Calpers Succession Planning

8/3/2019 Calpers Succession Planning

1/16

ACalPERS Succession

Planning Model

Chris OBrien, Chief,

Human Resources

Pat Santillanes, Assistant Chief,Human Resources


2/16

A

Presentation Overview Background

Scope

Strategic Leadership Framework Succession Planning Process

Succession Management Process

Accomplishments & Challenges

Recommendations for Success

Summary & Wrap-up


3/16

A

Background Existing WorkForce Planning at CalPERS

2002 - Strategic direction to focus on

Succession Planning

Established Succession Planning & WorkForce

Management Project (SPWMP)

Adopted Leadership Development Framework

Demographic Profile of CalPERS Leadership

Risk Assessment to establish scope


4/16

A

Scope Leadership Assessment (Interviews and Focus Groups)

Retirement Risk Analysis of 129 Leaders

Readiness: Current & Future Skills

Critical Positions identified

Leadership Development: Building the Bench Recruitment

Development

Succession

Develop and Implement the Framework Integrate into the annual business planning cycle


5/16

A

Leadership Commitment: Retirement Risk Analysis

Immediate Risk: Incumbents age 60 today or age 55 with more than 10 years service

Moderate Risk: Incumbents will reach Immediate Risk within next 5 years

Low Risk: Not in either of above categories

According to the analysis conducted, 17% of the 129 leaders today fit the category of immediate risk for retirement. If

the current group continues to remain in their roles, by the year 2009 that number will increase to 43%.

17%

32%

43%

Top 129 Leaders: Retirement Risk Progression

0.0%

25.0%

50.0%

75.0%

100.0%

2004 2007 2009

Years

Low Risk

Moderate Risk

Immediate Risk


6/16

A

Leadership Readiness: Current & Future Skills

Current Leadership Skills Future Skill Requirements

Leaders differ in their perception about skills of thecurrent team

Most leaders have made career progress throughself-initiated assignments and visible projects

Most leaders understand the political context in which

CalPERS operates; but, dont incorporate that into

their daily performance

Middle managers have not been valued anddeveloped as future leaders

Do not have formal networks to share information

Lack chance to work in more than one

department / function

Do not receive communication and attention tobroaden or develop skills

Many have worked for other organizations &state agencies and have a broader set ofexperiences that is not being leveraged

A broader, cross-functional understanding ofCalPERS, including its strategic direction andhow each function contributes

Environmental awareness and ability to see a

problem from a multi-faceted perspective Negotiation skills, team building, and conflict

management

Ability to navigate the political landscape

Ability to lead and engage people (e.g.,interpersonal skills), in particular to influencediverse stakeholders and constituencies

Deeper and broader business acumen, toanalyze problems and make decisions (e.g.,

financial, marketing, operations, technical,strategic)

Ability to think strategically and creatively, todevelop new products, processes, or solutionsto meet a business need

Most leaders have the skills required to perform effectively in their current roles, but future skill requirements will be quite

different and a more formal approach to providing development is necessary.


7/16A

Strategy Direction& Expectations

Leadership Assessment& Feedback

Individual and Bench-wide Planning

Leadership DevelopmentActions

Accountability forResults

Individual DevelopmentPlanning

Strengths

Gaps

Development goals

Executive development

action plan

Requirements ofLeader

Multi-source assessment(360)

Employee Survey

Other Assessment

Assessment Center

ExecAssessment

Individual PerformanceReview

Track record of results

Values andcompetencies

Development needs

Top Leadership SkillsAssessment

Career history

Performance & potential

Strengths/gaps

Future options

Understanding of Candidate/Possible Personnel Action

Broad Context

Overall strategy

Culture/values

Leadershipdevelopmentprinciples

Leadershipexpectations

Specific

Business priorities,goals andmeasures

Business initiatives

Leadership skillsand staffing fortoday & in future

Unit-specificstrategies andexpectations

Succession Planning

Analysis of top talentslate

Comparison to businessneeds

Vulnerability

Scenario charts forpotential succession

Development throughwork assignments

Change in job contentor scope

Job reassignment

Project initiative oraction learning

Learning from others

External executivecoaching

Mentoring

Training-baseddevelopment

Internal leadershipcurriculum

External training oreducation

Self-directed study

Measurement andreporting ofretention,performance, anddevelopment results

Hi-Potential Pool &Candidate Slates

Note: The Leadership Development Process isiterative with feedback loops between andwithin phases.

