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1 © Development Dimensions Intl, Inc., MMV. All rights reserved. 1 Succession Planning Overview STATE ACTION FOR EDUCATION LEADERSHIP PROJECT Succession.

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Presentation on theme: "1 © Development Dimensions Intl, Inc., MMV. All rights reserved. 1 Succession Planning Overview STATE ACTION FOR EDUCATION LEADERSHIP PROJECT Succession."— Presentation transcript:

1 1 © Development Dimensions Intl, Inc., MMV. All rights reserved. 1 Succession Planning Overview STATE ACTION FOR EDUCATION LEADERSHIP PROJECT Succession Planning Conference March 11, 2005 Delaware Technical & Community College Loren Appelbaum Senior Consultant Development Dimensions International, Inc. C O M P E T I T I V E A D V A N T A G E. R E A L I Z E D.

2 2 © Development Dimensions Intl, Inc., MMV. All rights reserved. 2 Outline for discussion Organizational Context/Need Transitional Challenges & Roles The Success Profile Framework for Succession Planning Identifying Potential Diagnosing Strengths and Development Needs Development Planning Key Decisions Realizing results

3 3 © Development Dimensions Intl, Inc., MMV. All rights reserved. 3 Trends in Leadership Succession Planning Accelerated development of highest potentials, vs. replacement planning Accountability at senior leadership levels, vs. HR (not a spectator sport) Drive toward talent acquisition, development integrated into overall talent management approach Holistic approach (success profiles) Stronger focus on identifying highest potentials against relevant, objective criteria Earlier identification of talent for longer term growth, development, succession Board level interest in leadership development Sarbanes-Oxley influence Need for efficiencies in leadership assessment and delivery; leveraging use of technology

4 4 © Development Dimensions Intl, Inc., MMV. All rights reserved. 4 The thing that wakes me up in the middle of the night is not what might happen to the economy or what our competitors might do next, it is worrying about whether we have the leadership capability and talent to implement our global strategies. David Whitman, Chairman/President/CEO, Whirlpool Corporation

5 5 © Development Dimensions Intl, Inc., MMV. All rights reserved. 5 Increasing Failure Decreasing Confidence Two thirds of all major companies worldwide have replaced their CEO at least once since Drake Beam Morin Inc. Four in ten leaders fail within the first 18 months on the job. - Manchester Consulting

6 6 © Development Dimensions Intl, Inc., MMV. All rights reserved. 6 Readiness 75% of companies worldwide are not confident in their ability to fill strategic leadership positions over the next five years.

7 7 © Development Dimensions Intl, Inc., MMV. All rights reserved. 7 Conference Board Study Developing Business Leaders for 2010 Exponentially heightened senior leadership requirements – Influence/communication – Extraordinary strategic thinking – Tolerance for ambiguity – Talent Development Need to identify potential– The hard part – Only 34% report effective practices – Accuracy essential, but the hows are elusive

8 8 © Development Dimensions Intl, Inc., MMV. All rights reserved. 8 Risk of Derailment Among approximately 6,000 respondents, 2/3 reported that their current leader displays behaviors that could derail his/her career. - Development Dimensions International, 2001

9 9 © Development Dimensions Intl, Inc., MMV. All rights reserved. 9 Organizational Readiness 68% of organizations surveyed report that they are not prepared to deal with the leadership crisis. - Development Dimensions International, 2001

10 10 © Development Dimensions Intl, Inc., MMV. All rights reserved. 10 Leadership Development and Succession Planning is a Top Priority Top 5 management issues; up 25% (700 Global Executives, Conference Board, 2002) 78%: Most Important/Top 5 Business Success Factors (950 Executives, CEO Magazine/CCL, 2002) 91%: Top Enabler for Business Growth (Global CEOs, Conference Board, 2002) 47%: Major Business Priority (150 Global Corporations, Conference Board/DDI, 2002)

11 11 © Development Dimensions Intl, Inc., MMV. All rights reserved. 11 When its working… Work groups with strong leaders are 37% more likely to outperform other work groups, and are more satisfied, engaged, and loyal. - Leadership Forecast Study, DDI, 2003

12 12 © Development Dimensions Intl, Inc., MMV. All rights reserved. 12 Implications Now more than ever, business conditions dictate that leaders who are less prepared for senior leadership will be placed into senior leadership roles. To avoid leadership failure and its effects, organizations will need systems, processes, and tools which prepare these leaders to manage the challenges they will soon face.

