American Public Power Association

September 18, 2006

Workforce Planning for the

Successful Utility

Michael Friedman, F&L Group www.fandlgroup.com

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The Business Case

Will you have the talent

to execute your

business strategy?

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Can you answer these questions?

?? Number of KEY (mission

critical) positions to be filled??

Number of viable successors

in your talent pool????

??

Ready now

??

Ready in 1-2 years

??

Ready in 3-5 years

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0

1

2

3

4

5

6

MinimalProfile

Ideal Profile Our Profile

Potential Successors to GM Staff

Pe

op

le R

ea

dy

fo

r E

ac

h P

os

itio

n

Ready in 3-5 years

Ready in 1-2 years

Ready Now

Succession Coverage

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Workforce Planning

3 Steps WHERE WE ARE

Conducting a talent assessment (People)

WHAT WE NEEDIdentifying critical needs (Jobs)

CLOSING THE GAPBuy or Build?

Step 1

Conducting a

Talent Assessment

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Components of Talent Assessment

Manager/Supervisor Answers Four Questions Per Direct Report:

1. Performance

2. Potential (or adaptability)

3. Willing and ‘ready-now’ placement opportunities

4. Willing and ready with some development placement opportunities

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Performance AssessmentPerformance Assessment

Average Performance Over Diverse Tasks for Last 3 Years:

1 = In the Top 10% of performers 2 = In the remaining Top Third of performers 3 = In Middle Third of performers 4 = In Bottom Third of performers X = not classified

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Potential/Adaptability AssessmentPotential/Adaptability Assessment

Estimated Ability To Adapt to New, Diverse, Intense, Varied, Adverse Situations:

1 = In the Top 10% of adapters (significant long-term potential;

promotable inside and outside of specialty/functional area) 2 = In the remaining Top Third of adapters (promotable inside

and/or outside of specialty/functional area) 3 = In Middle Third of adapters (may be promotable; can lateral to

another position) 4 = In Bottom Third of adapters (not likely promotable outside of

specialty/functional area; may be adaptable/promotable within

specialty/functional area) X = not classified

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The Ability and Willingness andOpportunity to learnfrom experiences –successes, failures and exposures

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Some Questions To Ask

What has this person done that led to effective job

performance?

What was done that may have detracted from job

performance or led to ineffective job performance?

What could this person do differently to be more

effective?

What behaviors, attitudes, values does this person

need to be considered a “High Potential” employee?

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The Talent Matrix Categories

Bottom Third Middle Third Top Third

Top Third

Middle Third

Bottom Third

Adaptability

Per

form

ance

9Consistent

Star

8Future All

Around Star

6Diamond in the

Rough

7AdaptableHigh Pro

5Key

Performer

3Adaptable Performer

2Solid Pro

4High Pro

Highest Potential 10

1Low Performer

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Talent Matrix Discussion Format

Each person presents their assessments and justification

Group feedback on each employee after all assessments have been presented

Reach consensus on talent matrix plotting Where possible, force distribution evenly across

cells/categories with no more than 10% identified in the strategic few

Unresolved placement will be deferred to organizational leader

Step 2

Setting the Success Profile

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We know:

Competencies that matter How they are developed Who can develop them The system to get there

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We know 85% of the skills needed

for success as a supervisor, manager

and executive

The 85% Solution

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The Critical Competencies

Planning Creativity Strategic Agility Personal Learning Self Development Motivating Others Conflict Management

Dealing with Ambiguity Innovation Management Building Effective Teams Developing Direct Reports Directing/Managing Others Managing Vision and Purpose Managing and Measuring

Work

Step 3

Creating Development Plans

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70 Assignments

20 People

10 Courses

What Development Looks Like!

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Construction of a Development Plan

WHAT IS Describe the current skill level in behavioral termsWHAT SHOULD BE Describe the skill level when it is being done correctlySTRATEGIES New job assignment, taskforce, special projects,

community board, industry association leadership, executive coach, mentor, training

MONITOR/EVALUATE Follow up date, success measure

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Successful Development Plans...

Focus on what makes sense for the employee as well as the organization

Are very specific about the objective Contain a variety of developmental

strategies Are always a work-in-progress

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Talent Identification Grid Priority for Development

Core Performers

The “Strategic Few”

Bottom Third Middle Third Top Third

Top Third

Middle Third

Bottom Third

Adaptability

Per

form

ance

9Consistent

Star

8Future All

Around Star

6Diamond in the

Rough

7AdaptableHigh Pro

5Key

Performer

3Adaptable Performer

2Solid Pro

4High Pro

Highest Potential

10

1Low Performer

The “Pipeline”

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Talent Categories GridDevelopment Strategies

The “Pipeline”Backup

“STRATEGIC FEW “

Bottom Third Middle Third Top Third

Top Third

Middle Third

Bottom Third

Adaptability

Per

form

ance

Core Performers

• ASSIGN TO KEY ROLES • ASSIGN MENTOR• PROVIDE REGLUAR FEEDBACK• VISIBILITY TO SENIOR MGT

• Performance Based Feedback • Skill Competency Training • Some Conferences/Seminars• Use High Performers as Mentors

•Assess Competencies• Diversify Background • Advanced Courses

The “STRATEGIC FEW”

• Visibility to Local Senior Mgt.•Move Across Organization

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Talent Categories GridDevelopment Strategies

The “Strategic Few”– Assign to key roles – Assign mentor– Provide regluar feedback– Visibility to senior mgt

The “Pipeline” backup to the “Strategic Few”

– Assess Competencies– Diversify Background – Advanced Courses– Visibility to Local Senior Mgt.– Move Across Organization

The “Core Producers”–Performance Based Feedback –Skill Competency Training –Some Conferences/Seminars–Use High Performers as Mentors

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Questions??