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97thAnnualConventionandTradeShow September25th 2003 SUCCESSIONPLANNINGANDWHYITMATTERSNOW PresentedByDarylJohnson B Ed CCP CHRP SettingtheStage WhatisImpactingAttractionandRetentioninYourOrganizationToday WhataretheAttractionandRetentionStrategiesYourOrganizationisConsidering What Alternative WorkforceManagementStrategieshasYourOrganizationConsideredand orImplemented DefiningSuccessionPlanning Adynamic on goingprocessofsystematicallyidentifying assessinganddevelopingleadershipandmanagementtalent andassessing developingandrecognizing keycontributors tomeetfuturetheorganization sstrategicandoperationalneeds WhatIsYourStrategyforSuccession Doesyourorganizationhaveaneffectiveplanforexecutivesuccession Tosecureyourorganization sfuturesuccess youshouldanswersomechallengingquestions Doesyourcompanyhaveaplanforleadershipgrowthtokeeppacewithbusinessgrowth Whoisbeingdevelopedandgroomed Doyouhaveaplaninplacetofillthegapsanddotheyhaveplansforcurrentemployeesto stepuptotheplate tofillthosepositions Doyouhaveanobjectiveplaninplacetoidentifyanddevelopthefutureleadership Doyouhavethebenchstrengthforfutureleadershipneeds Yes No Howcananorganizationmaximizethehumanassetpotentialandallocationforthebestalignmentwithstrategicobjectives DriversofSuccessionPlanning Demographics BABYBOOMERS 1946 1963 GENERATIONX 1963 1978 GENERATIONY 1979 1994 BabyBoomers 1946 1963Population72million USA BabyBoomers 1946 1963Population72million USA Today sTraditionalists Confidentinsocialsecurityandhealthcareaccessfollowingretirement stillplantoworkduringretirement TheSelf Reliant Aggressivesavers confidentinretirementsavings plantoworkpart timeforthesakeofenjoymentmainly TheStrugglers Notsavinganymoneyforretirement notsatisfiedwithcurrentsavings concernedaboutsocialsecurityandhealthcareaccess willneedtoworkduringretirement TheAnxious Notoptimisticaboutretirement notsatisfiedwithcurrentsavings concernedaboutsocialsecurityandhealthcareaccess willneedtoworkduringretirement TheEnthusiasts Optimisticaboutretirement donotplantoworkwhenretired can twaittoretire RealityGenX ersthinkaboutworkdifferentlythanearliergenerations ArecautiousaboutinvestinginrelationshipswithorganizationsandemployersFearofunreliabilityInvestemotionallyinthemselvesandthinklikeentrepreneursAreindependentandcreativeproblemsolversSeekeffectivemanagersThriveonfeedbacksotheycanadjusttobecomemoresuccessfulComfortablewithcomputerTechnologyandinformationoverload GenerationX 1964 1978Population62million USA MythsGenX ershaveabadreputationas DisinterestedintheorganizationSelf absorbedDisloyalViewtheorganizationwithdisdain ThesearethesonsanddaughtersoftheboomersGenY erswanttoworkwithahighlymotivatedteamofcommittedpeople Thisgrouphasperfectedmulti tasking Jobsatisfactionisdrivenbyplayingameaningfulrolethathelpsothers Paidvolunteers mentality FiercelyindependentlikeGenX ers butmorecomfortablewiththeirself reliance OfcourseIcanfendformyself versus I dbetterbeabletofendformyself Nowgetoutofmyway Havetypicallybeenmicromanagedbyparents teachers counselorsthattheyareeagertomanagetheirowntime Willnotwanttobemicro managedatwork Haveneverexperiencedlifewithoutcomputers infact werelearningcomputersatnurseryschoolage BusinessWeek Sept 2001 Jan 2002KennedySchoolofGovernment HarvardUniversity Jan 2002 GenerationY 1979 1994Population60million USA CanadianAgeDemographics 49 ofCanadiansare45 older AlbertaPopulationPyramid 1991versus2001 LabourForceAge Sex Alberta2000 2011 Source StatisticsCanada RAL WesternCanadianMunicipality ARealDemographicAssessment A 10 000FootLook atSuccessionPlanning WhataretheSWOTfactorsassociatedwithSuccessionPlanning OrganizationsThatTakeaSystematic IntentionalApproachToLeadershipDevelopment SuccessionPlanningHaveaTangibleTrackRecordofSuccessAndImprovedPerformanceForDoingSo PWCJune2001 TheRoleofTheOrganization Adeliberateandsystematiceffortbyanorganizationto ensureleadershipcontinuity technicalcontinuityinkeypositions retainanddevelopintellectualcapitalforthefuture andencourageadvancement WilliamRothwell PennsylvaniaStateUniversity WithaLargeBubbleOfBabyBoomersEdgingTowardRetirement SuccessionPlanning ManagementisaKeyActivityofHumanResources HRMagazine 2001 BusinessCaseforSuccessionPlanning ProactiveplanningwillprepareyourorganizationforthefutureProvidesacompetitiveadvantageoverunpreparedorganizationsforattractingandretainingessentialtalentBabyboomersareenteringtheirfifties andstartingtoplanforretirementSteadilydecliningskilledworkforcepopulationCanhelpretainyourcurrentkeystaffatalllevels There sANeedToGrowExtensiveLeadershipCommunitiesInsideAllOrganizations GrowingLeaders PWC DesignCriteria MustbelinkedtooverallbusinessstrategyEasytoimplement CostandtimeeffectiveRepeatable on goingprocessIncludebothmanagementandkey technicalpositionsAlignwithmissioncriticalHRfunctions PerformanceManagementEmployeeDevelopmentCompensation RewardSystems