HR Investment Center Implementation Kit

Succession ManagementEnsuring Seamless Leadership Transitions

© 2006 The Advisory Board Company Washington, D.C.

HR Investment CenterImplementation Kit

PinpointingFutureLeadershipGaps

AssessingBenchStrength

SelectingRightDevelopmentOpportunities

PerfectingtheOnboardingProcess

ii Succession Management

© 2006 The Advisory Board Company • 14667

Five Steps for Ensuring Seamless Leadership Transitions

I Pinpointing Future

Leadership Gaps

#1 CriticalPositionIdentification

#2 RetirementRiskAssessment

#3 FuturePositionProfile

#4 TieredCompetencyModel

II Identifying Top

Talent

#5 PrincipledHigh-PotentialSelection

UnambiguousPerformanceScores

Defined“Potential”Ratings

GroupHi-PoSelection

#6 EarlyPotentialMonitoring

#7 CareerProgressionCounseling

At-Risk Positions Requisite Skills Future Executives Future Managers

The Guerilla Approach



#10 PrescriptiveDevelopmentPlanning

#13 TailoredOnboardingPlan

Pinpointing Future

Leadership Gaps

Identifying Top Talent

Customizing High Potential

Development

Perfecting the Onboarding

Process

Selected Practices



III Customizing High

Potential Development

IV Making the Right

Selection

#11 Metric-drivenReporting

#12 Best-FitHiringScreens

V Perfecting the

Onboarding Process


TransitionMilestones

Two-wayAssimilation

PersonalizedOnboardingTeam

EarlyPerformanceAssessment

#8 IndividualNeedsAssessment

#9 TalentPoolSlate


Representative Case Studies

iii

BRONSON

iv Succession Management


HR Investment Center Staff

Project DirectorMatthewCinque

Contributing ConsultantsCandiceChan

AmritaPalriwala

Executive DirectorStevenBerkow

Lead DesignerSarahAvery

KentonKodnerParisWilliams

Creative Services

RichardVanHaste•SteveHennessey•KatieHosmer•LaurenWalsh•AdamYoung

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Advisors to Our Work

TheHRInvestmentCenterexpressesitssincereappreciationtotheindividualsandorganizationswhosharedtheirinsightsandanalysiswithus.Inadditiontothemembersandnonmemberinstitutionsthatprefertoremainanonymous,theHRInvestmentCenterwouldliketothankthefollowingfortheircontributions:

Jon AbelesCatholic Healthcare PartnersCincinnati, OH

Dee Alcott-RodriguezSun MicrosystemsSanta Clara, CA

Karen ArmstrongTyson FoodsSpringdale, AK

Susan AuteraIBM CorporationArmonk, NY

Steve BarneySSM Health CareSt. Louis, MO

Barbara ElbertsonJohnson & JohnsonNew Brunswick, NJ

Mark FerraraEli Lilly and CompanyIndianapolis, IN

Brian FishelBank of AmericaCharlotte, NC

Nancy FordNorth Carolina Baptist Medical CenterWinston-Salem, NC

Cindy HartleySonoco Global ProductsHartsville, SC

Lisa MeadowsCapital One Financial CorporationMcLean, VA

Bill McAlpineDell, Inc.Round Rock, TX

Joan Mollohan Jan Brien Ochsner Health SystemNew Orleans, LA

Chris RolfeStick WilliamsDuke Energy CorporationCharlotte, NC

Debra MooreRebecca SchmaleOhioHealthColumbus, OH

Jeffrey Thompson, M.D.Mary Ellen McCartneyNancy NoelkeGundersen Lutheran Health SystemLa Crosse, WI

Susan UlshaferBronson Healthcare GroupKalamazoo, MI

Debbie WashingtonMassachusetts General HospitalBoston, MA

v

vi Succession Management



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Succession Management (14667)

Ensuring Seamless Leadership Transitions __________

vii

viii Succession Management


Study in Brief. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x

HR Investment Center Essay: The Succession Management Imperative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Best Practice Overview: HR Practices for Ensuring Seamless Leadership Transitions. . . . . . . . . . . . . . . . . . . . 17

Best Practice Profiles..................................................................45

I Pinpointing Future Leadership Gaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

At-Risk Positions

Practice #1: Critical Position Identification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Select group of senior executives annually designate limited number of leadership positions as “critical” based on overall impact on hospital finances, operations

Practice #2: Retirement Risk Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Hospital pinpoints specific job titles, functions facing disproportionate retirement risk and determines need for formal succession planning based on current bench strength

Requisite Skills

Practice #3: Future Position Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73For limited number of critical positions, hospital creates in-depth profiles capturing key capabilities and pre-requisites required for current and future success in those positions

Practice #4: Tiered Competency Model............................................ 87After isolating set of executive-level leadership competencies, hospital cascades competency model through management ranks, drawing clear distinctions among requirements and expectations for roles at each level

II Identifying Top Talent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

Future Executives

Practice #5: Principled Hi-Po Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99Hospital applies three screens—current performance, intrinsic potential, calibration to peers—to objectively identify handful of potential successors for critical leadership positions

Table of Contents


Future Managers

Practice #6: Early Potential Monitoring. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119Supervisors assign high-performing frontline staff to participate in pre-selected activities to test their managerial potential

Practice #7: Career Progression Counseling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131Hospital asks frontline clinical staff to self-select one of three career tracks including management track

III Customizing High-Potential Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141

Practice #8: Individual Needs Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143For each successor, hospital conducts series of behavioral assessments and competency-based interviews to pinpoint potential personality derailers and skill gaps as they relate to expected performance in next-level roles

Practice #9: Talent Pool Slate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173Senior leaders identify potential career paths for each hi-po by matching them to one or more critical leadership positions

Practice #10: Prescriptive Development Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189HR creates suite of tools and guidelines to assist direct supervisors or executive steering committee in selecting most leveraged development opportunities for high-potentials

IV Making the Right Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209

Practice #11: Metric-driven Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211HR executive regularly collects and reports data regarding bench strength, candidate readiness, and effectiveness of succession plans

Practice #12: Best-Fit Hiring Screens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217Hospital institutes series of quality checks to assess suitability of recommended successor for specific leadership vacancy

V Perfecting the Onboarding Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227

Practice #13: Tailored Onboarding Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229For newly transitioned leaders, both internal and external, hospital creates customized plan to assimilate leader to their new role, team, and department

Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253

ix

x Succession Management


Study in BriefSuccession Planning Historically Underleveraged

Widelyadoptedinmostindustries,successionmanagementremainsarelativerarityamonghospitalsandhealthsystems.Whilesupportiveoftheconceptinprinciple,manyhospitalexecutiveshavebeenunwillingtodevotethetimeandresourcesnecessarytoidentifyanddeveloppotentialsuccessors.Infact,arecentACHEsurveyoffreestandinghospitalsfoundthatnearly80percentoforganizationsdidnotroutinelyconductsuccessionplanning.

Aging Leadership Teams Triggering Reconsideration

Atthesametime,thereisagrowingrealizationamongexecutivesthatthecurrentleadershipbenchisinadequategiventhelikelihoodofkeydeparturesintherelativelynearfuture.Thewaveofbabyboomerretirements,widelyexpectedtowreakhavoconfrontlinestaff,willlikelyhaveanevengreaterimpactonhospitalleadershipteams.Over40percentofhospitalmanagerswillbeover55bytheyear2010—theageatwhichretirementbeginstobecomearealpossibilityformanyleaders.

WhileleadershipretirementsaredrivingincreasedinterestinsuccessionplanningamonghospitalCEOsandBoards,mostretirementsarerelativelypredictable.Infact,unexpecteddeparturesbyleadersintheirprimemaybeanequalifnotgreaterconcern.Inonerecentsurvey,morethanone-thirdofCEOsdisclosedplanstoleavetheirroleinthenextfouryears,greaterthanthenumberthatplannedtoretireoverthesametimehorizon.

Benefits of Internal Promotion

Giventheirreluctancetoplanforsuccession,manyhospitalsunderstandablyturntoexternalhirestoreplacedepartingleaders.Thisisunfortunate.Severalstudiesfromoutsideofhealthcarehavedemonstratedapositivelinkbetween

higherratesofinternalpromotionandbusinessoutcomes.Withinhealthcare,arecentsurveyfoundthattop-performingorganizationsaresignificantlymorelikelytohavehomegrownCEOsandseniorexecutives.

Giventhelikelihoodofincreasedleadershipturnoverandthepotentialadvantageofinternalpromotions,HRexecutivescansafeguard,ifnotenhance,performancebyidentifyinganddevelopingasmallsetofpotentialsuccessorsforcriticalleadershippositions.

35.7%64.3%No Plans to

Leave Current Position Within Next Four Years

Plan to Leave Current Position

Within Next Four Years

Leave CurrentPosition butRemain in

Health Care

RetireCompletely

Take ExecutivePosition

Outside ofHealth Care

48.3% 43.6%

5.8%

CEO Career Intentions Career Plans of Departing CEOs

Percentage Hospital CEOs Selected Internally1

Percentage Hospital Senior Executives Selected Internally1

Top-PerformingHospitals

MedianHospitals

50%37%


MedianHospitals

36%21%

1 Differences in groups significant at p<.05.


Study in BriefComponents of Best-in-Class Succession Management

Tobuildabenchofsuccessorscapableofassuminglargerleadershiproles,bestpracticeorganizationsadoptacomprehensiveapproachtosuccessionmanagementcomprisingfivekeysteps.

Whiletemptingtodevelopsuccessionplansforallindividualleadershippositions,lackoftimeandresourcesmakethisapproachimpractical.Asafirststep,hospitalsshouldthereforeprioritizearelativelysmallnumberofpositionsforwhichsuccessionplansshouldbedeveloped.Foreachofthesepositions,hospitalsshouldarticulatethespecificcompetenciesrequiredforsuccessfulperformancenowandinthefuture.

Next,hospitalsmustidentifyasmallsetofpotentialsuccessorscapableoffillingthesecriticalleadershippositions.Unfortunately,typicalpracticetoooftenreliesonsubjectivenominationsbydirectsupervisors.Bestpracticeorganizationsbringgreaterrigortotheselectionprocessbyreviewingobjectiveperformanceresults,promotingacommondefinitionof“leadershippotential,”andrelyingonfacilitatedgroupdiscussionstoidentifytheorganization’stopfivetotenpercentofleaders.

Onceselected,successioncandidatesmustundergoarigorousassessmentprocesstopinpointtheirparticulardevelopmentneeds.Ratherthanfocusdevelopmentonimprovingperformanceintheircurrentrole,hospitalsshouldevaluatesuccessorsrelativetotheexperiencesandskillsrequiredforthenextlevel.Next,someorganizationsprovidedirectsupervisorsprescriptiveguidanceonwhichdevelopmentopportunitiesbesttargetspecificcompetencyshortfalls.

Themostwell-intentionedeffortscanbe(andfrequentlyare)underminedbyhiringmanagerswhofailtoutilizethesuccessionplanwhenfillingvacancies.Hospitalscaninstillgreateraccountabilitybytrackingmeasuresofadherencetosuccessionplansaswellasinstitutingdirectexecutiveoversightofleadershiphiring.Finally,eventhemostwell-groomedleaderscanstillfailiftheyarenotsupportedearlyintheirtenure.Bestpracticeorganizationscreateextensive,individualizedonboardingplanstosupportallnewlypromotedorhiredleaders.

Matching Succession Efforts to Level of Support

Despitetheirbestefforts,asizablenumberofHRexecutivesstruggletogainbuy-infromtheirpeerexecutivesforformalsuccessionplanning.Fororganizationswithlimitedsupportorresources,thisreportalsodescribesamoreaustere“guerillaapproach”tosuccessionmanagementthatappliessimilarstepsbutonaone-offbasis.HRexecutiveselectingtopursuethissmaller-scaleapproachshouldidentifyseniorleaderswithimminentretirementsamongtheirdirectreportsandworkcloselytoidentifyanddevelopasuccessor.Bytargetingthesediscretesituations,HRexecutivescaneventuallypromoteearlywinsandcultivatesupportforamorecomprehensiveapproach.

l

Foreachstepinboththecomprehensiveand“guerilla”approach,thisreportincludesbestpractices,detailedcasestudies,androbustimplementationtools.Thefirsttwosectionsaredesignedasabrief,executiveoverviewtohelpdeterminewhichpracticesmaybemostapplicableforyourorganization.Theremainderofthepublicationshouldbeusedasareferencetooltodivedeeperonthosepracticesselectedforimplementation.

xi

FiveStepsforEnsuringSeamlessLeadershipTransitions

Perfecting the

Onboarding Process


Pinpointing Future

Leadership Gaps

Making the Right

Selection

Customizing High-


xii Succession Management


1


HR Investment Center EssayThe Succession Management Imperative

1

2 Succession Management


Conclusion #1 First step in building effective succession management process is clarifying the ambition; hospital and health system leaders all too often conflate succession management with leadership development

Conclusion #2 Succession management—to be effective—must be both narrower in breadth and higher in aspiration; while leadership development strives to enhance performance of all managers in their current roles, succession management aims to prepare handful of top performers to fill vacancies at higher levels

An Industry-wide Blind SpotDefining Succession Management

ACHE’s Definition of Succession Planning

“Astructuredprocessinvolvingtheidentificationandpreparationofasuccessorforagivenorganizationalrolethatoccurswhilethatroleisstillfilled.”

Differentiating Leadership Development

Succession Management

Leadership Development

ScopeCritical positions, high-potential leaders

All positions, all leaders

Objective Prepare leaders for next-level role

Improve leader’s performance in current role

Typical Development

Methods

Hands-on project work

Classroom training, complemented with projects

Source: Garman AN, Tyler JL, “CEO Succession Planning in Freestanding U.S. Hospitals: Final Report,” prepared for the American College of Healthcare Executives, October 27, 2004; HR Investment Center interviews and analysis.

Center Research on Leadership Development

Memberslookingtoraisethecurrentperformanceofallleaders—top,mediumandbottomperformers—shouldrefertoElevating Leadership Performance: Maximizing Return on Development Initiativesformoreinformationondevelopingandimplementingacomprehensive,integratedleadershipdevelopmentprogram.


Conclusion #3 While now standard practice in corporate America, robust succession plans remain the exception for hospitals and health systems; only one quarter of surveyed hospitals characterize their efforts to identify, let alone prepare, successors as effective or better

Conclusion #4 Principal cause of hospitals’ poor track record readily apparent; overwhelming majority of hospital executives acknowledge that succession planning is not a routine discipline at their institutions

Presence of Succession Planning

Percentage of Freestanding Hospitals

n=699

Hospital Effectiveness in Identifying Successors

Percentage of Freestanding Hospitals

n=661

28%26%

21%26%Very Effective/

Effective

Uncertain

Ineffective

Very Ineffective

Dearth of Hospital Succession Plans

Source: Garman AN, Tyler JL, “CEO Succession Planning in Freestanding U.S. Hospitals: Final Report,” prepared for the American College of Healthcare Executives, October 27, 2004; HR Investment Center interviews and analysis.

HR Investment Center Essay 3

An Industry-wide Blind Spot

78.6%

8.3%

5.2%

4.9%

3.0%

Not Routinely Conducted

CEO Position Only

Top-level Leadership Only

Top and Mid-level Leadership

Most or All Levels of Leadership




Pessimism Undermining Our Efforts

Perceived Barriers to Implementing a Succession Management Process

Conclusion #5 Unfortunately, barriers to effective succession management in health care span well beyond resource constraints; research uncovered multitude of cultural barriers and negative perceptions, particularly widespread is anxiety over singling out some leaders as better than others

Additional Complications

“We don’t want to create a culture of ‘haves’ and ‘have nots’.”

Source: HR Investment Center interviews and analysis.

• Technicalnatureofmostdepartmentsrequiresspecificeducationalbackground

• Limitedleadershipambitionamongfrontlineclinicalstaff

• LackofCEOandseniorteamsupport

• Historicunder-investmentinbasicleadershipdevelopment

• LimiteddollarsandODresourcesforallaspectsofsuccession

“We’ve had a lot of success hiring people externally. That’s what we have search firms for in health care.”


“What if we develop them and there aren’t any jobs for them to take when they’re finished development?” Ready Now

Filled Filled“Leaders are reluctant to invest time in their staff because they’re afraid they’ll take their place.”



2010 Estimated

Age Distribution of Hospital Management

March 2005

≥65

60–64

55–59

50–54

45–49

40–44

35–39

30–34

25–29

<25 0.3%

4.0%

8.3%

15.0%

10.2%

17.8%

21.3%

12.7%

8.1%

2.4%

Years Old

57.9%

21.3%

20.8%

≥60

55–59

<55

No Longer a “Nice to Have”A Looming Retirement Wave

Conclusion #6 Despite traditional misgivings, anticipated baby boomer retirements triggering reconsideration of succession management among hospital CEOs, boards, and executives; by 2010, greater than 40 percent of all hospital managers will be aged 55 years or older—the age at which retirement starts to become a real possibility for many managers

Conclusion #7 Nonetheless, potential retirements represent a relatively predictable and transparent problem; although some doubt remains as to exact timing of departure, hospitals can largely identify positions most at-risk for imminent retirement

Source: Current Population Survey (CPS) Outgoing Rotation Group Annual Merged Files, March 2005; HR Investment Center analysis.


Estimated Age Distribution of Hospital Management

2010

≥ 55 years old < 55 years old

42.1%57.9%

35.7%64.3%No Plans to Leave Current Position Within Next Four Years

Plan to Leave Current Position Within Next

Four Years

Leave CurrentPosition butRemain in

Health Care

RetireCompletely

Take ExecutivePosition

Outside ofHealth Care

48.3%43.6%

5.8%

CEO Career Intentions Career Plans of Departing CEOs

CEO’s Confirming Our Concern

UnpredictableRequires state of constant preparedness for select roles for which a vacancy would have a severe impact on hospital operations

Relatively PredictableAn in-depth data analysis across employee population can pinpoint location and relative timing of future vacancies

Arguably Greater Risk from the Unknown

Conclusion #8 In contrast to hospitals, corporate America’s longstanding emphasis on succession driven by fear of unanticipated turnover of leaders holding positions critical to organizational success, regardless of age; sizeable risk posed by unanticipated turnover underscored by recent survey of hospital CEOs—of CEOs intending to leave their current role, a greater proportion plan to change jobs than to retire

Source: Current Population Survey (CPS) Outgoing Rotation Group Annual Merged Files, March 2005; Witt/Kiefer, “CEO Viewpoint: Leader Shortage and Lack of Development for Healthcare Executives on the Horizon,” March 2006; HR Investment Center analysis.


No Longer a “Nice to Have”



Hospitals Caught in a Catch-22Insufficient Internal Bench Strength

Conclusion #9 Whether from retirement or unexpected turnover, hospitals facing leadership vacancies in mission-critical positions likely to be left with two flawed options as it now stands—unprepared internal candidates or sub-optimal external hires

Conclusion #10 Relying on internal promotions to fill leadership vacancies not an attractive option given current assessments of bench strength; most hospital executives report a lack of confidence in the ability of internal leaders to perform well in their current role, let alone assume greater organizational responsibility

Nearly 40 percent of HR executives dissatisfied with current bench strength; additional one-third believe it adequate at best

CEOs register little confidence in managerial talents of staff beyond the senior-most manager ranks

31%

36%

31%Very

Strong Cadre

Adequate

Insufficient

Chronically Short

Hospital CEO Assessment of Manager Effectiveness

SeniorLeadership

Team

MiddleManagers

PhysicianLeaders

FrontlineManagers

A (4.0)

B (3.0)

C (2.0)

D (1.0)

0

GPA

B+

C+C

C–

Hospital HR Executive Assessment of Leadership Bench Strength

Source: HR Investment Center Survey of HR Executives, June 2004; Consolidation of 360-degree reviews in hospitals and health systems contained in HPLA Leadership Capital Audit Report; HR Investment Center analysis.

2%


External Hires Sub-Optimal

Percentage Hospital CEOs Selected Internally1

Percentage Hospital Senior Executives Selected Internally1

Source: Cejka Search and Solucient, “2005 Hospital CEO Leadership Survey”; Collins J, Porras J, Built to Last: Successful Habits of Visionary Companies, New York, HarperCollins: 1994.

“Across seventeen hundred years of combined history in the visionary companies, we found only four individual cases of an outsider coming directly into the role of chief executive.”

Jim Collins and Jerry Porras


MedianHospitals

50%

37%


MedianHospitals

36%

21%

(Bestselling author of GOOD TO GREAT )

1 Differences in groups significant at p<.05.

A Long-Standing Observation

Conclusion #11 At the same time, growing body of out-of-industry research suggests a positive link between reliance on internal candidates to fill senior vacancies and business outcomes; similarly, a recent study in health care found top-performing hospitals significantly more likely to hire internally for CEO and senior executive positions than median hospitals

Conclusion #12 Given advantages of internal promotion and general dissatisfaction with current leadership group, critical for hospitals to identify and accelerate the development of a handful of “best and brightest” successors to meet future leadership needs


Hospitals Caught in a Catch-22



From: Jim White, Vice President

To: HR

After 20 great years, I’ve decided to retire. My last day will be two months from today

Jim, Vice President

Clockwork Succession at Eli Lilly and CompanyIdentifying Top Talent

Ensuring Seamless Transition

Jim White, VP, completes six-page “potential” questionnaire with input from peers and the SVP for each direct report; creates list of top talent, including Fran Stevens, Director

Potential Assessment

List of top talent brought to succession management review to validate grading of highest potential; discuss possible career paths and development opportunities

HR partner downloads and customizes on-boarding templates and checklists from Lilly intranet, creates custom on-boarding plan

Jim’s supervisor selects Fran from the candidates; new VP able to download knowledge from retiring leader in his final weeks

VP

DirectorDirector

Onboarding

Plan

Setting the Aspiration

Time to Fill? Not Much

“Wedon’ttracktime-to-fillonleadershippositions.It’susuallyamatterofhours,literally.It’snotinweeksordays.Whenwehaveanexecutiveopening,wetypicallyannouncetheopeningandthereplacementatthesametime.Wehaveverylittledowntime.”

Director,GlobalStaffingEliLillyandCompany

CEO New VP

Conclusion #13 While relatively new to hospitals and health systems, robust succession planning a firmly entrenched process in other industries; Eli Lilly and Company, for example, features a year-round focus on developing future leaders that allows the company to fill leadership vacancies with qualified internal candidates in a “matter of hours”


Executing the Developm

ent Plan

Pinpointing Development Needs

Selecting Candidates

Source: Eli Lilly and Company, Indianapolis, Ind. ; HR Investment Center interviews and analysis.

Fran Stevens slated as ready 1–2 years for VP role; slate entered into global talent database

Vice President

Name Readiness

Francis Stevens 1–2 years

Rebecca Williams 1–2 years

Jim, with input from HR partner, meets with Fran to craft individual development plan

Development Plan1.2.

To gain global experience, Fran placed on European launch team for new product

HR presents internal résumés for two candidates considered “ready now” to Jim’s supervisor, including Fran

Upon learning of impending retirement, HR specialist accesses talent database, pulls up candidate slate for Jim’s position

At annual succession management review, Fran elevated to “ready now” status for VP position; given additional responsibilities to continue development

Concurrently, Fran encouraged to seek mentoring from VP, Finance

A Proven Track Record

Percentage of Internal vs. External Executive Hires

2005

Percentage of Key Roles Staffed from Succession Plan

2005

70%On Plan

98.2%Internal

30%External1.8%

Not on Plan

n=55 n=55

Vice President

Name Readiness

Francis Stevens Ready Now

Rebecca Williams 1–2 years

Candidate Slate

Francis Stevens Talent Profile

Rebecca Williams Talent Profile

Conclusion #14 Admittedly, HR leaders at Lilly benefit from rich tradition of talent development, but concepts of early talent identification and experience-based development remain widely applicable; as described on the following pages, a handful of hospitals and health systems have, in fact, successfully adopted these aspects of succession management


Clockwork Succession at Eli Lilly and Company



Conclusion #15 Similar to Lilly, Gundersen Lutheran’s succession management process enables quick deployment of talented internal leaders to fill vacancies across the health system; two factors in particular distinguish Gundersen’s succession processes within the hospital industry—steadfast CEO support and a willingness to ignore common taboos

Conclusion #16 While Gundersen’s model has evolved over time, a CEO-led Talent Development Review Group stands at the center of the health system’s succession management efforts; the CEO and other top executives meet monthly to identify talented leaders worthy of extra investment and to manage the development of previously identified leaders

One Health System’s Journey

Succession Management at Gundersen LutheranA Deliberate Evolution

2000 2006

Gundersen Lutheran’s Succession Timeline

Gundersen identifies competencies necessary for each leadership level

First two talent pools created for CEO/CMO and administrative vice president positions

Talent pool added for emerging administrative leaders

CEO-led Talent Development Review Group created

First director promoted to vice president position from pool

Talent pool added for emerging physician leaders

Source: Gundersen Lutheran Health System, La Crosse, Wis. ; HR Investment Center interviews and analysis.

Case in Brief

• Physician-ledhealthsystemwitha325-bedhospitaland22medicalclinicslocatedinLaCrosse,Wisconsin

• Introducedsuccessionpoolmodel;systematicapproachtoassessment,development,andretentionofleadershiptalent

• Purpose:Createtalentpooltofillcurrentandfutureleadershipneeds

Gundersen Lutheran Health System


Conclusion #17 With CEO backing and involvement, Gundersen has overcome the cultural opposition found at many other hospitals around talent differentiation and job assignments outside functional expertise; Gundersen now reports a leadership bench of 42 identified high-potential leaders capable of filling multiple leadership positions

Conclusion #18 The Center recognizes, however, that extensive level of CEO support at Gundersen still a tall order for host of members; accordingly, next example describes an alternative, more measured approach successfully adopted by one hospital lacking a similar champion

Breaking Taboos Along the WayNot Just the CEO Differentiating Talent Cross-Silo Moves

Created four talent pools, each targeting different leadership positions and levels

Limited the number of candidates to six to eight leaders for each talent pool

Moved administrative leaders across functions including placing non-clinical leaders into clinical positions and vice versa

Making it Work

Leaders heavily supported by functional experts and mentors; organizational structure adjusted to accommodate needs

All leaders create development plans and receive growth opportunities, but Gundersen invests more time and resources in high potentials

Talent pools introduced over time, adapting the process with each new group while maintaining core principles

Early Evidence of Success

A Growing Bench

• 42 high potentials identified, assessed, and career paths determined

• Cross-functional role expansion of five high-potential directors and two high-potential managers

Promoting Top Performers

• Promotion of four high-potential directors to chief officer roles

• Promotion of two high-potential managers to director roles

Expanding Roles

+


Succession Management at Gundersen Lutheran




A Second Health System’s Journey

Scaling Ambition to the Level of Executive SupportThe Risk of Starting Too Big

Conclusion #19 After initial verbal support for concepts of succession management, executives at Rotterdam Hospital rejected a formal proposal for comprehensive planning citing now familiar litany of concerns; in light of opposition, Rotterdam’s HR executives adopted a scaled back, “guerilla approach” to succession planning

Conclusion #20 Under this guerilla approach, HR still applies the basic concepts of succession planning, but on a one-off basis; HR leaders focus only on departments with imminent retirements, partner with incumbents to develop succession plans, and leverage wins to increase interest from rest of the organization

The Rise and Fall of Succession at Rotterdam Hospital1


HR executive gains verbal support from peers after untimely death of CNO

HR director devotes 18 months to researching succession practices, constructing model

HR starts over with new guerilla approach

Executive team rejects proposal for acceleration groups for executive and middle-management levels

Why Not?

“We’ll create ‘haves’ and ‘have nots.’”

“What if nothing opens up.”

“External hires bring in new ideas.”

Executive Support for Succession Management

20062004

1 Pseudonym.


Adopting a “Guerrilla Approach”

Conclusion #21 Recognizing that most hospitals fall somewhere between Gundersen’s CEO-led efforts and Rotterdam executives’ outright refusal, critical for HR to calibrate intensity and scope of succession efforts to what other leaders are willing to support

Conclusion #22 The next section offers an overview of five essential steps to ensuring seamless leadership transitions and a diagnostic for gauging how best to execute these steps given the level of executive support at your organization; the final section of this report then profiles best practices to help members with execution of each individual step

Age

Dept.

Find the “Pull”

• Analyzed demographic data for all directors

• Isolated dozen leaders closest to average retirement age

Develop Champions

• First approached two Vice Presidents with multiple direct reports on list of directors close to retirement age

• VP, Patient Care Services agrees to work on plan for Director, Home Care

Gain Early Wins

• Currently working with Home Care Director to develop position profile, identify candidates, create development plan

• Larger aim to demonstrate benefits of smooth transition to generate broader interest in succession planning



Scaling Ambition to the Level of Executive Support



17


Best Practice OverviewHR Practices for Ensuring

Seamless Leadership Transitions



Conclusion #23 Distilled from organizations experienced in succession planning, HR Investment Center has identified five critical steps for ensuring seamless leadership transitions—focusing plans on just a handful of positions; deploying more rigorous selection methods to set a higher bar for potential; providing prescriptive guidance on development options; monitoring plan execution; and sustaining efforts past hire date


I Pinpointing Future

Leadership Gaps

#1 CriticalPositionIdentification


#3 FuturePositionProfile

#4 TieredCompetencyModel

II Identifying Top

Talent


UnambiguousPerformanceScores


GroupHi-PoSelection

#6 EarlyPotentialMonitoring

#7 CareerProgressionCounseling

At-Risk Positions Requisite Skills Future Executives Future Managers

Best Practice Overview 19


Conclusion #24 The Center has also identified select best practices to support member execution of each step; in total, thirteen profiled practices comprise a comprehensive approach to succession management for hospitals and health systems

Conclusion #25 Cautionary Note: Although most practices require little direct financial investment, pursuing such a comprehensive approach reliant on large time commitment from HR and full cooperation of other leaders

III Customizing High


IV Making the Right

Selection

#11 Metric-drivenReporting

#12 Best-FitHiringScreens

V Perfecting the

Onboarding Process


TransitionMilestones

Two-wayAssimilation

PersonalizedOnboardingTeam

EarlyPerformanceAssessment

#8 IndividualNeedsAssessment

#9 TalentPoolSlate





Conclusion #26 For institutions currently lacking executive buy-in or dedicated HR resources, Center recommends the “guerilla approach”—a subset of four must-have succession practices likely to smooth leadership transitions in constrained environments and build interest in comprehensive succession management moving forward

The Guerilla Approach




GroupHi-PoSelection



While safeguarding critical positions makes greater business sense than general focus on retiring leaders, simpler for HR to make the case for succession to senior leader facing imminent, predictable vacancy than to convince executives to invest in hospital-wide initiative

While past performance represents best predictor of future success, efforts to improve accuracy of performance data requires significant resources and executive buy-in; HR departments with limited support and staff should prioritize Component #2: Defined “Potential” Ratings, and Component #3: Group Hi-Po Selection to ensure hi-pos are selected based on a common understanding of potential and vetted as a leadership team

Given difficulty of matching individuals to most appropriate development activities, critical for HR to provide specific guidance, tools to hi-pos’ supervisors to ensure adequate preparation for future roles

Regardless of hospital’s decision to aggressively pursue succession management, providing transition support can significantly reduce costs related to lengthy ramp-up time of new leaders—whether internal or external hires

Pinpointing Future

Leadership Gaps


Customizing High-Potential

Development

Perfecting the Onboarding

Process

Selected Practices

Rationale



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Conclusion #27 To assist member organizations in mapping their current level of support for succession management to the most appropriate approach—comprehensive or guerilla—the Center offers the following member self-test; majority of “yes” responses suggests that hospital has sufficient support and resources to pursue more comprehensive approach

Scoping the Succession Planning Ambition

Member Self-Test

Gauging Executive Support Yes No

1. Is succession planning listed as a major initiative in hospital’s strategic plan?

2. Is leadership bench strength an important metric for the hospital?

3. Are senior executives willing to commit at least one full day every six months to succession planning?

4. Are senior leaders willing to differentiate top performers from all other leaders?

5. Are senior leaders willing to devote more development resources to top talent than low performing staff?

6. Were majority of senior leaders groomed from within?

Assessing Availability of Resources

7. Does the HR department have more than 3 FTEs?

8. Does hospital have existing resources dedicated to leadership development?

Total “YES” Responses 8



Conclusion #28 Regardless of approach, prioritizing which handful of positions most in need of succession plan the first step to ensuring seamless leadership transitions; given significant time and resources required to plan effectively for each position, essential for HR to prioritize using two criteria—retirement risk and position criticality

Conclusion #29 Current practice for assessing retirement risk of calculating average age across leadership positions offers limited insight on necessity of formal planning for any one position; typical practice also fails to pinpoint most likely timing of each leader’s departure

Pitfalls of Current Prioritization EffortsReliance on Averages Masking Most Urgent Retirement Risks

(Mis)Targeting Succession Planning at Prague Health System1

Position Average Age

Chief Financial Officer 58

Director, Materials Management 56

Nurse Manager 56

Director, Planning 54

Nurse Educator 53

Asst. Nurse Manager 46

Source: HR Investment Center interviews and analysis.1 Pseudonym.

Pinpointing Future Leadership Gaps

Despite fifth oldest average age, nurse educators greater cause for concern as numerous educators planning to retire within next two years

Although oldest leadership cohort, most CFOs at Prague planning to work till age 70



Conclusion #30 Further, while majority of hospitals profess to identify critical positions, most common methodology simply equates “critical” to “executive level”; although lion’s share of executive positions likely critical, effective prioritization requires hospitals to exclude executive roles with limited scope and, more importantly, include lower level positions with consequential impact on organizational performance

CEO

Executive Level

Director Level

Chief Technology

Officer

Director, Surgical Services

• Manages handful of computer technicians

• Responsible for maintaining all hospital computer equipment and network operations

• Responsible for hundreds of FTEs

• Manages hospital’s most profitable areas

• Requires 5+ years of progressive OR management experience

Which is More Critical?


Missing Critical Roles Below Executive Ranks

Pitfalls of Current Prioritization Efforts



Practice #1

Critical Position Identification

Practice #2

Retirement Risk Assessment

Position Age At Risk

CFO 59

Dir, Lab 54

Chief Legal Officer 52

Capsule Description

Select group of senior executives annually designate limited number of leadership positions as “critical” based on overall impact on hospital finances, operations

Hospital pinpoints specific job titles, functions facing disproportionate retirement risk and determines need for formal succession planning based on current bench strength

Key Components

• Limited Position Selection Committee

• Evaluating Positions against Strict Criteria

• Isolating Most Vulnerable Titles, Functions

• Assessing Situational Needs

Assessment Highly recommended as most effective means of prioritizing succession efforts; since practice requires active participation from senior leaders, organizations lacking complete buy-in may face difficulty convincing other leaders of the need to plan for critical positions, especially those not facing a near-term vacancy

An effective method for prioritizing succession efforts amidst large numbers of retirements; furthermore, evidence of numerous vacancies in a single title, function makes convincing case for succession management to even most skeptical leaders

For Practice Profiles

See pages 49–61 See pages 63–71


Continuous monitoring of bench strength Aggressive investment

Identification of emergency replacement only

Responsibility of incumbent to develop successor

Low High

Priority 2 Critical Non-retiree

Priority 1 Critical Retiree

Priority 3 Non-critical Retiree

Priority 4 Non-critical, Non-retiree

Stra

tegi

c Im

port

ance

Retirement Risk

Low

High

Conclusion #31 Even with more robust methods for prioritizing succession management needs, hospitals likely to face difficult tradeoffs in selecting positions that require a formal successor; for example, should hospitals invest in a successor for a retiring leader in a non-critical role or for a relatively young leader in a critical role?

Conclusion #32 HR Investment Center View: Critical positions should receive top priority; while likelihood for turnover is unclear, a vacancy in a critical position, even for one day, could greatly hinder hospital operations

Weighing Position Criticality and Retirement Risk

Position Assessment Matrix



Practice #1

Critical Position Identification

Practice #2

Retirement Risk Assessment

Position Age At Risk

CFO 59

Dir, Lab 54

Chief Legal Officer 52

Capsule Description

Select group of senior executives annually designate limited number of leadership positions as “critical” based on overall impact on hospital finances, operations

Hospital pinpoints specific job titles, functions facing disproportionate retirement risk and determines need for formal succession planning based on current bench strength

Key Components

• Limited Position Selection Committee

• Evaluating Positions against Strict Criteria

• Isolating Most Vulnerable Titles, Functions

• Assessing Situational Needs

Assessment Highly recommended as most effective means of prioritizing succession efforts; since practice requires active participation from senior leaders, organizations lacking complete buy-in may face difficulty convincing other leaders of the need to plan for critical positions, especially those not facing a near-term vacancy

An effective method for prioritizing succession efforts amidst large numbers of retirements; furthermore, evidence of numerous vacancies in a single title, function makes convincing case for succession management to even most skeptical leaders



Criteria More than other positions

Similar to other positions

Less than other positions

Revenue GeneratingDoes this position contribute directly to revenue generation?

Broad scope of responsibilitiesDoes this position oversee multiple functions?

Large span of controlDoes this position oversee a large portion of employee base?

Area of future hospital growthDoes this position contribute directly to a business line that represents a significant growth opportunity?

Area of strategic importanceDoes this position directly contribute to or oversee one of the top five initiatives described in the strategic plan?

Physician relationsIs this position responsible for managing relationships with physicians?

Hard-to-fillDoes this position require technical skills that are currently in short supply?

Highly-specializedDoes this position require a highly-specialized skill set?

Candidates limited to health careDoes this position require skills that can only be found in health care?

Difficult to outsourceIs there little possibility for this position to be outsourced in the future?