Strategic Leadership Framework


8/16A

Strategy Direction& Expectations

Leadership Assessment& Feedback

Individual and Bench-wide Planning

Leadership DevelopmentActions

Accountability forResults

Individual DevelopmentPlanning

Strengths

Gaps

Development goals

Executive developmentaction plan

Requirements ofLeader

Multi-source assessment(360)

Employee Survey

Other Assessment

Assessment Center

Exec Assessment

Individual PerformanceReview

Track record of results

Values andcompetencies

Development needs

Top Leadership SkillsAssessment

Career history

Performance & potential

Strengths/gaps

Future options

Understanding of Candidate/Possible Personnel Action

Broad Context

Overall strategy Culture/values

Leadershipdevelopmentprinciples

Leadershipexpectations

Specific

Business priorities,goals andmeasures

Business initiatives

Leadership skillsand staffing fortoday & in future

Unit-specificstrategies and

expectations

Succession Planning

Analysis of top talentslate

Comparison to businessneeds

Vulnerability

Scenario charts for

potential succession

Development throughwork assignments

Change in job content

or scope

Job reassignment

Project initiative oraction learning

Learning from others

External executivecoaching

Mentoring

Training-baseddevelopment

Internal leadershipcurriculum

External training or

education Self-directed study

Measurement andreporting ofretention,

performance, anddevelopment results

Hi-Potential Pool &Candidate Slates

Note: The Leadership Development Process isiterative with feedback loops between and

within phases.


9/16


10/16

A

Succession Planning ProcessTheplanning process identifies which individuals should be included in a candidate pool and evaluates each individuals readinessand development needs for assuming new leadership roles. The outcome of the planning process is a pool or group of candidates,who can fill future positions and whose development is the priority in building CalPERS leadership and professional capabilities.

Identifycandidates for

succession

through self-

nomination

process

Managers review

list of candidates

Compile list of

candidates

Candidate buildsthe profile by:

Collecting relevant

performance

informationDocumenting work

history

Conducting self-assessment

Manager completes:

Review 360 roll-up

Review the profile &

self-assessment

Rate candidates

readiness to assume

greater responsibility

Rate Risk forSeparation

Identify positions for

future succession

Aggregate

ReadinessAssessments

Review Roles &

LSA process

Discuss candidates

against succession

needs and each

other

- Strengths

- Weaknesses

Finalize readiness

ratings

Conduct Feedback

meeting with each

Candidate

Candidate updates

Development Plan &

Goals in Development

Engine

1. Identify

Candidates for SP&M

5.Modify/Update

Development Goals

& Action Plan

2. Build

Candidate

Profiles

3. Assess

Readiness

4. Conduct Leadership

Skills Assessment

(LSA) Session


11/16

A

Succession Management ProcessThemanagement process involves evaluating position vacancies and needs, evaluating the strength of the candidate pools, anddetermining the best way to deal with a position vacancy. Some vacancies will be filled with the best-qualified candidate from the

pool. Others may be filled with a high potential (but inexperienced) candidate or involve restructuring the position or changing the

timing of when it is filled.

Create & maintain Candidate

Profiles

Report and maintain information

on Candidate pool as a whole

Discuss Candidate pool needson a macro level

Consider other approaches to meet

the position need

Identify best

candidate to fill

vacancy

Identify new candidates for

succession

Revise candidate

pools

7. Respond to

Vacancies

& Risks

6.Compile, Maintain

& Report Data


12/16

A

Strategic Leadership FrameworkCandidate Assessment & Feedback

360 and LSA

Executive Coach Discussions

Manager Discussions

Self Reflection

CalPERS Planning Process

Strategic Goals and Plans

Operational Goals and Plans

Key Initiatives

Internal and External Issues

Candidate Development Goals

Skills and knowledge

Experiences

Relationships

Leadership Development Opportunities

Rotational Assignments

Special Projects

Experiences (e.g., Board Meetings)

Quarterly Business Learning Council Meeting (Spring2006)

Assignment of candidates to special development opportunities

Selection of candidates to attend CalPERS executive program

Review of overall leadership and succession effectiveness


13/16

A

Accomplishments & Challenges

Recru

iting, Promotion andC

areer (4)Leadership Development: Overall Positioning (2)

Leadership Development: Formal Training (5)

CalPERSMarket

PracticeAssessment Areas

Performance Management & Executive Compensation (3)

Legend: 1 2 3 4 5

Significant Gap Significant Strength

Retirement Alternatives (6)

Leadership Development: Assessment & Feedback (1)

Leadership Development: On the Job (7)

To develop this market practice scorecard, the CalPERS Succession Planning team compared leadership programs to

those at comparable sized firms in both the public and private sector (since CalPERS straddles the gap, comparison

organizations might be the Federal Reserve Bank or Fannie Mae). The ratings are our subjective judgment, based on

experience in consulting as well as the professional literature and conferences.


14/16

A

Recommendations for Success Keep the process simple

Engage technology to support the process

Align succession management with overall

business strategy

Secure senior level support for the

process


15/16

A

Summary & Wrap-up Succession management is a continuous

process

Ongoing commitment of top executives,

Human Resource staff, and Strategic

Planning specialists

Journey not a destination

Questions & Answers


16/16

A

RESOURCESAlliance for Strategic Leadership

www.a4sl.com

Fort Hill Company

www.ifollowthrough.com

Documents

Calpers Succession Planning