CUPA—HR Strengthen Leadership Development and Succession ...chapters.cupahr.org/tn/files/2013/05/Strengthen-Leadership... · Strengthen Leadership Development and Succession Planning

Prepared by Consulting Performance, Reward & Talent

CUPA—HR Strengthen Leadership Development and Succession Planning Practices

April 11, 2013

The Higher Ed Leadership Development Challenge

How can we…

Strength Board and senior leadership support and involvement

Get funding for leadership development programs

Drive consistent talent review processes

Create a culture of open, honest feedback and accountability

1 Consulting | Performance, Reward & Talent Proprietary & Confidential | CUPA-LDSP.PPT/29647 04/2013

KEY PROCESS STEPS AND REQUIREMENTS: TALENT REVIEWS, HIGH,

Top Companies for Leaders Research

Leadership System Components

Pivotal Positions and

Profiles

Experience Maps and

Competency Model

Networking and Exposure

Development Programs

Leadership Sourcing Strategy

Continuous Improvement: Process, Tools, Decision Making, Role Modeling, Tie to Pay

Leadership Talent Assessment and Management

Individual Leader Assessment and High Potential Identification

Talent Review

Succession Management

Development Planning Leader Profiles

Accountability and Follow Through

Business Strategy

Translated into

Leadership Capability

Needs

Workforce Planning


Top Companies for Leaders—The Foundations for Success

Aon Hewitt’s research and experience indicates that talent is more successfully managed in organizations where… Senior leaders take active ownership of the leadership/people agenda HR priorities are clearly driven by an integrated and embedded business

strategy Employee communication is consistently open, honest, and transparent Leaders are measured by outcomes Accountability is driven top-down in meaningful ways Key talent is built by experience, exposure, feedback, and stretch opportunities

customized to fit the needs of individuals Talent is more often built than bought (75% internal; 25% external)


Key Processes at a Glance

Talent Review

A

High Potential Identification

B

Accountability and Execution

C


Talent Review

Purpose Have senior leaders discuss, assess, and calibrate key talent within/across the

organization using a defined process Collect additional performance feedback on key talent from other leaders Integrate discussion into succession possibilities Top Companies’ Practices Conduct reviews quarterly or semiannually, at a minimum Be proactive: integrate strategic business planning with talent review efforts Treat high potentials as shared, corporate assets Talent review meetings led by senior managers with HR support/facilitation Succession plans used to fill leadership positions at least 90% of the time Succession readiness is honest and accurate evaluation (not a “stretch”) Two to three years after role filled with a successor, organizations will measure

effectiveness of successor selection and whether their assessment of that candidate’s capabilities was correct

Develop an emergency succession plan for top one or two jobs

Talent Review

A


B


C


Top Companies Embed Future Focus Into Their Succession Plans

100% 100% 100% 100% 96%

78%72%

81% 84%75%

0%

20%

40%

60%

80%

100%

Assessment of leadership skillgaps

Clearly identify w hichjobs/roles are critical to the

future success of theorganization

Preparation of successor listsfor select positions

Development of high potential(or equivalent) pools of

candidates

Development of successorsfor specif ic positions

Top Companies All Others

Source: Aon Hewitt’s Global Top Companies for Leaders Study, 2011


Top Companies Develop Competencies Focused on the Emotional Side of Leadership

100% 100%92%

100% 100%96%

88%

79% 79%74% 76%

67%

0%

20%

40%

60%

80%

100%

Manage/lead change Ensure accountability Create a positive w orkenvironment

Help people manage theircareers

Find and develop nextgeneration talent

Encourage netw orks andrelationships




Top Companies Conduct Succession Planning at All Levels of Their Organization

96%100% 100%

76%

84%79%

98%

81%

42%49%

0%

20%

40%

60%

80%

100%

CEO Senior management Middle management Front line management Other critical positions

Top levels of corporate and business unit executives (e.g., C-suite, EVP, SVP, or equivalent).

Managers of other managers (e.g., Vice President, Director, or equivalent).

Managers of individual contributors (e.g., Manager, Supervisor, or equivalent).

Nonleader jobs/roles that affect customer decision making and have a direct impact on the organization’s future growth potential.