Position: _____________________________________________________________________________________

Column Total Column Total Final Score

– =

Conclusion #33 With this in mind, Center recommends two practices for identifying and prioritizing a limited number of positions for which a successor will be identified and groomed formally

Conclusion #34 Guerilla Approach: For institutions lacking buy-in from other top leaders, may be prudent to bypass first practice and invest initially in second, Retirement Risk Assessment; while critical positions represent a greater priority, leaders skeptical of succession management more likely to recognize need to plan for replacement of imminent retirees

Pinpointing At-Risk Positions



Conclusion #35 Once handful of important positions identified, organizations must pinpoint qualitative skills and competencies required in those positions moving forward; given constant change facing hospital leaders, retrospective identification of key skills and competencies not sufficient

Conclusion #36 In order to adequately prepare successors to meet future demands, next two practices advocate clearly defining future leadership competencies starting with broad needs applicable to all leaders then narrowing to position-specific requirements

Struggling to capture changes over time…

?Director of MarketingDirector of Marketing

Main Responsibilities

• Developing and executing physician sales strategy

• Overseeing consumer-driven marketing campaign

Circa. 2006 Circa. 2016

Director of MarketingMain Responsibilities

• Increasing participation in managed care

• Improving community perception

• Overseeing public relations functions

Circa. 1996


…and between management levels

Level CompetencyResponsibilities

Promotes competitive position, fosters opportunities for revenue enhancement and growth

Leads cost efficient initiatives without sacrificing quality, patient care

Manages department budget

Financial Acumen

Financial Acumen

Financial AcumenManager

Director

Executive

Current competencies fail to articulate differences in job complexity between leadership ranks



Conclusion #37 Practice #4, Tiered Competency Model, specifically highlighted for its applicability beyond succession management; model delineating expectations and behaviors for each level of management provides a powerful tool for clarifying roles, pinpointing development needs, and screening candidates

Pinpointing Requisite Skills

Practice #3

Future Position Profile

Practice #4

Tiered Competency Model

Capsule Description

For limited number of critical positions, hospital creates in-depth profiles capturing key capabilities and pre-requisites required for current and future success in those positions

After isolating set of executive-level leadership competencies, hospital cascades competency model through management ranks, drawing clear distinctions among requirements and expectations for roles at each level

Key Components

• Evaluation of Position Requirements

• Detailed Summary Report

• Alignment with Organizational Strategy

• Defining Executive Competencies

• Articulating Differences between Levels

Assessment An effective means of identifying qualitative requirements for specific positions and a necessary step to ensure accurate matching of potential successors to most appropriate positions; in addition, profiles useful for ensuring that successor development efforts properly targeted to unique needs of each critical position

Highly recommended for all institutions for its applicability beyond succession management; tiered competency model a powerful tool for clarifying roles, setting expectations, pinpointing development needs, and screening promotion candidates



Position:

CNORequirements:

Exec

utiv

e

Builds and Leads TeamsCreates an environment thatallows team members to reachtheir full capability throughproviding role clarity, encouragingrisk taking, playing to teammember strengths and focusing onteam results over individual results.

Develops LeadersViews people, their knowledgeand their capabilities as theorganization’s core assets.Establishes formal and informalrelationships with others toprovide feedback, information,support, and resources to helpthem develop new or higher levelsof skills and abilities. Sees andcreates development possibilitiesfor others. Recognizes educationas a key corner stone of ourmission.

Effectively Leads ChangeDemonstrates resiliency in achanging environment by adjustingto rapidly changing priorities andbeing a visible anchor for othersby reaffirming key values, goals andoutcomes. Leads others to adaptand remain effective amidst on-going change.

Influences OthersExpresses ideas on behalf ofthe organization and persuadesothers in a positive manner. Gainssupport and commitment andmobilizes others to take action.Has a thorough understandingof the implications of leadershipactions. Able to work with diversemembers of the organization andgain respect.

Leverages ResourcesIdentifies, aligns and optimizesresources in spite of perceivedboundaries.

VisionaryExamines and clarifies the forces (events, entities, and people)that affect current and future needs. Expresses a clear vision forfuture business opportunities and creates linkages between currentand future activities. Identifies new quality/ business/performanceopportunities for Gundersen Lutheran.

Executive Thinking andProblem SolvingReasons through problems toeffective solutions. Has a systemsperspective and is able to dealwith complexity—can see patternsand connections. Considers manyvariables in solving a problem;comfortable with ambiguity; and candecide in the face of uncertainty.Patient as issues evolve withoutsacrificing urgency. Willing to takerisks.

Executive CharacterPresents oneself with candor andintegrity, and an uncompromisingcommitment to the values of fairnessand honesty. Has a strong self-awareness. Is open to feedback andcommitted to continuing personaldevelopment. Encourages others toexpress themselves, to disagree, andchallenge – but maintains approachability.Has a personal sense of right and wrongand operates from a strong sense ofvalues and personal ethics.

Dir

ecto

r

Builds TeamsWith Medical Partner (if inpartnership), builds constructiveand effective relationshipswith colleagues across allfunctions, and aligns teamefforts with organizational goals.Communicates in a mannerthat promotes comprehension,alignment and energizes collectiveintelligence and collaborativeaction.

Fosters Learning and DevelopsPeopleViews people, their knowledge,and their capabilities as theorganization’s core assets. Createsstructure and policies to ensure alearning environment that fostersgrowth and development forothers.

Effectively Leads and ManagesChangeDemonstrates resiliency in achanging environment. Leads otherto adapt and remain effectiveamidst on-going change. Developsprocesses to facilitate and fosterchange.

Builds Effective NetworksBuilds effective relationships acrossthe organization to accomplishwork and focus on customers.

Organizes for AlignmentLinks organizational strategy andchanges in the work environment,market and community to ensureoptimal joining of ideas, projects,services and programs.

VisionaryConceptualizes and clarifies all of the forces (events, entities andpeople) that affect current and future needs. Expresses a clear visionfor future business opportunities and creates linkages betweencurrent and future activities. Identifies new business/performanceopportunities for Gundersen Lutheran.

Strategic ThinkingIdentifies potential options andconstraints; critically evaluatesinformation to promote competitiveposition and seeks to achieveoutcomes which are in the bestinterest of Gundersen Lutheran.

Man

ager

Builds Collaborative andTrusting RelationshipsBuilds constructive and healthyrelationships by showing respectand appreciation for the ideas andcontributions of others. Advisesand collaborates with others(peers, physicians, etc) to developstrong working relationships andfosters teams to achieve goals.

Coaches and MentorsProvides on-going feedback,information, support and resourcesto continually develop employees.Identifies opportunities for on-going growth and development andencourages employees to take onnew challenges.

Effectively Manages ChangeAdvocates for change as anecessary means to organizational,department, and individual growthand success. Provides supportfor others to adapt and remaineffective. Implements systemschanges.

Fosters Networks andRelationshipsFosters networks and relationshipsacross the organization andcommunity to accomplish workand focus on staff and patients/customers more effectively.

Innovates To Continually ImproveRecommends and implements improvements by offering systematicsolutions to problems that improve the quality of patient care whilemaintaining fiscal responsibility. Creates new ideas or improvesexisting ideas, and services by challenging assumptions. Createslinkage between current and future activities.

Acquires and Applies KnowledgeCommits to continuous learning by using current and emergingtechnologies, resources and tools to improve. Actively identifiesnew areas for learning and regularly takes advantage of learningopportunities. Integrates new knowledge, understanding or skill in apractical manner.

Utilizes Systems Thinking ToImpact OperationsIncorporates knowledge of productand service lines, system initiativesand organizational strategiesto identify, align, and optimizeresources



Conclusion #38 Plagued by rampant grade inflation and poorly constructed performance goals, most hospitals boast an unrealistic number of seemingly outstanding performers; lacking reliable performance data, hospitals struggle to isolate limited set of truly top leaders quickly and objectively

Conclusion #39 As reliable evidence of a leader’s past success represents greatest indicator of future performance, critical for organizations to improve accuracy of performance assessment; that being said, excellence in current role does not always translate to success in higher positions

Unreliable Measurements of Performance and PotentialOverly Lenient Evaluations

Results from Leadership Performance Reviews1

70

35

0

Unacceptable Needs Improvement

Average Exceeds Outstanding

Number of People Many leadership reviews skewed

towards above-average marks

Too many “outstanding” leaders makes performance data an ineffective screen

HR Executives “Off the Record”

“It’scommontoputagoalstatementtoimprovecustomerservicewithouthavinganywaytomeasurethatcustomerservicehasimproved.”

“Peoplejustwanttolisttheirto-dolist.We’reto-dolistkindofpeople.Youhavetohaveyourcheckboxessoyoucanmarkoff,‘TalktoMary,talktoDr.Smith,changethetoiletpaperinthatbathroom.’We’relistpeople…wecalledthemgoals,butthey’rejustlists.”

1 Data for illustrative purposes. Source: HR Investment Center interviews and analysis.




Conclusion #40 Identifying leaders with potential to succeed at higher levels complicated by lack of common definition for “potential”; absent shared criteria for assessing potential, hi-po designation frequently based on supervisors’ personal (and often unprincipled) opinion

A Flawed Understanding of “Potential”

Employee Profiles Commonly Mistaken for High Potential

“Mini-Me”• Younger versions of current

manager• May not possess leadership

qualities needed in the future• More problematic if current

incumbent is underperforming• Likely to hinder diversity

efforts

“Old Faithful”• Long-time employee; loyal to

institution and to manager• Despite deep institutional

knowledge may never have wherewithal to perform at a higher level even with additional development

“Ivy League”• Highly intelligent; may

hold several degrees, accreditations

• Performs well in academia but may not possess business, political savvy required at higher levels

Years of Service

Psychology


Unreliable Measurements of Performance and Potential



Conclusion #41 Hospitals seeking to identify leadership potential in frontline employees face even greater difficulty; unlike middle and upper management, daily performance of frontline leaders and staff less visible to HR and senior executives due to lack of consistent interaction and large group size

Conclusion #42 Furthermore, day-to-day responsibilities afford little opportunity for frontline leaders and staff to display next-level potential

Too Many to Evaluate

Criteria for a Great Staff Nurse

1. Treats patients with responsiveness and respect

2. Well-trained and readied for practical application of clinical skills

3. Maintains efficient patient flow4. Up-to-date on nursing news

and clinical innovation

Criteria for a Great Nurse Manager

1. Consistently able to motivate staff

2. Develops strong team atmosphere

3. Aggressively seeks opportunities for cost containment

4. Impeccable staff scheduling

Difficult for supervisor to assess individual’s potential for higher roles when current role affords no occasion to display critical leadership competencies

Too Few Opportunities to Shine

Executives

Middle Management

Frontline Leaders

Daily exposure and small group size makes identification of high-potential easier at middle management level

Distance from the top and sheer numbers of frontline leaders and staff makes identification exceedingly difficult

Staff

Overlooking Executive Potential on the Frontline




Conclusion #43 Three profiled practices assist hospitals and health systems in identifying a small set of high-potential leaders by collecting more accurate performance data and developing stricter criteria regarding potential; in addition, practices expand selection responsibility beyond each leader’s direct supervisor or current incumbents of critical positions

Conclusion #44 Guerilla Approach: For organizations with limited executive support for succession planning, Practice #5: Principled Hi-Po Selection represents the most leveraged investment for identifying successors for most critical positions; prudent to focus on manager level rather than frontline, if forced to choose

Identifying Future Executives and Managers

Practice #5

Principled High-Potential Selection

Practice #6

Early Potential Monitoring

Practice #7

Career Progression Counseling

Capsule Description

Hospital applies three screens—current performance, intrinsic potential, calibration to peers—to objectively identify handful of potential successors for critical leadership positions

Supervisors assign high-performing frontline staff to participate in pre-selected activities to test their managerial potential

Hospital asks frontline clinical staff to self-select one of three career tracks including management track

Key Components

• Unambiguous Performance Scores

• Defined “Potential” Ratings

• Group Hi-Po Selection

• Designating Monitoring Opportunities

• Observing Employee Actions

• Clarifying Career Options

• Securing a Commitment

Assessment While perhaps the most difficult practice to implement fully, critical for organizations to identify the right candidates given significant amount of time and resources required to prepare each selected individual for future roles; given the cultural and historical difficulties surrounding talent differentiation, however, hospitals may require several iterations before hi-po selection becomes truly principled

An effective means for identifying “potential” amidst large numbers of frontline employees; practice can be especially helpful for organizations wishing to accelerate diversity efforts and develop a pipeline of minority leaders

Recommended for organizations that have trouble filling frontline clinical manager positions with qualified internal candidates; ensures staff with management talent not overlooked but instead formally counseled along this track


See pages 99–117 See pages 119–129 See pages 131–139

Perf

orm

ance

Potential

Management

Clinical

Education





A Difficult Balancing Act

Dual Aims of Hi-Po Development

Executive Level

Director Level

Manager Level

CNO

Director Surgical Services

Director Medical Services

Manager OR

Manager PACU

Manager Sterile Services

Manager ICU

Manager Telemetry

Manager Pediatrics

Preparation for a Specific Position

Development opportunities focus on unique responsibilities required for a pre-determined position

Preparation for a Level of Management

Broad-based development addresses advanced competencies required for next level of organizational leadership


Customizing High-Potential Development

Conclusion #45 For the small set of identified high-potential leaders, hospitals must create highly customized development plans based on skills and experiences needed for success in their next role; more specifically, preparation must balance development of broad set of managerial skills needed to succeed at higher levels of leadership with mastery of often very specific competencies needed for role most likely to assume

Conclusion #46 Four common pitfalls thwart hospital efforts to achieve this dual preparation



General Executive Ability Alone Insufficient


Executive Talent PoolRequirements of

VP, Finance Opening

M. AllenExecutive-level Strategic Thinking

R. TamOutstanding Communication Skills

K. AckmenStrong Physician Relationships

K. D’AmatoAdvanced Operational Skills

S. DvorchikExecutive Character

C. RolfeAdvanced Business Skills

CPA certification

HFMA Fellowship

Experience in bond-issuance

Strong knowledge of Medicare and Medicaid regulations and pay systems

Despite seeming abundance of potential executives, hi-pos lacking technical requirements needed to successfully fill role

Conclusion #47 First Pitfall: Development needs too often identified solely in the context of performance in current role; in order to adequately prepare hi-pos to assume higher roles, hospitals must focus development on addressing skills gap between current performance and the requirements of the next level

Conclusion #48 Second Pitfall: Equipping leaders with general management competencies exclusively; failing to provide leaders with technical skills required of specific roles often results in organizations being unable to fill certain critical positions despite apparently deep bench of successors

The Problem of Focusing Too Broadly or Too Narrowly



Conclusion #49 Third Pitfall: Confining high-potential leader’s development and career in functional silos; wary of placing leaders in unfamiliar roles, many organizations groom successors in their functional area exclusively and, as a result, often promote mediocre talent from within a department rather than transfer top leaders from other areas

Siloed Mindset Limiting Succession Choices

“My organization encourages leaders to make job moves across departments”

Survey of High-Potential Hospital Leaders

n=81

25%

33%

10%

32%

Only 25% of respondents fully agreeing their organization supports cross-silo movement

Agree

Somewhat Disagree

Disagree

SomewhatAgree

Source: HR Investment Center of High-Potential Leaders, May 2006; HR Investment Center analysis.

The Problem of Focusing Too Broadly or Too Narrowly



20%13%

22% 45%

Managers Often Mediocre Coaches

“Leaders in my organization are effective at coaching and developing other leaders”

Survey of High Potential Hospital Leadersn=81

25%

50%25% Agree

Somewhat Disagree/ Disagree

Somewhat Agree

“How frequently did you discuss your potential development opportunities with your direct supervisor?”

Survey of High-Potential Leaders

n=83Less Than Once

per Quarter

Not at All

At Least Once per Month

At Least Once per Quarter

20 percent not discussing development opportunities with direct supervisors; most only discussing performance infrequently

Source: HR Investment Center Survey of High Potential Leaders, May 2006.

Conclusion #50 Final Pitfall: Hospital leaders often struggle to identify the best learning experience to address a given skill gap; direct supervisors frequently lack sufficient time and, more often than not, proficiency to guide hi-pos’ development



Conclusion #51 Rather than providing generic forms and tracking completion of development plans, HR leaders at best practice organizations actively partner with supervisors to guide hi-po development; the three profiled practices collectively address areas where HR assistance likely to be most leveraged—pinpointing actionable development needs and suggesting most appropriate skill-building opportunities

Conclusion #52 Guerilla Approach: For hospitals pursuing succession management on a smaller scale, Practice #10: Prescriptive Development Planning a valuable practice to ensure that high-potentials matched to the right development opportunities regardless of skill-level of person guiding their development


Practice #8

Individual Needs Assessment

Practice #9

Talent Pool Slate

Practice #10

Prescriptive Development Planning

Capsule Description

For each successor, hospital conducts series of behavioral assessments and competency-based interviews to pinpoint potential personality derailers and skill gaps as they relate to expected performance in next-level roles

Senior leaders identify potential career paths for each hi-po by matching them to one or more critical leadership positions

HR creates suite of tools and guidelines to assist direct supervisors or executive steering committee in selecting most leveraged development opportunities for high-potentials

Key Components

• Assessing Personality and Values

• Identifying Next-Level Development Needs

• Individual Talent Profile

• Conducting an Effective Slating Discussion

• Leveraging Slates to Guide Development

• Dedicated Development Discussion

• Competency-Aligned Development Cheat Sheet

• Experience-Driven Development Model

Assessment Strongly recommended for organizations as a necessary first step in building customized development plans; in addition, talent profiles ensure selected development opportunities or future positions properly matched to hi-po’s unique talents

An effective method for ensuring high-potentials not only receive generic leadership development but also equipped with technical and experiential pre-requisites for at least one specific role; additionally, talent pool slate a powerful tool for alerting organizations to leadership gaps early enough to adequately prepare internal successors

Highly recommended for all hospitals as a practical means for quickly improving coaching skills hospital-wide; hospitals whose leaders already possess strong coaching skills, however, may find less value in prescriptive nature of practice


See pages 143–171 See pages 173–187 See pages 189–207

LISBON HOSPITAL SUCCESSION CHARTS

VP, Planning VP, Operations

VP, NursingDirector,

Outpatient Services

Monica Geller Ready Now

George Hardie Ready Now

Jenny Mann Ready 1-2 years

Monica Geller Ready 1-2 years

Carrie Bradshaw Ready 2-5 years

Julia Stiles Ready 2-5 years

Carrie Bradshaw Ready Now

Nancy Shieh Ready 1-2 years

Managing Vision

Accountability

Initiative• Mentoring with VP, Business Development

• Six Sigma training• Performance improvement projects

Builds Teams(Director Level)

Builds and Leads Teams

(Executive Level)

4

2

Director-level Competency

Executive-level Competency



Conclusion #53 Even among organizations thoughtfully identifying and developing high potentials, succession planning efforts frequently fail when they are most needed—hiring a new leader; hiring managers often forget to reference the plan or, in some cases, purposely disregard succession candidates when filling vacancies

Conclusion #54 Problem stems from lack of oversight and accountability; absent mechanisms to enforce execution of succession plans, hiring managers can revert to usual suspects—external candidates, loyal foot soldiers, or “mini me”

Failing to Execute Succession Plans

Playing it “Safe”

Making the Right Selection

VP of PlanningDirector of Planning

• Ready in one–two years• Strength: Short-term

planning skills• Weakness: Long-range

planning skills

Director of Finance

• Ready now• Strengths: Management of

cross-departmental projects and teams; quantitative analysis; communicating effectively to senior leaders and community

• Weakness: No experience in planning

Failing to Consult the Plan

When notified of impending resignation, hiring manager fails to review hi-pos identified in talent review only considering “hand-picked” candidate and external candidate

Hiring Outside the Pool

Hiring manager ultimately selects external candidate for position

External Candidate

Hi-PoHi-PoHi-Po

Vacant

Talent Slates

The Executive End-Run




Conclusion #55 As a baseline mechanism, HR should identify and track succession-related metrics annually to monitor follow-through on planning efforts; for organizations committed to hiring primarily from succession plans, practice #12, Best-Fit Hiring Screens, offers an even greater degree of oversight


Practice #11

Metric-driven Reporting

Practice #12

Best-Fit Hiring Screens

Capsule Description

HR executive regularly collects and reports data regarding bench strength, candidate readiness, and effectiveness of succession plans

Hospital institutes series of quality checks to assess suitability of recommended successor for specific leadership vacancy

Key Components

• Purposeful Metric Selection

• Succession Planning Dashboard

• Defined Readiness Criteria

• Situational Assessment

• Selection Oversight

Assessment Recommended for all hospitals as a simple method for instilling accountability for succession; tracking and reporting relevant succession metrics critical for moving from annual exercise that is quickly forgotten to a year-round focus on advancing high-potential leaders to “ready now” status

An effective method for vetting hiring decisions and ensuring leadership vacancies filled with best candidates; additionally, provides accountability for hiring manager to consult succession plans and force consideration of cross-silo candidates when selecting new leader



March 2006 Succession Plan Scorecard—VPs

Number of VPs

Incumbents Potentials

Segment Percent ofIncumbents

Percent ofPotentials

Gender

Ratio of Incumbents toPotentials

Overall VPs

Race

GeographicOrigin

Number of Positions with Twoor More Ready Now Candidates

Overall VPs

CareerExperience

Director Readiness Criteria• • • • •



Conclusion #56 While early identification and targeted development better prepare successors to take on new roles, seamless transitions still far from guaranteed; needs of internally promoted or transferred leaders too often underestimated and neglected, especially in comparison to leaders hired from outside the organization

Conclusion #57 Organizations failing to support newly transitioned leaders likely to lengthen the time to proficiency and could, at worst, undermine the transition entirely

Perfecting the Onboarding Process

High Cost of Insufficient Support

Struggling to Get Up to Speed

Length of Time to Become Proficient in New Role

Survey of High-Potential Hospital Leaders

n=73

37%

19%

30%

14%0 to 3

Months

4 to 6 Months

7 to 12 Months

Greater than 12 Months

All Industries Health Care

26%

36%

Sources: HR Investment Center Survey of High Potential Leaders, May 2006; Bernthal P, et al., Leadership Forecast 2005–2006 Best Practices for Tomorrow’s Global Leaders, Pittsburgh: Development Dimensions International, Inc., 2006; Bernthal P, et al., Health Care Global Comparison Leadership Forecast 2005–2006 Best Practices for Tomorrow’s Global Leaders, Pittsburgh: Development Dimensions International, Inc., 2006.

Nearly 45 percent of high- potential leaders taking over six months to come up to speed

Throwing in the Towel

Percentage of Leaders Considering Dropping Out of Their Position



Conclusion #58 Value of supporting newly transitioned leaders not lost on best practice organizations; top companies making improved transition support a top priority in belief that improving time to proficiency by even one month can reap financial rewards

Conclusion #59 Case in Point: Johnson & Johnson offers expansive and dedicated programs for leaders at each major transition point in their career

Dedicated Support for Key Transitions at J&J

Transition Five

Transition Four

Transition Three

Transition Two

Transition One

Senior Level Manager

Manager of Group

Manager of Function

Manager of Managers

First-time Manager

Individual Contributor

Transition Model

Transition Programs and ToolsTransitions Leadership Forum Executives assess new business situation, define their first 90-day agenda, establish ongoing plan

Executive Coaching Coaching specific to individual’s transition needs

Executive Orientation Newly hired executives receive onboarding plan and attend executive orientation conference

Leadership 360 Feedback Process Multi-rater feedback based on J&J’s leadership model

2Leaders Developing Leaders Program Intensive training focused on performance development, succession planning and talent management

1Management Fundamentals Management fundamental classes and e-learning offered

Transition Support

5

4

3

Survey of Johnson & Johnson’s Recently Transitioned Leaders

n=125

Source: Charan R, et al., The Leadership Pipeline, San Francisco: John Wiley & Sons, Inc., 2001; Wells S, “Diving In—Neglecting to help new executives get into the swim of things quickly can incur enormous organizational costs,” HR Magazine, 2005, 50: 54-59; HR Investment Center interviews and analysis.

Able to Focus on Appropriate Priorities

Built New Partnerships

Clarified Expectation with New Boss

82%18%No Yes83%17% YesNo95%5% YesNo



Conclusion #60 In reality, health care’s comparatively low volume of leadership changes make large-scale investments similar to Johnson & Johnson unlikely outside of the largest health systems; on the other hand, needing to support fewer transitions, hospitals and health systems have greater opportunity to personalize transition process

Scope of Onboarding a Curse and a Blessing

Source: Bernthal P., et al., Health Care Global Comparison Leadership Forecast 2005–2006 Best Practices for Tomorrow’s Global Leaders, Pittsburgh: Development Dimensions International, Inc., 2006; HR Investment Center interviews.

Johnson & Johnson

116,000 employees in 57 countries

New Leader Hires

Typical Hospital

4,000 employees

Leader Turnover

Annual Percentage

First-Level

Mid-Level

Senior-Level

8.7%

5.8% 5.1%

Too few new leaders at most hospitals to justify large-scale onboarding investment…

…but low turnover allowing more customized support



Conclusion #61 Profiled practice recommends constructing detailed and customized onboarding plans for each newly transitioned leader, offering support of more experienced managers and providing early and frequent performance assessments

Conclusion #62 Guerilla Approach: Final practice recommended even for organizations with limited buy-in for succession management; regardless of whether organizations pursue prior key steps, personalized transition support can significantly reduce the lengthy ramp-up all too often experienced by new leaders


Practice #13

Tailored Onboarding Plan

Capsule Description

For newly transitioned leaders, both internal and external, hospital creates customized plan to assimilate leader to their new role, team, and department

Key Components

• Transition Milestones

• Two-way Assimilation

• Personalized Onboarding Team

• Early Performance Assessment

Assessment Highly recommended for all organizations to help new leaders, whether internal or external, become proficient in new role more quickly; additionally, given the nearly day-to-day interactions between HR and new leader, structured onboarding process offers greater opportunity to build strong relationships between HR business partner and new leaders


See pages 229–251

TransitionFive

TransitionFour

TransitionThree

TransitionTwo

TransitionOne

Senior Level Manager

Manager of Group

Manager of Function

Manager of Managers

First-time Manager

Individual Contributor

Transition Model



45


Best Practice Profiles

PinpointingFutureLeadershipGaps

IdentifyingTopTalent

CustomizingHigh-PotentialDevelopment

MakingtheRightSelection

PerfectingtheOnboardingProcess



47


At-Risk Positions

Practice#1:CriticalPositionIdentification...............................49

Practice#2:RetirementRiskAssessment................................... 63

Requisite Skills

Practice#3:FuturePositionProfile............................................ 73

Practice#4:TieredCompetencyModel..................................... 87

Pinpointing Future Leadership Gaps

I




Rationale

Whilemajorityofhospitalsdesignatesomepositionsas“critical”or“linchpin,”mostcommonmethodologysimplyequates“critical”to“executivelevel”;althoughmostexecutivepositionsare,infact,critical,effectivepriorizationrequireshospitalstoexcludeexecutiveroleswithlimitedscopeandincludelowerlevelpositionswithconsequentialimpactonorganizationalperformance

Implementation Components

Component #1: Limited Position Selection Committee Panelofseniorleadersassembledtodevelopcriteriaandselectmostcriticalleadershippositions;groupsizeintentionallykeptsmalltolimitorganizationalpoliticsandensureconfidentialityofdecisions

Component #2: Evaluating Positions against Strict Criteria Selectioncommitteerank-orderseachleadershippositionusingchecklistoffinancialandoperationalcriteriatodeterminerelativeimportancetoorganization;predeterminedcriteriaensureconsistentselectionsbasedonlevelofcontributionratherthanjobtitle

Practice Assessment

Highlyrecommendedasmosteffectivemeansofprioritizingsuccessionefforts;sincepracticerequiresactiveparticipationfromseniorleaders,organizationslackingcompletebuy-inmayfacedifficultyconvincingotherleadersoftheneedtoplanforcriticalpositions,especiallythosenotfacinganear-termvacancy

Practice in Brief

Selectgroupofseniorexecutivesannuallydesignatelimitednumberofleadershippositionsas“critical”basedonoverallimpactonhospitalfinances,operations;goaltoidentifyrolesrequiringconstantstateofpreparednesstopreventpotentialdisruptioncausedbyunexpectedvacancy

Practice #1: Critical Position Identification

Pinpointing Future Leadership Gaps 49




Component #1: Limited Position Selection Committee

Conclusion #63 Given significant amount of time and resources required to effectively identify and prepare each successor, essential to limit scope to positions most critical to organization’s success; organizations evaluating position-criticality, however, likely to face resistance from leaders unwilling to admit their own position may be less critical than others

Conclusion #64 To ensure honest and objective selections, best practice organizations assign identification of critical positions to handful of most senior leaders, typically CEO, COO and HR executive; group size kept intentionally small to limit amount of organizational politics and ensure confidentiality

Small, Senior Group Limits Politics

CEO COO VP, HR

Critical Position Selection Committee Sample Meeting Agenda

1. Review hospital’s strategic objectives

2. Determine criteria for critical positions

3. Brainstorm potential critical positions

4. Evaluate positions against criteria

5. Finalize shortlist of critical roles which will receive formal succession planning

Pushing Below the Executive Ranks

Duringdiscussions,HRshouldencourageconsiderationofmiddleandfrontlinemanagerialroles.Thisensurespositionsatlowerlevels,butwithconsequentialimpactonhospitalperformance,receiveadequatesuccessionplanningattention.





Component #2: Evaluating Positions against Strict Criteria

Conclusion #65 Austerity of critical position identification reliant on application of strict selection criteria; absent pre-defined, rigorous standards for measuring position-criticality, tendency for hospital leaders to target too many positions or base selection on management level exclusively

Conclusion #66 While impact of potential vacancy on hospital operations and financial performance the overarching criteria, equally important for selection committee to consider future strategic importance of role and current labor market; furthermore, committee should revisit criteria and list of positions at least annually

Deciding Who’s In and Who’s Out

Criteria More thanother positions tion

Similar toother posi son

Less thanother positi s

Revenue GeneratingDoes this position contribute directly to revenuegeneration?


Large span of controlDoes this position oversee a large portion of employeebase?

Area of future hospital growthDoes this position contribute directly to a business linethat represents a significant growth opportunity?

Area of strategic importanceDoes this position directly contribute to or overseeone of the top five initiatives described in the strategicplan?

Physician relationsIs this position responsible for managing relationshipswith physicians?

Hard-to-fillDoes this position require technical skills that arecurrently in short supply?


Candidates limited to health careDoes this position require skills that can only be foundin health care?

Difficult to outsourceIs there little possibility for this position to beoutsourced in the future?

Position: _____________________________________________________________________________________


– =

3 1 2

Calculating Relative Value of Roles


Position-Criticality Scoring Tool

FullPosition-CriticalityScoringToolavailableattheendofthispracticeonpage58.

Key Factors to Consider

Strategic ImpactHow much will a vacancy hinder hospital’s ability to accomplish strategic objectives?

Market TrendsIs there a current shortage of skilled candidates to fill this role?

Operational ImpactWill crucial processes be slowed or stalled if incumbent suddenly left?

Financial ImpactWill a vacancy have a significant effect on hospital’s bottom line?


Deciding Who’s In and Who’s Out

Conclusion #67 Case in Point: In light of new organizational strategy to expand various service lines, first profiled health system below designated all service line executive positions as critical; applying similar criteria, second profiled hospital opted to leave off positions which may be phased out in the near future

Conclusion #68 Even with rigorous criteria, committee will inevitably experience temptation to expand pool of critical positions; Center advises final list of positions should represent about five percent of total leadership ranks for hospitals lacking resources and full executive buy-in, and no more than ten percent for institutions with greater support

Additions to Brussels1 Health System’s Critical Positions

Operational Performance Goals

• Expand specialty services– Develop centers of excellence in breast,

prostate, GI• Grow cardiac business by 18%• Enhance neurosciencesTotal projected service line growth 25%

Service Line VPs

Selection Criteria• Revenue generating• Broad scope of responsibilities• Large span of control• Area of future growth• Hard-to-fill• Impending retirement (within

next 12 months)• Highly specialized

Exclusions from London1 Hospital’s Critical Positions


• Small span of control; 1–2 direct reports• Function could be potentially outsourced

• Underperforming in key leadership competency• Function could potentially be outsourced

• Quality will be incorporated into everyone’s job and become a shared accountability

• Less need for position in the future

Reevaluating Initial Selections


1 Pseudonym.

Job Description:

CIO

Job Description: VP, Quality

Job Description: SVP, Legal



Conclusion #69 To further hone priorities, some organizations also rate each critical position on retention risk to determine likelihood of vacancy; for example, Duke Energy plots criticality and retention outlook on the matrix depicted below to pinpoint not only most critical, but also most urgent succession needs

Adding Likelihood of Vacancy to the Identification

Case in Brief

• Integratedenergydeliveryandmanagementcompanywith20,000employeesbasedinCharlotte,NorthCarolina

• In1997,DukeEnergyacquiredseveralenergycompaniesanddiversifiedtraditionalelectricutilitybusinessintogastransmission,petroleumfuels,andenergytradingandmarketing

• Increasedcompanysizeanddiverseskillsetsmeantsuccessionneedscouldnolongerbemanagedinformally;developedsystemforidentifyingpositionswarrantingformalsuccessionplans

Duke Energy

Source: Duke Energy Corporation, Charlotte, N.C. ; HR Investment Center interviews and analysis.

Isolating Most Vulnerable Positions

Duke Energy’s Criticality-Retention Risk Matrix

Retention Outlook Low Medium High

Cri

tica

lity

High 9

1%

199

16%

483

39%

Medium 9

1%

129

10%

204

16%

Low9

1%

8

1%

16

1%

Missing Data0

0%

0

0%

0

0%

Supervisors indicate retention outlook for all direct reports based on: • Marketability of skills• Willingness to relocate• Retirement eligibility• Rumor mill


Adding Likelihood of Vacancy to the Identification

Conclusion #70 In addition to developing succession plans for critical jobs, Duke Energy simultaneously installs individual retention plans for incumbents with poor retention outlook; goal to mitigate vacancy risk by either preparing a suitable replacement or preventing incumbent’s departure altogether


Individual Retention Plans Succession Conferences

• Supervisor regularly reviews criticality-retention matrix

• For direct reports in high criticality-low retention outlook category, supervisor consults with HR partner to devise retention strategy, review possible replacements

• Matrix covering all leadership positions pulled for annual succession planning meetings

• HR focuses group on business units or functions with high numbers of critical, at-risk positions

• Group reviews pipeline for these positions, determines appropriate action steps

Mitigating Vacancy Risk


RetentionRiskWorksheetavailableattheendofthispracticeonpage60.




Human Resources Senior Executives Direct Supervisor/ Hiring Manager of Hi-Po

• Facilitate discussion to select critical positions

• Gather intelligence on retention risk of leaders in critical roles

• Select critical positions• Prioritize critical positions facing

immediate vacancy

• Gather intelligence on retention risk of leaders in critical roles

• Create retention plans for at-risk direct reports

Conclusion #71 While concern for retirements driving heightened interest in succession management, turnover due to retirement a relatively predictable problem and represents a smaller percentage of the leadership ranks; given that any leader, regardless of age, could leave at any time for a new position or career, critical to focus succession efforts on safeguarding handful of leadership positions with greatest impact on hospital finances, operations

Conclusion #72 Much like other sensitive information managed by HR, results of critical discussions must be handled with a great deal of discretion to prevent confusion and resentment among leaders in positions not deemed ciritcal

Task Overview and Evaluation

Practice Assessment




Note on Use

ThistoolisdesignedtohelptheCriticalPositionSelectionCommitteeobjectivelyassesstherelativevalueofleadershippositions.Afterscoringeachposition,thecommitteeshouldselectthetopfivetotenpercent(dependingonavailabilityofresourcesandsupport)forformalsuccessionmanagement.

Instructions

1

2

3

4

5

6

After the strategic planning retreat, Critical Position Selection Committee meets to review criteria listed on facing page; before scoring positions, committee should determine if criteria must be removed or added

Once criteria has been finalized, committee spends thirty minutes brainstorming positions believed to deserve critical status

Using the facing worksheet, committee then rates each identified position against criteria, indicating if criterion is more true for position in question relative to others

Check marks are summed for first two columns and a final score is calculated

Repeat steps 2 and 3 for each brainstormed position until all positions have been scored

Selection committee reviews the scores and selects top five to ten percent of highest scoring positions

Tool 1A: Position-Criticality Scoring Tool

Note: Scoring designed to ensure selection of critical positions based on actual contribution to the organization; that said, some critical positions may receive scores which are lower or higher than true criticality. Selection committee should ultimately make final decision on which positions to include


Criteria More than other positions

Less than other positions

Similar to other positions

Revenue GeneratingDoes this position contribute directly to revenue generation?


Large span of controlDoes this position oversee a large portion of employee base?

Area of future hospital growthDoes this position contribute directly to a business line that represents a significant growth opportunity?

Area of strategic importanceDoes this position directly contribute to or oversee one of the top five initiatives described in the strategic plan?

Physician relationsIs this position responsible for managing relationships with key physicians?

Hard-to-fillDoes this position require technical skills that are currently in short supply?


Candidates require technical backgroundDoes this position require clinical or technical skills?

Difficult to outsourceIs there little possibility for this position to be outsourced in the future?

Position: _____________________________________________________________________________________


– =

Position-Criticality Worksheet




Note on Use

Thistoolincludesquestionstoassessmanagerretentionrisk.ForeachcriticalpositionidentifiedusingTool1A,HRandthedirectsupervisorforthepositionshouldconsiderthequestionslistedbelowandgradeeachincumbentbasedonlikelihoodofdeparture.

Tool 1B: Retention Risk Worksheet

1 Using the Retention Risk Worksheet, fill out the names of the incumbents for each critical position.

2 Meet with each incumbent’s direct supervisor and consider the following questions. (Note: Positive answers could indicate possible departure.)

Background

Has the employee discussed retirement plans?

Has the employee recently undergone any life-changing events?

Was the employee originally an external hire?

Market Conditions

Does the employee have a highly marketable skill set?

Is the employee considered an expert in his/her field?

