planning. rationale foundation Step 3: Identify key gaps Headline / Subhead Vertical Spacing / Vertical Headline Subhead Select which key gaps will be incorporated into the plan. Keep the requirements broad enough for diversity Manage Identify in potential successors. succession key gaps Step 4: Identify successors and talent pools Identify Assess internal talent and determine successors who should go where. and talent pools Step 5: Manage succession Plan for ongoing communication, tracking, development, and updates. Step 4 We will call it succession planning but it is workforce and talent planning McLean & Company 5 V4 Step 1: Establish Project Rationale Spacing Section summary and deliverables: After completing this section you will have: • A business case for flexible workforce and Establish Assess succession planning. project the rationale foundation Deliverables: • List of your organization’s pain points and flexibility issues from succession planning. Manage Identify Headline / Subhead Vertical / Vertical Headline Subhead succession key gaps Identify successors and talent pools Step 4 Workshop activities in the step: 1.1 Identify pain points from your current or non-existent succession plan. 1.2 Assess roadblocks to implementing flexible succession planning. McLean & Company 6 Succession Planning was the least effective Talent Management area in the 2016 Trends and Priorities Survey Talent Management Area Effectiveness Succession Planning was tied with Metrics & Analytics as the least effective of all 30 HR areas surveyed. It is Effectiveness Score also the top priority Talent Management area. Low Effectiveness (1-2) Moderate Effectiveness (3-4) High Effectiveness (5-6) McLean & Company, HR Trends & Priorities Note: Results are shown as the percentage of respondents who selected 5 or 6 on a 6-point scale. for 2016, N = 555 McLean & Company 7 Traditional succession plans often fail in high-change environments because they aren’t agile or integrated Traditional succession plans are… 1 Too focused on the long term 2 Too narrow-sighted The business environment is more dynamic and uncertain than ever and The traditional focus on constantly changing. upper management leaves • Key roles today may not exist tomorrow or may exist in multiples to catch up organizations unprepared with business requirements. when critical turnover happens lower down – • Changes can occur multiple times within the 5-10 year planning time frame. leaving them vulnerable. People don’t stay in jobs 5-10 years anymore. • Millennials don’t stay in jobs for as long as previous generations. o In a survey conducted by the Bureau of Labor statistics, 91% of Millennials expected to stay in a job for less than 3 years.* Too disconnected • In place of retirement, many Baby Boomers are leaving their full-time jobs for 3 flexible work arrangements that suit their changing lifestyle. Succession planning often • Globalization and technology mean employees have more – and easier – isn’t properly integrated with access to job opportunities. other talent management initiatives, leading to o Example: Pursuing passive candidates through LinkedIn or other social media sites is now commonplace. That means it is much more likely for duplication of effort and lost employees who weren’t looking for another opportunity to be lured away. opportunities. * Source: Meister, “Job Hopping Is the 'New Normal' for Millennials” (emphasis added) McLean & Company 8 Rigid succession planning – or no plan – leaves the organization vulnerable Without responsive succession planning, the organization is too slow to respond to sudden critical vacancies, so there is no ready successor when vacancies occur. This translates into lost knowledge and, often, high costs. Knowledge loss • Succession planning is critical to ensure that the knowledge held by those in key roles is successfully passed down to successors. • Knowledge loss also: o Creates inefficiency as people duplicate effort to solve problems and find solutions. o Reduces capacity to innovate. o Negatively impacts competitive advantage. o Exposes the organization to the risk of not knowing what to expect. High recruitment costs Productivity Loss • If an organization has no prepared successors, it must • If an organization has no prepared successors, it must seek outside talent…which can come at a steep cost. spend time finding an external replacement. In the meantime, either the critical role’s work isn’t done and there • According to a study conducted by the Saratoga is a direct vacancy cost; or it is filled by an underqualified Institute*, the cost of an external hire can be 1.7 employee on an interim basis. In either case, productivity times more than that of an internal successor. costs can be high. * Source: Business Time, “The Power Within” (emphasis added) McLean & Company 9 V4 Activity: Identify pain points from your current 1.1 or non-existent workforce succession plan Spacing 1.If your organization currently does succession planning, discuss how flexible your process is. Brainstorm and list components of your succession planning process that make it difficult to adapt. Headline / Subhead Vertical / Vertical Headline Subhead 2.Discuss pain points that your organization faces as a result of your succession plan or lack thereof. Start with pain points on the previous slide. Brainstorm and list additional pain points and examples. McLean & Company 10 V4 Organizations are missing out on the most impactful HR trend for 2016: Using talent pools for succession planning Spacing Implemented Talent Management Trends 13th Talent pool succession planning, a flexible th** Headline / Subhead Vertical / Vertical Headline Subhead * 18 and change-oriented approach, scored in the top half of emerging trends. It th * 20 was identified as the “Most Impactful”* trend in 2016 and 2015. 24th McLean & Company, HR Trends & Priorities for 2016, N = 476 . **Impact: Denotes a top 10 most impactful trend. Respondents selected which one of the trends they had implemented was the most impactful. A weighted average was then used to rank them. Refer to McLean & Company’s HR Trends & Priorities for 2016 blueprint. McLean & Company 11 Flexible succession planning uses talent pools for a change-oriented focus and broader application Traditional Flexible Succession Succession Planning Planning What it is: What it is: Flexible succession planning employs • Process for identifying • Identification of at-risk 3 of 4 of the values of Agile* ideology: and developing job pools and selection employees to fill key and development of 1. Adaptability: Run on a short-term timeline for senior leader positions. employee talent pools to developing successors, which allows flexibility progress through pools. for changes as they occur in the organization or in the business environment. Develop a pool- Who it plans for: Who it plans for: based approach to ensure that there is a broad • Key senior leadership • Key senior leadership supply of ready-to-go successors. business positions. business positions, key • 1-2 employees. individuals, job pools. 2. Simplicity: Straightforward process that can be clearly communicated and understood by • Larger employee pools. leaders required to identify and develop talent, as well as employees who are part of the plan. Time frame is: Time frame is: • Long term • Short and long term 3. Unity: Interconnected with components across (3-5 years). (1-3 years and 3+ years). other HR practices, as well as overall strategy of the business, to meet business goals. Successors come from: • Successors come • A level/tier below the from: Transparency is the final agile value. The ideal senior leadership Levels/tiers below and at amount
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