13 13 © Development Dimensions Intl, Inc., MMV. All rights reserved. 13 What are the highest priority strategic challenges facing the Delaware school system?

14 14 © Development Dimensions Intl, Inc., MMV. All rights reserved. 14 What do those challenges suggest in terms of the leadership talent needed within the system?

15 15 © Development Dimensions Intl, Inc., MMV. All rights reserved. 15 ENSURE READINESS INVENTORY TALENT Talent Optimization Approach V I S I O N Strategic Priorities Cultural Priorities Leadership Imperatives Business Landscape Talent Needed Game PlanSuccessProfile Communication Accountability Skill Alignment Measurement Insurance PolicyCapacityNeeds Select/DeployTalent Focus/DrivePerformance IdentifyPotential AssessReadiness AccelerateDevelopment

16 16 © Development Dimensions Intl, Inc., MMV. All rights reserved. 16 Transitional challenges faced when moving into senior leadership roles Span of Influence Tactical Control Consequences of Failure Business Scope Visibility Constituents

17 17 © Development Dimensions Intl, Inc., MMV. All rights reserved. 17 Span of Influence FROM Single team/ function management Single team/ function management Small-group communications Small-group communications FROM Single team/ function management Single team/ function management Small-group communications Small-group communications TO Multiple team/ function management Multiple team/ function management Large, multi-group communications Large, multi-group communications TO Multiple team/ function management Multiple team/ function management Large, multi-group communications Large, multi-group communications Common Reactions: Unclear expectations, strategic confusion Slow to build partnerships, alliances Difficulty navigating political environment

18 18 © Development Dimensions Intl, Inc., MMV. All rights reserved. 18 Tactical Control FROM Involvement in day- to-day operations Involvement in day- to-day operations Direct impact on group outputs Direct impact on group outputs FROM Involvement in day- to-day operations Involvement in day- to-day operations Direct impact on group outputs Direct impact on group outputs TO Detachment from day-to-day operations Detachment from day-to-day operations Indirect impact on group outputs Indirect impact on group outputs TO Detachment from day-to-day operations Detachment from day-to-day operations Indirect impact on group outputs Indirect impact on group outputs Common Reactions: Reluctance to delegate Reluctance to delegate Desire for personal recognition for group success Desire for personal recognition for group success Do-it-yourself solutions Do-it-yourself solutions

19 19 © Development Dimensions Intl, Inc., MMV. All rights reserved. 19 Consequences of Failure FROM Limited-scale consequences Limited-scale consequences Unit-specific countermeasures Unit-specific countermeasures FROM Limited-scale consequences Limited-scale consequences Unit-specific countermeasures Unit-specific countermeasures TO Large-scale consequences Large-scale consequences Organization- wide countermeasures Organization- wide countermeasures TO Large-scale consequences Large-scale consequences Organization- wide countermeasures Organization- wide countermeasures Common Reactions: More personal stress More personal stress Unrealistic demands Unrealistic demands Negative outlook Negative outlook

20 20 © Development Dimensions Intl, Inc., MMV. All rights reserved. 20 Business Scope FROM Basic unit responsibility Basic unit responsibility Limited number of inputs/ variables Limited number of inputs/ variables FROM Basic unit responsibility Basic unit responsibility Limited number of inputs/ variables Limited number of inputs/ variables TO Organization-wide accountability Organization-wide accountability Broader business judgment needed Broader business judgment needed Many variables Many variables TO Organization-wide accountability Organization-wide accountability Broader business judgment needed Broader business judgment needed Many variables Many variables Common Reactions: Financial cramming Financial cramming Overemphasis on financial variables Overemphasis on financial variables Poor business judgments Poor business judgments