Current Job Satisfaction

Is the employee dissatisfied with his/her recent performance review?

Does the employee feel unchallenged in his/her current position?

Has the employee expressed frustration with compensation?

Has the employee expressed frustration with work intensity?

Carreer Advancement

Has the employee expressed frustration with development opportunities?

Has the employee expressed frustration with career advancement opportunities?

Is the next obvious career move within the organization currently blocked by someone else?

3 Assign a retention risk rating to each incumbent.

4 For high-risk incumbents, discuss timeframes and next steps to retain the leader and/or prepare a suitable successor.

Instructions


Retention Risk Worksheet

Manager NameRetention Risk

Comments and Next StepsLow Medium High





Rationale

Currentpracticeforassessingretirementrisk,calculatingaverageageacrossleadershippositions,offerslimitedinsightonnecessityofformalplanningforagivenjobgroupandfailstopinpointmostlikelytimingofleaders’departure


Component #1: Isolating Most Vulnerable Titles, FunctionsHRexecutiveestimatesnumberofyearstillretirementforeachleaderthroughdirectsurveyorhumanintelligencenetworkandsummarizesinformationbytitles,functions;morespecificdataenablesorganizationtoidentifyjobgroupsfacingmultiple,near-termvacancies

Component #2: Assessing Situational Needs Assessmentofeachgroups’trueneedforformalsuccessionplanningthroughin-depthanalysisofpipeline,marketconditions,andpotentialobsolescence;hospitalthentailorssuccessionstrategytoaddressspecificrecruitmentchallenge

Practice Assessment

Aneffectivemethodforprioritizingsuccessioneffortsamidstlargenumbersofretirements;furthermore,evidenceofnumerousvacanciesinasingletitle,functionmakesconvincingcaseforsuccessionmanagementtoevenmostskepticalleaders

Recommended For Guerilla Approach

Whilesafeguardingcriticalpositionsmakesgreaterbusinesssensethangeneralfocusonretiringleaders,simplerforHRtomakethecaseforsuccessiontoseniorleaderfacingimminent,predictablevacancythantoconvinceexecutivestoinvestinhospital-wideinitiative;HRcanlaterexpandsuccessioneffortsbycapitalizingonearlywins

Practice in Brief

Hospitalpinpointsspecificjobtitles,functionsfacingdisproportionateretirementriskanddeterminesneedforformalsuccessionplanningbasedoncurrentbenchstrength;goaltoidentifyvulnerablejobgroupsrequiringsuccessionplans

Practice #2: Retirement Risk Assessment




Conclusion #73 While Center recommends dedicating majority of identification efforts to pinpointing critical positions, justifable to assess whether any functions or job types facing number of near-simultaneous retirements; in light of uncertainty over retirement age, however, most hospitals’ analysis of potential retirements largely “guess” work

Conclusion #74 In response, growing number of organizations improve accuracy of projections by asking employees directly when they might retire; through non-binding surveys or informal mechanisms, HR departments request that employees specify the number of years until likely departure or simply check a limited range

Gathering More Specific Data on Leader’s Departure

Component #1: Isolating Most Vulnerable Titles, Functions

Leveraging a Retirement-Focused Questionnaire at TVA

Retirement Survey

Individual Scoring

“At-Risk” Title Identification

Retirement AnalysisSite 2A

Civil Engineer 5

Plant Manager 3

Civil Engineer 5

Civil Engineer 5

Quality Officer 2

Survey Participation Rates

n=13,000

Year 1 Year 2 Year 3

40%

60%80%20%

100%

After communication blitz assuring responses are non-binding, participation doubles

Responses to questionnaire has helped TVA replace 32% of its employees over last 5 years

Source: Fisher, A. “How to Plug Your Company’s Brain Drain.” Fortune (July, 2006): 49–50.

1 2 3

5=Projected retirement date within 1 year

4= Projected retirement date within 1 to 2 years



1= Projected retirement date is > 5 years

Name: Joe Green

Position: Civil Engineer

When do you plan to retire?


Gathering More Specific Data on Leader’s Departure

Conclusion #75 Case in Point: The Tennessee Valley Authority conducts an annual, non-binding survey of retirement intentions, assigns scores based on proximity of retirement, and uses summary data to identify titles with multiple retiring leaders; by communicating the survey’s importance to maintaining operations and non-binding nature, TVA able to achieve 100 percent response rate in tool’s third year

Conclusion #76 Alternatively, some organizations wary of over-surveying employees successfully incorporate similar retirement questions into existing employee surveys or leverage human intelligence networks; information gleaned from direct supervisor or rumor mill can, at the very least, offer a ballpark timeframe for departure

Less Intrusive Alternatives

Leveraging the Human Intelligence Network

Source: SSM Health Care, St. Louis, Ill. ; HR Investment Center interviews and analysis.

Ask direct supervisor to estimate likely time of retirement as part of talent review of direct reports

Leverage HR’s relationships and rumor mill to make more educated guesses regarding retirement

Informal Network

Direct Supervisor Intelligence

• I am pleased with my current position but am open to new opportunities

• The next 10–14 years• 15 years and more

SSM Health Care

Career Interest Survey

1. I am interested in exploring other positions in my current location or at other SSM system locations? Y/N

2. My current position is one that I hope to keep until retirement or at least for the indefinite future? Y/N

3. I expect to be ready for my next career move

• Ready now • Ready 1–3 years

4. I am willing to accept the following environments as part of my overall career environment

• Rural setting only• Urban settings only• Does not matter

5. I am willing to accept an assignment in a hospital of the following size

• large hospital• medium• small• corporate job

13. I plan to continue working for

• The next 1–4 years• The next 5–9 years

2. My current position is one that I hope to keep until retirement or at least for the indefinite future? Y/N

13. I plan to continue working for• The next 1–4 years• The next 5–9 years

• The next 10–14 years• 15 years and more

Career interest survey distributed annually to all leaders

Two questions added to gauge potential time to retirement; results analyzed on individual and aggregate-level




Conclusion #77 Intent to retire by itself, however, does not constitute a need for robust, formal succession planning; hospitals must consider situational factors such as declining importance of role or robust career ladders likely to naturally develop ample successors

Conclusion #78 Case in Point: New York State Department of Motor Vehicles investigation of “at-risk” job categories revealed only one of three oldest cohorts, managers, requires succession plans; given homogeneity in age between senior and junior-level managers, DMV established formal program to retrain and accelerate development of lower-level staff to fill anticipated managerial vacancies

Tailoring Strategy to the Situation

Component #2: Assessing Situational Needs

Evaluating the Need for Intervention

Age Title Scenario Risk-Level

55.4 MV Referees• Referees often come to DMV as second career and

typically stay long enough to reach 20-year pension• Majority expected to continue for 5–7 years

Low

52.8 Managers

• Unhealthy homogeneity in age and tenure between senior and junior-level managers; problem compounded by fact that analysts not far behind in age

• More than half of management and analyst ranks expected to retire

High

50.6 Clerical Supervisors

• Reliance on technology likely to reduce need for clerical staff or supervisors

• Majority expected to retire but role becoming less important

Low-Med

Source: New York State Department of Motor Vehicles, “Workforce Status and Succession Planning Needs,” available at: https://www.cs.state.ny.us/successionplanning/agyinitiatives/dmvworkforcereport.html, accessed May 24, 2006; HR Investment Center analysis.

Case in Brief

• HeavydownsizingoverthepreviousdecadeleftfewcandidatesinthepipelinetoreplaceretiringbabyboomersatNewYorkstateagencies

• In2002,DMVconductedin-depthanalysisofsuccessionplanningneedsduetoretirements

New York State Department of Motor Vehicles

SuccessionInterventionEvaluationToolavailableattheendofthispracticeonpage71.


Tailoring Strategy to the Situation

Conclusion #79 Limited number of hospitals conducting assessments similar to DMV often find nurse managers to be most vulnerable job group due to age and lack of leadership ambition in frontline; representing the largest number of managers in hospital, essential for organizations to build interest broadly in nurse management role and make role more attractive to prospective successors

Nurse Managers Hospitals’ Greatest Concern

“Do You Aspire to be a Nurse Manager?”

Survey of Staff Nurses

n=2,091

Survey of Assistatant Nurse Managers and Charge Nurses

n=1,210

10%90% 32%68%

Cultivating Nursing Leadership Ambition

Nurse Manager Residency

Formal year-long residency program with rotations through different units

Assistant Nurse Manager Leadership Councils

Senior nursing leaders work with assistant managers to identify development needs and professional interests

Career Progression Counseling

Nurse managers meet proactively with each staff nurse and encourage those with managerial talent to commit to management track

No Yes No Yes

Source: Nursing Executive Center 2005 National Survery, HR Investment Center interviews and analysis.

Clinical Track

Management Track

Education Track






• Create retirement survey or add retirement questions to existing employee satisfaction surveys

• Gather qualitative intelligence on retirement dates for positions with high average age

• Conduct situational assessment and pipeline analysis to determine if position requires formal succession plan

• Meet with direct reports to discuss future plans; report possible retirement timeframe to HR department

• Meet with direct reports to discuss future plans; report possible retirement timeframe to HR department

Conclusion #80 Given limited time and resources, critical for hospitals to prioritize positions which truly warrant a succession plan; rather than planning for all positions with incumbents over an arbitrary retirement age, hospitals should first focus on those positions with a weak pipeline or job categories that have multiple incumbents retiring within two years

Conclusion #81 While easier to make the case for succession plans for imminent retirements, planning for critical positions, regardless of retirement risk, should take precedence due to importance for hospital operations


Practice Assessment

Legal Caveat

Whilepracticeoffersseveralexamplesforhowtotactfullyobtainmorepreciseestimatesofleader’slikelyretirementdate,organizationsconcernedwithagediscriminationshouldconsultlegalcounselbeforeimplementingpractice.





Tool 2A: Succession Intervention Evaluation Tool

Note on Use

ThistoolwalksHRleadersthroughastep-by-stepprocessforpinpointingjobsmostvulnerabletoretirements.Toolincludesinstructionsforanalyzingagedataaswellasconsiderationsfordeterminingwhichpositionstrulywarrantformalsuccessionplanning.

Step-by-Step Analysis

Calculate average age of employees by job title or management level

Sort titles in descending order of age and pinpoint top 10–15 titles with oldest employees

For individuals with these titles, directly survey current jobholders or interview supervisors to determine what percentage of these employees plan to retire within the next two years

For those planning to retire in the next two years, consider the following factors to determine if formal succession planning is necessary for the position:

Volume of Potential Departures• Are multiple individuals holding the same title planning to retire within a similar timeframe?

Strength of Existing Pipelines• Are there already strong internal (junior-level roles, cross-trained staff from other

departments) or external pipelines in place for this role?• If so, will these pipelines, at current course and speed, produce enough candidates to meet

the need created by retirements?• Does HR need to take measures to increase existing pipelines or target new labor pools?

Future Importance of Role• Will this role be more or less important in the future?• Are there any plans to phase out or outsource this role?

Interpreting ResultsJob titles with few near-term retirements, strong pipelines or those becoming less important in the future may not require formal succession planning

For remaining titles, HR should develop customized retention plans for each incumbent while simultaneously grooming successors

1

2

3

4

5





Rationale

Beforeidentifyingsuccessorsforcriticalpositions,necessarytodeterminefutureskillsandcompetenciesrequiredbyleadersinthoseroles;relyingstrictlyoncurrentortraditionaljobcharacteristicstobuildprofilesuboptimalgivennear-constantchangeinroleexpectationsandorganizationalpriorities


Component # 1: Evaluation of Position RequirementsOne-on-oneinterviewwithincumbentofcriticalroletodiscusslikelyimpactoffuturedevelopmentsonspecificskillscurrentlyrequiredinthatposition;discussionforcescarefulassessmentofcapabilitiestrulyessentialforfuturesuccess

Component # 2: Detailed Summary ReportDocumentcreatedforeachcriticalpositionsummarizingstrategic,technical,andbehavioralrequirements;summaryreportavaluabletoolfordevelopinginternalsuccessororexternalhiring

Component # 3: Alignment with Organizational StrategyToensurethatpositionprofilesremainrelevant,setofforcingquestionsembeddedintostrategicplanningprocesstoidentifynewleadershipandworkforceneedsresultingfromorganizationalstrategy;responsesinformHRofnewleadershippositionsormanagementskillsetsrequiredinthefuture

Practice Assessment

Aneffectivemeansofidentifyingqualitativerequirementsforspecificpositionsandanecessarysteptoensureaccuratematchingofpotentialsuccessorstomostappropriatepositions;inaddition,profilesusefulforensuringthatsuccessordevelopmenteffortsproperlytargetedtouniqueneedsofeachcriticalposition

Practice in Brief

Forlimitednumberofcriticalpositions,hospitalcreatesin-depthprofilescapturingkeycapabilitiesandpre-requisitesrequiredforcurrentandfuturesuccessinthosepositions;goaltospecifytheidealtraitsaleaderineachcriticalpositionshouldhavesothatanappropriatesuccessorcanbeidentifiedandprepared

Practice #3: Future Position Profile




Component #1: Evaluation of Position Requirements

In-depth Interview Captures Job-Specific NeedsPrioritizing “Must-Have” Competencies

1 Pseudonym. Source: HR Investment Center interviews and analysis.

Monaco Inc’s1 Competencies Pick-List

Leadership Competencies

Discernment Anticipating

Visionary Investment in People

Managing Vision Cultivating Relationships

Develops and Leads Teams Influence and Persuading

Customer Focused Managing Performance

Financial Acumen Analytical Skills

Dealing with Ambiguity Motivating

Balances Mission and Goals Strategic Thinking

Negotiation and Conflict Management Accountability

• HR meets individually with each senior leader

• Goal to pinpoint leadership needs unique to their role

Senior leaders asked to pick top five to six competencies most critical to their job; to ensure top of mind selection, list of competencies not shared with leaders in advance

Conclusion #82 To identify potential successors most likely to succeed in a specific role, organizations must first pinpoint the current and future needs for each position requiring a succession plan; one-on-one interview with incumbents of critical positions or their supervisor represents best mechanism for gathering information on position-specific needs

Conclusion #83 First goal of interview to prioritize importance of leadership competencies; to do so, HR leader asks incumbent to select top five to six competencies most essential to their role from organization’s full competency model


In-depth Interview Captures Job-Specific NeedsSurfacing Changes in Current Skill Requirements

Sample Interview Guide

Source: Heidrick and Struggles, available at www.heidrick.com, accessed July 3, 2006; HR Investment Center interviews and analysis.

Strategic CapabilitiesWhat current and projected organizational goals, initiatives, and strategy impact this role?

• Investing $40 million to top three service lines–cardiac, neurosciences and oncology; requires ability to align diverse constituencies’ needs and expectations

• Exceed standards set in publicly reported measures of quality; requires basic knowledge of regional and national quality recognition awards and compliance with CMS reporting

What current and projected departmental tactics impact this role?• Reduce outmigration in general surgery volumes; requires strong market analytical skills and partnership with marketing department to develop physician sales strategy

• Review, realign surgeon relationships; requires strong relationships with physicians

What challenges will the position face in the next 3–5 years?• In 2007, state no longer requiring Certificate of Need to offer new services or facilities

In light of these challenges will the identified competencies or capabilities become more or less important?

• Ability to develop strong physician relationships becoming more important• Ability to anticipate competitor strategy and quickly operationalize counter tactics becoming more important

Will the role require any new skills in the future?• Workforce planning skills for hard-to-fill clinical specialist positions

Incumbents asked to describe upcoming challenges and discuss resultant implications on skills needed for their position

Conclusion #84 Next, HR leader uses standardized interview guide to quiz incumbent on impact of organizational strategy, local market on specific position; incumbent asked to anticipate most relevant external changes and explain if particular skills will become more or less important as a result of these changes




Component #2: Detailed Summary Report

Pulling Information into a Single Document

Critical Position Profile: Vice President, Clinical ServicesSummary of PositionResponsible for cancer center, transplant program, diabetes center, resident clinics, ambulatory center, heart and vascular services

Minimum Qualifications• Relevant graduate degree • Strong service line leadership track record• Experience in leading change in a high-growth business• Experience with CON filings

Essential Functions• Works closely with VP, Strategic Planning and service line administrators to expand existing lines, develop new lines of business• Increase referrals by enhancing physician sales program

Leadership and Management Behavioral CompetenciesList top 5–6 most critical competencies:

Financial Acumen

Influence & Persuading

Balances Mission and Goals

Analytical skills

Negotiation & Conflict Management

Strategic Thinking

Strategic CapabilitiesWhat current and projected organizational goals, initiatives and strategy impact this role?

• Investing $40 million to top three service lines–cardiac, neurosciences and oncology; requires ability to align diverse constituencies’ needs and expectations

• Exceed standards set in publicly reported measures of quality; requires basic knowledge of regional and national quality recognition awards and compliance with CMS reporting

What current and projected departmental tactics impact this role?• Reduce outmigration in general surgery volumes; requires strong market analytical skills and partnership with marketing department to develop physician sales strategy

• Review, realign surgeon relationships; requires strong relationships with physicians

What challenges will the position face in the next 3–5 years?• In 2007, State no longer requiring Certificate of Need to offer new services or facilities

In light of these challenges will the identified competencies or capabilities become more or less important?• Ability to develop strong physician relationships becoming more important• Ability to anticipate competitor strategy and quickly operationalize counter tactics becoming more important

Will the role require any new skills in the future?• Workforce planning skills for hard-to-fill clinical specialist positions

Personal CharacteristicsWhat additional personal characteristics must a person possess in order to be successful in this role?

• Tenacity• High level of diplomacy and fairness• Ability to align diverse constituencies’ needs

What to Include

Summary of Role

Minimum Qualifications

Primary Responsibilities


Conclusion #85 Using responses from individual interviews and existing job descriptions, HR creates detailed position profile for each critical position; beyond a basic job description, well-constructed position profiles illustrate the different-in-kind challenges future leaders must handle to be successful in the role

CriticalPositionProfileWorksheetavailableattheendofthispracticeonpage82.

Personal Characteristics

Critical Competencies

Strategic Capabilities


A Slew of Valuable Uses

Matching Hi-Pos to Positions

Creating Job Descriptions

Interviewing Potential Candidates

Position: CNO

APPLY NOW!

1. CNO

2. CIO

3. COO

1. John

2. Sandy

3. Nancy

Guiding Hi-Po Development

Conclusion #86 Furthermore, comprehensive position profiles not only valuable for matching and grooming successors, but also offer guidance to recruiters and hiring managers when interviewing external candidates and assessing performance and development needs of incumbents

Individual Development PlanPossible Future Roles: VP, Finance VP, PlanningDevelopment Needs:• MBA• Bond issuance project





Translating Business Plans into Talent Plans

Component #3: Alignment with Organizational Strategy

Determining “People” Implications

Three Key Areas of Inquiry for Tyson Foods’ HR Business Partners

Source: Tyson Foods, Springdale, Ark. ; HR Investment Center interviews and analysis.1 Adapted from Tyson Foods.

Excerpt from Workforce Considerations List1

For each planned business strategy, identify the key elements in the organizational structure, people resources, skills, and capabilities required in order to deliver the strategy

Section 1: Organizational Structure Implications

• Are the current business processes effectively and efficiently delivering required results and competitive advantage?

• Does the current reporting structure or organizational structure reflect our strategic priorities?

Section 2: People Resource Implications

• How many people resources are required based on planned strategy? Can these resources be redeployed from other parts of the organization or must they be acquired?

• Does the business reflect the right level of diversity? What is required moving forward?

Section 3: Skills/Capabilities Implications

• What skills and capabilities are needed in order to deliver the strategy and give the company a competitive advantage?

• What required skills and capabilities do not exist today? Will they be acquired or developed?

• What new specific training or functional experiences will team members need to deliver on the business strategy?

Conclusion #87 Given frequently changing organizational priorities and market conditions, critical to ensure that position profiles do not become static; Center recommends integrating re-assessment of position profiles with organization’s strategic planning process

FullWorkforceConsiderationsListavaliableattheendofthispracticeonpage85.


Translating Business Plans into Talent PlansAligning Succession with Strategy

Oslo Health System1 Strategic Objectives 20107. Create Spine Center of Excellence

Identifying new positions…

How many people resources are required based on planned strategy?

• Director, Spine Center

• Director, Marketing (Spine)

• Clinical Coordinator/Case Manager

Talent Pool

HR identifies and develops hi-pos for new spine center positions

What skills and capabilities are needed in order to deliver strategy?

• Strong Physician Relationships

• Experience with direct consumer marketing

…and needed capabilities

1 Pseudonym. Source: HR Investment Center interviews and analysis.

HR develops training programs and assignments to equip leaders with new skills

Conclusion #88 Case in Point: Tyson Foods developed set of questions to distill “people” implications of planned initiatives and offer concrete guidance on how HR can effectively support strategy; while primarily geared to aligning HR strategy with broader business plans, exercise informs succession efforts on two fronts – by identifying new critical leadership positions and surfacing emerging leadership skills






• Pinpoint skills and capabilities required of leaders to execute strategy

• Survey senior leaders on most important capabilities needed for each critical role

• Create future position profile for critical roles

• Distribute Workforce Considerations List during planning meetings and aggregate senior leaders’ opinions on the people implications of strategy

• Translate business strategy into future leadership needs

• Determine most critical capabilities needed for their own positions currently and in the future

• Approve future position profiles

• No responsibilities

Conclusion #89 Although potentially useful for all leadership positions regardless of criticality, Center recommends creating future position profiles solely for critical roles, at least initially, given effort required to create and maintain robust position profile; limiting efforts to critical roles ensures HR and operational leaders see effort as valuable, rather than an additional bureaucratic step


Practice Assessment




Tool 3A: Critical Position Profile Worksheet

Note on Use

ThistoolisdesignedtoassistHRincreatingaprofileofskills,leadershipcompetenciesandtechnicalrequirementsforeachcriticalposition.PartIasksincumbentstoprovidebasicinformationabouttheirposition’sresponsibilitiesandrequirements.PartIIrequiresHRtointerviewtheincumbentandisolatethemostcriticalcapabilities/competenciesrequiredforsuccess.Thefinallistofcapabilitiesprovidesaclearpictureofthecurrentandfutureneedsoftheroleandcanbeusedforhiringaswellasidentifyingpotentialsuccessors.

PART I—To be filled out by the incumbent

Critical Position Profile Form:(Position name)

Summary of PositionProvide a brief statement that describes the overall purpose of the position and why it exists

__________________________________________________________________________________________________

__________________________________________________________________________________________________

Minimum QualificationsDescribe the minimal education or training that would be required for a new employee coming into the position.

__________________________________________________________________________________________________

__________________________________________________________________________________________________

Scope of ResponsibilitiesProvide information on the size and scope of resources this position is responsible for i.e. budgetary, equipment, personnel, decision-making, etc.

__________________________________________________________________________________________________

__________________________________________________________________________________________________

Essential FunctionsList task statements that describe only the major duties for which the position is accountable. For example, “Works closely with VP, Planning to expand existing service lines.” Limit the tasks to 10 statements using action verbs that describe the function. Think of:

__________________________________________________________________________________________________

__________________________________________________________________________________________________

__________________________________________________________________________________________________

• What are the end results?• How is it done?• What the position does?

Use this template to complete a profile of your position. Answers may be obtained from standard job description.


Instructions for Part 2

1

2

3

4

HR meets with incumbent to discuss skills and competencies required for their position

Incumbent selects 5–6 competencies most critical to their role from full list of leadership competencies

HR guides incumbent through questions listed in Part II regarding the implications of hospital strategic direction and future developments on the needs of their position

HR summarizes information for each critical position

PART I1—To be filled out by HR through interview with the incumbent

Leadership and Management Behavioral CompetenciesList top 5–6 most critical competencies:

______________________________ _____________________________ _____________________________

______________________________ _____________________________ _____________________________

Strategic CapabilitiesWhat current and projected organizational goals, initiatives and strategy impact this role?

__________________________________________________________________________________________________

__________________________________________________________________________________________________

What current and projected departmental tactics impact this role?

__________________________________________________________________________________________________

__________________________________________________________________________________________________

What challenges will the position face in the next 3–5 years?

__________________________________________________________________________________________________

__________________________________________________________________________________________________

In light of these challenges which of the identified competencies or capabilities will become more or less important?

__________________________________________________________________________________________________

__________________________________________________________________________________________________

Personal CharacteristicsWhat additional personal characteristics must a person possess in order to be successful in this role?

__________________________________________________________________________________________________

__________________________________________________________________________________________________

__________________________________________________________________________________________________





Tool 3B: Workforce Considerations List

Note on Use

ThistoolassistsHRinidentifyingchangestoorganizationalstructure,staffingandskillssetsrequiredtosupporthospitalinitiatives.Duringstrategicplanningsessions,HRasksleaderstoanswerthefollowingquestionswithregardstoeachstrategicinitiative.AnswerstothesequestionsprovideconcreteguidanceonhowHRcaneffectivelysupportstrategyandinformssuccessioneffortsbyidentifyingnewcriticalleadershippositionsandsurfacingemergingleadershipskills.

Source: Tyson Foods, Springdale, Ark. ; HR Investment Center interviews and analysis.1 Adapted from Tyson Foods.

Section 1: Organizational Structure Implications• Are the current business processes effectively and efficiently delivering required results and competitive

advantage?

• Does the current reporting structure or organizational structure reflect our strategic priorities?

• If organizational structure changes are needed, which ones are most critical (short-term and longer-term)? How can these changes be most successful? What will be the most significant challenges in obtaining the desired structure?

Section 2: People Resource Implications• How many people resources are required based on planned strategy? Can these resources be redeployed from

other parts of the organization or must they be acquired?

• Do current reward processes support achievement of organizational strategic goals?

• Do current individual performance goals support achievement of organizational strategic goals?

• Does the business reflect the right level of diversity? What is required in moving forward?

Section 3: Skills/Capabilities Implications• What skills and capabilities are needed in order to deliver the planned strategy and give the organization

a competitive advantage?

• What skills and capabilities required do not exist today? Will they be acquired or developed?

• Does our current training and development systems reflect our strategic priorities (consider technical effectiveness, personal effectiveness, managerial effectiveness and organizational effectiveness skills)?

• What new specific training or functional experiences will team members need to master to deliver on the business strategy?

Tracking Success

• What people-related results should be elevated to our HR and/or our organization-wide strategic dashboard to help us achieve our business strategy?Example Metrics: • Turnover rates

• Time-to-fill

• Employee Diversity

• Management ratio

• Internal promotion rate

• Benchstrength for key positions

• Average hours of development training per manager

Workforce Considerations List1

For each planned strategy, identify the key elements in the organizational structure, people resources, skills and capabilities required in order to deliver the strategy





Rationale

Traditionalone-size-fits-allcompetencymodelprovidesleaderswithsetofgeneralexpectationsbutfailstocapturedifferencesinjobcomplexityforrolesatdifferentmanageriallevels;lackofdistinctionbetweenlevelsmakesitdifficulttoidentifyindividualswhopossesspotentialtoperformathigherlevelsaswellaspinpointskillstheymustdeveloptobepromoted


Component #1: Defining Executive CompetenciesSeniorleadersselectcriticalleadershipcharacteristicsanddescribecorrespondingbehaviorscontributingtosuccessattheexecutivelevel;resultantmodelensuresclearunderstandingofperformanceexpectationsforexecutives

Component #2: Articulating Differences between LevelsFromtheexecutivecompetencymodel,directorsselectcompetenciesmostapplicabletotheirlevelandredefineeachonetoreflectkeydifferencesbetweenexecutiveanddirector-levelroles;processthencascadedtodevelopcompetenciesateachsubsequentmanagementlevel

Practice Assessment

Highlyrecommendedforallinstitutionsforitsapplicabilitybeyondsuccessionmanagement;tieredcompetencymodelapowerfultoolforclarifyingroles,settingexpectations,pinpointingdevelopmentneeds,andscreeningpromotioncandidates

Practice in Brief

Afterisolatingsetofexecutive-levelleadershipcompetencies,hospitalcascadescompetencymodelthroughmanagementranks,drawingcleardistinctionsamongrequirementsandexpectationsforrolesateachlevel;goaltoprovidebetterroleclarityandmeansforpinpointingdevelopmentneedsofsuccessioncandidates

Practice #4: Tiered Competency Model




Differentiating Leadership Expectations

Exec

utiv

e

Executive Thinking and Problem SolvingReasons through problems to effective solutions. Has a systems perspective and is able to deal with complexity—can see patterns and connections. Considers many variables in solving a problem; comfortable with ambiguity; and can decide in the face of uncertainty. Patient as issues evolve without sacrificing urgency. Willing to take risks.

Dir

ecto

r Strategic ThinkingIdentifies potential options and constraints; critically evaluates information to promote competitive position and seeks to achieve outcomes which are in the best interest of Gundersen Lutheran.

Man

ager Utilizes Systems Thinking To Impact Operations

Incorporates knowledge of product and service lines, system initiatives and organizational strategies to identify, align, and optimize resources.


Case in Brief


• In2000,GundersenLutheranHealthSystemdevelopedatieredcompetencymodeltodistinguishbetweentherolesofmanageranddirectorbyclarifyingexpectedlevelsofperformance

• Previouscompetencymodelconsistedofonesetofleadershipcompetenciesforallleaders

Component #1: Defining Executive Competencies

Clearly distinguishes levels of complexity

Granular descriptions articulate clear expectations

Conclusion #90 When identifying and developing successors, important to consider not only technical or experiential requirements, but also leadership expectations at the next management level; better understanding of how the job differs from current expectations for possible successor allows for accurate assessment and targeted development

Component #91 To provide greater clarity around current and next-level expectations, Gundersen Lutheran Health System transformed its traditional one-size-fits-all competency model to include separate descriptions of each competency for every level of management; resultant tiered competency grid provides clear distinction of roles and expected performance

Excerpt from Gundersen’s Tiered Competency GridLanguage adapted to each level

What Do We Really Mean by “Strategic Thinking?”


Differentiating Leadership Expectations


Designing Competency Models

Forfurtherinformationonhowtodeveloporganization-specificcompetencymodels,pleaseseePractice#1:Strategy-drivenCompetencyAlignmentinElevating Leadership Performance: Maximizing Return on Development Initiatives.

Starting at the Top

Isolating Critical Competencies Defining Associated Behaviors

Leadership Needs Assessment

1. What are the business needs facing executives now and in the next two to three years?

2. What are the forces both within and not within executives’ control that make accomplishment of the business needs challenging?

3. What are the deliverables you expect the executive team to accomplish in order to meet the business needs?

• HR facilitates discussion with executives to determine most pressing leadership needs for their level

• Given needs, executives select 10–12 cards, from deck of 67, that list competencies required for success

• Executives nominate peers who best exemplify competency

• Exemplars interviewed to identify specific behaviors that demonstrate competency

Unt ad min vel

del iriliquamet

ipsuscipisim augiamcor si.

Lenis adio commy

nos nullandiam

qui euisim incidunt

What specific things do you do that make you successful at ____?

Conclusion #92 First step to building tiered competency grid selecting core leadership characteristics to be cascaded; using short questionnaire, HR department at Gundersen Lutheran focuses senior leaders on identifying competencies and describing specific behaviors required for success at the top or executive level




Component #2: Articulating Differences Between Levels

From Executive Level to Director Level

Cascading the Competency Determination Process

Identifying Director-Specific Needs

Selecting Director Competencies

Forcing Differentiation

Vetting with Executives

• Director competencies validated and approved by executive team

• Through facilitation, HR encourages directors to articulate differences in complexity between executive and director roles

• HR assembles group of six to eight talented directors to develop competency model

• Directors review executive competency model and select competencies based on level-specific needs

• Following discussion to define executive competencies, executives asked to determine most pressing leadership needs for their direct reports, the director level

Directors Needs


Sample Facilitation Questions

• Foreachcompetency,whichexecutivebehaviorsstillapplytothedirector-level?

• Whichbehaviorsdonotapply?Why?Howshouldtheydiffer?

• Arethereanyexecutivecompetenciesthatshouldnotapplytodirectorsatall?

• Arethereanycriticaldirector-levelcompetenciesthataremissing?

Conclusion #93 Next, HR assembles small group of top-performing directors to determine competencies for their level, using executive competencies as a starting point; during discussions, critical for HR to push directors to draw distinctions between executive and director roles and ensure final set of associated behaviors are both distinct from executive level and granular in detail


Cascading the Competency Determination ProcessFrom Director Level to Manager Level


Directors Identify Manager-Specific Needs

Top Managers Select Manager Competencies

HR Facilitates Discussion on Differentiation

Vetting with Directors

Manager Needs

Conclusion #94 Finally, process cascaded to the manager level, and all competencies summarized into single grid; following pages include a copy of Gundersen’s Tiered Competency Grid

Conclusion #95 By assessing leaders against next-level competencies, Gundersen Lutheran able to readily identify succession candidates from those demonstrating early performance at higher levels as well as isolate their development needs

StrategicThinking

ExecutiveThinking &ProblemSolving

DevelopsPeople

DevelopsLeaders

FinancialAcumen

BusinessAcumen

54

54 4

1

Competency Assessment for Sally Smith

Reveals potential for high-level work...

…and areas to develop for promotion

Director-level competencies Executive-level competencies

Assessing Gaps to Next Level




Gundersen Lutheran’s

Exec

utiv

e

Drives Operational Excellence Using Results Orientation Is able to understand the competitive market place and take risks in growing profitability while being responsible for area and people. Seeks to accomplish critical tasks with measurable results. Strives for excellence in quality, service and performance by surpassing established standards to optimize organizational performance and long-term value of Gundersen Lutheran.

Expects and Leads Superior Performance Provides clear, measurable and rigorous performance objectives to improve the performance of individuals and business units they are responsible for. Takes time to share job-related knowledge; provides on-going coaching and mentoring to ensure the success and superior performance of those they lead.

Business AcumenWith the organizations’ core values in the forefront, identifies potential options and critically evaluates information to promote competitive position. Understands and taps industry and market trends to fuel current and future business needs. Possesses financial expertise and fosters opportunities for revenue enhancement and growth. Leads cost effective initiatives at the same time enhancing quality and service.

Dir

ecto

r

Drives Operational ExcellenceWorks to continuously achieve and maintain high levels of individual and organizational performance to optimize the long-term value of Gundersen Lutheran.

Innovates and Effectively Runs The BusinessIs proactive in understanding market and industry trends in order to champion initiatives and business relationships that help achieve competitive advantage. Commits to new approaches ahead of emerging opportunities. Identifies possibilities and embraces challenges, seeing them as opportunities for departmental and organizational improvement. Takes action to meet critical business objectives, while balancing the uncertainty of a situation with common sense.

Financial AcumenPossesses financial expertise and fosters opportunities for revenue enhancement and growth. Demonstrates the ability to lead cost efficient initiatives without sacrificing quality patient care or core values. Knows how to manage, deploy, and leverage human and financial resources (both internally and externally).

Man

ager

Manages Patient DeliveryUnderstands, implements and evaluates new and existing programs and services to ensure the highest level of quality patient care and customer service. Identifies and pursues opportunities to raise the standard of care for patients.

Manages Programs and Services (Team 4)Understands, implements and evaluates programs and services to ensure the highest level of quality and service. Identifies and pursues opportunities to continually improve the services we provide in support of patient care.

Manages Financial Planning and PerformanceManages departmental financial operations. Quantifies program costs and benefits. Efficiently utilizes resources to determine priorities.

Tool 4A: Sample Tiered Competency Model

Operations Finance

93© 2006 The Advisory Board Company • 14667

Builds and Leads Teams Creates an environment that allows team members to reach their full capability through providing role clarity, encouraging risk taking, playing to team member strengths and focusing on team results over individual results.

Develops Leaders Views people, their knowledge and their capabilities as the organization’s core assets. Establishes formal and informal relationships with others to provide feedback, information, support, and resources to help them develop new or higher levels of skills and abilities. Sees and creates development possibilities for others. Recognizes education as a key corner stone of our mission.

Effectively Leads Change Demonstrates resiliency in a changing environment by adjusting to rapidly changing priorities and being a visible anchor for others by reaffirming key values, goals and outcomes. Leads others to adapt and remain effective amidst on-going change.

Influences OthersExpresses ideas on behalf of the organization and persuades others in a positive manner. Gains support and commitment and mobilizes others to take action. Has a thorough understanding of the implications of leadership actions. Able to work with diverse members of the organization and gain respect.

Leverages ResourcesIdentifies, aligns and optimizes resources in spite of perceived boundaries.

Visionary Examines and clarifies the forces (events, entities, and people) that affect current and future needs. Expresses a clear vision for future business opportunities and creates linkages between current and future activities. Identifies new quality/ business/performance opportunities for Gundersen Lutheran.

Executive Thinking and Problem SolvingReasons through problems to effective solutions. Has a systems perspective and is able to deal with complexity—can see patterns and connections. Considers many variables in solving a problem; comfortable with ambiguity; and can decide in the face of uncertainty. Patient as issues evolve without sacrificing urgency. Willing to take risks.

Executive CharacterPresents oneself with candor and integrity, and an uncompromising commitment to the values of fairness and honesty. Has a strong self-awareness. Is open to feedback and committed to continuing personal development. Encourages others to express themselves, to disagree, and challenge – but maintains approachability. Has a personal sense of right and wrong and operates from a strong sense of values and personal ethics.

Builds TeamsWith Medical Partner (if in partnership), builds constructive and effective relationships with colleagues across all functions, and aligns team efforts with organizational goals. Communicates in a manner that promotes comprehension, alignment and energizes collective intelligence and collaborative action.

Fosters Learning and Develops PeopleViews people, their knowledge, and their capabilities as the organization’s core assets. Creates structure and policies to ensure a learning environment that fosters growth and development for others.

Effectively Leads and Manages ChangeDemonstrates resiliency in a changing environment. Leads other to adapt and remain effective amidst on-going change. Develops processes to facilitate and foster change.

Builds Effective NetworksBuilds effective relationships across the organization to accomplish work and focus on customers.

