1. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) APEX 29 Case Study DoD Succession Management September 2009

2. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 2 The purpose of this “Succession Management” Executive Roundtable Discussion is to...  Stimulate Thinking – to stimulate your thinking about the requirement in DoD Directive 1403.03 (“The Career Lifecycle Management of the Senior Executive Service Leaders within the Department of Defense” (October 25, 2007)), to develop talent management and succession planning within the DoD Components  Examine Proposed Changes and Potential Retirement Data – to examine and assess current and proposed talent management processes, as well as data describing the potential for exodus of significant numbers of senior leaders from the DoD workforce through retirement  Solicit Suggestions – to solicit your proposed suggestions for how senior DoD leaders could develop and implement a viable Talent Management and Succession Planning System

3. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 3 Overview – the framework for DoD Talent Management and Succession Planning is shaped by the following considerations  DoD is transitioning to… A systematic, enterprise-wide, proactive approach to executive talent management and development designed for rapid reaction and satisfaction of the SECDEF’s needs for the right executive, in the right position, at the right time  Directive 1403.03 requires the Department to develop talent management and succession planning within the Components Diagnose individual executive talent for development and assignment. Manage positions using a comprehensive strategic planning process. Identify where additional resources should be directed to fill capability gaps  The Department is responsible for ensuring that the 21 st Century executive workforce is agile and adaptable – can respond to changes in the mission quickly Assign executives where they would be most effective in accomplishing the agency’s mission and best application of their talents  An integrated talent management and succession planning model can support the identification of existing talent and development of an adaptable workforce Ensuring availability of the highest quality of executive leadership in a changing environment.

4. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 4  SES Members Receive Little Career Planning Assistance Little visibility of opportunities beyond employing organization No systematic opportunity to broaden experience/quals through rotation  Long Lead Time Needed to Fill SES Vacancies No identified “bench strength” for positions or projects Lengthy, complex recruitment and approval processes  SES Demographics Drive Need for Deliberate Planning 50% of the SES Corps is retirement eligible in less than 5 years FERS reduces incentive to remain with government  Strong Top-level Interest in SES Career Management (Deputy Secretary) Clear Direction / Need for More Agile SES Management Characteristics of the current DoD talent management and succession planning environment include...

5. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 5  Simply a slating system  Another overly burdensome system and process  A system that is owned by and seen as the sole responsibility of the Human Resources function  A performance management review Talent Management and Succession Planning are NOT …

6. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 6  Comprehensive individual career plans for all career SES  Assessment of potential for all career SES  Identification of bench strength for Tier 2/3 SES positions (Slates)  Visibility of SES talent across the Department (Dashboard)  Deliberate communication between leadership and Executives  Standardized Executive records across the Department  Overview of Executive talent and “health” of key functional domains for the Deputy Secretary of Defense Outcomes from the Succession Management Process include …

7. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 7  Reflect Executive’s “readiness” for greater responsibility now  One of four ratings may be assigned READY FOR INCREASED CHALLENGE: Member is ready now for a position of equivalent or greater scope, impact, complexity, responsibility, or institutional importance READY FOR CAREER BROADENING: Member is ready now to move laterally into a position of roughly equivalent scope, impact, complexity, responsibility, and authority that offers different challenges, growth, and or broadening opportunities BUILD TENURE/EXPERIENCE: On track or recently assigned. Member requires additional time to affect positive change or deliver results CONTRIBUTE IN PLACE: Member should remain in place because: 1) Member occupies a highly specialized, unique or niche position creating a need for continuity. 2) imminent retirement (less than 2 years) or other impending departure from SES corps, with short-term movement considered only if mission requirements change Senior Executives will receive “Readiness Ratings”

8. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 8 Talent Management and Succession Planning --- Framework Overview Career Histories Annual Performance Evaluations DATA INPUT Master Talent List with Succession “ Bench Strength ” Executive and Leadership Feedback Position Inventory & Individual Career Preference (1-3, 3-5, 5-7 years) Management (Supervisor and Endorser Readiness Rating Assessments) SES Member Executive Summary (BIO/Resume and Career Preference Input) Talent Management and Succession Planning Panel Mobility Considerations Assignment Discussion and Recommendations

9. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 9 VACANT POSITIONREADY PIPELINE GROOMING PIPELINE (3-5 YEARS) Succession Planning Process – An Example POSITION TITLE COMMAND TIER INCUMBENT RETIREMENT ELIG. DATE INCUMBENT 1 POSITION TITLE COMMAND TIER RETIREMENT ELIG. DATE INCUMBENT 2 POSITION TITLE COMMAND TIER RETIREMENT ELIG. DATE INCUMBENT 3 POSITION TITLE COMMAND TIER RETIREMENT ELIG. DATE INCUMBENT 1 POSITION TITLE COMMAND TIER RETIREMENT ELIG. DATE INCUMBENT 2 POSITION TITLE COMMAND TIER RETIREMENT ELIG. DATE INCUMBENT 3 POSITION TITLE COMMAND TIER RETIREMENT ELIG. DATE INCUMBENT 4 POSITION TITLE COMMAND TIER RETIREMENT ELIG. DATE

10. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 10 Here is the retirement eligibility data for DoD Senior Executives  Average Retirement eligibility by age and years of service for DoD

11. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 11 In advising senior DoD leaders, how would you answer the following questions?  What factors should be considered for a successful talent Management and Succession Planning Model? Diagnose individual executive talent for development and assignment Standardize an approach across the Department to identify where additional resources should be directed to fill capability and succession gaps Ensure transparency, fairness, and equitability in processes and support merit principles  How do we instill “change” among senior leaders to support evaluations of “readiness” and opportunities for career broadening?

12. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 12 And, finally …  Should the Department’s succession planning model identify individuals by name for each SES position or should the model provide for a high quality and ready “pool” of 21 st Century Leaders who possess certain competencies? What approach do you recommend ? What are the key considerations to ensure equity and fairness of “pool?” How do we ensure process is not used by supervisors to move Executives they no longer want?

13. Excellence in Executive Leadership UNCLASSIFIED – For Official Use Only (FOUO) 13 What Do You Think About...  How do you facilitate the visibility and sharing of talent across the Components/ government to develop joint, enterprise perspectives and a portfolio of experiences? How do we ensure fairness and equitability in that process? To what extent do processes have to be standardized? What process can be used for inter-agency assignments? For outside Component assignments, what are the issues that must be addressed by Components? o How do we manage executives and ensure Executives captured in parent organization PRBs and Succession plans? Should we have common business rules for maintaining affiliation with a single component when assigned outside that component? o What are ideas on how to maintain talent visibility and management when assigned outside the Component? o What are ideas on who should pay the Executive that maintains component affiliation when assigned outside the component? o Should affiliation be maintained only when being assigned to “tour limited” positions?