21 21 © Development Dimensions Intl, Inc., MMV. All rights reserved. 21 Visibility FROM Limited visibility Limited visibility Derailers disguised Derailers disguised Less cultural impact Less cultural impact FROM Limited visibility Limited visibility Derailers disguised Derailers disguised Less cultural impact Less cultural impact TO Wide visibility Wide visibility Derailers visible Derailers visible Greater cultural influence – derailers mimicked by many Greater cultural influence – derailers mimicked by many TO Wide visibility Wide visibility Derailers visible Derailers visible Greater cultural influence – derailers mimicked by many Greater cultural influence – derailers mimicked by many Common Reactions: Cultural damage; propagation of derailers Cultural damage; propagation of derailers Unwanted turnover Unwanted turnover Executive failure Executive failure

22 22 © Development Dimensions Intl, Inc., MMV. All rights reserved. 22 Constituents FROM Focus on team/ small group Focus on team/ small group Objectives set by supervisor Objectives set by supervisor FROM Focus on team/ small group Focus on team/ small group Objectives set by supervisor Objectives set by supervisor TO Focus on broader organization Focus on broader organization Objectives self-imposed Objectives self-imposed TO Focus on broader organization Focus on broader organization Objectives self-imposed Objectives self-imposed Common Reactions: Narrow focus; lack organization-wide vision Narrow focus; lack organization-wide vision Organizational stagnation, lack of progress Organizational stagnation, lack of progress

23 23 © Development Dimensions Intl, Inc., MMV. All rights reserved. 23 Leadership Succession Planning Requires… A pipeline of talent with the necessary skills and experiences to meet these challenges Leaders who can effectively execute key roles required at senior leadership levels Identification and alignment on a leadership success profile driven by the organizations strategy and future direction

24 24 © Development Dimensions Intl, Inc., MMV. All rights reserved. 24 The Success Profile

25 25 © Development Dimensions Intl, Inc., MMV. All rights reserved. 25 Talent Optimization Approach ENSURE READINESS INVENTORY TALENT V I S I O N Strategic Priorities Cultural Priorities Leadership Imperatives Business Landscape Talent Needed Game Plan Communication Accountability Skill Alignment Measurement Insurance Policy CapacityNeeds Select/DeployTalent Focus/DrivePerformance IdentifyPotential AssessReadiness AccelerateDevelopment SuccessProfile

26 26 © Development Dimensions Intl, Inc., MMV. All rights reserved. 26 DDIs Leadership Blueprint ®

27 27 © Development Dimensions Intl, Inc., MMV. All rights reserved. 27 A Leadership Success Profile Needs to Consider the Whole Person PERFORMANCE EXPERIENCE What I have done COMPETENCIES What I am capable of KNOWLEDGE What I know PERSONAL ATTRIBUTES Who I am

28 28 © Development Dimensions Intl, Inc., MMV. All rights reserved. 28 Competencies (Examples) (What one is capable of) Applied Learning Business Acumen Gaining Commitment Coaching/Teaching Communicating with Impact Initiating Action Developing Strategic Relationships Empowerment/Delegation Establishing Strategic Direction Learning Orientation

29 29 © Development Dimensions Intl, Inc., MMV. All rights reserved. 29 Job Experiences (What one has done) Operate in a high-pressure or high-visibility situation Implement an organizational-wide change Develop and implement a plan to cut costs Involvement with negotiating labor agreements, contracts Become heavily involved with a strategic alliance, or partnership opportunity Negotiate agreements with external organizations Manage a downsizing

30 30 © Development Dimensions Intl, Inc., MMV. All rights reserved. 30 Organizational Knowledge (What one knows) Functions Processes (R&D, budgeting, selection etc.) Systems Services