Organizes for AlignmentLinks organizational strategy and changes in the work environment, market and community to ensure optimal joining of ideas, projects, services and programs.

VisionaryConceptualizes and clarifies all of the forces (events, entities and people) that affect current and future needs. Expresses a clear vision for future business opportunities and creates linkages between current and future activities. Identifies new business/performance opportunities for Gundersen Lutheran.

Strategic ThinkingIdentifies potential options and constraints; critically evaluates information to promote competitive position and seeks to achieve outcomes which are in the best interest of Gundersen Lutheran.

Builds Collaborative and Trusting RelationshipsBuilds constructive and healthy relationships by showing respect and appreciation for the ideas and contributions of others. Advises and collaborates with others (peers, physicians, etc) to develop strong working relationships and fosters teams to achieve goals.

Coaches and MentorsProvides on-going feedback, information, support and resources to continually develop employees. Identifies opportunities for on-going growth and development and encourages employees to take on new challenges.

Effectively Manages ChangeAdvocates for change as a necessary means to organizational, department, and individual growth and success. Provides support for others to adapt and remain effective. Implements systems changes.

Fosters Networks and RelationshipsFosters networks and relationships across the organization and community to accomplish work and focus on staff and patients/customers more effectively.

Innovates To Continually ImproveRecommends and implements improvements by offering systematic solutions to problems that improve the quality of patient care while maintaining fiscal responsibility. Creates new ideas or improves existing ideas, and services by challenging assumptions. Creates linkage between current and future activities.

Acquires and Applies KnowledgeCommits to continuous learning by using current and emerging technologies, resources and tools to improve. Actively identifies new areas for learning and regularly takes advantage of learning opportunities. Integrates new knowledge, understanding or skill in a practical manner.

Utilizes Systems Thinking To Impact OperationsIncorporates knowledge of product and service lines, system initiatives and organizational strategies to identify, align, and optimize resources


LeadershipCompetencyGridTeam Building Staff Development Change Management Relationship Building Vision Strategic Thinking Executive Character

94© 2006 The Advisory Board Company • 14667



• Facilitate discussions to define competencies at each management level

• Summarize and vet final tiered competency model

• Define behaviors which exemplify each leadership competency at the executive and director levels

• Approve final tiered competency model

• No responsibilities

Conclusion #96 Recognizing that most hospitals already utilize leadership competency models, Center recommends updating current competencies by re-writing descriptions to capture executive-level performance, then cascading competencies for each subsequent management level; effectiveness of Tiered Competency Model, however, dependant on HR’s ability to ensure level-specific competencies are both sufficiently granular and distinct from other levels of management

Conclusion #97 HR should make full use of tiered competency grid in the succession planning process both to identify successors and pinpoint current and next-level performance gaps; further, tiered competencies may be used to revise current performance appraisals and as a selection screen for new hires



Practice Assessment



97


Future Executives

Practice#5:PrincipledHigh-PotentialSelection.......................99

Future Managers

Practice#6:EarlyPotentialMonitoring................................... 119

Practice#7:CareerProgressionCounseling............................ 131


II




Rationale

Selectionofhigh-potentialtalentoftenbasedondirectsupervisor’sopinionanddeterminedwithoutconsistentdefinitionsofperformanceandpotential;asaresult,hospitalleadersfrequentlyselectthewrongpeopleandincludetoomanyleadersinthesuccessionpool


Component #1: Unambiguous Performance Scores Toimprovereliabilityofperformancedata,hospitalmodifiesleaders’evaluationstoincludequantitativetargetsandexplicitdefinitionsforeachperformancelevel;leveragingmoreaccuratedata,hospitalsabletoquicklyhoneinontopquartileofleaders

Component #2: Defined “Potential” Ratings Hospitaldevelopsstandardizedsetofbehaviorsbelievedtodemonstratehigh“potential”attheirorganizationanddistributesthemtoallleaders;commoncriteriaforpotentialenablesleaderstoconsistentlyidentifyfromtopquartilethosemostlikelytosucceedatnextmanagementlevel

Component #3: Group Hi-Po Selection Aspartofperformanceappraisalprocess,leadersmeettocalibrateevaluationsandmakefinalselectionofhigh-potentials;together,seniorleadersdiscusseachcandidate’svaluetotheorganization,personalityandmanagementstyleandnarrowlistofhigh-performing,high-potentialindividualstotopfivetotenpercentofmostpromisingmanagers

Practice Assessment

Whileperhapsthemostdifficultpracticetoimplementfully,criticalfororganizationstoidentifytherightcandidatesgivensignificantamountoftimeandresourcesrequiredtoprepareeachselectedindividualforfutureroles;giventheculturalandhistoricaldifficultiessurroundingtalentdifferentiation,however,hospitalsmayrequireseveraliterationsbeforehi-poselectionbecomestrulyprincipled

Recommended for Guerilla Approach

Improvingtheevaluationprocessrequiresfullexecutivebuy-inandsignificantresources;whileinstitutionscanill-affordtotolerateinaccurateperformancedata,HRdepartmentswithlimitedsupportandstaffshouldprioritizeComponent#2:Defined“Potential”Ratings,andComponent#3:GroupHi-PoDiscussiontoensurehi-posarevettedandselectedbasedonacommonunderstandingofpotential

Practice in Brief

Hospitalappliesthreescreens—currentperformance,intrinsicpotential,calibrationtopeers—toobjectivelyidentifyhandfulofpotentialsuccessorsforcriticalleadershippositions;goaltoensureselectionoflimitednumberofhigh-potentialcandidatesbasedonconsistentcriteriaandmultipleperspectives,ratherthanpersonalopinion

Practice #5: Principled High-Potential Selection

Identifying Top Talent 99




Conclusion #98 While selection of a limited number of positions deserving of succession plans the logical first step in succession management, equally critical to identify a limited number of individuals with potential to fill these roles; enforcing strict limits on the number of high potentials selected a prerequisite to making development process manageable and, ultimately, effective

Conclusion #99 Best practice organizations employing three selection screens to arrive at a small set of high-potential individuals—application of more accurate performance data, enforcement of a common definition of potential, and finally calibration of candidates as a leadership group

Honing in on Hi-Pos

Three Screens for Selecting Top Talent

Unambiguous Performance Scores

Defined “Potential” Ratings

Group Hi-Po Discussion

Percent of Managers Top 20%–25% Top 10%–20% Top 5%–10%


1 2 3




Component #1: Unambiguous Performance Scores

Conclusion #100 Hospital’s ability to use existing performance data to quickly hone in on top quartile of managers hindered by rampant grade inflation and inconsistently applied standards

Conclusion #101 Leading institutions pursuing a two-pronged strategy to capture more meaningful performance data; first prong, complementing subjective leadership competencies with a set of quantified goals

Picking Quantifiable Goals for Every LeaderBalancing Competencies with Outcomes

Operating Performance ReportHugh Douglas

Section B—Leadership Measures

Objectives/Performance MeasuresActual Score

Did Not Perform

Below Expected

PerformanceExpected

Performance

Above Expected

PerformanceOutstanding Performance

Not Applicable

Business Development/Strategic 0 1 2 3 4 N/A

Entrepreneurism/Innovation:

KEY BEHAVIORS—Explores & identifies different ideas and ways of doing things; Encourages & obtains different perspectives; Takes & encourages educated risks; Gives attention to identifying opportunities; Conducts value analyses on ideas; Persistent in action; Challenges status quo; Utilizes expertise available to them; Identifies internal & external ways to leverage core business strengths

4 x

Comments:

0 1 2 3 4 N/A

Personal Accountability:

KEY BEHAVIORS—Takes responsibility for issues & mistakes; Produces results; Sets high expectations for self & others; Holds people accountable for performance & productivity by using appropriate perf mgmt techniques; Takes action proactively; Negotiates timelines & outcomes; Requires direct reports to communicate work progress; Takes action when faced with resistance or incomplete information

3 x

Comments:

Operating Performance ReportHugh Douglas

Section A—Strategic Measures

Threshold Target Optimum

Objectives/Performance Indicators Weight Actual ScoreDid Not Perform

Below Expected Perform

Expected Perform

Above Expected Perform

Outstanding Perform

Financial Performance 0 1 2 3 4

Reduce supply costs by 15% 25% 2 x

Customer Satisfaction 0 1 2 3 4

Improve patient satisfaction to 88th percentile 30% 3 x

Set of progressive quantitative targets established for each rating level

Leaders select small set of objectives and measurable goals at beginning of year

Source: Geisinger Medical Center, Danville, Penn. ; HR Investment Center interviews and analysis.

Evaluating performance on strategic objectives in addition to (rather than in place of) well-designed leadership competencies


Picking Quantifiable Goals for Every Leader

Conclusion #102 Washoe Medical Center, for example, builds “pick-list” of quantified goals that have been tested for relevance to larger organizational priorities; Washoe executives then define three to five levels of performance targets for each of the quantified goals

Conclusion #103 All leaders at Washoe required to select from the goal “pick-list” rather than creating wholly customized objectives; explicit performance criteria removes subjectivity from performance ratings

Leaving Little Room for Argument

For more information on Washoe’s goal-setting process, please see Appendix, page 255.

Quality Stewardship

Accountability Measure: Division Expense (%)Total actual expense per unit of service (if applicable) for the areas for which I am fiscally responsible will be scored according to the following schedule:

Criteria Description Rating

Criterion 1 Under budget by more than 4% 4

Criterion 2 From more than 2% to 4% under budget 3

Criterion 3 From budget to 2% under budget 2

Criterion 4 N/A

Criterion 5 Over budget 0

Accountability Measure: Lab Turnaround Time for Nursing UnitsNursing satisfaction with laboratory services is closely linked with testing turnaround times (TAT)—the time from computer order entry to the release of the test results. This accountability will focus on high frequency STAT tests. The selected key tests will be measured and reported by nursing unit. It is believed that prolonged laboratory TATs cause treatment delays and delayed notification of physicians regarding critical changes in some patients’ physiological condition. The turnaround time for the selected STAT lab tests identified will be at or below the established benchmark. The final year-end score will be the average of the last two quarters. The score will be calculated by determining the aggregate percentage of tests that are not completed within the established turnaround time, which are industry standard benchmarks by test. The accountability will be scored as follows:


Criterion 1 >95% of tests completed within standard 4

Criterion 2 91.67% to 94.99% of tests completed within standard 3



Criterion 5 <85% of tests completed within standard 0

Each accountability assigned three to five performance levels with corresponding performance rating

While the definitions of performance measures do not typically change from year to year, the performance levels become incrementally more difficult

Source: Washoe Health System, Reno, Nev. ; HR Investment Center interviews.

Sample Metrics from Goal Pick-list




Description of Rating Level

Performance Standards and Measures

Performance Level Category

Rating Scale

Outstanding performance that results in extraordinary and exceptional accomplishments with significant contributions to objectives of the department, division, group, or organization.

• Highly regarded by peers as expert in their field

• Serves as role model; leads by example

• Highly productive and innovative; stimulates teamwork

• Generates top quality work striving for perfection

• Consistently exceeds behavioral standards

• Significant achievements; always exceeds target goals

• Active in industry-related and outside community groups

Outstanding/Mastery

5

Consistently generates results above those expected of the position. Contributes in a superior manner to innovations both in leadership and competencies.

• Consistently meets and sometimes exceeds all relevant performance standards and target goals

• Shows initiative and versatility in completing tasks

• Works collaboratively contributing to team efforts

• Strong technical and interpersonal skills

• Achieved significant advancements

• Demonstrates advanced job competency

Very Good/Exceeds

Expectations

4

Conclusion #104 Second Prong: Inserting series of checks and balances into performance review process; before finalizing performance reviews at Ochsner Health System, managers forced to pressure-test the overall rating against set of pre-defined rating system descriptors

Conclusion #105 To further ensure accuracy of evaluations, Ochsner then requires all managers to defend each appraisal with direct supervisor as well as their peers; over time, increased rigor raises the bar on what is considered outstanding performance

Implementing Checks and Balances at Ochsner

Ochsner’s Rating System

Descriptors Clarify Qualitative Expectations

Source: Ochsner Health System, New Orleans, La.

FullRatingSystemDescriptorsavailableattheendofthispracticeonpage112.

Lists out criteria for obtaining specific score

Clearly describes expected outcome for each performance level


FormoreinformationonOchsner’sleadershipperformanceevaluationprocess,seeAppendixonpage267.

Implementing Checks and Balances at Ochsner

Conclusion #106 Leveraging better performance data, hospitals can isolate top 20 to 25 percent of performers at each level that should be given further consideration for entry into successor pool; important to note, however, improving accuracy of data a long-term initiative requiring full executive buy-in

Evaluating the Evaluation

Source: Ochsner Health System, New Orleans, La. ; HR Investment Center interviews and analysis.

Mid-Year Review “One-Over-One” OversightTeam Talent Review

• Each manager presents review of direct reports to an audience composed of senior leaders and managers of the same rank

• Audience encouraged to provide additional feedback, share anecdotes, and discuss accuracy of each assessment

• Managers review each of their evaluations with their direct supervisor

• Supervisor’s role to thoughtfully probe decisions and pushback on ratings

• Managers encouraged to make development a year-round priority by continually revisiting performance evaluations

• Six months after formal evaluations, supervisor updates each managerial direct report on performance against goals as well as adherence to development plans

December

June

A Worthy Pursuit

Giventhemagnitudeofthetask,itislittlesurprisethatmanyorganizationshavechosentolivewiththeproblemofinaccurateperformancedataratherthanfixit.Reliabledata,however,iscriticaltothesuccessofstrategiesbeyondsuccessionmanagementincludingimprovingorganizationalperformance,retainingtopperformers,andleadershipdevelopment.Giventheabilitytoimpactsomanycriticalareas,theCenterstronglyrecommendsinvestingresourcesinbetterperformancemanagementevenforhospitalsandhealthsystemschoosingnottoaggressivelypursuesuccessionmanagement.




Component #2: Defined “Potential” Ratings

Conclusion #107 While performance in current role the best predictor of success at higher levels, best practice organizations also assess leaders’ “potential” to replicate that success at higher levels

Conclusion #108 To ensure supervisors apply consistent definition of “potential” when identifying successor candidates, best practice organizations applying concept of learning agility as a proxy for intrinsic potential—identifying individuals who perform better under first-time conditions compared to other employees

Developing Common Criteria for Identifying Future Promise

Sample Characteristics of Manager Agility

“Potential”DefinitionToolavailableattheendofthispracticeonpage114.

Evaluating Leaders’ Agility

Source: Lombardo M, Eichinger R, “High Potentials as High Learners,” Human Resource Management, 2000, Vol. 39 no. 4: 321–330; HR Investment Center interviews and analysis.

Eager to learn about self, others, and ideas

Frequently volunteers for additional opportunities or expanded responsibilities

Actively seeks opportunities to improve oneself

Consistently performs well under first-time conditions

Shows willingness to learn from feedback and experience and change behavior and viewpoints as a result

Targeting a Limited Pool

Assessing Intrinsic Potential

Incorporating Organizational Context

• Top 20-25 percent of leaders identified using performance data

• Using set of pre-defined behaviors believed to exemplify agility, hospital narrows list to top 10 to 20 percent of leaders

• Hospitals may also choose to purchase formal assessment tools to measure potential

• Hospital categorizes top leaders into talent types based on whether their potential can be broadly applied across multiple roles or is limited to area of expertise


Sample Hospital Talent Types

Developing Common Criteria for Identifying Future PromiseEvaluating Leader’s Mobility


Lilly’s Talent Types

Possible Future RoleBrand Marketing Executive

Possible Future RoleResearch Fellow

Functional Leadership Potential

Description• Consistent top performer

year after year• Recognized as much for

functional expertise as managerial expertise

• Interested in and suited for managing one portion of the value chain

Possible Future RoleRegional General Manager

Cross-Functional Leadership Potential


under first-time conditions• Broad knowledge of several

functions and businesses• Interested in and suited for

managing across the value chain

Technical Leadership Potential


year after year• Demonstrates ability to set

strategic direction and lead thought in his/her area of expertise

• Functions as an individual contributor or small group leader

• Not interested in or suited for management positions

Conclusion #109 In addition to determining level of agility, Center recommends hospitals develop taxonomy for assessing candidates’ potential to succeed across professional tracks; to better understand the mobility of its leadership bench, Eli Lilly and Company asks supervisors to classify candidates’ potential in one of three talent types—technical, functional and cross-functional

Conclusion #110 Caveat: Ensuring that all managers apply a common definition when evaluating an individual’s “potential” is more important than selecting the most scientific definition of potential; enforcement of a common definition should help narrow larger pool of current high performers to the top 10 to 15 percent of individuals most likely to succeed at the next level

• ClinicalLeadershipPotential

• MedicalLeadershipPotential

• Executive-levelPotential

• System-levelPotential

• Cross-functionalPotential




Leadership Review Format

Each presenter will highlight their key direct reports using the Talent Potential Grid. Identify strengths, areas of opportunity, and career aspirations.

Think about the following questions for key direct reports and share responses as deemed appropriate during the talent discussion:

• What is the potential of the employee?• What is the performance of the employee?• Is the employee at risk of leaving the organization?• Is the employee’s career aspiration realistic?• Is the employee sufficiently challenged in the current role?• What experiences does the employee need to have in order to be better

qualified for the next level/role in the organization?• Is there a back-up for the employee?

Distort your time to high potential employees. Employees who have been in their roles less than a year will only be discussed in detail by exception.

After each direct report is presented, there will be an opportunity for others at the meeting to add their assessment as well.

Challenges:

• Time is very limited - focus on key employees.• Avoid gossip or hearsay• Respect the assessments of others

Component #3: Group Hi-Po Selection

Conclusion #111 Pressure-testing of hi-po decisions with peer managers the final screen best practice organizations use to hone in on top five to ten percent; in contrast, majority of hospitals still relying on direct supervisor to nominate high-potentials largely in vacuum

Conclusion #112 Annual performance review sessions represent best venue for group hi-po selection; at OhioHealth, leaders plot performance and potential scores for all direct reports on two-by-two matrix but spend majority of session vetting list of those leaders in upper right quadrant and discussing future career paths

Relying on Larger Leadership Team to Make Final CutFocusing Reviews on Top Talent

Source: OhioHealth, Columbus, Ohio; Bank of America, Charlotte, N.C. ; HR Investment Center interviews and analysis.

Cascading Talent Reviews

Similar to other organizations, OhioHealth leaders meet to discuss performance, development needs of all direct reports

Hospital Presidents

Hospital VPs

System C-suite

Distort your time to high potential employees. Employees who have been in their roles less than a year will only be discussed in detail by exception.


Relying on Larger Leadership Team to Make Final Cut

Perf

orm

ance

Potential

MiriamRita

Peter

Susan

Tom W.Mary Ellen

JosephineDick

Christine

George

Steve

Final placement on matrix may be adjusted after group discussion

Given clear guidance on criteria for performance and potential, supervisors able to systematically assess and plot talent along both axes

Conclusion #113 For the admittedly difficult task of making final cuts, group should consider several key differentiators to add or detract from individual’s case; candidates with relatively more complex jobs or possessing rare expertise should be given preference while those exhibiting undesirable behavioral traits may be shifted downward and denied entry into final successor pool

Sample Differentiators

Job Complexity How complex is the individual’s job relative to others at the same level or in comparable functions?

Goal Complexity To what degree are the established goals more or less difficult or complex that other similarly situated individuals?

Skills/Expertise Does the individual use skills and abilities beyond those commonly held by people in similar roles?Does the individual possess skills or talent that is rare or uniquely valuable to the hospital?

Values Does the individual model the hospital’s values?Does the individual value diversity and manage a diverse workforce?

Personality Does the individual appear cold, aloof?Is the individual overly ambitious or play politics?

Leadership style Does the individual micro-manage?Does the individual have an abrasive managerial style?

Source: OhioHealth, Columbus, Ohio; Bank of America, Charlotte, N.C. ; HR Investment Center interviews and analysis.

Differentiating Those on the Cusp

FullFulllistofHi-PoDifferentiatorsavailableattheendofthispracticeonpage117.

Performance–Potential Matrix






• Modify leadership performance evaluation process to capture more accurate data

• Distribute organization-specific potential definition and aggregate results

• Facilitate senior leadership discussion to develop common criteria for high potential

• Create list of derailment factors and validate with senior leaders

• Schedule and facilitate group hi-po discussion

• Validate common criteria for high-potential and derailment factors

• Calibrate performance/potential scores and select high potential

• Leverage tools to identify high-potential reports

• Present case for each high potential in group hi-po discussion

Conclusion #114 Given the significant investment in time and resources required to develop high-potential talent, critical for all institutions to withstand hospital tendency toward inclusion and select only the top five to ten percent of candidates; while any number of assessment and consulting companies may add greater rigor to measuring performance and potential, expense remains prohibitive and results remain inexact

Conclusion #115 Adopting Principled Hi-Po Selection not only reduces subjectivity in selecting leaders but promotes thorough, meaningful discussions around top talent; practice should be repeated every year to identify new entrants into talent pool and confirm high-potential status of those previously selected

Conclusion #116 For small hospitals where senior leaders already have some first-hand knowledge of each individual managers’ abilities, reliable performance data becomes less critical for identifying top talent; instead small hospitals should focus on components #2 and #3 to arrive at a small hi-po pool


Practice Assessment




Note on Use

ThefollowingisasampleofOchsnerHealthSystem’sRatingSystemDescriptors.Thedescriptors,providedtoallleaders,offerdetaileddefinitionsofeachperformancerating.Byspecifyingunambiguouscriteriaforperformancemetrics,HRisabletobetterensureconsistentapplicationofratings,differentiatedperformanceevaluationsandmorereliableperformancedata.

Tool 5A: Ochsner’s Rating System Descriptors


Ochsner’s Rating System Descriptors



Performance Level

Category

Rating Scale


• Highly regarded by peers as expert in their field• Serves as role model; leads by example• Highly productive and innovative; stimulates teamwork• Generates top quality work striving for perfection• Consistently exceeds behavioral standards• Significant achievements; always exceeds target goals• Active in industry-related and outside community groups

Outstanding/Mastery

5



• Shows initiative and versatility in completing tasks• Works collaboratively contributing to team efforts• Strong technical and interpersonal skills• Achieved significant advancements• Demonstrates advanced job competency

Very Good/Exceeds

Expectations

4

Good performance, fulfilling all position requirements and may on occasion generate results above those expected of the position.

• Meets all performance standards• Consistent performance on target goals (neither exceeds

or falls short of targets)• Thorough job competency; developing advanced skills• Blends in with the team• Generates good quality and quantity of work product

Good/Meets Expectations

3

Performance leaves room for improvement. Either performance level declined or has not shown significant improvement during the rating period.

• Sometimes meets performance standards• Seldom exceeds or sometimes falls short of target goals• Job and behavioral competencies need development;

indifferent• Not responding favorably to instructional direction

Improvement Expected

2

Lowest performance level, clearly less than acceptable and well below minimum standards. Situation requires immediate review and action. Possible separation or reassignment unless significant and immediate performance improvement.

• Consistently falls short of performance standards and target goals

• Job competencies are limited and below job requirements

• Performance Improvement Plan objectives not met• Has had a discipline report during the rating period• Demonstrates inappropriate behavior with others;

disruptive

Unacceptable 1

Source: Ochsner Health System, New Orleans, La.




Gather a small group of senior leaders, well-known for developing strong leadership pipelines and nurturing top talent

Review common misunderstandings of potential:

Ask leaders to keep in mind a specific individual they consider to possess great potential throughout the exercise

Ask each leader to select 5–6 characteristics of high potential from those listed in Section I. Blank spaces have been provided for any additional characteristics that leaders would like to include

As a group, discuss common themes from the suggested characteristics and agree on a final list of 5–6 traits that best characterize high potentials

Ask leaders to identify more specific types of talent and list the unique traits that demonstrate potential for each type. Types of talent can be categorized in three ways:

1. By Level (Manager, Director, Executive)

2. By Breadth (Technical, Functional, Cross-functional)

3. By Job Family (Clinical, Medical, Administrative)

Examples:

Note on Use

ThistoolisdesignedtoassistHRintheidentificationofbehaviorsandtraitsthatcharacterizehighpotential.Thediscussionguidelineswalkleadersthroughthekeystepsandconsiderationsforbuildingacommondefinition.Thefinalchecklistcanbedistributedtoallsupervisorsandusedasthestandardcriterionwhenidentifyinghigh-potentialstaff.

Instructions

1

2

3

4

5

6

• Clinical Leadership Potential• Medical Leadership Potential• Executive-level Potential

• Corporate-Level Potential• Cross-functional Potential

Fill out talent types and corresponding traits in Section II of the worksheet

7

8

Vet completed worksheet with senior executives for final approval

Distribute completed worksheet to all supervisors for use in identifying top talent


Tool 5B: “Potential” Definition Tool

“Mini-Me”• Younger versions of current

manager• May not possess leadership

qualities needed in the future• More problematic if current

incumbent is underperforming• Likely to hinder diversity efforts

“Old Faithful”• Long-time employee; loyal to

institution and to manager• Despite deep institutional

knowledge may never have wherewithal to perform at a higher level even with additional development

“Ivy League”• Highly intelligent; may

hold several degrees, accreditations

• Performs well in academia but may not possess business, political savvy required at higher levels


Source: Lombardo, M, Eichinger, R, “High Potentials as High Learners,” Human Resource Management, 2000, Vol. 39 no. 4: 321-330; HR Investment Center interviews and analysis.

SECTION I: CHARACTERISTICS OF HIGH POTENTIAL1

SECTION II: ADDITIONAL TYPES OF TALENT

“Potential” Checklist

Type:

Traits:

Type:

Traits:

Type:

Traits:

Eager to learn about self, others, and ideas

Frequently volunteers for additional opportunities or expanded responsibilities

Actively seeks opportunities to improve oneself

Keeps informed of major strategic initiatives both within and outside of department

Enjoys complex problems and challenges

Consistently performs well under first-time conditions

Shows willingness to learn from feedback and experience and change behavior and viewpoints as a result

Quickly incorporates new skills into repertoire

Open to diversity, multiple sources and a range of views

Other

1 Adapted from Lominger Limited, Inc.


(Organization Name)




Job Complexity• How complex is the individual’s job relative to others at the same level or in comparable functions?

Goal Complexity• To what degree are the established goals more or less difficult or complex than other similarly

situated individuals?

Collaboration• Does the individual collaborate with others and build mutual respect benficial to the hospital?

Skill Versatility• Does the individual use skills and abilities beyond those commonly held by people in similar roles?

Rare Talent or Expertise• Does the individual possess skills or talent that is rare or uniquely valuable to the hospital?

Reflects Leadership Values• Does the individual model the hospital’s values?• Does the individual value diversity and manage a diverse workforce?• Does the individual enable others to contribute to their full potential?

Personality• Does the individual exhibit any of the following negative personality traits:

Tool 5C: Hi-Po Differentiators

Note on Use

Thefollowingisalistoffactorsseniorleadersshouldconsiderwhendeterminingwhichleaderstoincludeinhigh-potentialtalentpool.Candidateswithrelativelymorecomplexjobsorwhopossessrareexpertisearetypicallyselectedfirstwhilethoseexhibitingnegativebehavioraltraitsmaybedeniedhi-postatus.

Unsympathetic to others

Frequently loses self-control

Easily excitable

Responds poorly to criticism

Does not display humility

Speaks without thinking

Has trouble keeping sensitive information confidential

Intimidating

Abrasive style

Appears cold, aloof

Overly ambitious, plays politics

Micro-managing

Unable to adapt to boss

Does not model organization’s values

Seen as untrustworthy


Source: Bank of America, Charlotte, N.C, ; HR Investment Center analysis.




Rationale

Unlikemiddleanduppermanagement,dailyperformanceoffrontlineleadersandstafflessvisibletoHRandseniorexecutivesduetolackofconsistentinteractionandlargegroupsize;furthermore,day-to-dayresponsibilitiesaffordlittleopportunityforfrontlineleadersandstafftodisplaynext-levelpotential


Component #1: Designating Monitoring Opportunities Organizationsidentifyexistingeventsoractivitiesasopportunitiesforobservingfutureleadershippotential;opportunitiesselectedbasedonexposuretoandparticipationinhigher-levelissues

Component #2: Observing Employee ActionsHR,alongwithotherleaders,takenoteofhowindividualsperformineachactivityincomparisontopeers;specialattentionpaidtoinitiative,groupinfluence,andteambuildingskills

Practice Assessment

Aneffectivemeansforidentifying“potential”amidstlargenumbersoffrontlineemployees;practicecanbeespeciallyhelpfulfororganizationswishingtoacceleratediversityeffortsanddevelopapipelineofminorityleaders

Practice in Brief

Supervisorsassignhigh-performingfrontlinestafftoparticipateinpre-selectedactivitiestotesttheirmanagerialpotential;goaltoenhanceaccuracyoffrontlinehi-poselectionbycollectingmultipleperspectivesratherthansimplybasingselectiononsupervisoropinion

Practice #6: Early Potential Monitoring




Conclusion #117 While components of Practice #5, Principled Hi-Po Selection, can be applied to any level of the organization, large group size and limited opportunity to display senior leadership ability make determining potential particularly challenging at the frontline

Conclusion #118 Challenges can be overcome by encouraging most promising staff to participate in group activities, then observing employee actions for signs of next-level potential; best monitoring opportunities are often existing initiatives that are interactive and expose staff to issues beyond day-to-day responsibilities

Identifying Potential at the Frontline

Component #1: Designating Monitoring Opportunities

Sample Monitoring Opportunities

Selecting Best Venues for Observation

Unit-Level Activities

Hospital-Wide Activities

System-Wide Activities

• Blood Donor Drive• Great Place to Work

Committee• Customer Satisfaction

Campaign• Best Practices Exposition• School Partnership

Settings Most Conducive for Monitoring

Action-learning

Interactive

Teamworkoriented

Addresseshigher-levelissue

Exposuretootherdepartments

o Case study classroom sessionso Team building activitieso Task forces

o Town hall meetingso Unit-level meetingso Focus groups

o Volunteer activitieso Shared governance councilso Technology assessment committee

Source: OhioHealth, Columbus, Ohio; HR Investment Center interviews and analysis.

Identifying Monitoring Opportunities from Existing Activities


Current and Potential System-wide Projects

1. Campus-wide smoking cessation project

2. Coordinate healthcare career fair for all local high schools

3. Integrate compliance education curriculum

4. Alternative medicine services brochure

Identifying Potential at the Frontline

Conclusion #119 Case in Point: HR executives at OhioHealth keep a running list of task forces and projects that they can use to test promising employees; for example, one promising employee with limited team-building experience deliberately assigned to multi-disciplinary task force to, among other things, provide “read” on his ability to lead both peers as well as more senior managers

Leveraging Task Forces

Assessing Leadership Potential of One Frontline Employee at OhioHealth

Case in Brief• Supervisorswhosenseadirectreportmayhavepotentialfor

promotionbuthavenoevidencetosupportopinionplaceindividualsontaskforceassignments

• OrganizationalDevelopmentdepartmentkeepsrunninglistoftaskforces;matchesindividualtoexperiencethatwillbesttestunknownleadershipcapabilitiesOhioHealth


High performing employee assigned to lead high-profile task force; required to lead peers as well as more senior managers

VP notifies succession planning committee of the high-performing employee and outstanding questions regarding managerial potential

Question marks as to future leadership

capability

• Recently graduated with Master’s

• Limited work experience• New to organization• Never built/led a team• Has not demonstrated ability

to influence or persuade others

VP impressed with current performance of a frontline employee but unsure of future potential

Current Performance

★★★★




Component #2: Observing Employee Actions

Conclusion #120 During initiatives selected for monitoring, key stakeholders are asked to observe and formally comment on employee’s performance with particular attention to competencies untested by normal job requirements; observer evaluations are then collected by HR and shared with the direct supervisor

Conclusion #121 The supervisor then discusses the individual’s performance in the next team talent review and suggests future career paths

Real-time Observation of Next-Level PotentialGathering Multiple Points of View

OhioHealth Task Force Evaluation Form

Name of Reviewer: Anne Hagen Role: Task Force Member

Name of Reviewee: Timothy Hong Duration: 9 months

Role in task force: Project ManagerPlease rate the reviewee’s performance on the 1 (Needs Improvement) to 5 (Outstanding) scale.

Project Management Leadership Competencies

1. Meeting effectiveness 4 1. Critical thinking 4

2. Time management 5 2. Team building 5

3. Meeting deadlines 5 3. Accountability 5

4. Productivity 4 4. Influence and Persuading 5

5. Delegation 3 5. Negotiation and Conflict Management

4

Confirming Potential

Task Force

Evaluation

Taskforce evaluations collected by HR and shared with direct supervisor

Direct supervisor discusses individual’s accomplishments in team talent review; suggests future career paths for individual

Observed employees demonstrating desired skills added to talent slates for appropriate positions, ideally including options outside current functional area


Evaluated on task force management and deliverables as well as leadership competencies

Particular attention paid to original areas of unknown potential

Key stakeholders, including direct supervisor, taskforce members, and other leaders, asked to observe and comment on individual’s performance during initiative


Real-time Observation of Next-Level Potential

Name: Debbie Wilson Activity: Shared Governance

Yes No

Does the employee have a positive attitude?

Is the employee inquisitive?

Does the employee ask thoughtful questions?

Does the employee display a healthy amount of skepticism?

Does the employee show initiative?

Does the employee have a strong presence in the group?

Is the employee able to influence others?

Does the employee demonstrate an ability to work in teams?

Does the employee respect other people’s opinions?

Does the employee volunteer for additional opportunities?

Conclusion #122 As an alternative to placing single promising employee on select initiatives, some organizations leveraging activities that involve large numbers of frontline employees as monitoring opportunities and asking leaders to pick staff who outshine their peers

Conclusion #123 But regardless of the number of employees being observed, important for organizations to ensure at least one leader, either an HR staff member or another manager facilitating the activity, is assigned to monitor employee actions; additionally, leaders charged with monitoring must be provided a clear set of criteria against which to gauge potential

Setting Universal Criteria to MonitorFrontline “Potential” Checklist


Majority of responses must be positive before individual can receive hi-po status.

Checklist provided to leaders designated to monitor staff potential

Frontline“Potential”Checklistavailableattheendofthispracticeonpage128.




Conclusion #124 Observation method of talent identification may be particularly valuable for institutions looking to increase diversity among their leadership ranks; following a similar practice to OhioHealth, Massachusetts General leverages existing minority support groups to identify and develop high-potential minority leaders

Surfacing Future Minority Hi-Pos at Massachusetts GeneralCreating a Supportive Environment

Case in Brief

• Inresponsetoa1992internalreportaddressingthedifficultyinrecruitingminorityprofessionalsintoleadershippositions,MGHformedseveralaffinitygroupsforspecificrolesanddepartments

• Affinitygroupstypicallymeetonceamonth;provideminoritieswithasafeenvironmenttodiscusstheirfeelingsaswellasbeinformedofanddevelopedforcareeropportunitiesatMGH

Massachusetts General Hospital

Source: Massachusetts General Hospital, Boston, Mass. ; HR Investment Center interviews and analysis.

Introduction to New Opportunities

Exposure to Top Leaders

Skills Building

Business Writing

101

MGH Diversity Committee

Affinity Groups

Nurse Assistant Group

Nursing Admin Coordinators Group

Professional Multi-cultural Group

Multi-cultural Nurses Group

Foreign-born Nurses Group

Operations Associates Group

Professional Development Goals


Joining an Affinity Group Recognizing Her Potential Taking a Leadership Role

• Linda joins MGH as supervisor for community benefits; joins AMMP1 after hearing about it during new employee orientation

• Observed by HR and other leaders to display early leadership qualities

• Linda continues to be a valuable contributor to group; one year later, asked to be AMMP membership chair

Surfacing Future Minority Hi-Pos at Massachusetts GeneralOffering an Opportunity to Shine

Expanding Her Role

• Linda becomes involved in pipeline development project to promote health care careers in Boston schools

Source: Massachusetts General Hospital, Boston, Mass. HR Investment Center interviews and analysis.

1 Association of Multicultural Members of Partners.


Profile of a High-Potential

1. Actively participates in discussions2. Offers solutions to problems, not

just complaints3. Volunteers to lead diversity initiatives4. Regularly signs up for educational

opportunities5. Remains engaged during classes6. Puts newly learned skills to practice7. Interested in learning about other

departments8. Approaches HR to talk about interest

in other positions

Achieving a Promotion Acquiring New Skills Seeking Guidance

• Becomes Director of Employee Education and Leadership Development

• Currently working to align AMMP with larger education strategy

• Participates in HR projects • Returns to school part-time for MBA• HR assigns VP, Cancer Care as

mentor

• Realizing passion for workforce development, meets with HR to discuss needs and possible career paths

United Way

Campaign

Getting on the Radar Screen

HR Offering Support All the Way





• Select activities most suitable for observing early management potential

• Develop checklist of behaviors which demonstrate management potential

• Monitor participants during activities and compare actions and behaviors to checklist

• No responsibilities • Identify high-performing staff who may be good candidates for management positions; enroll them in designated monitoring activities

• Monitor participants during activities and compare actions and behaviors to checklist

Conclusion #125 Identification of high-potential frontline staff becoming increasingly important in light of many hospitals’ struggle to fill frontline management positions and goal to increase diversity among leadership ranks; practice offers a pragmatic method for identifying future managers based on observed performance in existing activities, rather than nomination from direct supervisor

Conclusion #126 In addition, practice can enable hospital to assess large groups of employees simultaneously for handful of individuals mostly likely to succeed as frontline managers


Practice Assessment




Note on Use

Thistoolisdesignedtoassistleadersinidentifyingfrontlinestaffwithmanagerialpotential.Usingthelistofquestions,leadersrecordcandidate’sbehaviororactionswhichindicateaninterestoraptitudeformanagement.FinalassessmentsofmanagerialpotentialaresharedwithHRanddirectsupervisor.