EvenNewHiresShouldBeLookedUponAsARichSourceofFutureUpperLevelTalent HR com SuccessionPlanningProcess ImplementationPhase PlanningPhase AssessmentPhase DesignPhase Obtain Executive 1 ReviewRelevantDocumentation b a Competency Definition Competency Anyskill knowledge orbehaviourthatisessentialtoperformthejob thatisobservable measurable anddifferentiatesaveragefromsuperiorperformers It sAProcessThatRequiresOngoingReview ScrutinyFromHRAWellAsTheCEOAndOtherDepartmentLeaders WatsonWyatt IcebergModel KnowledgeSkills SocialRoleSelf ImageTraitsMotives IcebergModelDefinitions Knowledge theinformationapersonknowwithinacontentarea i e CustomerServiceRepresentative sknowledgeofproductfeaturesorproductoptions Skills theabilitytodospecificphysicalorthinkingtasks Thebehaviouraldemonstrationofexpertise i e Abilitytocompleteanincometaxreturn SocialRole theimageonedisplays predominatelyinapublicsetting ortoothers theouterself Iscloselylinkedtopersonalvaluesandplaysasignificantroleinthebehavioursoneprojectstoothers i e Whetheroneseesoneselfasaleader anexpert orafamilyperson IcebergModelDefinitions Self Image aperson ssenseofidentityorself worth Itistheindividual sbeliefinhis herabilitytobeeffective i e Showingconfidence seeingoneselfaleader developerofpeople Traits theenduringcharacteristicsofanindividualandcanberelatedtophysicalabilitiesand orpersonalitycharacteristics Ageneraldispositiontobehaveinacertainway i e Introvertedvs extroverted aggressivevs accommodating patientvs impatient attentiontodetailvs bigpicturethinker Motives theunconsciousthoughtsandpreferencesthatdrivebehaviour Motivesincludeone sdesiretosetandachievechallengesandgoals Motivesarerecurrentthoughtsthatdrivebehaviour i e One sneedtoformrelationships needforachievement affiliation power CompetencyFramework Design Organizational Applicabletoallemployees SometimesScaled Behavior BasedNotAlwaysIncludedinCompetencyAssessmentsi e Ethics Leadership ApplicabletoKeyPerformers ScaledInternalFocusGroupAssessmentsi e VisionDevelopment Managerial Technical ApplicabletoSpecificJoborJobFamily ScaledAssessmentofTangible BehaviorBasedSkillsi e NegotiationSkills Rarelyifever doKnowledgeandSkillDifferentiatePerformance WhatDoesdifferentiatePerformanceisaPerson sMoreDeepSeatedCharacteristics HayGroup 1999 Leadership Definition Leadership Leadershipisaprocessinwhichonepersonsetsthepurposeordirectionforothers andmotivatesthemtomovetogetherinapredetermineddirectioncompetentlyandwithfullcommitment Laques Clement TransformationManagementLeadership Don tBeAfraidToChallengeTheProsEvenInTheirOwnBackyard GeneralColinPowell Management Definition Management Managementisasetofprocessesthatkeepacomplicatedsystemoperating Theseprocesses suchasbudgetingandplanning produceadegreeofpredictabilitythatbringsexpectedshort termresultstostakeholders BeingResponsibleSometimesMeansPissingPeopleOff GeneralColinPowell Kotter TransformationManagementLeadership Leadershipvs Management TransformationManagementLeadership Aleader sJobRequiresMoreThanCharacter Knowledge andAction ItRequiresResults ResultsBasedLeadership byDavidUlrich JackZenger NormSmallwood Leadershipvs Management Execution Outcomes Leadership Management Motivating InspiringEnergizepeopletoovercomebarriers resource bureaucratic andpolitical Controlling ProblemSolvingMonitoringresultsversusplananactingtoresolveanydeviations ProducesChangeProducesextremelyusefulchange ProducesaDegreeofPredictability OrderConsistentlyproduceskeyresultsexpectedbystakeholders HRSuperstars CreateBusinessImpactCommunicateClearlyKnowTheirStuffTakeChargeTakeaChance MRGResearchReport 2000 TransformationManagementLeadership CustomizedAssessment SampleAssessment AssessmentPhase Buildthe SuccessionRoadmap AlignmentwithPerformanceManagement 4 PhasePerformanceManagementCycle PlanCoachReviewRewardDetermine readiness LinktoIndividual action plans PerformanceEvaluationTimeisAlsoAGoodTimeToIdentifyAreasWhereEmployeesExcelAndToDiscussOpportunitiesForFutureDevelopment HR com ImplementationPhase Whatdoyouthinktheirrolesshouldbe SeniorManagement srole xHR srole XOther s YourPlanShouldAlsoEnsureThatPotentialLeadersWillWorkAlongsideCurrentLeadersWhoHaveTheKnowledge ExperienceThatTheOrganizationCannotAffordtoLose MunicipalWorld 2002 BottomLineResultsofSuccessionPlanning Examples ROIEvaluationsCostPerHire ExternalHire AdvertisingCosts ExternalRecruiter ReferralBonuses TravelCosts RelocationCosts InternalRecruiterCostsTypically 90 ofcosttohire Add10 tototalforfullcosts InternalHire AdvertisingCosts TravelCosts RelocationCosts InternalRecruiterCostsTypically 90 ofcosttohire Add10 tototalforfullcosts BottomLineResultsofSuccessionPlanning Example Retentionof1employee 50 000annualbasesalarySaratogaInstituteBenchmarking1 timesannualbasesalary 75 000ROI AlternativeWorkArrangements 5DriversShapingOrganizationNowandintotheFutureMan
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