31 31 © Development Dimensions Intl, Inc., MMV. All rights reserved. 31 Personal Attributes/Enablers (Who one is) Adjustment Ambition Sociability Interpersonal Sensitivity Prudence Inquisitiveness Learning Orientation

32 32 © Development Dimensions Intl, Inc., MMV. All rights reserved. 32 Personal Attributes/Derailers (Who one is) Approval Dependent Argumentative (Defensive) Arrogant Attention Seeking (Self-Promoting) Avoidant Eccentric Imperceptive Impulsive Perfectionistic (Micromanager) Risk Averse Volatile

33 33 © Development Dimensions Intl, Inc., MMV. All rights reserved. 33 Leadership Failure… What do you think is the greatest cause of senior leadership failure? – Lack of knowledge (didnt know enough)? – Lack of experience (never tried before)? – Skills/competency deficiencies (not enough practice)? – Personal attributes/derailers (not cut out for it)?

34 34 © Development Dimensions Intl, Inc., MMV. All rights reserved. 34 Leadership Success What I know What I have done What I can do Who I am Leadership Failure Didnt know enough Never tried before Not enough practice Not cut out for it Knowledge Experience Competencies Personal Attributes Factors

35 35 © Development Dimensions Intl, Inc., MMV. All rights reserved. 35 Implications for Succession Planning Developing and gaining alignment on the right success profile is critical Leadership challenges and roles need to be addressed in development planning The approach needs to provide highest ROI

36 36 © Development Dimensions Intl, Inc., MMV. All rights reserved. 36 Identifying Potential Success Profile Diagnosing Devt Needs Prescribing Solutions Ensuring Development Reviewing Progress Planning Acceleration Pools Building Leadership Succession Planning Approach

37 37 © Development Dimensions Intl, Inc., MMV. All rights reserved. 37 Succession Management Approach Clarify Terms: Replacement Pools vs. Succession Planning Replacement: Can fill a specific position tomorrow Succession: Developing people for target levels who could fill a variety of positions

38 38 © Development Dimensions Intl, Inc., MMV. All rights reserved. 38 Traditional approach to succession Function AFunction CFunction B Traditional Replacement Planning

39 39 © Development Dimensions Intl, Inc., MMV. All rights reserved. 39 Succession Planning Approach (using Acceleration Pools) Acceleration Pool Organization Need BOrganization Need AOrganization Need C

40 40 Acceleration Pools Senior Leaders Middle Leaders First-level Leaders Individual Contributors A Subset of People Being Identified for Accelerated Development

41 41 © Development Dimensions Intl, Inc., MMV. All rights reserved. 41 Identifying Potential

42 42 © Development Dimensions Intl, Inc., MMV. All rights reserved. 42 Leadership Potential Factors* S U S T A I N E D P E R F O R M A N C E + *Research Foundation Bray & Howard, DDI, McCall et al, Personality Based Research, Collins, Hogan & Hogan, etc. Leadership Promise Propensity to Lead Brings Out the Best in People Authenticity Balance of Values and Results (Org. specific, future focused) Culture Fit Passion for Results Personal Development Orientation Receptivity to Feedback Learning Agility Mastery of Complexity Adaptability Conceptual Thinking Navigates Ambiguity

43 43 © Development Dimensions Intl, Inc., MMV. All rights reserved. 43 Diagnosing Strengths and Development Needs

44 44 © Development Dimensions Intl, Inc., MMV. All rights reserved. 44 Diagnosis Targets JOB FIT CURRENT JOB PERFORMANCE PERSONAL ATTRIBUTES PAST EXPERIENCES BEHAVIOR IN FUTURE-FOCUSED SITUATIONS

45 45 © Development Dimensions Intl, Inc., MMV. All rights reserved. 45 Diagnostic Tools JOB FIT Multi-rater surveys Performance reviews Inventories & Tests Behavioral Interviews & Career Profiles Assessment Centers

46 46 © Development Dimensions Intl, Inc., MMV. All rights reserved. 46 Development Planning

47 47 © Development Dimensions Intl, Inc., MMV. All rights reserved. 47 Development Realization… What percentage of leaders do you think actually change their behavior after their organization implements a leadership development program?