Tool 6A: Frontline “Potential” Checklist


Note to Reviewer:Observe candidate’s actions and behaviors paying special attention to the questions listed below. Based on your observations, please provide a final assessment of the candidate’s managerial potential.

Name: ______________________________________

Candidate’s Name: ____________________________

(Reviewer)Position: ____________________________________

Activity: _____________________________________

(Reviewer)

Yes No

Does the employee have a positive attitude?

Is the employee inquisitive?

Does the employee ask thoughtful questions?

Does the employee display a healthy amount of skepticism?

Does the employee show initiative?

Does the employee have a strong presence in the group?

Is the employee able to influence others?

Does the employee demonstrate an ability to work in teams?

Does the employee respect other people’s opinions?

Does the employee volunteer for additional opportunities?

Other Observations: _____________________________________________________________________________

_______________________________________________________________________________________________

Final Assessment of Potential: ______________________________________________________________________

_______________________________________________________________________________________________

_______________________________________________________________________________________________

Frontline “Potential” Checklist





Rationale

Lackofleadershipambitioninstaffnursespresentingasuccessionchallengetofillingfrontlineclinicalleadershippositions—thelargestnumberofmanagersinthehospital


Component #1: Clarifying Career Options Hospitalformalizesstaffnursecareeroptionsintothreecleartracks—clinical,management,andeducational—andpromotesoptionstostaff

Component #2: Securing a CommitmentNursemanagersmeetwitheachstaffnursetodiscussprofessionalinterests,encouragethosewithmanagerialtalenttocommittothemanagementtrack;craftindividualdevelopmentplanstosupportselectedambition

Practice Assessment

Recommendedfororganizationsthathavetroublefillingfrontlineclinicalmanagerpositionswithqualifiedinternalcandidates;ensuresstaffwithmanagementtalentnotoverlookedbutinsteadformallycounseledalongthistrack

Practice in Brief

Hospitalasksfrontlineclinicalstafftoself-selectoneofthreecareertracksincludingmanagementtrack;goaltoidentifyfrontlineemployeesdemonstratingearlyambitionforleadershiproles,andencouragetheirdevelopmentalongthattrack

Practice #7: Career Progression Counseling




N U R S I N G A T I H C

Want to learn more?

IHC Nursing Career Structure

In three primary areas:

Attendameetingscheduledatyourfacility:

Clinical

Leadership

Education

Intermountain Health CareIHC


Want to learn more?




Clinical

Leadership

Education



Want to learn more?




Clinical

Leadership

Education


Providing Clearer Choices to Staff Nurses

Component #1: Clarifying Career Options

Three Tracks at Intermountain

Case in Brief

• IntegratedhealthcaredeliverysysteminUtahwithover22hospitals,includingfourMagnetfacilities

• NewcareerstructurecreatedinAugust2005standardizesgradesandjobtitlesforsimilarnursingfunctionsacrosstheorganization

• Nursemanagersandadministratorsateachfacilitydiscusscareerstructureathouse-widestaffmeetings

Intermountain Health Care

Source: HR Investment Center interviews.

Management TrackCoordinator I Coordinator II

Resource coordinator role within a department or specialty area

Clinical TrackClinical Expanded I Clinical Expanded II

Clinically skilled nurse assigned a specialty area in a department or facility

Education Track Education I Education II

Education experts within a department or specialty area

Conclusion #127 Hospital streamlines staff nurse positions and roles into a new career development structure with three clear tracks: clinical, management, and education; nursing leaders advertise career structure on posters throughout the hospital and in hospital-wide meetings as part of an effort to encourage staff nurses to consider the various “professions within the profession” of nursing


Providing Clearer Choices to Staff NursesIdentifying Future Managers

One-on-One Meetings with All Staff

• Nurse managers, armed with communications packet, meet with each staff nurse to discuss career structure

• Discussion includes overview of current career goals and performance strengths

Providing a Little (Re)Direction

“Manyofournurseswillchoosetocontinuedoingdirectpatientcare.Weneedthoseexpertnursestostayatthebedsidewithsatisfaction.Wehaveothernurseswhoshowgreattalenttobecomemanagers.Ourcareerprogressionmeetingsareenablingmanagerstoformallyidentifythosenursingprofessionalswithmanagerialpotentialandinsomecasesre-directtheirenergiesintoamanagementtrack.”

NurseAdministratorLDSHospital

February 5, 2006Career Discussion

Name: Claire StandishUnit: NurseryTenure: 32 months

Goals::Review strengths from former performance evaluationsDiscuss career goalsIdentify specific developmental and educational objectives

Notes:

Conclusion #128 Nurse managers meet one-on-one with each staff nurse on their units to discuss career strengths, interests, and aspirations; these conversations provide a formal opportunity for managers to identify staff nurses with management talent and guide rising stars into the management track


Source: HR Investment Center interviews.




A Declaration of Intent

Nursing Career StructureDiscussion Acknowledgement

My manager and I have discussed the new IHC Nursing Career Structure. My signature below indicates that I understand that effective immediately:

• I must select a career track.

• Nurse manager positions will require a bachelor’s degree.

• Clinical II, Coordinator II and Educator II positions require a bachelor’s degree.

Selection of Career Track (please choose one of the following):

Clinical Expanded Coordinator Educator

Educational Plan (please choose one of the following):

I plan to complete the educational requirement before the deadline.

I already meet the educational requirements.

I understand the requirements and have the following plans:

This agreement does not, either directly or indirectly, constitute any form of employment contract or other binding agreement between any employee and IHC.

Employee Signature Date

Manager Signature Date

Conclusion #129 Career discussions culminate in selection of a single career track; each staff nurse signs an informal “contract” committing to one of the three tracks and to an educational plan that will help them develop along that track

Conclusion #130 Contracts, while not binding, require staff nurses to formally document career goals; contracts are renewed each year during annual career discussions in order to accommodate changes in staff nurses’ ongoing career goals and ambitions

Component #2: Securing a Commitment


NursingCareerStructureDiscussionAcknowledgementavailableattheendofthispracticeonpage138.




Conclusion #131 Given most hospitals’ increasing difficulty in finding individuals interested in nurse manager roles, critical for organizations to look for nurses with potential interest in management proactively and encourage them along this track; to assist direct supervisors, HR should consider customizing the development cheat sheet found in practice #10 to provide prescriptive guidance on which activities to include in development plans of potential future managers

Conclusion #132 Further, to fully benefit from this practice, most hospitals must employ complementary strategies to make the nurse manager role more attractive to prospective successors

Practice Assessment


• Together with nursing leadership, streamline nurse career options into well-defined tracks

• Prepare marketing materials for each career track

• Determine career tracks• Hold managers accountable for

conducting career conversations

• Meet one-on-one with each clinical employee to discuss career options

• Identify individuals with interest in management careers and obtain commitment to that track

• Create development plan to ensure individual meets all educational and performance requirements for manager position

• Follow-up with individual once a year to confirm commitment to management track or consider changes in goals and ambitions





Note on Use

Nursemanagersmeetone-one-onewitheachstaffnurseontheirunitstodiscusscareerstrengths,interests,andaspirations.Followingthecareerdiscussion,eachstaffnursecompletesa“contract”(seesampleontheright)indicatingtheirintentiontopursueoneofthreecareertracks.Thedocumentisrevisitedeachyear,sothatnursescanconsider,inanon-bindingyetcommittedway,theirongoingcareergoalsandambitions.

Tool 7A: Nursing Career Structure Discussion Acknowledgment


Nursing Career StructureDiscussion Acknowledgement

My manager and I have discussed the new IHC Nursing Career Structure. My signature below indicates that I understand that effective immediately:

• I must select a career track.

• Nurse manager positions will require a bachelor’s degree.

• Clinical II, Coordinator II and Educator II positions require a bachelor’s degree.

Selection of Career Track (please choose one of the following):

Clinical Expanded Coordinator Educator

Educational Plan (please choose one of the following):

I plan to complete the educational requirement before the deadline.

I already meet the educational requirements.

I understand the requirements and have the following plans:

This agreement does not, either directly or indirectly, constitute any form of employment contract or other binding agreement between any employee and IHC.

Employee Signature Date

Manager Signature Date

Source: Intermountain Healthcare, Salt Lake City, Utah.




141


Practice#8:IndividualNeedsAssessment............................... 143

Practice#9:TalentPoolSlate.................................................... 173

Practice#10:PrescriptiveDevelopmentPlanning................... 189


III




Rationale

Ratherthanassessingneedsofindividualhigh-potentials,manyhospitalstargetagenericsetofskillsorcompetenciestodevelopacrossallhigh-potentials;further,eventhosehospitalsthatevaluateindividualperformanceneedstoooftendosoincontextofleader’scurrentroleratherthanthenext-level


Component #1: Assessing Personality and Values Hospitalleveragessetofpersonalityteststopinpointhard-to-quantifycharacteristicssuchasvalues,motivators,preferredlearningmethod;assessmentprovidesHRanddirectsupervisorwithbetterunderstandingofpersonaltraitswhichmayaidorhinderleader’sfuturesuccess

Component #2: Identifying Next-Level Development Needs Usingtieredcompetencymodel,HRcompareseachhi-poagainstpre-definedcompetenciesrequiredforsuccessatnextmanagementlevel;exerciseexposesspecificareasindividualhi-pomustdevelopinordertobesuccessfulinnextrole

Component #3: Individual Talent Profile HRsummarizesinformationfromassessments,performanceappraisals,developmentplansintosingledocumentprovidingsnapshotofhi-po’soverallstrengths,weaknesses,accomplishments,andaspirations;talentprofilescontainselectfactstohelpsupervisorsmakemoreinformeddecisionswhenmatchingsuccessortonecessarydevelopmentopportunitiesorfuturepositions

Practice Assessment

Stronglyrecommendedfororganizationsasanecessaryfirststepinbuildingcustomizeddevelopmentplans;inaddition,talentprofilesensureselecteddevelopmentopportunitiesorfuturepositionsproperlymatchedtohi-po’suniquetalents

Practice in Brief

Foreachsuccessor,hospitalconductsseriesofbehavioralassessmentsandcompetency-basedinterviewstopinpointpotentialpersonalityderailersandskillgapsastheyrelatetoexpectedperformanceinnext-levelroles;goaltodetermineeachsuccessor’sindividualdevelopmentneedsformovingtonext-levelrole

Practice #8: Individual Needs Assessment

Customizing High-Potential Development 143



Component #1: Assessing Personality and Values

Gaining a Deeper Understanding of Each Hi-Po Conducting an Expanded Battery of Assessments

Potential

• Hogan Potential Report

• Behavioral interview

Derailers

• 360-degree interviews

• Hogan Challenge Report

Values

• Hogan Values Report

Competencies

• Behavioral interview

• Performance reviews

Personality

• Myers Briggs Type Indicator

New Leader Survey

Value Report

Competencies Score

5

4

3

2

1

ISTJ ISFJ INFJ INTJ

ISTP ISFP INFP INTP

ESTP ESFP ENFP ENTP

ESTJ ESFJ ENFJ ENTJ

Source: Gundersen Lutheran Health System, La Crosse, Wis. ; HR Investment Center interviews.

Case in Brief

• GundersenLutheranidentifiesdevelopmentneedsofhigh-potentialsformovingtonext-levelrole

• Assessesleader’sbehaviorsandcompetenciesusingbothquantitativeandqualitativemeasures


Assessments Completed by Hi-Pos at Gundersen Lutheran

Conclusion #133 Prior to creating development plans for succession candidates, prudent to invest time and resources upfront to gain customized picture of each high-potential’s development needs; Gundersen Lutheran, for example, leverages multiple assessment tools to evaluate not only each hi-po’s competency strengths and weaknesses, but also personality and values

Conclusion #134 Gaining insight into personality traits such as personal learning styles or the environments in which a leader is most likely to thrive can greatly enhance hospitals’ ability to target development opportunities; while wide spectrum of value-added assessments exist, Center recommends, at a minimum, evaluating potential career derailers


Gaining a Deeper Understanding of Each Hi-Po

Gundersen’s Personality Assessment Methodology

• Eachhigh-potentialleaderundergoesaseriesofonlineassessmentsdesignedbyHoganAssessmentSystems

• Costperhigh-potentialleaderapproximately$400

• Resultsforeachleadersummarizedinasinglereport;twoHRleadersatGundersentrainedtointerpretresultsandexplainimplications

“Bright Side”

• Comprehensive analysis of seven leadership behaviors

• Pinpoints specific areas of strength and opportunities for development

“Dark Side”

• Interpretive information of 11 behaviors

• Identifies areas of derailment and development needs related to those derailers

“Inside”

• Assessment of 10 character traits• Describes type of environment

in which individual most likely to be satisfied and productive

Quantifying Intangibles

Source: Gundersen Lutheran Health System, La Crosse, Wis. ; Hogan Assessment Systems, available at: http://www.hoganassessments.com/LeadershipForecastReports.aspx, accessed May 25, 2006; HR Investment Center interviews.

Challenge Report Values ReportPotential Report

84

100

93

83

82

70

19

Adjustment

Ambition

Sociability

Interpersonal Sensitivity

Prudence

Inquisitive

Learning Approach

1612

748

9149

3418

4394

ExcitableSkepticalCautiousReservedLeisurely

BoldMischievous

ColorfulImaginative

DiligentDutiful 76

87606668

4087

6093

8388

RecognitionPower

HedonismAltruistic

AffiliationTraditionSecurity

CommerceAesthetics

Science

Hogan Personality Assessments

Conclusion #135 While demonstrated success and technical skills often sufficient to gain entry into hi-po pool, negative personality traits, such as being overly cautious or highly reserved, can block further promotion or result in failed transitions if left unaddressed; seemingly intractable, many of these negative characteristics can be redressed simply by calling leaders attention to the issue




Component #2: Identifying Next-Level Development Needs

Seeking Concrete Examples of Next-Level Skills

Leveraging tiered competency model... ...to assess gap to next level

In-Depth Interview Process

• Eachhi-pointerviewedforthreetofourhoursusing15-pagebehavioralinterviewguidetoassessleadershipcompetency

• HRaskstargetedquestionsforeachcompetencyrequiredfornext-levelrole

• Hi-poscoredonspecificcompetencybasedoncompletenessinanecdotalresponse

• Consistencyandfairnessinevaluationensuredthroughexplicitcompetencydescription,properdocumentation,andaconsistentinterviewerassignedtoeachtalentpool


Builds Teams(Director Level)

Builds and Leads Teams

(Executive Level)

4

2

Conclusion #136 Since most hi-pos selected based on their outstanding performance in current role, limited value in assessing their leadership competency against criteria for existing position; evaluating performance against criteria for likely next job allows hospital to target development to those skills necessary for promotion

Conclusion #137 Case in Point: Using expectations delineated in tiered competency model, Gundersen Lutheran conducts in-depth behavioral interview to assess each hi-po against next-level competencies

Exec

utiv

e

Builds and Leads Teams Creates an environment that allows team members to reach their full capability through providing role clarity, encouraging risk taking, playing to team member strengths and focusing on team results over individual results.

Dir

ecto

r

Builds TeamsWith Medical Partner (if in partnership), builds constructive and effective relationships with colleagues across all functions, and aligns team efforts with organizational goals. Communicates in a manner that promotes comprehension, alignment and energizes collective intelligence and collaborative action.

Rating Past Performance Against Next-Level Skills

Competency Performance Score


Seeking Concrete Examples of Next-Level SkillsAccounting for Relevant Individual Experiences

Competency: Develops Leaders

3. What steps have you taken to ensure that resources are available for a person to develop his or her skills and abilities? What was the situation? What areas of development did you uncover? What actions did you take?

Situation/TaskIn Barri’s work as a nursing leader with 18 nursing managers reporting to her, she saw expanded leadership capability in many of her people and set a high standard for herself as a mentor.

ActionThe first action Barri took in developing her nurse managers was in modeling openness to honest feedback. She first got to know each individual, their strengths and development needs and shared feedback with them on an ongoing basis. With the assistance of staff she developed a peer feedback process so staff could have an opportunity to provide honest and respectful feedback to one another.

ResultMany of the nursing managers that Barri mentored eventually became Directors. She built the infrastructure and the capacity for nurses to grow as leaders in the organization.

Comments

Situation, action, and result are definite. Did give specific example of 1 individual and how this played out and how this result was measured. Met the standard “Above Expectations.”

1 2 3 4

5

Leader is scored based on anecdoteInterviewer looks

for anecdotes that demonstrates level of proficiency in competency

Excerpt from Gundersen Lutheran’s Interview Guide

FullBehavioralInterviewGuideavailableattheendofpracticeonpage153.


Conclusion #138 Based on behaviors defined for each competency, interviewer looks for concrete examples that demonstrate a level of proficiency in each; to ensure consistent scoring, single interviewer assigned to assess all high potentials from the same management level

Conclusion #139 Interviewer scores each competency based on hi-po’s actual experience, how experience was handled, and subsequent results; those scoring low due to lack of experience with competency offered opportunities to gain that experience, while those who handled the experience poorly are provided mentoring or classroom training to close gap between actual and expected performance





Talent Profile

Name: ______________________________________

Supervisor: __________________________________

Date: ______________________________

Degrees, Certifications:

RNMHA

Previous Work Experience:

Staff NurseNight shift house supervisor

Development Needs:

Needs to manage communications with others carefully so that her approach will not distance othersCoaching in communicationsGain Nursing Phd

Career Aspirations: Future CNO or COO

Strengths:

Weaknesses:

Poor communications skillsPoor teambuilding skillsPoor coaching skillsFunctional/Leadership Experiences:

Project leader for EMR implementation task forceCo-led Magnet application team

Recent Accomplishments: Earned MHA last summerReduced VAP by 60% in ICU

Performance Summary:

Current Rating

Exceeds expectations

2005 Rating

Consistently meets

2004 Rating

Consistently meets

Margaret Lau

Jason Holley

Distilling Key Takeaways

Component #3: Individual Talent Profile

Pulled from individual development plan

Taken from résumé

Conclusion #140 Finally, recommended that HR along with direct supervisor summarizes information gathered from assessments, performance reviews, résumés, and informal discussions to create a talent profile for each hi-po; written profiles facilitate more thoughtful match between hi-pos and appropriate development opportunities, as well as potential future roles

Summarized from performance reviews

Strong in Expecting and Leading Superior PerformanceInnovationStrong ability to translate vision into actionStrong ability to distill information and create action plans

IndividualTalentProfileWorksheetavailableattheendatthispracticeonpage170.


Taken from résumé

11/10/06

Garnered from behavioral interview and personality assessments






• Administer formal assessments of personality, derailers, values, and potential

• Conduct behavioral interviews of high potentials to identify their development needs at the next level

• Summarize assessment results in talent profile

• No responsibilities • Add relevant insights gleaned from performance, development discussions and personal interactions to talent profile

Conclusion #141 Assessment of each leader’s individual needs a necessary first step to ensure development planning targets specific deficiencies in skills required in next-level roles; given significant time and HR resources required to conduct thorough needs assessment, however, critical to focus solely on small group of identified high-potential leaders

Conclusion #142 Talent profiles should be revisited every year to reflect changes in hi-po’s aspirations or skill gaps; need for financial investment in the quantitative assessments described in Component #1, however, could be offset by personality-focused discussions between trained HR staff and high-potential leaders;


Practice Assessment






Note on Use

ThefollowinginterviewguidefromGundersenLutheranwascreatedtoidentifydevelopmentneedsofhigh-potentialdirectorsbyevaluatingeachhi-po’scurrentperformanceagainstexecutive-levelcompetencies.Eachhigh-potentialisinterviewedforthreetofourhoursandaskedtoprovideanecdoteswhichdemonstrateeachcompetency.ResultsaresummarizedbyHRandprovidedtothedirectsupervisororexecutivesteeringcommitteetoinformhi-po’sdevelopmentplan.

Tool 8A: Behavioral Interview Guide



DEVELOPS PEOPLE

Viewspeople,theirknowledge,andtheircapabilitiesastheorganization’scoreassets.Establishesformalandinformalrelationshipswithotherstoprovidefeedback,information,support,andresourcestohelpthemdevelopneworhigherlevelsofskillsandabilities.Seesandcreatesdevelopmentpossibilitiesforothers.RecognizeseducationasakeycornerstoneofourMission.

Behaviors

• Activeinvolvementwithmedicalandothereducationofstudents.

• Delivers,onanindividualbasis,constructivecriticismandencouragesself-improvement.

• Activelypromotesorganizationallearningthroughtransferofbestpracticesandbenchmarking.

• Ensuringresourcesareavailabletosupportdevelopmentneeds.

• Helpsothersworktheirwaythroughproblemswhileinstillingasenseofconfidence.

• Engagesincareeraspirationdiscussionsandexploressteps.

• Helpsothersrecognizetheirareasofstrengthanddevelopmentneedinaconstructiveandbeneficialmanner.Createsdevelopmentalplanswithdirectreports.

Planned Behavioral Questions

3. Whatstepshaveyoutakentoensurethatresourcesareavailableforapersontodevelophisorherskillsandabilities?Whatwasthesituation?Whatareasofdevelopmentdidyouuncover?Whatactionsdidyoutake?

Situation/TaskIn Barri’s work as a nursing leader with 18 nursing managers reporting to her, she saw expanded leadership capability in many of her people and set a high standard for herself as a mentor.

ActionThe first action Barri took in developing her nurse managers was in modeling openness to honest feedback. She first got to know each individual, their strengths and development needs and shared feedback with them on an ongoing basis. With the assistance of staff she developed a peer feedback process so staff could have an opportunity to provide honest and respectful feedback to one another. She also demonstrated the ability to agree to disagree. She worked with staff in developing a clinical ladder where nurses could progress to more advanced levels of nursing care and leadership based on education, experience and competency.

ResultMany of the nursing managers that Barri mentored eventually became Directors. She built the infrastructure and the capacity for nurses to grow as leaders in the organization.

Comments

Situation, action, and result are definite. Did give specific example of 1 individual and how this played out and how this result was measured. Met the standard “Above Expectations.”

1 2 3 4 5

Interviewer looks for anecdotes that demonstrate competency Leader is scored

based on anecdote

Leadership competency to be measured explicitly described

Well-defined key behaviors that exemplify competency included

How To Use This Tool

1

2

4

3

Source: Gundersen Lutheran Health System, La Crosse, Wis.



WORK BACKGROUND/EXPERIENCES

1._______________________________________ Job/Experience_________________ Dates ___________________________________

2. Whatwereyourmajorresponsibilities/duties?Anychangeinresponsibilities?

3. Whatdid/doyoulikebestabouttheposition?Whatdid/doyoulikeleast?

4. Whydidyou(orwhyareyouplanningto)leave?




VISIONARY

Examinesandclarifiestheforces(events,entities,andpeople)thataffectcurrentandfutureneeds.Expressesaclearvisionforfuturebusinessopportunitiesandcreateslinkagesbetweencurrentandfutureactivities.Identifiesnewquality/business/performanceopportunitiesforGundersenLutheran.

Behaviors

• Articulatesinsimpletermsapictureofadesiredstateandprovidesaconceptualframeworkandgeneraldirectionforaccomplishingthegoal.

• Movesbeyondtacticalapproachestoconceptualthinking.

• Useshistoricalandempiricaldatatoformulatethebigpicturevision.

• Harnessesthecollectiveenergyofpeopletoinspirethevision.

• Synthesizesmultiplescenariostofilterintofuturestate.


1. Describeatimewhenyoushiftedthestrategicdirectionofyourdepartment/businessunit/organization.

Situation/Task Action Result

2. Whatstrategieshaveyouusedtocommunicateamajornewdirectiveofseniormanagementtoemployees?(Whichstrategieshaveworkedandwhichhavenot?)


1 2 3 4 5

1 2 3 4 5



EXECUTIVE CHARACTER

Presentsoneselfwithcandorandintegrity,andanuncompromisingcommitmenttothevaluesoffairnessandhonesty.Hasastrongself-awareness.Isopentofeedbackandcommittedtocontinuingpersonaldevelopment.Encouragesotherstoexpressthemselves,todisagree,andchallenge—butmaintainsapproachability.Hasapersonalsenseofrightandwrongandoperatesfromastrongsenseofvaluesandpersonalethics.

Behaviors

• Readilycommunicatesownopinionsandvaluesforthebenefitoftheorganizationdespitefearofrejectionorrepercussion.

• Championspositionsregardlessofobstaclesanddoesnotshrinkfrompersonalresponsibility.

• Facesuptoproblemsituationsdirectly,thoughtfully,andwithouthesitation.

• Willingtomakeandcommunicateunpopulardecisionsbecauseit’stherightthingtodo.

• Iscourageous,takesastandontoughissues.

• Seeksfeedbackfromotherstoimprovehim/herself.

• Makeschangesinhis/herapproachbasedonobtainedfeedbackorresults.


1. Tellmeaboutatimewhen,basedonyourvalues,youtookastandonatoughissuethatyouknewwouldbeunpopularwithyourpeers.


1 2 3 4 5



INFLUENCES OTHERS

Expressesideasonbehalfoftheorganizationandpersuadesothersinapositivemanner.Gainssupportandcommitmentandmobilizesotherstotakeaction.Hasathoroughunderstandingoftheimplicationsofleadershipactions.Abletoworkwithdiversemembersoftheorganizationandgainrespect.

Behaviors

• Developsnetworksandbuildsteamsandrelationshipstofurtherstrategicgoals.

• Recognizestheinterests,concernsandneedsofthosetobeinfluenced;usesthatknowledgetocommunicateandachieveobjectives.

• Enthusiasticallyandconfidentlycommunicatesstrategiesandplanstobuildstakeholderinterestandcommitment.

• Explainsthereasoningbehindproposeddecisionstoensureunderstandingandgainbuy-inorsupport.

• Promotesmultidisciplinarydecisionmaking.

• Demonstratesintegrityandethicalbehavior.

• Followsthroughoncommitmentsmadetoothers.

• Communicatesopenlyregardingorganizationalissuesandchallenges.

• Willinglylistenstodifferingviewpointswithanopenmindanddemonstratescognitiveandemotionalintelligenceindecisionmakingandproblemsolving.


1. Canyoutellmeaboutatimewhenyouinspiredorinfluencedagroupofpeopletodoagoodjob?


2. Tellmeaboutatimewhenyouenhancedthereputationofyourorganization.Howdidyougoaboutit?


1 2 3 4 5

1 2 3 4 5



EFFECTIVELY LEADS CHANGE

Demonstratesresiliencyinachangingenvironmentbyadjustingtorapidlychangingprioritiesandbeingavisibleanchorforothersbyreaffirmingkeyvalues,goals,andoutcomes.Leadsotherstoadaptandremaineffectiveamidstongoingchange.

Behaviors

• Understandsandcommunicatesthesystemicissuesbehindchange.

• Identifieskeyopportunities,facts,andpossibilitiesthatdrivethechangeeffort.

• Communicatesapositivesenseofurgencyforchangewhenitisneeded.

• Recognizesandhelpsremedyindividualorcollectivebarrierstoimplementingchange.

• Ensurescontinuousrenewalofthebusinessbycreatingacultureofchallenge,self-questioning,andopennesstonewmethods.


1. Inyourcurrentposition,whatdoyoubelievearetheprimarybarrierstoacceptingthechangesthatarehappeningwithintheorganization?Whatareyoudoingaboutthesebarriers?


1 2 3 4 5



DEVELOPS PEOPLE

Viewspeople,theirknowledge,andtheircapabilitiesastheorganization’scoreassets.Establishesformalandinformalrelationshipswithotherstoprovidefeedback,information,support,andresourcestohelpthemdevelopneworhigherlevelsofskillsandabilities.Seesandcreatesdevelopmentpossibilitiesforothers.RecognizeseducationasakeycornerstoneofourMission.

Behaviors

• Activeinvolvementwithmedicalandothereducationofstudents.

• Delivers,onanindividualbasis,constructivecriticismandencouragesself-improvement.

• Activelypromotesorganizationallearningthroughtransferofbestpracticesandbenchmarking.

• Ensuringresourcesareavailabletosupportdevelopmentneeds.

• Helpsothersworktheirwaythroughproblemswhileinstillingasenseofconfidence.

• Engagesincareeraspirationdiscussionsandexploressteps.

• Helpsothersrecognizetheirareasofstrengthanddevelopmentneedinaconstructiveandbeneficialmanner.Createdevelopmentalplanswithdirectreports.


1. Whenwe’reverybusyatwork,sometimeswehavenochoicebuttodelegatemorethanwewouldlike.Tellmeaboutatimewhenyoudelegatedmoretoanemployeethanyouwishedyouhad.Whathappened?


2. Tellmeaboutthelastmajortask/project/assignmentyoudelegated.Howdidyoudecidetowhomyouwoulddelegate.


1 2 3 4 5

1 2 3 4 5



3. Whatstepshaveyoutakentoensurethatresourcesareavailableforapersontodevelophisorherskillsandabilities?Whatwasthesituation?Whatareasofdevelopmentdidyouuncover?Whatactionsdidyoutake?




EXPECTS AND LEADS SUPERIOR PERFORMANCE

Providesclear,measurable,andrigorousperformanceobjectivestoimprovetheperformanceofindividualsandbusinessunitstheyareresponsiblefor.Takestimetosharejob-relatedknowledge;providesongoingcoachingandmentoringtoensurethesuccessandsuperiorperformanceofthosetheylead.

Behaviors

• Providesclearandmeasurableperformanceobjectivesforthosetheylead.

• Providesongoingperformancefeedbackandcoachingofthosetheylead.

• Providesresourcesorinfrastructurenecessarytoacceleratethedevelopmentof“high-potential”employees.

• Drawsoutandencouragescreativethinking/problemresolutionbyemployees.

• Identifies,recognizes,andrewardssuperiorperformance.


1. Describearecentcoachingdiscussionyouhad?Whatwastheissueyouwerediscussing?How,ifatall,didyouinvolvetheotherpersoninthediscussion?Howdidthediscussionturnout?


2. Mostleadershavehadtheexperienceofcoachingsomeonewhofailedtoimprove.Tellmeaboutatimeyouworkedwithsomeonewhofailedtoimprove.


1 2 3 4 5

1 2 3 4 5



BUILDS AND LEADS TEAMS

Createsanenvironmentthatallowsteammemberstoreachtheirfullcapabilitythroughprovidingroleclarity,encouragingrisktaking,playingtoteammemberstrengths,andfocusingonteamresultsoverindividualresults.

Behaviors

• Buildsconsensuswithothersbycreatinganenvironmentthatfostersemphasisonteamratherthanindividualcontribution.

• Whenlookingatteamgoals,isawareofteammembers’strengthsandweaknesses,andhelpsmembersimproveteamperformance.

• Encouragestheteamtoworkoutsideoftheircomfortzoneandtorecognizeconflictasanopportunitytolearnandgrow.

• Givesotherswithintheteamthepowertoparticipateindecisionmakingandsharetheresponsibility,authority,andaccountability.

• Buildstrustthroughfosteringopencommunication.

• Developsanddisplaysstronginterpersonalskills.


1. Whatdoyoudotoencourageormotivateteamstowardsuccessfulteamperformance?Tellmeaboutthelasttimeyouwereinvolvedinasituationwhereyouwereinthisrole.Whatdidyoudo?Howdiditturnout?


2. Givemeanexampleofatimewhenyouwereassignedtoaprojectandhadtoselectteammemberstohelpyousuccessfullycompletetheproject.


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LEVERAGES RESOURCES

Identifies,aligns,andoptimizesresourcesinspiteofperceivedboundaries.

Behaviors

• Expectsdirectreportstosharelearningandbestpracticeswithotherstobetterservethecustomerandrespondmorequicklytothemarket.

• Evaluatesopportunitycostswhendeterminingstrategiestobepursued.

• Effectivelyevaluatesscarceresourcestoensuredecisionmakingthatproducesoptimalorganizationalperformance.


1. Tellmeaboutaprojectyoumanagedinwhichthereweremanyobstaclestosuccess.Whatdidyoudotoovercomethoseobstacles?


2. Tellmeaboutatimewhenyouhadtoplanalong-termprojectinvolvingmultipleresourcesandphases.Howdidyougoaboutplanningtheproject?Whatchallengesdidyouface?


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DRIVES OPERATIONAL EXCELLENCE USING RESULTS ORIENTATION

Isabletounderstandthecompetitivemarketplaceandtakerisksingrowingprofitabilitywhilebeingresponsibleforareaandpeople.Seekstoaccomplishcriticaltaskswithmeasurableresults.Strivesforexcellenceinquality,serviceandperformancebysurpassingestablishedstandardstooptimizeorganizationalperformanceandlong-termvalueofGundersenLutheran.

Behaviors

• Balancesquality,service,andprofitabilitybyprioritizingactivitiestoachievebothstrategicshort-andlong-termgoals.

• Acceptsaccountabilityforactionplansandflexesthemasnecessarytodeliverresults.

• Utilizescollaborationandrelationship-buildingtobringtogetherdiverseperspectivesandpopulationstogainresults.


1. Describeformeaninstancewhenyouwereparticularlyeffectiveatachievingendresults.Whatstepsdidyoutaketoachievetheresults?


2. Tellmeaboutatimewhenyouhadtoworkextremelyhardtoensurethataprojectwascompleted.


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BUSINESS ACUMEN

Withtheorganizationscorevaluesintheforefront,identifiespotentialoptionsandcriticallyevaluatesinformationtopromotecompetitiveposition.Understandsandtapsindustryandmarkettrendstofuelcurrentandfuturebusinessneeds.Possessesfinancialexpertiseandfostersopportunitiesforrevenueenhancementandgrowth.Leadscosteffectiveinitiativeswhilesimultaneouslyenhancingqualityandservice.

Behaviors

• Providesleadershipinandfostersaculturefornewpracticesornewtechnologythatpromotesefficiencies,garnersnewrevenue,andimprovessystemsorprocesses.

• Considersthefinancialimplicationsineachdecisiontoincludebudgetaccountability.

• Usescorporateobjectivesandstrategyasaframeworkforallbusinessplans,actions,anddecisions.

• Translatesbroadstrategiesintospecificactions,goals,objectives,andresponsibilitiesdesignedtoenhancecompetitivepositionandengagemembersoftheorganization.

• Assessesandcriticallyevaluatestrendsinhealthcareforapplicationwithinourenvironment.


1. Describeacomplicatedfinancialproblemthatyouhadtoworkthrough.


2. Describeatimewhenabusinessdecisionwasheavilyinfluencedbyvariousbusinessvariables(profits,marketvariables,returnoninvestment,etc.).


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ANALYTICAL AGILITY

Reasonsthroughproblemstoeffectivesolutions.Hasasystemsperspectiveandisabletodealwithcomplexity—canseepatternsandconnections.Considersmanyvariablesinsolvingaproblem;comfortablewithambiguity;andcandecideinthefaceofuncertainty.Patientasissuesevolvewithoutsacrificingurgency.Willingtotakerisks.

Behaviors

• Asksinsightfulquestionstoguideproblem-solvingefforts.

• Gathersnecessarydatabeforemakingdecisions;doesn’tleaptoconclusions.

• Seekscurrent,factualinformationtoclarifyambiguoussituations.

• Looksbeyondthesuperficialaspectsofasituation;probesbeneaththesurfaceofproblems.

• Recognizesconnectionsbetweenissuesthatarenotobviouslyrelated.

• Considersproblemsfrommultipleperspectives.

• Identifieskeyorunderlyingissuesincomplexproblems.

• Correctlyinterpretscomplexdataorinformation;makesaccurateinferences.

• Identifiesthecriticalinformationnecessarytomakeadecision.

• Weighsoptionsandalternativesbeforemakingdecisions.

• Looksbeyondtheimmediatedecisiontoitsconsequences;anticipatesproblems.

• Makestimelydecisions;dealswithurgentandimportantproblemswithoutdelay.


1. Tellmeaboutatimewhenyouhadtoimplementacomplexcompanydirective.Explainhowyouapproachedthetask


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2. Describeaspecificstrategyyourecommendedtheorganizationtakealookatinresponsetoabusinessormarkettrend.Whatinformationdidyouusetobuildthatstrategy?Whathappenedwiththestrategyyoupresented?


3. Tellmeaboutatimewhenyouhadtocompleteanin-depthanalysistomakeadecisionregardingalong-rangegoal.(Whatstepsdidyoutake?Whatinformationdidyouconsider?)


4. Describethemostcomplexproblemyou’verecentlybeenaskedtosolve.Whatdidyoudo?Whatalternativesdidyouconsider?


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OTHER QUESTIONS

1. Canyougivemeanexampleofastrategyyouhaveputtogetherthatwasintendedtoincreaseprofits?


2. Canyougivemeanexampleofaninnovativeideaorconceptyouhaveconceivedthatreallyhadanimpactonabusiness?


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Note on Use

Thistoolisdesignedtosummarizetheskills,experiences,andaspirationsofeachhigh-potentialleader.HR,alongwiththedirectsupervisor,completestheprofilebygatheringinformationfromavarietyofsourcesincludingperformancereviews,behavioralinterviews,personalityassessments,andtheindividual’srésuméandIDP.Thetalentprofilemaybeusedtoselectappropriatedevelopmentopportunitiesorinconjunctionwithcriticalpositionprofilestomatchindividualstopotentialjobopportunities.