Conducting the Talent Review Process—Senior Management


Measuring talent on their current responsibilities

Criteria for measurement of performance

Current performance data

Measurement of competencies

Collation of performance and potential data

HR/Business Head/Reporting Managers

Discussion based on performance and potential data

Development Plans based on segmentation

Measuring values

Engagement of the team Learning agility

Employee self retrospection—their career aspirations 1 on 1 meeting – between CEO and the employee

Board/CEO involvement/Business Managers from different functions

Culture fit with the organization

Providing choices in development interventions for employees

Measuring talent on their ability to grow and handle responsibilities of greater scale and scope

Bringing the two inputs together

Talent Review Discussions

The follow through…

Moving from just data to softer nuances

Rigorous monitoring and tracking of development plans

Talent Review Process

Having a flavor of development and opportunities

Could Haves Must Haves

Leadership impact

Performance

Potential

Collation

Discussions

Development Focus

Past 2–3 years performance data Seeking inputs from skip level manager to bring in various perspectives


Purpose Identify critical talent in the organization to focus development efforts of the

organization, track engagement, and prepare replacements for key leadership positions

Top Companies’ Practices Target the high potential pool to be approximately 20% of the Director level

and above population Include performance, potential, and character Use performance management scores, 360 degree feedback, assessments,

and personal experience as an input Customize assessment mechanisms based on the greatest impact for the

individual Ensure business leaders (not HR) identify candidates and calibrate their

candidates and definition of potential in talent reviews by establishing consistent mechanisms, frequent check-ins, and meaningful accountabilities

Talent Review

A


B


C


Top Companies Formally Identify High Potentials Throughout Their Organization

96%100% 100%

92%

56%

72%77%

91%

68%

32%

0%

20%

40%

60%

80%

100%

Formally identify high potentials(or equivalent)

Senior management Middle management Front line management Entry level/early career

Levels at which organizations identify high potentials




Top Companies Use a Variety of Assessments to Identify High Potentials

96%88%

84%

68%

52%

82%76%

61%

50%42%

0%

20%

40%

60%

80%

100%

Performance ratings Executive nominations Competency-basedassessment

HR nominations 360 degree feedback




Sample 9-Box Formats


Accountability and Execution Purpose Monitor success of the process and the outputs Create a discipline in the organization for developing future leaders Top Companies’ Practices Establish a variety of metrics to hold leaders accountable for developing future

leaders Track actions leaders take to develop others using individual Leader

Scorecards Collect feedback after talent reviews, trainings, events, etc. to continuously

improve Metrics are used to track the strength and diversity of leadership pipelines

evaluate the effectiveness of programs and the actions taken by leaders Leaders meet throughout the year to review whether they are taking

development actions identified in the talent review process; after initial talent reviews, HR sends a list of “to dos” discussed in the meetings to leaders

Global results for each business units roles up to the Global Leadership Consulate at least once a year


A


B


C


Top Companies Also Have Formal Metrics Designed to Evaluate the Effectiveness of Critical Programs and Practices

100% 100%

84%92% 95%

73%

48% 49%

61% 61%

0%

20%

40%

60%

80%

100%

Achieving OverallStrategic

LeadershipObjectives

SuccessionManagement

Process

High PotentialPrograms

LeaddershipDevelopment

Process

OverallEffectiveness in

Achieving GrowthObjectives in

Emerging Markets




92% 92% 92% 92%

80%

92%

60% 60%60%

42%

60%

69%

49%

58%

31% 31%

0%

20%

40%

60%

80%

100%

Top Companies Use Outcome-Focused Metrics to Drive Desired Behaviors That Create a Sustainable, Future-Focused Workforce




Strength of Leadership

Pipeline

Diversity in Leadership

Pipeline

Retention of Leaders

Retention of HiPos/Critical

Talent

# of Diverse Candidates

in Successor Pool

Ability to Fill Key Positions/

Bench Strength

Ability to Resource Growth

Initiatives

Placement Rate of Diverse Candidates

Laying the Foundation for Success: What Companies Must Get Right

Leaders are engaged and values driven. They demonstrate the right behaviors, right skills, right way.

Leadership and talent strategy is closely aligned to and executed against organizational goals.

Utilize a consistent and rigorous approach to selection and on boarding.

Conduct robust talent reviews, including honest talent- management discussions that are facilitated and calibrated consistently.

Provide accelerated development through meaningful, experiential, relational, and traditional processes.

Maintain a deep and robust talent pipeline via succession management. Define, identify, calibrate and develop high-potential and critical talent. Valid and objective feedback assessments to understand capabilities, guide

development, inform succession. Utilize metrics to track progress and drive desired results, differentiated

compensation, and rewards. Seamless execution of the fundamentals, with a consistent cadence and rigor. Highlights from Aon Hewitt’s Top Companies for Leaders Study 2005–2011


KEY PROCESS STEPS AND REQUIREMENTS: TALENT REVIEWS, HIGH,

Higher Education Leadership Development and Succession Planning

Leadership Development and Succession Planning Is a Critical Priority

1%

5%

5%

7%

9%

32%

36%

42%

46%

49%

0% 10% 20% 30% 40% 50%

Reducing workforce turnover

Creating Centers of Excellence (COEs) to manage program strategy and design

Providing career advancement opportunities

Coordinating talent management practices

Mining workforce analytics to help our institution make fact-based human capital decisions

Improving faculty and staff diversity

Developing and maintaining faculty and staff engagement

Attracting and retaining skilled/professional/academic talent

Improve leadership development and succession planning

Controlling benefits/health care expense

Most and Least Important Strategic HR Priorities for 2012


Key Findings

About 10% of respondents have a formal succession planning process at their institution