48 48 © Development Dimensions Intl, Inc., MMV. All rights reserved. 48 Development Realization… A. 75% B. 50% C. 25% D. 10%

49 49 © Development Dimensions Intl, Inc., MMV. All rights reserved. 49 Development Planning The Best Lessons are Those of Experience Based on Diagnostic Assessment and In Depth Feedback Senior Leader Oversight Supervisor, mentor involvement Ideally, Linked to all Success Profile Factors (experience, competencies, knowledge, derailers) Driven by Strategic organizational needs

50 50 © Development Dimensions Intl, Inc., MMV. All rights reserved. 50 Best Development Strategy? Development Priorities (What) Job Challenges Competencies Organizational Knowledge Executive Derailers Development Strategies (How) Job or task force assignment Short-term experiences Training; Internships Professional coaching

51 51 © Development Dimensions Intl, Inc., MMV. All rights reserved. 51 Closing the Development – Learning Gap Success Profile – Whole Person View Job Success What I know What Ive done What I can do Who I am Job Failure Job Failure Didnt know enough Never tried before Not enough practice Not cut out for it Knowledge Experience Competencies Personal Attributes Job/Task Force Assignments, Training Short-Term Experience, Job Challenges Professional Coaching Formal Training, Coaching Targeting a Development Strategy

52 52 © Development Dimensions Intl, Inc., MMV. All rights reserved. 52 Developmental Support Supervisor, mentor and pool member: – Plan development actions How the skill/knowledge will be obtained Application of the skill/knowledge Measurement of success of application – Determine additional development areas and appropriate development actions Supervisor and mentor provide coaching and support, monitor personal and retention issues Proof of development = successful applications

53 53 © Development Dimensions Intl, Inc., MMV. All rights reserved. 53 Prescribing Development Solutions Review diagnostic assessment data with key stakeholders Development priorities, plans determined Individuals matched to assignments Sponsors assigned Follow-up plans established

54 54 © Development Dimensions Intl, Inc., MMV. All rights reserved. 54 Key Decisions for Succession Planning

55 55 © Development Dimensions Intl, Inc., MMV. All rights reserved. 55 Key Decisions Success Profile – What are the key Experiences and Knowledge important for success at the Target level positions? – What Competencies will be used? Existing model? Create new? – Use of executive derailers? Diagnosing Development Needs – What diagnostic tools will be used? Assessment simulations? Tests? Interviews? 360s?

56 56 © Development Dimensions Intl, Inc., MMV. All rights reserved. 56 Key Decisions (cont.) Acceleration Pools – Number of acceleration pools? – Number of acceleration pool members? – Target level for pools? Nomination Process, Criteria – How will the nomination process be conducted? – What are the nomination criteria?

57 57 © Development Dimensions Intl, Inc., MMV. All rights reserved. 57 Key Decisions (cont.) Development Planning – Who will oversee it? – Use of mentors, sponsors? – Role of experiences vs. training?? – Leadership coaching?

58 58 © Development Dimensions Intl, Inc., MMV. All rights reserved. 58 Key Decisions (cont.) Communication Issues – Key messages? – Target Audiences?

59 59 © Development Dimensions Intl, Inc., MMV. All rights reserved. 59 Realizing Results – 5 Components Communication – Key audiences – Key messages Accountability – Senior champion(s) – Operation leader(s) – Roles & deliverables Skill – Leaders – Sponsors/Mentors – Managers Alignment – – Selection – – Development – – Performance Management Measurement – – Participant reactions – – % of Ready Now for senior roles – – Retention of talent – – Ratio of internal/external hires – – Success rates of new incumbents – – Diversity – – Time to fill key positions

60 60 © Development Dimensions Intl, Inc., MMV. All rights reserved. 60 Thank you!


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