Tool 8B: Talent Profile Worksheet


Talent Profile

Name: ______________________________________

Supervisor: __________________________________

Date: ______________________________

Degrees, Certifications: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Previous Work Experience: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Development Needs: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Career Aspirations: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Strengths: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Weaknesses: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Functional/Leadership Experiences: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Recent Accomplishments: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________


Current Rating

_____________________________________________

_____________________________________________

2006 Rating

_____________________________________________

_____________________________________________

2005 Rating

_____________________________________________

_____________________________________________






Rationale

Developmentplansforhigh-potentialleaderstoooftenemphasizeacquisitionofgenericgeneralmanagementskills,butfailtoequipsuccessorswithtechnicalskillsandexperiencesrequiredforaspecificrole;organization,asaresult,oftenunabletofillvacanciesinternallyforsomepositionsdespiteinvestmentsindevelopingseveralhighpotentials


Component #1: Conducting an Effective Slating Discussion HRfacilitatesexerciseinwhichseniorleadersmatchhigh-potentialswithcriticalpositions;setoffiveguidingprinciplesenforcedtoensureparticipantsthinkbeyondmostobvious,next-in-linecandidate

Component #2: Leveraging Slates to Guide DevelopmentAftermatchingexercise,HRrecordseachhi-po’spotentialfutureassignmentsaswellassuggestedtrainingactivitiesrequiredtopreparethemforthesespecificroles;individualrecorddistributedtohi-po’sdirectsupervisortoguidecreationofindividualdevelopmentplan

Practice Assessment

Aneffectivemethodforensuringhigh-potentialsnotonlyreceivegenericleadershipdevelopmentbutalsoequippedwithtechnicalandexperientialpre-requisitesforatleastonespecificrole;additionally,talentpoolslateapowerfultoolforalertingorganizationstoleadershipgapsearlyenoughtoprepareinternalsuccessors

Practice in Brief

Seniorleadersidentifypotentialcareerpathsforeachhi-pobymatchingthemtooneormorecriticalleadershippositions;goaltoensureatleastportionofhigh-potentialleader’sdevelopmentplantargetedtoacquiringuniqueskillsandexperiencesrequiredtosucceedinaspecificposition

Practice #9: Talent Pool Slate




A Snapshot of Benchstrength





Outpatient Services









In Preparation for Slating Discussion

• HRpreparesbindersofcriticalpositionprofilesandtalentprofilesanddistributescopiestoallseniorleaders

• Leadersaskedtoreviewprofilesandbringbinderstotalentslatingmeeting

Component #1: Conducting an Effective Slating Discussion

Conclusion #143 To adequately prepare successors for larger roles, critical to simultaneously develop the unique skills and experiences required in a specific position in addition to next-level general management skills; to construct a development plan targeted to specific positions, hospitals must first match individual successors to roles they could potentially fill

Conclusion #144 Critical Distinction: During matching exercise, senior leaders must keep in mind goal to identify changeable set of potential successors rather than annointing replacements; maintaining this distinction encourages balanced development between a broad set of experiences important for personal development and narrow activities that will prepare high-potential leaders for a slated role

Matching High-Potentials to Possible Future Roles

PART I—To be filled out by the incumbent

Critical Position Profile Form:(Position name)

Summary of PositionProvide a brief statement that describes the overall purpose of the position and why it exists

__________________________________________________________________________________________________

__________________________________________________________________________________________________

Minimum QualificationsDescribe the minimal education or training that would be required for a new employee coming into the position.

__________________________________________________________________________________________________

__________________________________________________________________________________________________

Scope of ResponsibilitiesProvide information on the size and scope of resources this position is responsible for i.e. budgetary, equipment, personnel, decision-making, etc.

__________________________________________________________________________________________________

__________________________________________________________________________________________________

Essential FunctionsList task statements that describe only the major duties for which the position is accountable. For example, works closely with VP, planning to expand existing service lines. Limit the tasks to 10 statements using action verbs that describe the function. Think of:

__________________________________________________________________________________________________

__________________________________________________________________________________________________

__________________________________________________________________________________________________

• What are the end results?• How is it done?• What the position does?

Use this template to complete a profile of your position. Answers may be obtained from standard job description.

Degrees, Certifications: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Previous Work Experience: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Development Needs: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Career Aspirations: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Strengths: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Weaknesses: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Functional/Leadership Experiences: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Recent Accomplishments: _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________


Current Rating

_____________________________________________

_____________________________________________

2005 Rating

_____________________________________________

_____________________________________________

2004 Rating

_____________________________________________

_____________________________________________

Position Profile Talent Profile


Five Guiding Principles for Facilitators

4 Incorporate external hires

3 Consider cross-silo candidates

2 Identify emerging leaders

1 Slate more than one candidate for each position

Discussion Assumptions at OhioHealth

• Weallownthetalent

• Wewillchallengeeachothertoensurethebestoutcomes

• Wewillprovidespecificexamplestobackupconclusions

• Wewillmaintainconfidentiality

• Wewilldevelopemployeesbyleveragingtheirstrengths

COO

Conclusion #145 To encourage selection of a diverse but viable slate of candidates for each position, HR leaders should enforce five guiding principles when facilitating the matching exercise; first, participants in the exercise should strive to list more than one possible candidate for each critical position to guard against over-reliance on a single candidate and to avoid creating a sense of destiny for any single leader

Conclusion #146 Second, participants must consider health of long-term pipeline for each position by identifying successors more than one management level below the critical position; targeting more junior candidates promotes development of rising stars and provides options should first-choice successor leave the organization

Matching High-Potentials to Possible Future Roles

Ready Now

Ready in 1–2 Yrs

Ready in 2–5 Yrs

5 Determine level of readiness





Forcing Consideration of Cross-Silo Candidates

At the System Level

Bench For System COO

Readiness Riverside Methodist

Grant Medical

Home Reach and

Ambulatory

Doctors Hospital

System Support Services

Ready Now A. Rosen T. Cakuls

Ready 1–2 years

R PetersD. Carey

A. Young S. Berg E. Choy

Ready 2–5 years

M WilliamsK. Kline

O.KamaP. Chan

W. Kwok B. Bowker


Constructing a Diverse Slate

Executives from facility or department with blank column asked to explain failure to nominate a candidates

At the Hospital Level

Bench for Grant Medical COO

Readiness Operations Finance Clinical Planning Support Services Quality

Ready Now C. Walkin B. John

Ready 1–2 years S. Bhatia J. Kim J. Wilson R. Murphy

Ready 2–5 years K. Tan L. Conway S. Carney S. Carney

SuccessionBenchChartsavailableattheendofpracticeonpage184.

Conclusion #147 Third, HR leaders should require participants to slot high-potentials leaders outside the hi-po’s functional area; while admittedly difficult given hospitals’ historic reluctance to rotate leaders, Center research uncovered two noteworthy methods for encouraging cross-silo consideration

Conclusion #148 For each critical position, OhioHealth’s “bench charts” sort successor candidates by current facility or by current department; blank spaces on the bench chart for a facility or department draw attention to participants who fail to nominate a candidate

For each critical position, HR asks heads of each facility or department to suggest high-potential leaders from their area as possible successors


Forcing Consideration of Cross-Silo Candidates


Recent Non-traditional Assignments

Background New Role Risk Mitigators

Non-clinical Clinical Manager

• Manager, Provider Relations

• Demonstrated strong ability to translate vision into action

• No previous large-scale operations experience

• Assigned to Director of Pharmacy position to manage turnaround

• Assigned team of experienced and well respected clinical leaders to serve as mentors and coaches

Interim Assignments

• Manager, Home Care and Hospice

• Demonstrated ability to manage clinicians

• Is not a registered nurse

• Assigned to Hematology/Oncology unit on interim basis

• Enables expansion of oncology knowledge

• Some management responsibilities in home care delegated to talented staff member with administrative experience

• Partnership established with successful nurse manager in a different unit

Physician EMR Leader

• Practicing Internal Medicine physician

• Previously led group that analyzed potential physician uses for PDAs

• No formal IT training

• Responsibility for leading hospitals selection and implementation of an electronic medical record

• Paired with the Chief Information Officer

• Offloading responsibility for resident training to identified successor

Thinking Outside the Box at Gundersen Lutheran

Conclusion #149 Rather than peer pressure, Gundersen Lutheran relies on centralized “ownership” of high-potential talent by a CEO-led committee to circumvent organizational politics and traditional hesitance when slotting high-potential leaders; as a result, Gundersen has successfully rotated high-potential managers throughout the health system including placing non-clinical managers in clinical management roles




Alumni database• Employee profile entered into

computerized database• Information updated periodically

YOU'RE INVITED!

Alumni Correspondence• Quarterly correspondence through

brochures and newsletters• Former employees invited to reapply

and/or attend alumni events, reminded of hospital’s return policy

Boomerang Card

We will miss you and remember that if for any reason things don’t work out, please call me @ _____. You’ve always got a friend at Leeds Hospital.1

Exit Interview• Employee presented

“boomerang” card, informed of hospital return policy

Leveraging Alumni Network

Incorporating External HiresAn Expanded Slate

Alumni

Professional Organizations

Vendors

Succession Slate

VP, Marketing

Internal L. Addison, Sales Director J. Dumont, PR Director A. Sullivan, QA Manager

External J. Johnson, PR Consultant D. Freeman, Pickering LLP

Conclusion #150 Fourth guideline for slating exercise to incorporate external candidates in situations where there may not be sufficient time to adequately groom an internal candidate or when a familiar external candidate best suited for the role

Conclusion #151 Relatively absent in health care succession planning, an increasing number of corporations consider vendors, consultants and professional contacts in succession plans; hospital alumni represent a particularly attractive option for inclusion on bench charts given combination of pre-existing organizational knowledge and external experience



Future potential that should be on the radar

Ready to step up today

Almost ready, needs one-to-two additional experiences

Framing readiness for a specific position in terms of number of jobs away focuses supervisor on the experiences needed to prepare candidates for higher roles

Two Measures of Readiness

Years to Position

Ready in 2–5 Years

Ready Now

Ready in One Year

Moves to Position

Two or More Jobs Away

From Current Role

One Job Away

Conclusion #152 Finally, once successor candidates identified for each critical position, slating participants must categorize each candidate’s level of readiness for those positions; critical to communicate to participants that candidates slotted for more than one position may have different levels of readiness for each position

Conclusion #153 Estimated number of years represents most common measure of readiness at organizations conducting slating exercises; alternatively, handful of organizations defining readiness in number of job moves from critical position, either vertical or horizontal, offering a more concrete and actionable term for categorizing candidates

Source: IBM Corp., Armonk, N.Y. ; HR Investment Center interviews and analysis.




Name: Job Actions Time Frame Possible Positions/

OrganizationsDevelopment & Other

ActionsTime Frame Comments

❑ Remain in place❑ Lateral/ cross-

unit move❑ Promote

❑ 3Q 06❑ 4Q 06❑ 1Q 07

❑ Collateral assignment❑ Executive education❑ Assign mentor/ coach

❑ 3Q 06❑ 4Q 07❑ 1Q 07

Talent Pool Slate




Outpatient Services










Linking Succession to Development

Succession Action Steps

Individual Development Plan

Keith Hogan

✓ VP, PlanningNeeds to build relations with service line leaders✓

✓ ✓

Individual Development Plan

Identify Root Cause Behaviors

Record behavior in this competency in which you would like to improve

2

Define Personal Development Objective

Frame your response in terms of your goal for changing your behavior in this area

Consider• Become more skilled in…• Increase my ability to…• Obtain assistance in…

3

Develop Competency

Focus on competency identified in mentee’s performance evaluation as area for development

Identify Action

Note the two or three specific actions you want to take to achieve your objective

4 1.____________________________________________________________

2.____________________________________________________________

3.____________________________________________________________

1.____________________________________________________________

2.____________________________________________________________

3.____________________________________________________________

Personal Development Objective

_______________________________________________________

_______________________________________________________

1. _________________________

_________________________

2. _________________________

_________________________

3. _________________________

_________________________

Resources

• Materials• Time

Skills

• Training/education• Mentoring/coaching• Observation• Independent reading and study

1 2 3 4 5 6

Objectives Success Metrics

1

2

3

Map Timeline

What are the major milestones for each action?

Consider• Short- or long-term goal• Specific action• Resource motivation• Getting support

7

Set Metrics

For each action in step , what will be the standard for success?

Consider• Qualitative• Quantitative

6

Develop Skills/ Obtain Resources

Identify what you can do and what resources you need to succeed in this effort

5

Milestone:

1. _________________________

_________________________

2. _________________________

_________________________

3. _________________________

_________________________

4

1

Component #2: Leveraging Slates to Guide Development

Closing the Gap to “Ready Now”

Conclusion #154 An often overlooked step, HR must ensure that finalized bench charts inform development planning efforts for each succession candidate; otherwise, development of high-potentials may fail to target the experiences or training required to assume a specific role

Conclusion #155 Case in Point: HR leaders at Duke Energy distribute to direct supervisors and top executives summaries of possible future positions accompanied by suggested development activities for each high potential

SuccessionActionStepsFormavailableattheendofpracticeonpage186.


Source: HR Investment Center analysis.

Evaluating Effectiveness of Development Efforts

Slating Discussion

IDP Discussion

Talent Pool Slate ‘05

VP, Operations:

John RidgwayReady 1–2

Talent Pool Slate ‘06

VP, Operations:

John RidgwayReady Now

Peter YimReady 2–5

Ready Now

Closing the Gap to “Ready Now”

Conclusion #156 Once in place, succession charts serve as an effective check on success of development efforts; at next succession meeting, leaders review talent slates to see if selected development opportunities were successful at migrating hi-po closer to “ready-now” status


Comparison of candidates’ status on succession slates suggest development opportunities working (or not)




Conclusion #157 Exercise of matching high-potential leaders to critical positions necessary to ensure that leaders’ development adequately prepares them to assume a specific role or, at a minimum, serve as a viable option in comparison to external candidates

Conclusion #158 In addition to benefits for development planning, succession charts enable leaders to quickly identify critical positions possessing deep bench strength as well as those with gaps; organizations should review charts at least annually to monitor progress against gaps and ensure every critical position has at least one ready-now successor

Practice Assessment


• Prepare materials for discussion including talent profile for each high potential and future position profile for each critical role

• Schedule and facilitate bench strength and slating discussion (can be integrated with group hi-po discussion)

• Challenge senior executives to consider successors outside of their own department as well as external candidates

• Review talent profiles of high potentials prior to slating discussion

• Debate and place candidates on slates for critical positions

• Determine level of readiness for each candidate with respect to each slate

• Debate and place candidates on slates for current position (depending on position criticality and level, may include only senior executives)

• Determine level of readiness for each candidate with respect to each slate





Note on Use

ThistoolenablesHRtorecordpotentialsuccessioncandidatesforeachcriticalpositiontherebyofferingasnapshotofcurrentbenchstrength.Categorizingsuccessorsbydepartmentforcesconsiderationofcandidatesfrommultipleareas.Completedbenchchartscanbeusedasaspringboardfordiscussingfutureleadershipneedsandevaluatingcurrentreplacementstrategies.

Tool 9A: Succession Bench Chart

Bench for Grant Medical COO

Readiness Operations Finance Clinical Planning Support Services Quality

Ready Now C. Walkin B. John

Ready 1–2 Years S. Bhatia J. Kim J. Wilson R. Murphy

Ready 2–5 Years K. Tan L. Conway S. Carney S. Carney

Instructions

3

2

1 HR gathers heads of all departments to discuss bench strength

HR brings blank bench charts for each critical role and asks leaders to populate chart with possible candidates from their department

Discuss why some departments could not suggest any succession candidates

Note: For multi-hospital health system, bench chart discussions should also be held at the system-level with senior leaders from each facility rather than each department

Sample Bench Chart


Ben

ch C

hart

for_

____

____

____

____

____

____

____

____

____

__

Rea

dine

ss__

____

____

____

____

____

____

(Dep

artm

ent o

r Fa

cilit

y)__

____

____

____

____

____

____

(Dep

artm

ent o

r Fa

cilit

y)__

____

____

____

____

____

____

(Dep

artm

ent o

r Fa

cilit

y)__

____

____

____

____

____

____

(Dep

artm

ent o

r Fa

cilit

y)__

____

____

____

____

____

____

(Dep

artm

ent o

r Fa

cilit

y)__

____

____

____

____

____

____

(Dep

artm

ent o

r Fa

cilit

y)

Read

y N

ow

Read

y 1–

2 Ye

ars

Read

y 2–

5 Ye

ars

(Pos

ition

Nam

e)




Tool 9B: Succession Action Steps Form

Note on Use

ThistoolenablesHRtorecordnextstepsforeachindividualidentifiedasapotentialsuccessorduringtalentslatingdiscussions.Thisinformationshouldthenbesharedwiththeindividual’sdirectsupervisortoguidesubsequentdevelopmentplanning.








Keith Hogan

✓ VP, Planning Needs to build relationships with service line leaders

✓

Q2 07 Q4 07



















Succession Action Steps Form


Source: Duke Energy Corporation, Charlotte, N.C.




Practice #10: Prescriptive Development Planning

Rationale

Whilemajorityofhospitalsrelyondirectsupervisorstoguidedevelopmentofalldirectreports,includinghi-pos,supervisorsoftenlacktime,knowledgeorimaginationtoappropriatelymapdevelopmentneedstorightopportunities


Component #1: Dedicated Development DiscussionHospitalestablishesmechanismforforcingregulardiscussionofhigh-potentialleader’sdevelopmentbyprovidingeitherspecificguidancetodirectsupervisorsonconductingeffectivedevelopmentplanningmeetingsorcentrallymanaginghi-podevelopmentthroughanexecutivesteeringcommittee

Component #2: Competency-aligned Development Cheat SheetHRcreatescatalogofavailabledevelopmentopportunitiesdirectlymappedtohospital’sleadershipcompetencymodel;catalogenablessupervisorstoquicklylocatemostsuitableactivityforaddressingaspecificskilldeficit

Component #3: Experience-driven Development ModelHospitaldetermineskeyleadershipcareertrackstheninterviewsseniorexecutivesineachtracktoidentifycriticalexperiencesthatbestpreparedthemforcurrentrole;providessuccessorswithaprovenroadmapofexperiencesthatwillenablesuccessinfutureroles

Practice Assessment

Highlyrecommendedforallhospitalsasapracticalmeansforquicklyimprovingcoachingskillshospital-wide;hospitalswhoseleadersalreadypossessstrongcoachingskills,however,mayfindlessvalueinprescriptivenatureofpractice


Widelyapplicabletoallhospitalseventhosepursuingsuccessionmanagementonasmallerscale;practiceoffershostoftoolsforassistinganyleaderincreatingbetterdevelopmentplansforalldirectreports,high-potentialorotherwise

Practice in Brief

HRcreatessuiteoftoolsandguidelinestoassistdirectsupervisorsorexecutivesteeringcommitteeinselectingmostleverageddevelopmentopportunitiesforhigh-potentials;goaltoensuresuccessorseffectivelymatchedtobestlearningexperiencesbasedonindividualneeds




Component #1: Dedicated Development Discussion

Hardwiring Focus on Hi-Po DevelopmentCentralized Hi-Po Management

Gundersen Lutheran’s Talent Steering Committee in Brief

Initiatives/Projects1. Design new training program for

nursing staff2. Build new diagnostic imaging facility3. Improve patient satisfaction scores4. Identify vendor for new supply chain

management system5. Improve employee morale6. Create new wellness program for

employees7. Identify new food options for cafeteria

HIPO Manager CEO Board

MemberVice

President, HR


Conclusion #159 Having identified each successor’s development needs and potential future roles, next step to craft customized development plan to address skill gaps needed to assume those roles

Conclusion #160 For organizations with strong executive buy-in, development planning and career management best handled centrally by dedicated taskforce of senior leaders; centralizing hi-po development places responsibility in hands of training experts and guarantees regular focus on development plans

Talent Management

Report Summary

Name: Bill Jones

Development Needs:

Exposure to nursing staff

Talent Management

Report Summary

Name: Matt Barnes

Development Needs:

Managing large projects

Committee comprised of senior leaders; accountable to board for talent development

Committee maintains list of available projects which might be suitable development opportunities

Based on individual development needs, committee matches hi-pos to projects


Hardwiring Focus on Hi-Po DevelopmentEnhanced Manager-Driven IDP Process

Catholic Healthcare Partners’ Fixed Agenda for IDP Meetings

Source: Catholic Healthcare Partners, Cincinnati, Ohio; HR Investment Center interviews and analysis.

Suggested Questions for Assessing IDP Effectiveness

Conclusion #161 While taskforce offers best option, hospitals with more limited executive support may need to rely on high-potential’s direct supervisor to plan and track training efforts; far from a core competency of most managers, HR must provide robust and prescriptive tools to assist supervisors in constructing effective development plans

Conclusion #162 Catholic Healthcare Partners, for example, provides supervisors with fixed agenda for development meetings, scripts topics to cover with direct reports, and offers suggested critiques of the final development plan

IDP Meeting Topics

1. Introduce Individual Development Planning Process

2. Identify Development Priorities

3. Discuss Development Options

4. Plan for Next Steps

5. Review Meeting Objectives

6. Introduce Talent Assessment Category i.e. “ You are a solid performer”

Defined topics to cover in the meeting

Topic Key Points Materials

Introduce Individual Development Planning Process

Describe an Individual Development Plan (IDP) Impact Map4 key considerations for development planning• Required Training• Current and Future Business Objective• Personal Development (developing

competence and developing capacity)• Career Development

IDP Worksheet and Impact Map

Relevant points to address or be aware of in each topic

Specific resources to use in discussing topic

Development Goal Development Activity

Support Required

Target Completion Date

On-The-Job Application Behaviors

“Do the development priorities include methods to leverage strengths and improve weaker areas?”

“Are the development goals considered stretch goals?”

“Are the activities measurable and focused so the individual will derive the most benefit for the time spent?”

“Has the individual built in an adequate support system?”

“Is the timing of the activities appropriate?”

“Does the plan include several learning options, and are they weighted toward on-the-job experiences?”

IndividualDevelopmentPlanTemplateavailableattheendofthispracticeonpage202.





Component #2: Competency-Aligned Development Cheat Sheet

Conclusion #163 In constructing development plans for high-potential leaders, lack of imagination and time pressures too often result in over-reliance on classroom training to elevate performance; further, while selecting development options for tangible skills such as “financial acumen” relatively straight forward, strategies for elevating performance on competencies such as “vision” and “initiative” less clear

Conclusion #164 With knowledge of available opportunities and best training techniques, HR can support development by explicitly mapping most appropriate training options to common skill gaps; incorporating competency-aligned development options into a quick-reference tool enables supervisors and steering committee to quickly locate best development opportunity for each hi-po

Conclusion #165 Following pages highlight a sample reference guide based on Advisory Board Academy’s leadership competency model and commonly offered development opportunities

Mapping Competencies to Most Leveraged Opportunities

• HR gathers leaders well-known for developing staff

• Group considers each competency and discusses activities best suited for developing that competency

• HR summarizes and distributes results to all supervisors to guide development planning

• Development cheat sheets transform difficult task of independently identifying appropriate development opportunities to picking best of available options

Managing Vision

Accountability

Initiative• Mentoring with VP, Business Development

• Six Sigma training• Performance improvement projects

Individual Development PlanDevelopment NeedsWould like to see Kevin show more initiativeNext Steps• Assign Kevin to lead Balridge award application process

• Enroll Kevin in Green Belt Six Sigma training

Sample Development Cheat Sheet





Development Opportunity

1 Based on Advisory Board Academy Competency and Behavior Model.

Classroom Training Projects

Description

Classroom-based training designed around clearly identified skill gaps and targeting competencies critical for institution’s success

High-impact, far-reaching assignments designed to provide opportunities to coordinate across multiple departments and partner with senior leaders in the institution

Pro’s

• Incremental cost relatively low given most organization’s already allocating some resources to manager training

• Most efficient methodology; consistent concepts can be taught repeatedly to multiple leaders

• Real-time learning, application, and accountability allows leaders to see results of successes, failures

• Increases hi-pos visibility within the organization• Direct benefit to organization from successful

projects

Con’s

• Fails to meet individual needs in terms of learning style and understanding of each topic

• Rigid schedule may not accommodate different leaders requiring different skills at different times

• Requires leaders to take time from or do work on top of their day-to-day responsibilities

Critical Success Factors

• Match individuals to courses based on individual needs rather than mandating the same curriculum for all leaders

• Provide leaders dedicated time and coverage to prevent distractions while attending courses

• Place hi-pos in same sessions to facilitate networking

• Overwhelm leaders with support to offer the best chance of a successful experience for the leader and organization

• Select projects based on balance of leaders’ strengths and specific development needs to make sure they are not in over their head

• Backfill day-to-day responsibilities so leader freed to dedicate time to project

Applicability

Applicable to all levels; effectiveness declines the more senior the leadership level

Applicable to all levels; most effective for frontline and mid-level managers in need of wider exposure

Appropriate for all types of organizations Appropriate for all types of organizations

Key Competencies

Developed1

• Process Management• Constructive Thinking• Financial Acumen• Communicates Effectively• Identifying and Recruiting Talent

• Managing Vision and Purpose• Accountability• Process Management• Initiatives• Service Orientation and Customer Focus• Constructive Thinking• Financial Acumen• Prioritizing and Delegating• Building and Strengthening Relationships• Upward Management

Advisory Board Assessment

Useful for teaching tangible concepts, behaviors, or skills that should be consistent for all leaders; most effective for frontline staff and managers

Fastest (and most customizable) method for developing and practicing a broad range of skills and competencies outside of current scope or job

B A

Tool 10A


Match Cheat Sheet Mentoring Lateral Job Movements Shadowing Executive Exposure External Coaching

Formal or informal relationships with higher-level leaders or role models who can offer advice or guidance on how to develop specific competencies

Permanent or interim transition to department to which hi-po has had limited exposure; may include job swaps or expansion of job to include responsibility for new areas

Time-limited, direct observation of higher-level leaders, other functions, or competency role models

Dedicated time for high-potential leaders to meet and interact with top executives or members of the Board

Contracted outside expert on personal development provides one-on-one guidance and support to hi-pos

• Individual attention allows for precise targeting of specific behaviors

• Mentor can assist in overcoming leader’s unique personal challenges and deraliers

• Interactions with experts or veterans allows leader to avoid pitfalls by learning from other’s experiences

• Increases hi-po’s familiarity with other parts of the business, enabling them to learn new skills and form cross-departmental relationships

• New job (rather than extra project work) limits distractions

• Limited disruption to work schedule for both shadowee and shadower

• Direct exposure to advanced decision-making and/or day-to-day responsibilities

• Cost solely limited to top executives’ time• Provides hi-pos with access to senior-level thinking and

ideas• Offers insight into the challenges and decisions faced

by top executives

• Highly customizable to individual challenges and development needs

• Coaches tend to be experts at assessing personal needs and communicating improvement strategies

• Very difficult to make a match that results in a productive relationship

• Difficult to find leaders who are both willing and capable of mentoring effectively

• Opportunities for movement limited to vacant positions

• Perceived technical needs of many hospital departments further limits opportunities to cross organizational silos

• Observation method does not require shadowee to practice competencies or learn from own mistakes/successes

• Offers opportunity for superficial development on broad range of competencies but fails to go deep on any one skill set

• Expense prohibits widespread use• Outside sources lack insight into institutional culture,

politics and values

• Deliberately match participants based on competency and compatibility, not self selection

• Ensure mentor has expertise in specific area mentee requires assistance and can effectively communicate that knowledge

• Secure a long-term commitment from both mentor and mentee

• Provide leaders with support from expert staff or leaders fluent in the area into which they are moving

• Assess risk of the move on overall business outcomes for the new department, disruption to the old department, and leader’s personal well-being

• Ensure shadowing occurs around meetings, events, or settings where opportunity exists to observe competencies needing development (for example, strategic planning sessions, union negotiations, etc.)

• Schedule series of meetings or interactions with a variety of top executives rather than a one-time event

• If possible, arrange one-on-one lunches, sessions to personalize experience

• Develop long-term relationship with coaches so they can become more familiar with organizational norms

• Focus coaching sessions on specific competencies in need of development

Applicable to all levels Most applicable to mid-level leaders whose next promotion requires mastery of several areas

Appropriate for all levels; especially effective for exposing frontline staff to management careers

Most applicable for frontline and mid-level leaders Most applicable for senior executives

Appropriate for all types of organizations More appropriate for larger hospitals and health systems Appropriate for all types of organizations Appropriate for all types of organizations Appropriate for all types of organizations

• Initiative• Motivating and Influencing• Financial Acumen• Process Management• Communicates Effectively• Giving Feedback• Developing and Retaining Talent

• Accountability• Service Orientation and Customer Focus• Financial Acumen• Building and Strengthening Relationships

• Constructive Thinking• Communicating Effectively• Prioritizing and Delegating• Service Orientation and Customer Focus• Managing Vision and Purpose• Building and Strengthening Relationships• Upward Management

• Managing Vision and Purpose• Motivating and Influencing• Financial Acumen• Prioritizing and Delegating• Developing and Retaining Talent• Building and Strengthening Relationships• Upward Management

• Communicating Effectively• Giving Feedback

Potentially the most effective methodology, however, nature of one-on-one relationships makes success highly variable

Very effective for helping mid-level managers gain new skills; potential retention strategy in face of limited promotional opportunities; success hinges on organizational willingness to move talent across traditional boundaries

Most useful for developing intangible competencies or behaviors that role model might not be able to explicitly communicate

Opportunity for hi-po development exceeded by exposure top executives gain to future leaders; more useful for networking and recognition than for skill development

Most useful for senior level executives being groomed for more complex or CEO role; direct cost outlay a limiting factor

Source: HR Investment Center Interviews.

B+ B+ B B B-



Component #3: Experience-Driven Development Model

Defining ExperientialOffering Proven Road Maps

Self-assessment of leadership competencies

Review of career development model to assess gaps in leader’s experiences

Discussion of relevant activities and future positions to create development plan with manager

1. Lead several teams in new product development

1. Identify international markets for selling complex product

1. Create strategic plan for multi-business units

Experience-driven Models

Executive Leadership Competencies Assessment

Competency Score

1

5

4

3

IBM Leader Development Planning

Technical General Manager

General Manager Business Value Selling

Source: IBM Corporation, Armonk, N.Y. ; HR Investment Center interviews and analysis.

Case in Brief

• Developerandmanufacturerofinformationtechnologiesandproviderofrelatedprofessionalservicesandbusinessconsultingwith329,000employeesin75countries

• In1996,introducedcareerdevelopmentmodelsindevelopmentplanningprocesstoexplicitlydelineatecareerpaths

• BasedonresearchonIBMleaders,eachmodeldescribesexperiencesthatareenablersofsuccessforrole

IBM Corporation

1. Implement organization-wide strategy to promote culture and values

Country General Manager

Conclusion #166 Beyond developing proficiency in leadership competencies, best practice organizations also identify specific work experiences high-potential leaders should gain before advancement

Conclusion #167 Menu of desired experiences best identified by mapping the career paths of current executives; at IBM, HR leaders interview successful executives to create a model of critical experiences required for success in each career path

Succession Management 196


Building Hospital-Specific Models

Sample Career Development Model

• Manage a poor performing nursing unit requiring a turnaround

• Lead a professional practice committee• Construct and present the case for a

capital investment successfully• Identify key physicians and grow

relationship/volumes

• Craft and promote a vision statement for a unit or department

• Redesign patient flow for a department or hospital wide process

• Develop a care path in conjunction with physicians and other clinicians

• Participate on a new technology assessment and implementation project

Key Experiences for Future Nurse Executives


Conclusion #168 Direct supervisors can then leverage experience-based models to ensure development efforts for high-potential leaders incorporate types of working experiences needed to succeed in targeted career tracks

Career Paths

LeaderExperiencesIdentificationToolavailableattheendofthispracticeonpage204.






• Survey successful senior leaders on defining experiences

• Construct career development models

• Offer guidance on development planning to high potentials

• Provide agenda and tools for IDP meeting

• Participate on high-potential talent steering committee

• Provide career defining experiences for creation of career development models

• Actively participate in the development of high potentials through regular interaction, mentoring, shadowing, and project and job assignments

• Prepare for IDP meeting by reviewing succession slate, talent report card and development offerings

• Guide and support high potentials in creation of their IDP

• Conduct regular developmental meetings with high potentials


Conclusion #169 Infrequent monitoring or selection of ineffective assignments can stall hi-po’s progress toward next-level roles; given that success of any succession plan reliant on high-potentials being ready when positions become vacant, critical for HR to provide specific guidance and tools to direct supervisors or executive steering committees to ensure successor development on track

Conclusion #170 Further, while executive steering committee and experience-driven development models typically part of comprehensive succession management, majority of practice applicable to all organizations interested in improving quality of development efforts for all hospital staff

Practice Assessment




Note on Use

ThefollowingisasampleagendaforanIndividualDevelopmentPlanmeetingfromCatholicHealthcarePartners.HRprovidestheagendatodirectsupervisorstoguidediscussionswiththeirdirectreportsregardingcareerdevelopment.Theagendaexplicitlyscriptskeytopics,actionstepstocover,andthespecificorderinwhichtocoverthem.

Tool 10B: Sample IDP Meeting Agenda


IDP Meeting Agenda

Topic Key Points Materials

Introduce Individual Development Planning Process

Describe an Individual Development Plan (IDP) Impact MapFour key considerations for development planning• Required Training• Current and Future Business Objective• Personal Development (developing

competence and developing capacity)• Career Development

IDP Worksheet and Impact Map

Identify Development Priorities

Work with your associate to identify 1–2 strengths he/she would like to leverage to maximize performance.Work with your associate to identify 1–2 areas for improvement which he/she would like to develop

Discuss Development Options

70/20/10 PrincipleDevelopment Resource Guide

70/20/10 PrincipleDevelopment Resource Guide

Plan for Next Steps Associate to draft development planSchedule meeting to Review, Agree and CommitPlan regular progress checks

Calendar

Review Meeting Objectives

• Introduce CHP Talent Management Strategy• Discuss Talent Assessment results (strong

performer with high potential/high performance, solid performer, emerging, performance watch) and other relevant performance data

• Introduce process to create Individual Development Plan (IDP)

• Discuss Time Frame to document plan• Review, Agree and Commit

• Leadership Resource Review Form • Developing Leadership Capacity -Table

1.0• 360 Feedback• Performance Reviews• CHP Leadership Competency Report

(DMC) • Leadership Capability Assessment

(Talent Matrix/Box Category)

Introduce Talent Assessment Categoryi.e. “ You are a solid performer”

As you share feedback with your associate be aware of the SARAH model (a common reaction to receiving feedback). Anytime we receive news or feedback, our mind has a fairly predictable process for working through the information.S: surprise – sometimes positive surprise and sometimes negative surpriseA: angerR: rationalize – “My performance was like that because of the overwhelming project I had last year”A: acceptance – “Hmm, there might be a germ of truth that resonates here.”H: help – “I see how some of this feedback could be helpful. What can you do to help me?”




Note on Use

PartIofthistoolincludescriticalquestionsforevaluatingtheeffectivenessoftheIDP.SupervisorsshouldposethesequestionswhenreviewingIDPswiththeirdirectreports.HR,likewise,canusethesequestionstoassesssubmittedIDPsandtosuggestopportunitiestoimprovetheplans.PartIIisatemplateforanIndividualDevelopmentPlan(IDP),whichiscreatedbytheemployeeinconsultationwiththesupervisor.

Tool 10C: Individual Development Plan Template

Part One


Support Required



Key Job/Team Results

Based on your development priorities identify your 2–4 most important development goals.(review all previous sections of IDP worksheet for input)

Identify the on-the-job experience, coaching and feedback, or education and training activity you will complete to meet the development goal

List any support you will need to accomplish activity

Behaviors/Action needed to accomplish the results for Development Activity

Individual/Team Results accomplished as part of Development Activity

“Do the development priorities include methods to leverage strengths and improve weaker areas?”

“Are the development goals considered stretch goals?”

“Are the activities measurable and focused so the individual will derive the most benefit for the time spent?”

“Has the individual built in an adequate support system?”

“Does the plan include several learning options, and are they weighted toward on-the-job experiences?”

“Is the timing of the activities appropriate?”

Questions for Assessing IDP Effectiveness

Source: Catholic Healthcare Partners, Cincinnati, Ohio.



Support Required



Key Job/Team Results

Based on your development priorities identify your 2–4 most important development goals.

Identify the on-the-job experience, coaching and feedback, or education and training activity you will complete to meet the development goal

List any support you will need to accomplish activity

Behaviors/Action needed to accomplish the results for Development Activity

Individual/Team Results accomplished as part of Development Activity

Individual Development Plan Template

Part Two


Source: Catholic Healthcare Partners, Cincinnati, Ohio.



Tool 10D: Leader Experiences Identification Tool

Note on Use

Thistoolprovidesguidanceonidentifyingpotentialcareertracksandexperiencesrequiredtoadvancetospecificroleormanagementlevel.Giventhesimilarities,itisrecommendedthatyouusethistoolinconjunctionwiththecreationofatieredleadershipcompetencymodel,allowingyoutoconsolidatetimerequiredfromseniorleadershipandexpeditedevelopmentofbothpractices.

Instructions

1

2

Identify leadership career tracks within your organization. Consider your organization’s comfort with moving leaders to different functions in defining career tracks. Given the quantity of similar leadership positions, larger health systems are better positioned to create narrowly defined tracks (for example, a CNO track). To avoid basing tracks on the experiences of a single executive, freestanding hospitals and smaller health systems should consider broader models (for example, executive experiences).

Identify role models in senior leadership for each career track. For smaller organizations wishing to create narrow models, it may be necessary to identify role models at middle and senior management levels to ensure consideration of a diversity of experiences.

Interview each role model regarding their key experiences. To ensure consistency, designate one interviewer for each career track. Key questions include:

• What key experiences have contributed to your success as leader?• At what point in your career did you have this experience?• What impact did this experience have on your career?• Is this experience unique or can it be replicated today?

Use the experiences gathered during the interviews to populate the survey template found on the next page. Without sacrificing specificity, categorize similar experiences.

Distribute the survey to interview participants to rate collected experiences. Smaller organizations may find it more effective to hold a group discussion to flesh out and rate experiences rather than use a survey.

Compute an average rating for each experience and select the highest scoring experiences for inclusion on the career development model. To ensure a realistic model, limit the number of experiences to, at most, twenty or so.

Distribute the career development models widely, encouraging leaders to find opportunities to incorporate the experiences into individual development plans.

