Succession Management at Farm Credit Making it happen!
Succession Management – • Perhaps the biggest issue of this decade • It’s more than just picking names • It’s more than a “training & development” program • It is “resource planning” for running your business • A system is important for tracking & placing • The System is not what drives talent, the culture will
Succession Management – Sample Definition Succession Management is a structured effort by an organization to ensure continuity in key resources. It also strives to retain and develop Intellectual and knowledge capital for the future through: • Identifying positions and/or employees at risk • Growing internal capacity – skills, leadership • Maximizing diversity – Gender, ethnic, generational • Encouraging individual development • Achieving business results
Succession Management Process Develop a Succession Planning Strategy Manage Development & Talent Moves Determine Succession Needs Identify Qualified Successors/ Resources Monitor & Measure Effective ness Clarify & Crystallize Organizational Strategy 2006 MDA Leadership Consulting
Clarify & Crystallize Organ izational Strategy • What is the 1, 3, 5 year strategy of the organization (i.e., growth, recovery, cost control, investment, etc)? • What are the key metrics of the strategy (ADB, New $, Related Service Fees, etc)? • Has this strategy been well communicated to the organization?
Develop a Succession Planning Strategy • Do senior leaders understand the need? • What is the purpose of succession planning and how will it be communicated to the organization? • How does Succession Planning fit into the annual business planning process? • How capable is your team?
Determine Succession Needs • Position-based, pool-based or a combination? • Which levels, positions, persons are included? • How is succession linked to other systems? • How to train & prepare managers to participate?
Identify Qualified Successors/ Resources • “TheSystem” • Defining what “Success” looks like • How will assessments of performance and potential be made? • What sources of information are available? • Who will provide input/ratings? • What are the legal considerations?
Manage Development and Talent Moves • What vehicles are you using to develop or select? • Who owns “development”? • How is feedback handled? What feedback is provided? • How do we manage recruiting?
Monitor and Measure Effectiveness • When will follow-up reviews be conducted? • What is the format of these reviews? • How will impact be measured? • What is shared with the organization?
The Process • Define key Competencies– the “Target” • Key leaders are involved • They have done their homework & are prepared • Training on the process in advance • A facilitated discussion where everyone is expected to contribute their opinions • “Now that we know who fits where, what are we actually going to do for them?” • Do we have gaps internally, where we must recruit? • Action Plans are built • Successive meetings begin with reviewing Action Plans
Sample Performance Gid Performance High • Albert Einstein • Jack Welch “Highly Valued” “Highly Promotable” POTENTIAL High POTENTIAL Lo “Improvement Required” “Needs Coaching” • Dante’ Culpepper • Ken Lay Lo Performance
Sample Talent Profile Period: 2005_________________________________________________________________________________ Employee Info Name: Linda Mayworth Supervisor: Emily Faulkner Title: Director of Business Planning Department: Strategic Design Length of Service: 3 Years Facility: Denver Timein Current Job: 18 Months Grade: Grade 11 CAREER GOALS Entered Description Competencies Req 11/15/07Would like to facilitate a Strategic Planning session executive team. Fosters Innovation 11/15/07 Would like to lead a team. Leading People 11/15/07 Would like to hold an executive position within the next 3 to 5 yrs. Leading People Strategic Thinking_ EDUCATION HISTORY Institution Degree Area of Study Years Attended Graduation Date SUNY College Buffalo BA Human Resources 4 5/10/1974 Vilanova University MBA Business Administration 4 6/30/1979____ CURRENT DEVELOPMENT PLAN Strengths: Activity Partner Date 1. Fosters Innovation Lead Innovation Committee Don Jones 1/1/08 2. Driving Change Will Lead Process Improvement initiative E. Faulkner 9/07 3. Development: Activity Partner Date 1. Leading People Leadership Development workshop HR Director 2nd qtr. 08 2. Leading People Will lead Bus. Measurement team E. Faulkner 1/1/09 3. Rating: Highly Promotable Promotable two steps up? Yes No (circle one) Next Potential Move: VP of Strategic Design Estimated Time Frame: 2 years
Succession Management Questions • Have we backed-up enough to evaluate “resources”? • What is our track record of developing talent? • When we have hired from outside, how successful have we been? • How successful at the senior levels? • Do we have the ability for on the job development? • How effective is our culture around coaching & feedback? • How will our practices impact performance in the Short-Term? In the Long-Term?
Bench Strength Organizations can no longer rely only on executive-level succession planning and traditional leadership development programs to supply the quality and quantity of leaders their organizations will require in the future
Fewer than 20% of employees have better than a 50% chance of being successful in more senior, more critical roles. Source: Corporate Leadership Council, Realizing the Full Potential of Rising Talent, 2005