Most institutions look externally to source key talent (e.g., executives, VPs) vs. promotion from within

Strong majority of respondents do not believe they have a sufficient talent pipeline to be successful in future

Majority of institutions do not have satisfactory metrics to evaluate succession planning/talent effectiveness

Several factors impede institutions ability to build a strong leadership pipeline – Lack of executive sponsorship – Barriers with institutional structures – Lack of focus on topic – Lack of resources


Succession Planning—Top 10 Factors impeding your institution’s ability to build a robust leadership pipeline

Factors Percent

Institutional structure (e.g., flat, siloed) 56%

Lack of resources (e.g., people, time, money) dedicated to succession management practices 47%

Lack of executive sponsorship 41%

Insufficient succession metrics 41%

High-potential employees not developed effectively 38%

Not an important priority 35%

Geographic constraints (e.g., location, mobility) 27%

Mentoring program insufficient to develop leaders 27%

Lack of required skills/experience among existing employees 24%

Internal training/development programs do not facilitate succession planning 24%

Note: Based on 34 responses


29%

30%

18%

8%

11%

15%

8%

45%

34%

37%

42%

32%

26%

28%

26%

36%

45%

50%

58%

59%

65%

0% 20% 40% 60% 80% 100%

Consistent / Somewhat Consistently Executed Somewhat / Not Consistently Executed Do Not Have This Practice / Don't Know

Strong leadership bench with succession plans extending at least 2–3 people down

across most leadership roles

Include critical manager and director as part of the succession planning process

Formal succession management to fill senior leadership positions

Rotational assignments to effectively grow leaders and key talent

Assessment tools to identify capability strengths and gaps for critical talent

Senior leader talent reviews at least once a year

Strategic planning process to assess future leadership needs

Leadership Program Adoption is Fairly Low

Execution of Leadership Development Programs


Universities Source More Talent Externally than Internally

55% 45%

58% 42%

50% 50%

Executive

Vice President

Other Critical

Internal

External


Succession Planning—Top 10 elements included in succession planning process

Elements Percent

Review of executive/VP talent at least once a year 80%

Assessment of leadership skill gaps 50%

360 degree feedback 50%

Retention risk assessments 50%

Diversity goals 40%

Third-party assessment 40%

Development of high potential (or equivalent) pools of candidates 30%

Assessment of potential for advancement 30%

Clearly identify which jobs/roles are critical to the future success of the institution 30%

Internal successor pools (e.g., high potential) 20%

Note: Based on 20 responses


Case Study—Emory

Aligned to strategic plan—enable Emory’s faculty and staff to lead successfully with the right skills to enable success

Robust program at multiple levels

Excellence Through Leadership – Focuses on developing

senior leaders


Supervisor Development Program (SDP): This program targets non-faculty supervisory roles. It includes a nine-month curriculum structured around basic fundamentals of supervising people, communication, people skills, ethical behavior, gathering feedback, providing feedback, and other HR policy focus areas.

Manager Development Program (MDP): This program focuses on developing managers who demonstrate the capacity to manage large departments or groups. The program consists of 12 classes, 150 hours contact time, and a 360-degree feedback assessment. A capstone project is a component of this program.

Excellence Through Leadership (ETL): This program concentrates exclusively on senior leaders reporting to VPs, EVPs, Deans, etc. Each session accommodates 15 people and is administered by faculty from the Business School with particular focus on business acumen for a university setting. The curriculum includes a three-to four-month team project, with each team being assigned an executive coach, and a 360-degree feedback assessment.

Academic Leadership Program (ALP): Sponsored by the Provost’s office and coordinated through Human Resources, this program is specifically designed for senior faculty positions such as Department Chair, Associate Dean, or Dean, as well as faculty with high leadership potential. The curriculum is developed by the Business School faculty and accommodates up to a dozen faculty members per session.

Administrative Professional Program (APP): The purpose of this program is to enhance the capabilities of all executive assistants and other administrative staff.

Case Study—University of Texas System

Management Leadership Development Program (MLDP) Aligned of University’s strategic plan—drive diversity efforts and promote

succession planning Designed at 3 levels

– Senior Leaders—Managing for Excellence – Mid-Management—Advancement in Professionalism – Support Management—Leading Through Collaboration and Teamwork


Leadership Development and Succession Planning

Action #4—Ensure HR has the skills and systems to support leadership development and talent reviews

Action #3—Define roles/levels included in succession planning and HiPo ID

Action #2—Define / align consistent talent review and leadership development programs

Action #1—Secure Board and senior leadership commitment


Documents

CUPA—HR Strengthen Leadership Development and Succession ...chapters.cupahr.org/tn/files/2013/05/Strengthen-Leadership... · Strengthen Leadership Development and Succession Planning