Narrow

Function-specific tracks such as finance,

nursing, planning and HR

Functions with similar attributes such as support

services and medical leadership

Broad

General tracks such as administrative and

clinical leadership


3

4

5

6

7


Experience Time Impact Extent Replicable

A Leading finance team in exploration of financial alternatives, business partnerships and capital structure for the hospital

VP of Finance Developed strategic financial skills and negotiation skills; formed key relationships within financial community

Replicable experience

B

C

D

E

F

Interview Guide to Capture Key Career Experiences of Leadership

1

2

3

4

Career Track: Finance HR Interviewer: Joe Mauer Senior Leader: Lance Nixon

Over your career what 5–6 defining experiences have contributed to your success as leader in Finance (e.g. specific experiences, skills, competencies and relationships)?

At what point in your career did you have this experience (e.g. as manager or director in Finance)?

What impact did this experience have on your career (e.g. achieved results, developed critical skills, and changed behavior)?

Is this experience unique or can it be replicated today?

For each experience, document detailed responses to questions two to four

Provides guidance on appropriate time to offer development experience

Informs competencies developed by experience

Identifies unique experiences difficult to develop





Tool 10D (Cont’d)


Survey of Key Experiences for Sample Finance Development Model

Thank you for your participation in our research on key career experiences for leadership in finance. Using guide below, please rate each experience’s contribution to your success.

Type Rate Definitions

3 Overwhelming influence in developing one competency Strong influence in developing multiple competencies

2 Moderate influence in developing one competency Moderate influence in developing multiple competencies

1 Limited influence in developing one competency Limited influence in developing multiple competencies

0 No influence in developing one competency No influence in developing multiple competencies

Description of Experience Rating

Leading negotiation of vendor contract 3

Developing key relationships within financial community 2

Participants denote rating on each listed experience

Complete survey with collected, categorized experiences prior to distribution




Finance Development Model

Experience Impact Development Action

Sample Entries

Leading negotiation of vendor contract

Develops communication and negotiation skills Lead project on financial contracts

Implementing financial system to improve revenue collection

Develops constructive thinking and process management competencies

Lead project on capturing bad debt loss



209


Practice#11:Metric-drivenReporting..................................... 211

Practice#12:Best-FitHiringScreens........................................ 217


IV




Rationale

Absentregularmonitoringofsuccessionefforts,manysuccessionplansfailwhensuccessordevelopmentbecomeslostincrushofday-to-dayconcernsor,worseyet,hiringmanagersforgetaboutorignoresuccessionplanswhenfillingleadershipvacancies


Component #1: Purposeful Metric SelectionHRselectsasmallsetofmetricsthatreflecthospital’sperformanceagainstshort-term,long-term,anddiversitygoalsofsuccessionplans

Component #2: Succession Planning DashboardHRdistributessuccessionplanningmetricstoallseniorleadersatleastannually;dashboardprovidessnapshotofoverallleadershipbenchstrengthandensuresaccountabilityforfollow-throughonsuccessionplanningefforts

Practice Assessment

Recommendedforallhospitalsasasimplemethodforinstillingaccountabilityforsuccession;trackingandreportingrelevantsuccessionmetricscriticalformovingfromannualexercisethatisquicklyforgottentoayear-roundfocusonadvancinghigh-potentialleadersto“readynow”status

Practice in Brief

HRexecutiveregularlycollectsandreportsdataregardingbenchstrength,candidatereadiness,andeffectivenessofsuccessionplans;goaltoensurecontinuedfocusondevelopinghigh-potentialsandexecutingsuccessionplans

Practice #11: Metric-driven Reporting

Making thr Right Selection 211



Component #1: Purposeful Metric Selection

Reporting Performance to Ensure Follow-throughSetting Measures of Success

Lilly’s Key Metrics

Metric Purpose Goal

Ratio of incumbents to potential candidates Assess long-term readiness

Three potentials to every incumbent for managers and directors; two potentials to every incumbent for senior executives

Number of positions with two or more ready now candidates Assess near-term readiness Ready now candidates for each

key position

Percent of incumbents and potentials by gender, race, geographic origin, and career experiences

Assess diversity in talentGreater diversity represented in potentials group compared to incumbents group

Percent of key positions with a succession plan

Assess compliance with succession planning process

Robust plans for 100% of the most critical positions

Percent of key positions filled with individuals on succession plans

Assess effectiveness of succession planning process

60% to 70% of positions filled with individuals on succession plans


Conclusion #171 Systematically tracking performance of succession management efforts critical for ensuring investment in high-potential leaders results in greater rate of internal promotion; at a minimum, HR leaders should track “percent of critical positions filled with individuals on succession plans” to monitor adherence to and effectiveness of succession plans

Conclusion #172 Beyond directly tracking adherence to plans, success of hospital’s succession management efforts can be defined and measured in a variety of forms—increased diversity of leaders, expedited hiring, retention of top performers; hospitals must determine desired secondary objectives of succession plan and select metrics measuring performance against these objectives

Additional Metrics

Internalpromotionrate

Timetofillforleadershippositions

Percentageofallleaderswhoaredesignatedhigh-potential

Percentageofallleadersgreaterthan55yearsold

Turnoverrateamongdesignatedhigh-potentialleaders

Employeesatisfactionwithcareeroptions


March 2006 Succession Plan Dashboard—Finance

March 2006 Succession Plan Dashboard—Nursing

March 2006 Succession Plan Dashboard—Imaging

Percentage of Critical Positions Filled by Succession Plan Segment Percent of

IncumbentsPercent of Potentials

Gender

Ratio of Incumbents to Potentials

Overall VPs

Race

Geographic Origin

Number of Positions with Two or More Ready Now Candidates

Overall VPs

Career Experience

Reviewed by senior executives annually

Contains specific metrics to track diversity in talent

Consistent reporting to track progress

Readiness assessed across the organization and at each management level

Reporting Performance to Ensure Follow-throughMonitoring Progress at Each Level

Potential Dashboard View


Conclusion #173 Reporting performance on succession metrics to senior leadership team simple but effective tool for driving accountability and follow-through; because of the relative infrequency of leadership vacancies in all but the largest health systems, however, distribution of full succession dashboard to larger executive team and board can be limited to an annual report

Conclusion #174 While dashboard should cover full set of succession metrics, “percent of critical positions filled with individuals on succession plan” should be most prominently displayed indicator; furthermore, dashboard should detail performance across departments to highlight areas failing to follow plans or adequately develop bench strength

Component #2: Succession Planning Dashboard


On Plan

Not on

Plan30% 70%





• Select key succession metrics and track performance

• Report progress of succession efforts to senior executives

• No responsibilities • No responsibilities


Conclusion #175 Even within organizations that lack executive buy-in for succession planning, HR leaders should, at a minimum, track “internal promotion rate” and “turnover rates among designated high-potential leaders” to monitor health of leadership bench and to continue to make the case for succession management efforts

Practice Assessment





Practice in Brief

Hospitalinstitutesseriesofqualitycheckstoassesscandidate’ssuitabilityandreadinessforspecificleadershipvacancy;goaltoensurehiringmanagerthoughtfullyconsidersallpossiblecandidatesandpositionneedsbeforefillingleadershipvacancy

Practice #12: Best-Fit Hiring Screens

Rationale

Pressedtofillleadershipvacancy,hiringmanagersoftendefaulttoselectingeitherobviousnext-level-downcandidateorexternalhirewithoutconsultingexistingsuccessionplansorconsideringdepartment-specificneeds


Component #1: Defined Readiness CriteriaHospitalassessescandidatesconsideredforpromotionagainstsetofbehaviorsandexperiencesrequiredtosucceedinnextmanagementlevel;assessmentconfirmscandidate’sreadinessfornext-levelrole

Component #2: Situational AssessmentHiringmanagerorhi-posteeringcommitteeanswersfixedsetofquestionstoassesseachcandidate’sfitwithavacantposition’scurrentbusinessneedsandsituation;questionsensurebestcandidateidentifiedforaddressingtheuniquesetofchallengesfacingthevacantroleatthattime

Component #3: Selection OversightHiringmanagerreviewsallcandidateswithexecutivecommittee,statingcaseforpreferredcandidateaswellasreasonsfornotselectingalternativecandidates;forcingmechanismtoensurehiringmanagerabidesbysuccessionplanorhascompellingreasonfornotdoingso

Practice Assessment

Aneffectivemethodforvettinghiringdecisionsandensuringleadershipvacanciesfilledwithbestcandidates;additionally,providesaccountabilityforhiringmanagertoconsultsuccessionplansandforceconsiderationofcross-silocandidateswhenselectingnewleader

Making the Right Selection 217




Conclusion #176 For succession planning to drive business results, leadership hiring process must result in organizations’ best leaders filling most critical jobs; first step to ensure individual candidate possesses necessary leadership skills

Conclusion #177 To ensure that candidates can quickly adjust to and succeed in new roles, organizations utilizing tiered competency model can leverage level-specific behaviors to screen potential hires; Dell Computers, for example, requires hiring manager as well as other stakeholders to provide specific examples of how candidate has demonstrated pre-defined behaviors and experiences required at next leadership level

Component #1: Defined Readiness Criteria

Requiring Supporting Evidence

Case in Brief

• PersonalcomputerandelectronicsmanufacturerbasedinRoundRock,Texaswithnearly70,000employeesin52countriesworldwide

• Conductsrobustsuccessionmanagementprocessatalllevelsoftheorganization;providesallemployeesa“scalingcall”—agradingofpotential

• Employeesdeemed“promotable”nominatedforspecificpromotionbydirectsupervisorwhoisresponsibleforvalidatingdecisionwithotherleaders

• Summaryofreadinessassessmentssubmittedtoseniorexecutivecommitteeforapproval

Dell Computer Corporation

Source: Dell, Inc., Round Rock, Tex. ; HR Investment Center interviews and analysis.

Director Readiness: Deliver Results the Right Way

Director Readiness: Align and Motivate Others

Director Readiness: Set Business Direction

A Director candidate should have demonstrate these leadership behaviors within the scope of their role, and shown a tendency to demonstrate them beyond the scope of their immediate responsibilities. This indicates they have the potential to apply the skills consistently over time and in varying situations

Has this individual…• influenced business direction/ strategy beyond the organization that reports directly to

him/her? • thoroughly understood the business model and applied it appropriately?• communicated Dell strategy accurately - both inside and outside Dell?• come up with innovative strategies & plans?• managed process improvements that have lead to improved customer experience,

globalization, and/or product leadership?• considered industry & competitive trends when making business decisions?• had a consistent & positive impact on the key financial indicators for their business?• set strategy and direction about how to leverage and develop all talent in their organization?

Readiness Criteria for Each Leadership Competency


At Dell, HR and hiring manager select handful of assessors possessing knowledge of the individual; assessors provide specific examples of how candidate has demonstrated next-level leadership within each of Dell’s leadership behaviors



Questions for New Leader Selection at Gundersen Lutheran

Considering Situational Needs

Business Risk

1. What are the current and future business needs of the function? How does the candidate’s skill set match those needs?

2. How does the candidate’s skill set complement their potential new team partner?

3. What experiences does the candidate need to step into the new leadership role?

4. What level of performance is required for success in this position?5. What is the start up time the candidate will need to become proficient in

the role?6. Is this position best filled by an internal or external candidate?

Candidate Readiness

7. What are the most important required competencies the candidate needs to possess for the position?

8. What specific functional business/technical knowledge does the candidate need to possess to assume the new leadership role?

Downstream Impact

9. Who will be the likely replacement candidate(s) when the individual moves into a new leadership role?

10. Has the candidate expressed interest in an expanded leadership role within the organization?


Conclusion #178 In addition to proficiency in level-specific leadership competencies, candidates should be assessed against ability to meet the real-world operational challenges currently presented by the new role; hiring managers at Gundersen Lutheran use a set of standard questions to evaluate current business conditions of a department and to select the candidate most prepared to address those specific needs

Conclusion #179 In addition to highlighting candidate readiness, focusing on business situation rather than technical skills can broaden pool of candidates beyond functional silo; Gundersen, for example, looks for candidates with experience in high-growth service lines to fill a leadership vacancy in a fast-growing clinical department—not necessarily the best clinician

Matching the Right Candidate to the Right Situation

Component #2: Situational Assessment


Matching the Right Candidate to the Right Situation


Making the Position Fit the Talent

Changing Structure at Gundersen Lutheran

• Director of Security position becomes vacant• Workplace Safety manager, an identified high

potential, possesses leadership skills for promotion but lacks content knowledge of security

Director, Security

Manager, Workplace Safety

Vice President

Director, Workplace Safety

and Security

Manager, Security

• System creates new Director position combining workplace safety and security

• To fill-in new Director’s knowledge gaps, security manager position created and filled by someone with expertise in security

Vice President

Conclusion #180 A Reverse Approach: When a strong candidate does not appear to be a good fit for a specific role, best practice organizations look to alter the role to fit the candidate; a willingness to change organizational structure, reporting relationships, or scope of responsibilities provides the organization greater flexibility in placing the most talented leaders in the most critical positions




Component #3: Selection Oversight

Requiring a Compelling Case at IBM

“Five-Minute Drill”

In reality, discussions last up to 60 minutes

• Drills occur at Chairman’s meetings and cascade down to all organization levels

• Occur every month to ensure all executive-level candidates are agreed upon within group

VP of ResearchTop Candidates

1. J. Timberlake 6. J. Lopez

2. W. Houston 7. P. Dempsey

3. B. Spears 8. T. Cruise

4. A. Joli 9. K. Holmes

5. B. Pitt 10. B. Harper

Source: IBM Corp., Armonk, N.Y. ; HR Investment Center interviews and analysis.













• Hiring manager explains top choice for leadership vacancy• Provides specific examples from key stakeholders of how

candidate has demonstrated next-level leadership• Explains why other bench candidates not selected

Conclusion #181 Finally, to ensure that hiring managers both utilize succession plan and select the most appropriate candidate, best practice organizations institute a formal check before offer can be extended

Conclusion #182 Case in Point: Standing agenda of leadership team meetings at IBM includes a “Five-Minute Drill,” during which hiring managers must not only provide reasons for selecting preferred candidate but also explain why other ready-now candidates not selected; the “why not” part of discussion key to forcing consideration of cross-silo candidates



Be Prepared to Lose Leaders

Candidate #1• Currently VP, Patient Care• Strong operational background • Lacks experience in working with

physicians outside of the nursing function

Candidate #2• Currently VP, Physician Relations• Strong in managing conflict and

negotiations• Limited experience managing

operations

COO

Change title to Chief Nursing Officer with expanded number of departments reporting to her

Expand role to include responsibility for all quality and system integration initiatives

Alternative Future

1 Pseudonym.

Case in Brief

Madrid University Medical Center1

• A400-bedacademicmedicalcenterintheSoutheast

• ChiefOperatingOfficerannouncesplansforretirementin18months

• Twohighpotentialcandidatesidentifiedandbeinggroomedfortheposition

Conclusion #183 Cautionary Note: Potential departure of non-selected candidates an unpleasant consequence of promotion decisions and succession planning in general; rather than a deterrent from developing multiple candidates, best practice organizations accept turnover as a natural by-product of succession plans but proactively create individual retention plans to persuade declined hi-pos to remain at organization






• Provide list of key consideration questions for candidate selection

• Facilitate regular Five-Minute Drills at each level

• Develop retention plans for leaders who were not selected

• Hold leaders accountable for following succession plans

• Conduct situational assessment of departments with vacant leadership positions

• Participate in Five-Minute Drill and selection decision

• Explain selection decision during Five-Minute Drills

• Develop retention strategies for leaders who were not selected


Conclusion #184 For organizations investing time and effort to develop succession plans, this practice ensures that hiring managers use plans, giving fair consideration to successors when positions become available and do not default to usual suspects

Conclusion #185 Best practice organizations able to achieve outstanding business results by positioning most talented people in most important leadership positions; for hospitals wishing to build strong leadership teams, critical to look past technical requirements and rethink organizational design and traditional career paths

Practice Assessment




227


Practice#13:TailoredOnboardingPlan.................................. 229


V




Rationale

Majorityofhospitalsandhealthsystemsfailtooffertransitionsupporttonewlypromotedleaders,wronglyassumingthatinternalcandidatesalreadyfamiliarwithroleanddepartment;asaresult,evenmanywell-groomedsuccessorsfacelengthyramp-upperiodor,worseyet,failentirely


Component #1: Transition MilestonesPriortonewleader’sstartdate,HRbusinesspartnerandhiringmanagerreviewcriticalelementsofnewleader’sroleandcreatecustomizedtimelineofactionstoaddresstheseelements;planincludespre-scheduledmeetingswithkeystakeholders,suggestedactivities,andearlyperformanceobjectives

Component #2: Two-way AssimilationHRleadercompilesbackgroundreportforleaderontheirnewroleusingintelligencegatheredfromconversationswithkeystakeholders;additionally,HRleaderfacilitatesdiscussionbetweennewleaderandstaffinleader’sfirstweektoaddresseachparty’squestionsorpreliminaryconcerns

Component #3: Personalized Onboarding TeamHRassignsanexecutivesponsorandfunctionalexpertstoserveasadvisorstonewleaderduringatime-limitedtransitionperiod

Component #4: Early Performance AssessmentNewlytransitionedleaderreceivesseriesofassessmentsduringfirstsixmonthstopinpointpotentialderailersordevelopmentneeds;feedbackallowsleadertoimproveeffectivenessinnewroleearly

Practice Assessment

Highlyrecommendedforallorganizationstohelpnewleaders,whetherinternalorexternal,becomeproficientinnewrolemorequickly;additionally,giventhenearlyday-to-dayinteractionsbetweenHRandnewleader,structuredonboardingprocessoffersgreateropportunitytobuildstrongrelationshipsbetweenHRbusinesspartnerandnewleaders


Regardlessofhospital’sdecisiontopursuesuccessionmanagementaggressively,providingtransitionsupportcansignificantlyreducecostsrelatedtolengthyramp-uptimeofnewleaders

Practice in Brief

Fornewlytransitionedleaders,bothinternalandexternal,hospitalcreatescustomizedplantoassimilateleadertotheirnewrole,team,anddepartment;goaltoensurenewleadersprovidedwithnecessaryknowledgeandcoachingsupporttosucceedquicklyinnewrole

Practice #13: Tailored Onboarding Plan

Perfecting the Onboarding Process 229




Day 1 Day 90 Day 180

Mapping the First 180 DaysRecommended Onboarding Process

Written onboarding plan

Self-assessment

Two-way assimilation meeting

Initiate key stakeholder meetings

Key stakeholder check-in


360 assessment

Meet with onboarding team

Review 180 day accomplishments

Conduct key stakeholder analysis

Conclusion #186 To avoid early failure and accelerate new leader’s time to proficiency, best practice organizations create a customized onboarding agenda offering intensive support from before the leader’s first day through leader’s six month anniversary; primary components of agenda include planned interactions with key stakeholders, meetings with a group of peer advisors, and dedicated opportunities for feedback

Component #1: Transition Milestones




Personalizing Key Onboarding CheckpointsA Deliberate Approach

General Onboarding

Template

Onboarding Plan for

Daniel Shay, Director of

Finance

August 153 meet wih Daniel Shay about onboarding

July 153 meet wih Daniel Shay about onboarding

June 153pm meet wih Daniel Shay about onboarding

Prior to New Leader Start Date

• HR business partner designs comprehensive onboarding template for all new leaders

• Contains suggested activities, meetings, readings, and questions to be answered

• Business partner collaborates with hiring manager to identify critical elements of new role, create customized onboarding plan from template

• On new leader’s first day, business partner introduces onboarding process, walks leader through onboarding

• Every 30 days, business partner meets with new leader to ensure plan is followed, provide coaching, gather feedback on the process

After New Leader Start Date

Case in Brief

• BankingandfinancialservicescompanybasedinCharlotte,NorthCarolinawithmorethan175,000employeesworldwide,including400executivesand1,500seniorleaders

• Bank’srapidgrowthleadingtoneedforaggressiveacquisitionandpromotionofnewleaders

• Recognizingcostsrelatedtolengthyramp-upofnewleaders,BankofAmericacreatedaformalonboardingpracticetoaccelerateeffectivenessofnewleaders

Bank of America Corporation

Source: Bank of America, Charlotte, N.C. ; HR Investment Center interviews and analysis.

PersonalizedOnboardingPlanavailableattheendofthispracticeonpage243.

Conclusion #187 Prior to leader’s transition, HR and hiring manager meet to identify required and suggested activities based on critical elements of new role and establish a timeline for completing each activity

Conclusion #188 To simplify creation of plan, HR department at profiled organization supplies a generic template with timeline and list of suggested activities; HR and hiring manager can then delete unnecessary information and events, add unique tasks, or shift dates


Personalizing Key Onboarding CheckpointsA Personalized Plan


On-boarding Plan Objectives:

• Accelerate business performance• Facilitate smooth integration into the new role• Build key relationships essential for future success• Clarify short- and medium-term objectives• Enhance understanding of aspects of the BAC business and culture• Provide support through feedback, coaching, and follow-up

On-Boarding Timeline

Objectives Week 1 30-60 Days 90 Days 120 Days 180+Days

1. Define on-boarding plan and objectives

2. Build key relationships3. Learn the business,

organization and culture4. Establish self as a leader

and business partner

5. Deliver results

On-Boarding Team Roles and Responsibilities

Jane Smith Manager. Will provide coaching and direction in implementing the on-boarding plan.Consumer Executive 555-555-5555Roger Dawkins Senior Advisor. Will provide business and integration guidance as needed.President, Dealer Financial Svcs 555-555-5555Bill Jenkins Peer Coach. Provides information and advice about the business, team, and role of the new leaderConsumer Market Executive 555-555-5555Chriss Tailor Personnel Executive. Provides on-boarding guidance as needed.Personnel Executive 555-555-5555Fred Jorgenson LD Client Manager. Provides on-going support in implementing the on-boarding planLD Client Manager 555-555-5555Barbara Jones ED Consultant. Provides monitoring and support.Executive Dev. Consultant 555-555-5555

Key Checkpoints

Initiate Key Stakeholder MeetingsFoster early networks between new leader and key stakeholders

New Leader-Team IntegrationFacilitated discussion to accelerate development of new leader-team relationships

Meet with Peer CoachCreate opportunities for new leader to establish effective relationships with peers

Succeeding at Bank of America

CEO Executive NetworkingAgenda-specific sessions to promote new leader networks with other leaders across organization

Performance Feedback

AssessmentsProvide ongoing feedback on new leader’s performance based on self-assessment, key stakeholder check-in, and 360-degree assessment

“Tollgates” built-in to monitor progress of new leader

ON-BOARDING PRIORITIES

WEEK 1

• Manager drafts On-Boarding Plan and reviews with the Manager and Personnel Executive prior to New Leader’s Day 1.

• Manager prompts Administrative Assistant to initiate scheduling of Key Stakeholder discussions prior to New Leader’s Day 1.

• Meet with Jane Smith to:o Identify key business and financial informationo Job responsibilities and objectiveso 30-, 60-, 90-, and 180-day expectationso and agree on a “Not to do” list.

• Discuss Strengths, Development Needs, and Potential Derailers identified in the assessment process as they relate to the new role requirements

• Complete On-Boarding Plan.• Review Key Stakeholder List (see Attachment A) and identify any additional key internal stakeholders to be

included. Initiate any additional meetings.

• Meet with Chris Tailor and Fred Jorgenson to: o Review the On-Boarding Plan.o Review Key Stakeholder List (see Attachment A)o Conduct Briefing on BAC Leadership Model.

• Discuss Strengths, Development Needs, and Potential Derailers identified in the assessment process as they relate to the new role requirements

• Conduct Key Stakeholder meetings to receive orientation on key BAC systems and process.• Conduct on-boarding briefing and business overview with Chris Tailor.• Conduct technology overview with Executive Assistant.

0-60 DAYS

• Meet with Jane Smith to review 30-day accomplishments against objectives• Attend the New Leader-Team Integration Session and, if appropriate, a New Peer Integration Session (facilitated

by Chris Tailor/Fred Jorgenson).• Meet with Bill Jenkins to receive business and on-boarding guidance.• Participate in 45-Day Stakeholder Check-in

At the end of the month, seek feedback and coaching from Jane Smith and Chris Tailor/Fred Jorgenson regarding on-boarding

Defines objectives and importance of organization’s onboarding process

Identifies key individuals and their role in supporting new leader

Explicit actions provided to ensure new leader meets expectations

Conclusion #189 On leader’s first day, hiring manager introduces the plan, and the HR business partner then checks-in with the leader every 30 days to gauge progress and adjust plan as needed; consistent follow-up from HR business partner critical to ensuring that proactive meetings not abandoned in the crush of urgent tasks




Conclusion #190 While preset meetings with key stakeholders a hallmark of onboarding strategies, professional courtesy and unfamiliarity often preclude honest questions or advice; to capture more unfiltered intelligence from key stakeholders, Capital One Financial supplements stakeholder meetings with third-party interviews

Conclusion #191 Prior to new leader start date at Capital One, HR business partner interviews key stakeholders asking targeted questions to gain insight into department politics, business goals and team dynamics, as well as advice on how leader should best approach new role; review of the report summarizing stakeholder responses allows newly transitioned leader to quickly understand departmental culture and behavioral norms

Component #2: Two-way Assimilation

Facilitating Meaningful IntroductionsUpfront Objective Intelligence from HR

Identify Key Stakeholders

• Internal coach, HR consultant and hiring manager identify 6–10 stakeholders

• Selected stakeholders have direct contact with new leader, such as reports, peers, managers, and external parties

Interview Constituents

• Coach, skilled in coaching across businesses, conducts one-on-one interviews with constituents

• Asks targeted questions to gain insight into how leader should best approach new role

Deliver Custom Stakeholder Analysis

• Coach summarizes responses of interviewees in six-page analysis report

• Reviews with new leader in first week

Source: Capital One Financial Corp., McLean, Va. ; HR Investment Center interviews and analysis.

Summary Report

Communication Style

Constituents interacting with new leader prefer communication style that is assertive, direct and clear.

Case in Brief

• Providerofdiversifiedfinancialserviceswithmorethan20,000employees,basedinMcLean,Virginia

• Offersseveralonboardingpracticestoensureinternalandexternalleadersquicklyadapttonewroles;conductscustomstakeholderanalysisforallnewexecutives

Capital One Financial Corporation

FullAssimilationInterviewGuideavailableattheendofthispracticeonpage246.

Interview Questions• What does this leader

need to know?

• What development stage is the department in, e.g. start-up, turnaround, realignment, sustaining success?


Facilitating Meaningful IntroductionsForum for Open Discussion

New Leader

• HR collects seven key questions that new leader has for direct reports

• HR receives consensus in answers from team and communicates main findings, without attribution, to new leader

HR Staff

• HR facilitates discussion between new leader and team; allows team to ask new leader specific questions and address any concerns and issues

• HR ensures leader responds to any questions not answered in meeting at a later time

Source: Watkins M, The First 90 Days, Boston: Harvard Business School Press, 2003: 47; HR Investment Center interviews and analysis.

Sample Questions for Staff

• What are the specific challenges facing the team?

• What commitments is team willing to make to meet the challenges?

Sample Questions for New Leader

• What are leader’s greatest strengths?

• What expectations does leader have for team?

Conclusion #192 Further, to introduce new leaders to their direct reports and staff—perhaps the most reticent yet critical stakeholders—HR leaders at best practice organizations facilitate two-way question and answer session in a new leader’s first week; meeting enables staff to ask candid questions in a protected setting, while leader gains valuable insight into staff concerns and expectations

Conclusion #193 In combination, third-party stakeholder analysis and facilitated staff introductions provide new leaders an otherwise unattainable glimpse into the current work environment of their new department or role; since staff represent the group most likely to make or break a newly transitioned leader, resource constrained HR departments should prioritize staff introductions over the more time-consuming stakeholder analysis




Conclusion #194 While peer mentoring of new leaders a common and potentially effective practice, implementation too often undermined by hit-or-miss matching of mentors to mentees or mentor burnout; to combat these pitfalls, Gundersen Lutheran uses team approach to peer mentoring offering two advantages—access to diverse expertise and bounded commitment of time

Conclusion #195 For each newly transitioned leader, HR selects several senior and peer leaders to serve as team of advisors; to provide variety of viewpoints, onboarding teams include an executive sponsor, an OD representative responsible for coaching leadership style and competencies, and two functional experts selected based on a leader’s specific knowledge gaps

Assembling an Onboarding Team

HR Operations Manager

Provides HR and organizational development support

Clinical Manager

Administrative Director

Serves as senior leader sponsor; mentors, tracks progress, and provides feedback

HR selects 3–4 appropriate team members, including senior leader sponsor and other seasoned peer managers across the organization to provide clout and support new leader

Clinical Manager

Serves as peer sponsor to lend credibility, advise on questions concerning nursing practice, and offer guidance on managing nursing staff

Coaching Support Technical Support

Component #3: Personalized Onboarding Team

Adapting Peer Mentoring to Team Format




Offering Focused Support

Time LimitedNew leader and team meet at least once in first month and regularly thereafter for three months

Clear AgendaNew leader charged with setting agenda and asking specific questions in each meeting

AccountabilityHR present at each meeting to ensure follow-through on onboarding process

Onboarding Team Check-in

Adapting Peer Mentoring to Team Format

IntroductoryLettertoOnboardingTeamMembersavailableattheendofthispracticeonpage248.

Conclusion #196 To prevent mentor burnout, team members formally commit to support a newly transitioned leader during their first three months only, but relationships frequently continue; beyond monthly team meetings, mentors primarily assist with in-the-moment questions




Never Far from an Assessment at Bank of America

Leadership Competency Score

5435

Week 1

Self assessment using leadership competency model

Summary of feedback from key stakeholders on perceived strengths and development needs

45–90 Days 180 Days

360 degree assessment based on leadership competency model

Component #4: Early Performance Assessment

HR’s Questions for Key Stakeholders

✓ Whatareyourearlyimpressionsoftheleader’sstrengths?

✓ Whatareyourearlyimpressionsonleader’stoptwodevelopmentneedsthatifgoneuncheckedcouldpotentiallyprovetobefatal?

✓ Whatadvicewouldyougivetheleaderthatwillmakeherevenmoresuccessfulinhercurrentrole?

✓ Whatonethingdoyoupersonallyneedfromtheleader?

HR interviews a dozen or so peers and senior executives for 10 to 15 minutes each

Source: Bank of America, Charlotte, N.C. ; Fulmer R, Conger J, Growing Your Company’s Leaders: How Great Organizations Use Succession Management to Sustain Competitive Advantage, New York: American Management Association, 2004: 125; HR Investment Center interviews and analysis.

Sharing Impressions of Performance from Week One

Conclusion #197 Rather than waiting for an annual or semi-annual evaluation, best practice institutions assess leader’s performance throughout the onboarding process, thereby pulling forward opportunity to take corrective action

Conclusion #198 Case in Point: Newly transitioned leaders at Bank of America complete a competency self assessment in their first week and undergo a full 360-degree assessment after only six months; between these formal competency assessments, HR leaders gather anecdotal feedback from key stakeholders to highlight actionable development opportunities


Strengths Development Opportunities/ Potential Derailers

Crisp and Candid Communicator

• Effectively balances talking and listening to foster open dialogue/debate

• Listens with intent to understand others POV / assumptions before judging

• Approachable and open style “invites” others into discussion

• Will openly and willingly challenge status quo when appropriate

Instill Greater Management Discipline…

• Ensure you are staying proactive and balanced…don’t fall prey to the “tyranny of the urgent”

• Build / implement management processes that enable you and your team to stay ahead of competitors. That will further help you direct / influence their attention

• Continue to get out in the markets, spending time with your business partners

Applied Business Smarts

• Leverages strong financial & business acumen to connect with & influence business partners

• Effectively uses current / past knowledge and experiences to add value in critical business discussions and decisions

• Talks the language of business that gets his client’s respect

• Practical and sensible about solutions

Potential Derailers

• Withholding Information

• Work to eliminate any perception that you hold back key information pertinent to a discussion or decision

• Avoid allowing your calm, reserved style to inadvertently send wrong signals…withdrawn, not interested, etc.

Sharing Impressions of Performance from Week OneDelivering Colleagues’ Thoughts

Comments reported verbatim but anonymously

Strengths and development needs complemented by potential personality derailers

Stakeholder comments aggregated and categorized


In addition to report, leader receives recommended development plan from HR

Representative Key Stakeholder Report Provided by HR

Conclusion #199 Collected via one-on-one interviews with peers and senior executives, HR leaders provide summary of verbatim feedback to new leader as well as suggested development activities to address issues raised in report; similar to two-way assimilation, use of third-party to collect intelligence from key stakeholders increases candor of feedback


EarlyStakeholderEvaluationavailableattheendofthispracticeonpage250.





• Create customized onboarding plan and introduce onboarding process to new leader on first day

• Conduct key stakeholder analysis prior to new leader start

• Facilitate discussion between new leader and staff

• Assemble a personalized onboarding team for new leader and attend team meetings

• Check-in with new leader every thirty days

• Administer self assessment in new leader’s first week and 360 assessment after six months

• Interview peers and direct supervisors on performance of new leader; aggregate their impressions to create key stakeholder report

• Meet with newly transitioned leaders

• Serve as executive sponsor on onboarding team

• Offer guidance on creation of customized onboarding plan

• Meet with new leader in their first week to set expectations

• Guide and support new leader in creation of early development plan

• Identify key stakeholders for custom stakeholder analysis and report

• When necessary, participate in personalized onboarding team

• Provide frequent performance feedback

Practice Assessment

Conclusion #200 Typically responsible for onboarding newly transitioned leaders, hiring managers too often have neither the time nor inclination to effectively onboard new leaders; profiled components make strong case for greater HR involvement in onboarding process, especially in organizations with strategic business partners assigned to each department

Conclusion #201 For organizations aggressively pursuing structured job rotations for high-potential leaders, Component #3: Dedicated Onboarding Team particularly effective; Gundersen Lutheran relies on onboarding teams to mitigate risks associated with dramatic job moves, especially when moving non-clinical leaders to traditionally clinical roles






Note on Use

ThistoolisdesignedtoassistHRinthecreationofacustomizedonboardingplanfornewleaders.Keyelementsincludeearlyperformanceobjectives,alistofindividualswhocanprovidesupportandguidance,andformalmechanismsforprovidingfeedback.

Tool 13A: Personalized Onboarding Plan

Prior to the new leaders arrival, the HR business partner and hiring manager meet to consider the critical elements of the new leader’s role and determine which of those elements should be addressed during the onboarding process. Using the template provided:

• Identify individuals who can provide support and advice to the new leader• Schedule meetings with staff and key stakeholders on behalf of the new leader• Define 30-, 60-, 90- and 180-day performance objectives for the new leader• List activities and actions the new leader should take during her first 60 days of work to meet

expectations• Determine how to provide ongoing feedback to the new leader• Suggest meetings, readings, and networking opportunities which will help the new leader adjust to her

new position

Review the plan with the new leader on her first day of work; add additional activities to the plan and make adjustments, as necessary

Check-in with the new leader at least once a month to gauge progress, provide additional support, and/or adjust the onboarding plan as necessary

Instructions

1

2

3




Onboarding Plan for ______________________________________________Onboarding Plan Objectives

• Accelerate business performance• Facilitate smooth integration into the new role• Build key relationships essential for future success• Clarify short- and medium-term objectives• Enhance understanding of aspects of the BAC business and culture• Provide support through feedback, coaching, and follow-up

Onboarding Timeline

Objectives Week 1 30-60 Days 90 Days 120 Days 180+Days

1. Define on-boarding plan and objectives

2. Build key relationships3. Learn the business,

organization and culture4. Establish self as a leader

and business partner

5. Deliver results

Onboarding Team Roles and Responsibilities

Name Role and Responsibilities

_____________ _____________________________________________________________________________________________________ _____________________________________________________________________________________________________

_____________ _____________________________________________________________________________________________________ _____________________________________________________________________________________________________

_____________ _____________________________________________________________________________________________________ _____________________________________________________________________________________________________

_____________ _____________________________________________________________________________________________________ _____________________________________________________________________________________________________

Christine Taylor

Source: Bank of America, Charlotte, N.C. ; HR Investment Center analysis.


Activities Week 1

Activity Participants Purpose Date

Meeting with supervisor

Jane Reese • Review key business and financial information

• Discuss job responsibilities and objectives

• Set 30-, 60-, 90- and 180-day expectations

• Agree on a “not to do” list• Determine plan for ongoing feedback

Monday, August 12, 3-4pm Jane’s Office

Meeting with HR business partner

Susan Jordan • Review onboarding plan• Discuss strengths, development needs, and potential derailers

Tuesday, August 13, 9-10am Susan’s Office

Meeting wiith key stakeholder

Fred Jorgenson, Patient Care Services

• Introductions• Review relationship between departments

Thursday, August 15, 2-3pm Chris’s Office

Activities Next 60 Days

Activity Participants Purpose Date

Attend luncheon for new hospital leaders

CEO, VPs, all new hospital leaders • Meet senior leadership team• Learn about their vision for the hospital

Tuesday, August 27, 5-7pmMain Atrium

Meet with Supervisor

Jane Reese • Review progress toward goals• Receive 30 day feedback

To be scheduled

Meet with all key stakeholders

(See list of key stakeholders on onboarding plan)

• Introductions; begin to establish relationships

• Gain familiarity with all parts of the organization

• Seek support and advice

Friday, October 10


Source: Bank of America, Charlotte, N.C. ; HR Investment Center analysis.



Tool 13B: Assimilation Interview Guide

Note on Use

Thistoolisdesignedtoelicitinsightsfromkeystakeholdersaboutdepartmentpolitics,businessgoalsandteamdynamics,aswellasadviceonhowthenewleadershouldbestapproachhisnewrole.Stakeholders’responsesaresummarizedinareportwhichhelpsthenewleadertoquicklyunderstanddepartmentalculture,activitiesandbehavioralnorms.

Internal coach, HR consultant and hiring manager identify 6-10 stakeholders who have direct contact with the new leader, such as reports, peers, managers and external parties

Using the following questions as a guide, HR conducts one-on-one interviews with stakeholders to gain insights into how the leader should best approach his new role

HR summarizes responses in a report

HR meets with the new leader during his first week to review the responses

Instructions

1

2

3

4



Source: Capitol One Financial Corp., McLean, Va. ; HR Investment Center analysis

What does this leader need to know? _________________________________________________________________________________________________________What does the team already know about the leader? _____________________________________________________________________________________________How would you characterize the relationships between members of the department, e.g. collegial, collaborative, strained? _______________________________________________________________________________________________What development stage is the department in, e.g. start-up, turnaround, realignment, sustaining success? ______________________________________________________________________________________________________________What are the department’s major objectives? ___________________________________________________________________________________________________What are the team’s major objectives? ________________________________________________________________________________________________________What are the specific challenges facing the team? ________________________________________________________________________________________________What commitments is the team willing to make to meet the challenges? _____________________________________________________________________________What are the team’s greatest strengths? _______________________________________________________________________________________________________What are the first things the leader should focus on? _____________________________________________________________________________________________What is most important to the team? _________________________________________________________________________________________________________What does the team want most from the leader?________________________________________________________________________________________________

Assimilation Interview Guide



Tool 13C: Letter to Onboarding Team Members

Note on Use

Inordertoensurethatthenewleaderhasanetworkofpeersandseniorleaderstocalluponforsupportandadvice,HRinvitesemployeesandmanagerstoactas“peersponsors.”ThefollowingisasampleletterfromHRtoahospitalleaderinvitingtherecipienttobecomeapeersponsor.




Dear__________________,

Youhavebeenselectedtoplayaroleintheonboardingprocessfor___assheassumesheradditionalresponsibilitiesin__.BeforeIgoon,letmefirstclarifywhatonboardingisallabout.

AnessentialpartofanyTalentManagementProgramistoacceleratetheeffectivenessofnewleadersintheorganization.Researchshowsthatexecutivesinnewleadershiprolescanfailbecauseofinadequatepartnershipswithsubordinatesandpeers,confusionandlackofclarityaboutexpectations,lackofinternalpoliticalsavvy,andtheinabilitytoachieveimportantexpectedoutcomes.Asuccessfulonboardingprocessreducesthelikelihoodoftheseeventsoccurring.

Aneffectiveonboardingstrategyistailoredtomeettheindividual’suniqueneeds.Theonboardingplanistypicallyexecutedwithinthefirst12monthsoftheleader’stenure.

Hereiswhereyoucomein.Oneimportantcomponentoftheplanispeersponsorship.Peersponsorstranslateworkplacenorms,answerquestions,andprovidebackgroundonorganizationalcultureandroles.Thisprocessofonboarding _________________ isintendedtoprovideherwiththesupportandastructuredframeworkofinformationtoensureaproductivetransition.

Typically,thiscommitmentisayearinlengthandismorefrequentintheindividual’searlytenure.Thespecificsofthearrangementcanbestdeterminedbyyouand__________________________________.

Ilookforwardtohearingbackfromyouregardingyourwillingnesstoserveinthiscapacity.

Sincerely,

__________________________



Note on Use

Thistoolisdesignedtogatherandanalyzefeedbackonthenewleader’sperformancefromkeystakeholdersandtoidentifyopportunitiesfordevelopmentaswellaspotentialpitfalls.

Tool 13D: Early Stakeholder Evaluation

Strengths Development Opportunities Potential Derailers

Crisp and Candid Communicator

• Effectively balances talking and listening to foster open dialogue/debate

• Listens with intent to understand others POV / assumptions before judging

• Approachable and open style “invites” others into discussion

• Will openly and willingly challenge status quo when appropriate

Instill Greater Management Discipline…

• Ensure you are staying proactive and balanced…don’t fall prey to the “tyranny of the urgent”

• Build / implement management processes that enable you and your team to stay ahead of Morton and Harris…and that will further help you direct / influence their attention

• Continue to get out in the markets, spending time with your business partners

Applied Business Smarts

• Leverages strong financial & business acumen to connect with & influence business partners

• Effectively uses current / past knowledge and experiences to add value in critical business discussions and decisions

• Talks the language of business that gets his client’s respect

• Practical and sensible about solutions

Potential Derailers

• Withholding Information

• Work to eliminate any perception that you hold back key information pertinent to a discussion or decision

• Avoid allowing your calm, reserved style to inadvertently send wrong signals…withdrawn, not interested, etc.

Comments reported verbatim but anonymously

Strengths and development needs complemented by potential personality derailers

Stakeholder comments aggregated and categorized

In addition to report, leader receives recommended development plan from HR

Schedule short (10–15 minutes) individual meetings with a dozen or so of the new leader’s peers and superiors

Ask them for feedback on the new leader’s performance. Questions may include:• What are your early impressions of the leader’s strengths?• What are your early impressions of the leader’s development needs?• What suggestions would you give the leader to help her become more successful in

her current role?• What one thing do you personally need from the leader?

Use the matrix on the following page to categorize feedback; a sample is provided below

Meet with the new leader to discuss the feedback and create a development plan

1

2

3

4

Instructions



The following report is a compilation of feedback on your performance collected through brief interviews with your peers and supervisors. Comments are reported verbatim unless otherwise noted. Please review the comments and work with your HR representative to create a development plan tailored to your particular strengths and needs.

Key Stakeholder Report

Name: ______________________________________

Supervisor: __________________________________

Date: ______________________________

Strengths Development Needs

•••••••

•••••••

Colleagues Needs/Expectations Suggested Development Plan

•••••••

•••••••

Other Comments/Suggestions

•••••••





253


Appendix

m Pre-approvedMetricBank.................................... 255

m ComprehensiveNeedsAnalysis............................ 265



Appendix 255


Rationale

Goal-settingprocessesfororganizationandindividualsarealltoooftenatodds;althoughseniorleaderstargetfinitenumberofspecificoutcomesfororganization,currentcascadingprocessallowsmanagerstodefinetheirownperformancemeasurementsregardlessofrelationshiptoselectedorganizationaloutcomes


Component #1: Building Database of Current ObjectivesFormostcurrentyear,organizationcompileslistofindividualobjectivesforeveryleaderandsortsobjectivesbymostrelevantorganizationalstrategicpriority;goaltocreateasetofbaselineobjectivestobe“scrubbed,”withasubseteventuallyapproved

Component #2: Developing Bank of Pre-approved MeasuresRelevantseniorleadersassignedtoeachorganizationalpriorityandtaskedwithinitialcreationandongoingmanagementoflistofselectableindividualobjectives;goaltobuildadynamicpicklistofindividualobjectiveslikelytohavethegreatestimpactonorganizationalpriorities

Component #3: Selecting Individual ObjectivesEachyear,operationalleadersnegotiatewiththeirdirectsupervisortoselecttheirindividualobjectivesfromthepre-approvedlistortosubmitproposalforanewmeasure;goaltolimitvariabilityofindividualobjectivesinordertobetterfocusoperationalleadersononlythosemeasuresofmostvaluetotheorganization

Practice Assessment

Practicerecommendedasaturnkeysolutionforforcingalignmentacrosstheorganization;practicemayappearoverlyautocratic,but,whileorganizationdefinesdesiredoutcomes,leadersgivenfulldiscretiontopursuethoseoutcomeshowevertheyseefit

HR Investment Center Grade: A

Pre-approved Metric Bank

Practice in Brief

Hospitalbuildsdatabaseofperformancemeasuresthathavebeenpressure-testedforrelevancetolargerorganizationalprioritiesandrequiresleaderstoselectfromlistratherthancreatingwhollycustomizedobjectives;goaltoeliminaterisksassociatedwithvaryinginterpretationoflargerstrategy,ensuringthatallindividualobjectivesimpactdesiredorganizationaloutcomes

ThispracticewasoriginallypublishedinHardwiring Common Purpose: Driving Individual Accountability for Organizational Goals

NOTE:



Component #1: Building Database of Current Objectives

Conclusion #111 In 2002, HR executive at Washoe Medical Center discovered that many operational leaders received substantial merit raises despite weak organizational performance; subsequent review of leaders’ individual objectives revealed excessive variability in performance measures, with 300 operational leaders using more than 500 distinct metrics

Conclusion #112 Seeking to focus leaders on most leveraged performance measures, the health system sought to pare down 500 measures into list that better reflected and supported organizational priorities; to start, each measure was reviewed and linked to one of Washoe’s four strategic priorities based on relevance

Creating a Baseline List

HR collects performance evaluations for each of system’s 300 leaders

Performance measures pulled from each evaluation and compiled into master list exceeding 500 distinct measures

Each measure categorized based on organizational priority it was intended to impact

Case in Brief• 751-bed,two-hospitalsystembasedinReno,Nevada

• In2002,HRexecutivediscoversthatleaderscontinuedtoearnmeritpayincreases,whileoverallorganizationalperformancelagged

• Toensurealignmentwiththeorganization,systemnowuses“picklist”ofgoalsandmeasurespre-approvedbyseniorexecutives

EvalEval

EvalEval

Quality

ServicePeople

Stewardship

Measures

• Unit turnover

• Participation on PI committees

• Days in A/R

• Patient satisfaction

• Car seats in cars

Measures

• Unit turnover

• Participation on PI committees

• Days in A/R

• Patient satisfaction

• Car seats in cars

Washoe Health System


Appendix 257


Component #2: Developing Bank of Pre-approved Measures

Conclusion #113 Next, a unique gatekeeper for each of the four strategic priorities was assigned to evaluate the relative merit of each measure and to isolate the subset of metrics most likely to drive organizational success in the gatekeeper’s dedicated area

Conclusion #114 Beyond initial creation of list, gatekeepers re-evaluate applicability and effectiveness of performance measures each year and must personally approve additions to the list; amount of approved measures has fallen each year, now standing at 214, less than half the original total

Filtering Potential Measures

Each gatekeeper finalizes list of measures to be tracked for “owned” strategic priority

Gatekeeper reviews all measures related to their priority

VP, Planning

AccountabilityScoring Criteria and Points Allocated

Surgical Services Quality Improvement: The average percentage of “on-time starts” for first case of the day will have goal of 22%

<19% 19% 20% ≥22% ≥22%

Trauma Chart Data Extraction: To eliminate trauma deficiencies, data will be extracted from the charts for more than 89% of trauma cases within 2 months of the trauma event

<89% of cases

89% of case

90% of cases

≥92% of cases

91% of cases



<19% 19% 20% ≥22% ≥22%


<89% of cases

89% of case

90% of cases

≥92% of cases

91% of cases

0 1 2 3 4

Priority #3: Service

Total: 74

Process Development Administrator



<19% 19% 20% ≥22% ≥22%


<89% of cases

89% of case

90% of cases

≥92% of cases

91% of cases



<19% 19% 20% ≥22% ≥22%


<89% of cases

89% of case

90% of cases

≥92% of cases

91% of cases

0 1 2 3 4

Priority #2: Quality

Total: 52

VP, Human Resources



<19% 19% 20% ≥22% ≥22%


<89% of cases

89% of case

90% of cases

≥92% of cases

91% of cases



<19% 19% 20% ≥22% ≥22%


<89% of cases

89% of case

90% of cases

≥92% of cases

91% of cases

0 1 2 3 4

Total: 10

Priority #1: People

Number of Approved Measures

2002 2003 2004 2005

500+

~350 ~300 214

Baseline Requirements for Proposed Measures

Shared by at least two people Progress is quantifiable Measured against benchmarks Approved by most-relevant department head Critical to advancing strategic priority

Each priority assigned to “accountability gatekeeper” for review




Defining Metrics Clearly

Conclusion #115 In order for new measures to be considered for addition to the database, they must meet a specific set of parameters and undergo rigorous screening by gatekeepers; at a minimum, performance measures must be quantifiable, have a valid benchmark, and be measurable by third party or automated system

Conclusion #116 Furthermore, at least two leaders must agree in advance to select proposed measure as an individual objective; this criterion critical for two reasons: (1) establishing common goals encourages greater collaboration across departments, and (2) precluding one-of-a-kind goals naturally limits the total number of measures in the system

Results cannot be self-reported; they must come from an automated system or a third party

System doesn’t allow “one-sies”; a metric must be shared by at least two leaders and approval requires the signature of a leader’s CXO

For a metric to be considered, it must be quantifiable and have a specific reference point that can be used to generate target-levels

Preventing Metric Creep


Formal process for proposing new measure

Appendix 259


Defining Metrics Clearly

Conclusion #117 To further ensure rigor of available measures, detailed descriptions written for each measure, including how the metric will be tracked; while descriptions relatively static, progressive performance targets modified each year based on benchmarking data

Setting Quantifiable Goals

Quality Stewardship

Accountability Measure: Division Expense (%)Total actual expense per unit of service (if applicable) for the areas for which I am fiscally responsible will be scored according to the following schedule:


Criterion 1 Under budget by more than 4% 4

Criterion 2 From more than 2% to 4% under budget 3

Criterion 3 From budget to 2% under budget 2

Criterion 4 N/A

Criterion 5 Over budget 0

Accountability Measure: Lab Turnaround Time for Nursing UnitsNursing satisfaction with laboratory services is closely linked with testing turnaround times (TAT)—the time from computer order entry to the release of the test results. This accountability will focus on high frequency STAT tests. The selected key tests will be measured and reported by nursing unit. It is believed that prolonged laboratory TATs cause treatment delays and delayed notification of physicians regarding critical changes in some patients’ physiological condition. The turnaround time for the selected STAT lab tests identified will be at or below the established benchmark. The final year-end score will be the average of the last two quarters. The score will be calculated by determining the aggregate percentage of tests that are not completed within the established turnaround time, which are industry standard benchmarks by test. The accountability will be scored as follows:


Criterion 1 >95% of tests completed within standard 4




Criterion 5 <85% of tests completed within standard 0

Each accountability assigned three to five performance levels with corresponding performance rating

While the definitions of performance measures do not typically change from year to year, the performance levels become incrementally more difficult




Appendix 261


Component #3: Selecting Individual Objectives

Conclusion #118 Approved performance measures stored and managed in online system; software allows users to select performance measures from drop-down list, assign relative weights based on priorities, and track performance across the year

Conclusion #119 Selection of measures each year is driven from the top down with each direct supervisor choosing three to five performance measures for each of their direct reports; once selected, direct reports can view the choices and suggest changes before they are submitted two-levels up for final approval

Measure Selection Driven from the Top

Measure Selection Process

Selected accountabilities sent to each direct report who has the opportunity to suggest new or different accountabilities

Once signed-off by both supervisor and direct report, accountabilities submitted for approval to the relevant leader two levels above the direct report

Direct supervisor selects three to five measures for each of her direct reports based on her own accountabilities or on departmental initiatives

Source: Washoe Health System, Reno, Nev. ; HR Investment Center interviews and analysis.

Measures selected from drop-down list and assigned priority weighting



Practice Assessment

Conclusion #120 Combination of picklist and rigorous selection process highly recommended mechanism for ensuring that operational leaders target their collective efforts on objectives likely to enhance organizational performance

Conclusion #121 Clear prioritization and alignment has contributed to bottom-line improvement for Washoe Health System; since implementing the pre-approved metric bank, Washoe has increased operating margin by 60 percent

A Boon to the Bottom Line

System Operating Margin

Source: Washoe Health System, Reno, Nev. ; HR Investment Center interviews and analysis.

Before IncentiveSystem Launch

After IncentiveSystem Launch

4.3%

6.9%

GoalAcross two years following implementation, system achieved 60 percent operating margin improvement with no increase in merit-pay expenses

Giving Credit Where Credit Is Due

“Priortoimplementingthissystem,peopleweregettingpaidforthingsthatweren’tmeasurableortrackedinanyway.Wewerespendingalotofmoneyonemployeeincentives,butnothingwasreallychangingfromanorganizationalperformancestandpoint.Nowmoredollarsareinplay,butrewardsarelimitedtothoseindividualswhoaremakingameasurabledifferenceintargetedareas.Withthisapproach,weareactuallypayingouremployeesaboutthesameamountasbefore—maybeevenless—andoverallperformanceismuchhigher.”

VicePresidentWashoeHealthSystem

A Sizable but Worthwhile Undertaking

Appendix 263


A Sizable but Worthwhile Undertaking

Conclusion #122 Admittedly, initial implementation of Pre-approved Metric Bank a sizable commitment of time and resources, but subsequent obligation diminished by linking measures to static organizational priorities (or pillars); since most change in organizational strategy occurs at goal level, strong likelihood that majority of relevant measures already available in bank

Conclusion #123 Metric bank particularly timely practice for organizations adopting more results-oriented culture; system allows executives to establish clear outcome targets while providing managers freedom to pursue goals as they see fit

Capsule Evaluation

HR HRHRHRHR

Executive Team Time Commitment

Financial Investment

Current HR Ownership

Impact on Strategy Execution



Appendix 265


ComprehensiveNeedsAnalysis

Practice Description

Leveragingstrategy-linkedperformancereviewsystem,organizationassessesdevelopmentneedsatboththeindividualandcollectivelevel;goaltogenerateobjectiveandaccuratemeasuresofcurrentperformancetoprioritizetraininganddevelopmentinvestmentaswellasidentify“best-of-the-best”forfasttracking.

Practice Assessment

Stronglyrecommendedforallinstitutionsandarequiredbuildingblockforfutureleadershipdevelopmentefforts,includingcurriculumdevelopmentandsuccessionplanning;steepestcostistimeandadvocacyofseniorleaders.

Implementation Tools

Tool 2.A LeadershipAssessment

Tool 2.B RatingSystemDescriptors

Tool 2.C PerformanceReviewTimeline

Tool 2.D TalentMatrix

Tool 2.E GroundRulesforTeamTalentReview

Tool 2.F DevelopmentActionsForm

Tool 2.G LeadershipLearningMap

ThispracticewasoriginallypublishedinElevating Leadership Performance: Maximizing Return on Development Initiativess

NOTE:



Appendix 267


Key Practice Components

Component #1: Auditing Performance AssessmentsPrior to delivering performance review, each leaders’ evaluation subjected to a series of checks meant to provide additional insight and scrutiny; goal to ensure that review process captures accurate and reliable data on current strengths and weaknesses

Component #2: Conducting Team Talent ReviewsAll managers (across departments) of same rank meet to review and discuss the performance of direct reports; goal to ensure consistency and prevent bias of appraisals and to identify strongest and weakest leaders

Component #3: Development and Succession PlanningUsing results of leadership review process, development priorities identified and best-of-the-best tagged for future leadership opportunities; goal to objectively assess the organization’s current ability to fill future leadership needs

Case in Brief

• 442-bedhealthsysteminNewOrleans,Louisiana

• Recentmergercreatedneedtoevaluateleadershipperformance

• Lackingmechanismtoprioritizeamongcompetinginitiativesandunderpressuretoimproveperformance,developedperformancemanagementprocesswithincreasedemphasisonleadershipdevelopment;increasedfocusonmanagementaccountabilityandexecutionofbusinessobjectives

Ochsner Clinic Foundation

TimelineManagers Evaluate

Deliver Review

Supervisors Approve

Create Action Plan



Component #1: Auditing Performance Assessments

Conclusion #26 Performance review process represents best opportunity for identifying leadership development needs across the organization; ability to leverage review process to target development efforts limited only by the accuracy and reliability of the data produced

Subjecting Reviews to Additional ScrutinyAssessment Tools Leaving Nothing to the Imagination

1 2 3 4 5

Unacceptable Improvement Expected Good/Meets Expectations

Very Good/Exceeds Expectations

Outstanding/ Mastery

Fails to demonstrate appropriate leadership skills or has exhibited inappropriate behavior

Inconsistently demonstrates appropriate leadership skills and behavior

Consistently demonstrates good leadership and appropriate behavior

Most of the time demonstrates very good leadership skills and exceptional behavior

Always demonstrates outstanding leadership skills and behaviors

Customers Come First _4_ Treats others with dignity_4_ Puts patients, families, and internal customers first_5_ Respects confidentiality_5_ Gives patients and internal customers 100% attention_5_ Sets realistic expectations Avg _4.6_

Reach Out_4_ Shows initiative; self starter _4_ Exceeds customer expectations Avg _4_

Listen, Then Speak and Act_5_ Maintains self-control; emotional maturity_4_ Listens, drives for clarity of understanding _4_ Accepts responsibility for customer complaints _4_ Reports matters of concern to appropriate party_4_ Shows empathy Avg _4.2_

Make a Positive Difference_4_ Represents Ochsner in a positive manner_4_ Collegial Avg _4_

Enter the rating as a score for each of the leadership and behavioral characteristics listed below. Average each category and average category scores to obtain final rating.

2004-Form CBehavioral Assessment

Name: .............................................Bob SmithTitle: ...............................................Director, TrainingDepartment: .................................TrainingManager: ........................................ Jenny Parker, VP HRPerformance Period Ending: .....Dec 2003

Descriptions of performance expectations overly explicit to ensure proper calibration

Behaviors based on attributes of most successful leaders as identified by senior managers

Year End Performance Calculation

Performance CategoryGoals and Objectives

Accomplishments Measure or Metric Performance Category Wt.

Mid Year Status

Year End Results

Rating X Wt =

Quality and Superior Service- Facilitate improvement in Employee

Satisfaction scores by 5%- Facilitate improvement in Patient

Satisfaction scores for key areas

• Consulting with core departments resulted in significant improvements in employee sat scores

• Comprehensive strategy for employee satisfaction led to house-wide increase by 4.9%

• Comprehensive approach for patient satisfaction led to increase house-wide

Morale Survey 4.3Press Ganey 87th percentile

20% 4 4 4 .80

Financial Stability- Reduce external consulting fees- Operate within budget

• Consulting fees decline by 15% year over year Budget-Positive Variance

20% 3 3 3 .60

2004-Form BGoals and Objectives


Goals and objectives “cascade” from system-level strategy

Measurable goals customized for each manager, while behaviors common across institution

Numeric ratings allow for simple aggregation of performance data

Appendix 269


Subjecting Reviews to Additional Scrutiny

Source: Ochsner Clinic Foundation, New Orleans, La. ; HR Investment Center interviews and analysis.

Conclusion #27 Ochsner Clinic Foundation achieved more useful and credible appraisals by inserting a series of checks and balances into the leadership review process; managers repeatedly required to support and defend their assessments in a variety of settings throughout the process

Reviewing the Review

Methods for Fighting Grade Inflation

Mid-Year Review

• Managers encouraged to make development a year-round priority by continually revisiting performance evaluations

• Six months after formal evaluations, supervisor updates each managerial direct report on performance against goals as well as adherence to development plans

“One-Over-One” Oversight

• Managers review each of their evaluations with their direct supervisor

• Supervisor’s role to thoughtfully probe decisions and pushback on ratings

Team Talent Review

• Each manager presents review of direct reports to an audience composed of senior leaders and managers of the same rank

• Audience encouraged to provide additional feedback, share anecdotes, and discuss accuracy of each assessment

Ochsner’s Performance Evaluation in Brief

• Appraisaldividedintotwoparts—customizedassessmentofperformanceagainststrategicmetricsandacommonassessmentofleadershipbehaviors

• Performanceoneachassessmentequallyweightedforincentive,salary,andpromotionpurposes

December

June

1 2 3 4 5











Customers Come First __ Treats others with dignity__ Puts patients, families, and internal customers first__ Respects confidentiality__ Gives patients and internal customers 100% attention__ Sets realistic expectations Avg ___

Reach Out__ Shows initiative; self starter__ Exceeds customers expectations Avg ___

Show Respect__ Helpful, courteous and friendly __ Respected by peers__ Treats others w/ respect and honors diversity __ Communicates openly and honestly __ Energizes others to exceed/succeed Avg ___

Dependability__ Dependable; conscientious __ Trustworthy Avg ___

Results Orientation and Business Skills__ Takes ownership and achieves results__ Uses QI tools/methodologies to continuously drive improvement

and productivity __ Understands OCF strategy and business imperatives__ Anticipates change, leads others through transitions & adversity__ Sets clear targets/goals & measurements__ Develops creative and innovative solutions & alternatives__ Takes appropriate risks__ Delivers consistently, high capacity for responsibility__ Uses good judgment in decision making Avg ___

Listen, Then Speak and Act__ Maintains self control; emotional maturity__ Listens, drives for clarity of understanding __ Accepts responsibility for customer complaints __ Reports matters of concern to appropriate party__ Shows empathy Avg ___

Make a Positive Difference__ Represents Ochsner in a positive manner__ Collegial Avg ___

Each of Us is Ochsner__ Promotes customer service orientation __ Behaves in accordance with policies and procedures__ Attends & promotes required events __ Deals with ambiguity, flexible Avg ___

Teamwork__ Willingness to accept team assignments__ Gains acceptance as a group leader__ Serves as a team player; collaborative__ Honors commitments to others__ Achieves results through others/teams Avg ___

Leadership__ Developing others is a high priority__ Manages conflicts appropriately and effectively__ Builds good relationships__ Demonstrates self confidence, balanced w/ humility__ Inspires others, motivational __ Balances work and personal life__ Knows own strengths and development needs, self-aware, always

works to improve and grow__ Gives direct feedback on an on-going basis__ Acts as a change agent Avg ___

Behavioral Assessment Total Average: _______



Accomplishments Measure or Metric

Performance Category Weight

Mid Year

Status

Year End

Results

Rating X

Wt = Weighted

Rating

Quality and Superior Service•

Financial Stability•

Service Growth and Expansion•

People Management & Development•

Information Technology and Physical Infrastructure•

Academics•

Final Average For Goals and Objectives (50 percent if performance Rating on Form A: Performance Summary

Performance Rating Year End Final Score

Unacceptable =1 1=Unacceptable

Improvement Expected =2 2=Improvement Expected

Meets Expectations/Good =3 3=Meets Expectations/Good

Exceeds Expectations/Very Good =4 4=Exceeds Expectations/Very Good

Outstanding/Mastery =5 5=Outstanding/Mastery

Employee’sSignature Manager’sSignature

*Add Essential Job Functions from Job Description where appropriate.





Ensuring Consistency Across the Organization

Component #2: Conducting Team Talent Reviews

Helping to Make the Tough Decisions

2004 Surgery Team AssessmentOutstanding/Mastery

Good

Unacceptable Acceptable Exemplary

Key Ready for new role/promotable High potential Experienced professional New in position

Key R Retention risk – Needs heavy coaching Needs job change

Lisa Diane

Jill

Sam

R Tina

Behavior

Pe

rf

or

ma

nc

e

Debating Choices

• Using established ground rules, VP of HR facilitates discussion of each grade, soliciting additional feedback on performance

• Based on feedback and grade relative to other managers, performance review may be altered to ensure consistent scores

32004 Surgery Team Assessment

Good

Outstanding/Mastery


Key Ready for new role/Promotable High potential Experienced professional New in position


Lisa Diane

Jill

Sam

R Tina

Behavior

Pe

rf

or

ma

nc

e2

Plotting Performance• Managers describe current performance

of department as well as future needs, and then the capabilities of each direct report

• Each direct report plotted on 2x2 matrix based on scores from performance and behavioral assessments

1

Cascading Reviews• Divided into two sessions:

CXO review of VPs and VP review of Directors

• All management reviews completed and submitted to HR a month prior to the full-day team talent review

• Enlisting CEO support for sessions ensures all executives make it a priority

Conclusion #28 Gathering managers together to collectively assess organizational bench strength best single mechanism for ensuring consistency and accuracy of evaluation process; by forcing supervisors to articulate differences in leadership performance from one manager to another, team talent reviews act as strong barrier to grade inflation

No established quotas for distribution of evaluations; however, a significant number of managers in the upper right quadrant prompts further discussion and differentiation of performance

Numeric scores allow for precise plotting and makes it easier to differentiate managers

Appendix 271


Ensuring Consistency Across the OrganizationImpact of Collectively Enforced Standards

70

35

0

Unacceptable Needs Improvement Achieves Exceeds Outstanding

2003: Bell curve emerges as system forces differentiation

Number of people

A Paradigm Shift

“Attheendoftheday,thisprocessisnotaboutbeingpunitive,it’sabouthelpingleadersperformatahigherlevelandcontinuallyimprove.”

CAO/COOOchsnerClinicFoundation

Source: Ochsner Clinic Foundation, New Orleans, La. ; HR Investment Center interviews.

Conclusion #29 Over time, series of hardwired checks and balances raises the bar on what is considered outstanding performance

2002: Prior to new system, reviews heavily skewed toward most favorable rating

Distribution of Manager Performance Ratings

Elevating the Evaluation Process

“Oursuccesswiththisinitiativeisnotabouttheformsweuse,it’sabouttheprocessandtheleadershipsupportwehaveinplacehereatOchsner.Ourprocessincludesaroadmaptodifferentiateperformanceandplacesthenecessaryfocusonwherewe’regoingtofindtheleadersweneedtocontinuegrowing.Ourgrowthisonlylimitedbyourleadership.” VP,HumanResources OchsnerClinicFoundation

2004: Emergence of bell-shaped distribution continues



2004 Surgery Team AssessmentOutstanding/Mastery

Future Potential

Learning MapNeeds more finance and marketing experience

Finance 101

Surgery Marketing

Sam

Ready for Promotion Soon

Learning MapRecommend course on finance

Finance 101

Lisa

Matching Investment to Future Leadership GapsReviewing Individual Needs

Conclusion #30 Final piece of the evaluation process is to determine next steps at the individual and collective levels; position on talent matrix and long-term potential used to determine each manager’s readiness for promotion, and individual action plans created to address remaining skill gaps

Component #3: Development and Succession Planning

Ready for Promotion Now

Jill

Action Steps for Promotion

Good


Lisa Diane

Jill

Sam

R Tina

Pe

rf

or

ma

nc

e



Behavior

During talent review, managers assign ratings based on potential or special circumstances

Development needs highlighted on performance evaluation serve as source for action plans

Appendix 273


Matching Investment to Future Leadership Gaps

Source: Ochsner Clinic Foundation, New Orleans, La. ; HR Investment Center interviews and analysis.

Leadership Behavioral Assessment Aggregate Scores

Competency Average Score1

Customers Come First 4.7

Reach Out 3.9

Show Respect 4.6

Dependability 4.7

Results Orientation and Business Skills 3.6

Listen, Then Speak and Act 4.5

Make a Positive Difference 4.7

Each of Us is Ochsner 4.2

Teamwork 3.9

Leadership 3.5

Identifying Collective Priorities

Observation #31 Using aggregate performance data, organization determines collective skill deficits and prioritizes development resources to address areas of greatest need

1 On a scale from 1–5, 5 being outstanding. Data for illustrative purposes only.

Aggregate data highlights areas for focusing organizational development efforts and initiatives



Tool 2.A—Leadership Assessment

Goals and Objectives

1 2 3 4 5











Name: .............................................Title: ...............................................Department: .................................Manager: ........................................Performance Period Ending: .....


Reach Out__ Shows initiative; self starter__ Exceeds customer expectations Avg ___





Listen, Then Speak and Act__ Maintains self-control; emotional maturity__ Listens, drives for clarity of understanding __ Accepts responsibility for customer complaints __ Reports matters of concern to appropriate party__ Shows empathy Avg ___


Each of Us Is Ochsner__ Promotes customer service orientation __ Behaves in accordance with policies and procedures__ Attends & promotes required events __ Deals with ambiguity, flexible Avg ___


Leadership__ Developing others is a high priority__ Manages conflicts appropriately and effectively__ Builds good relationships__ Demonstrates self-confidence balanced w/ humility__ Inspires others, motivational __ Balances work and personal life__ Knows own strengths and development needs, self-aware, always

works to improve and grow__ Gives direct feedback on an ongoing basis__ Acts as a change agent Avg ___






Mid Year

Status

Year End

Results

Rating X

Wt = Weighted

Rating






Academics•

Final Average For Goals and Objectives (50 percent if performance Rating on Form A: Performance Summary)











Appendix 275


1 2 3 4 5













Reach Out__ Shows initiative; self starter__ Exceeds customer expectations Avg ___





Listen, Then Speak and Act__ Maintains self-control; emotional maturity__ Listens, drives for clarity of understanding __ Accepts responsibility for customer complaints __ Reports matters of concern to appropriate party__ Shows empathy Avg ___


Each of Us Is Ochsner__ Promotes customer service orientation __ Behaves in accordance with policies and procedures__ Attends & promotes required events __ Deals with ambiguity, flexible Avg ___


Leadership__ Developing others is a high priority__ Manages conflicts appropriately and effectively__ Builds good relationships__ Demonstrates self-confidence balanced w/ humility__ Inspires others, motivational __ Balances work and personal life__ Knows own strengths and development needs, self-aware, always

works to improve and grow__ Gives direct feedback on an ongoing basis__ Acts as a change agent Avg ___






Mid Year

Status

Year End

Results

Rating X

Wt = Weighted

Rating






Academics•

Final Average For Goals and Objectives (50 percent if performance Rating on Form A: Performance Summary)











Source: Ochsner Clinic Foundation, New Orleans, La..

Behavioral Assessment



Performance Evaluation Rating System

Tool 2.B—Rating System Descriptors



Performance Level

Category

Rating Scale


• Highly regarded by peers as expert in their field• Serves as role model; leads by example• Highly productive and innovative; stimulates teamwork• Generates top quality work striving for perfection• Consistently exceeds behavioral standards• Significant achievements; always exceeds target goals• Active in industry-related and outside community groups

Outstanding/Mastery

5



• Shows initiative and versatility in completing tasks• Works collaboratively contributing to team efforts• Strong technical and interpersonal skills• Achieved significant advancements• Demonstrates advanced job competency

Very Good/Exceeds

Expectations

4

Good performance, fulfilling all position requirements and may on occasion generate results above those expected of the position.

• Meets all performance standards• Consistent performance on target goals (neither exceeds

or falls short of targets)• Thorough job competency; developing advanced skills• Blends in with the team• Generates good quality and quantity of work product

Good/Meets Expectations

3

Performance leaves room for improvement. Either performance level declined or has not shown significant improvement during the rating period.

• Sometimes meets performance standards• Seldom exceeds or sometimes falls short of target goals• Job and behavioral competencies need development;

indifferent• Not responding favorably to instructional direction

Improvement Expected

2

Lowest performance level, clearly less than acceptable and well below minimum standards. Situation requires immediate review and action. Possible separation or reassignment unless significant and immediate performance improvement.

• Consistently falls short of performance standards and target goals

• Job competencies are limited and below job requirements

• Performance Improvement Plan objectives not met• Has had a discipline report during the rating period• Demonstrates inappropriate behavior with others;

disruptive

Unacceptable 1

Source: Ochsner Clinic Foundation, New Orleans, La.

Appendix 277


December 2004

Dec 1–Jan 5Leaders Complete Self-Assessment

Dec 8 or Dec 11. Leadership Performance Review Refresher Training

By Dec 15VPs Submit Goals and Objectives Form in Draft to EVP

January 2005

By Jan 1Directors and Managers Submit Goals and Objectives in Draft to VP

By Jan 5Leaders’ Self-Assessments Due to EVP, VP, or Director

June/July 2005

Mid-year Check-In on Goals and Objectives

Mid-year Leadership Review (status check on development plans)

March 2005

By March 5All Performance Evaluation Discussions and Development Plans Completed (review submitted to HR for file)

February 2005

By Feb 2Team Talent Review Meetings held

By Feb 9One-Over-One Sign-Offs Completed for All Levels

Tool 2.C—Performance Review Timeline


Leadership Performance and Career Review Timeline



Tool 2.D—Talent Matrix

Good

Outstanding/Mastery




Behavior

Pe

rf

or

ma

nc

e Strong Technical

Needs Improvement

Top Performers

Strong Behavioral


Team Assessment Form

Appendix 279


Tool 2.E—Ground Rules for Team Talent Review

Team Talent Review Process

Note: These guidelines apply to both CXO and VP team talent review

Step 1:EachVicePresidentbringstheperformanceevaluationsforeachoftheirDirectorstotheteamtalentreviewsession.

Step 2:EachVicePresidentpresentsashortperformancesummaryofeachDirectorandplotstheDirectors’scoresfromtheGoalAssessmentandBehavioralAssessmentontheTalentMatrix(seeTool2.Donp.64).Afterplottingthescores,theVicePresidentprovidesabriefexplanationofthegrades.Inaddition,eachDirectoristaggedforspecificaction:

• Readyfornewrole/promotable

• Highpotential

• Experiencedprofessional

• Newinposition

• Retentionrisk

• Needsheavycoaching

• Needsjobchange

Step 3: FollowingaVicePresident’sexplanationofgrades,theotherVPsareaskedtoprovidefeedbackonthescoresandshareadditionalcommentsabouttheplacementofspecificmanagers.Toensurethecommentaryremainsrelevant,thediscussionleaderenforcesthefollowinggroundrulesfordiscussion:

1. Feedbacklimitedtocommentsaboutperformanceorcompetency

! Avoidpersonalattacks

2. Onlyciteanecdoteswhichyouknowtobetrue

! Nothirdhandinformation

3. Commentsmustbeconstructiveinnature

! Steerclearofoutrightnegativestatements

4. Observationsmustberelevanttothecurrentreviewperiod

! Eventsthattookplacepriortothelastperformancereviewcannotbeusedas supportingevidence

Step 4:AfterallVicePresidentshavehadachancetopresenttheirDirectors,grouprevisitstheupper-rightquadranttoensurethatcategorizationistrulylimitedtotopperformers.




Top Performers

Keep and “Unleash”

Strong Contributors

Realize More Potential

Needs Improvement

Right Person/Right Job

Possible Actions:

• Retention• Accelerate development• Stretch assignments

Possible Actions

• Affirm their value• Targeted development• Mentoring

Possible Actions

• Consider fit• Performance plan• No false kindnesses

Instructions

BasedonresultsfromTeamTalentReview,placeeachmanagerinoneofthethreecategoriesbelow.

Tool 2.F—Development Actions Form

Development Actions Form


Appendix 281


Lea

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hip

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heck

poin

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Tool 2.G—Leadership Learning Map




Documents

HR Investment Center Implementation Kit