Presented By |

Building Your Succession Plan

through a One Page Talent Matrix

Nicole Pfeiffer, SPHR, SHRM-SCP, GBA, CMS, CEBS

Vice President, Employee Benefits

11.12.19

LITTLE ABOUT ME

Nicole Pfeiffer,

SPHR, SHRM-SCP, GBA, CMS, CEBSVice President, Employee Benefits

Nicole Pfeiffer is a Vice President of Employee Benefits for Cottingham & Butler. Nicole offers consultative advice to business decision-makers regarding their employee benefit plans. Nicole has been with Cottingham & Butler since April 2004. Prior to Nicole’s role in Employee Benefits, she worked as the Vice President of Human Resources and Director of Marketing for the firm. Prior to joining Cottingham & Butler, Nicole worked for Procter & Gamble in a Business Development role.

Specific Experience• Specializes in Employee Benefits Consulting• Experience in Human Resources and Marketing

Education• BS in Mathematics and BBA in Business Admin from the University of Iowa• MBA from The University of Iowa Tippie School of Management• Designations: SPHR, SPHR-SCP, GBA, CMS, CEBS

Speaking Engagements• State of IL SHRM Annual Conference 2014, 2015, 2016, 2017, 2018• State of IA SHRM Annual Conference 2015, 2016, 2017, 2018• State of WI SHRM Annual Conference 2016, 2017, 2018• Various regional SHRM Events

Volunteerism• Board of Director’s Past President for the Dubuque Women’s Leadership Network• Board of Director’s Past President for the Dubuque March of Dimes

TODAY’S AGENDA

We’ll take a dive into a simple and effective method for conducting succession planning using a one page talent matrix. Through this process, you’ll uncover the quality and depth of your future leaders. Once you know your grid results, you’ll be able to craft a plan to develop and engage your organization’s talent.

You’ll learn how to: 1) Inform and Train Managers2) Conduct the Calibration Meeting3) Build Developmental Activities4) Track and Conduct Follow up5) Create Transparency and Accountability

Only 50% of firms engage in talent reviews and succession planning –and only 50% of those have a formal process

WHERE ARE YOU IN THE SUCCESSION PLANNING CONTINUUM?

ONE PAGE REVIEWS

Attempt I:

All Employee Review. One page template where supervisor accesses the employee on company criteria. Presented to Chairman, CEO and HR.

Pros:

• Broad and quick overview on all company talent. 2 minutes.

• Identified obvious gaps between talent and compensation or talent and responsibility.

Cons:

• Intensive paperwork

• Intensive time

REPLACEMENT PLANNING

Attempt II:

Replacement Planning. Managers to identify replacements for their role and supervisors roles.

Pros:

• Taking our first step at action to identify key roles and potential replacements.

• Asking managers to start thinking about their potential future replacements and the development needs of those individuals.

Cons:

• Reactive

• Narrow approach

FORCED RANKINGS

Attempt III: ABC Forced Employee Rankings.

Pros: • Jack Welch Philosophy• Forced Rankings.

20%/70%/10%. • Forces managers to identify

differentiation.

Cons: • Difficult to force rank a

population. Especially a small population of high performers.

• Creates a culture of competition not cooperation.

Name Job Title Supervisor Name Department DescriptionPerformance

Rank

Service Specialist Supervisor, Susie Quality Assurance B

Service Specialist Supervisor, Susie Quality Assurance A

Service Specialist Supervisor, Susie Quality Assurance B

Service Specialist Supervisor, Susie Quality Assurance B

Service Specialist Supervisor, Susie Quality Assurance B

Service Specialist Supervisor, Susie Quality Assurance C

Service Specialist Supervisor, Susie Quality Assurance B

Service Specialist Supervisor, Susie Quality Assurance A

Service Specialist Supervisor, Susie Quality Assurance B

Service Specialist Supervisor, Susie Quality Assurance B

Service Specialist Supervisor, Susie Quality Assurance B

Service Specialist Supervisor, Susie Quality Assurance B

Service Specialist Supervisor, Susie Quality Assurance B

Service Specialist Supervisor, Susie Quality Assurance B

Service Specialist Supervisor, Susie Quality Assurance C

Service Specialist Supervisor, Susie Quality Assurance B

Service Specialist Supervisor, Susie Quality Assurance C

Service Specialist Supervisor, Susie Quality Assurance A

TALENT REVIEWS

Attempt IV: Corporate Talent Matrix

Based on the Harvard Business Press Book, “One Page Talent Management” by Marc Effron & Miriam Ort

Two objectives:

• To understand the quality and depth of your leaders

• Plan for succession by predicting which leaders will succeed

Pros:

• Minimum paperwork and bureaucracy

• Opens lines of communication

Cons:

• Additional work to be done after High Performers and High Potentials are identified

START (HIRE) WITH SCIENCE

Smart wins every timeSome personality traits

matter (and some don’t)P-O Fit

High-Potential Management Survey Corporate Leadership Council, 2005

29%

PERFORMANCE

29% of high performers that are

high potentials

71% of high performers that

are not high potentials

7% of high potentials that are not high performers

93% of high potentials that are high performers

POTENTIAL

High-Potential Management Survey Corporate Leadership Council, 2005

93

WHO TO BET ON

1. They are strong performers today2. They have the ambition, aspiration and willingness to make personal sacrifices

a) Do they have the desire to lead at more senior levels? Have you asked him/her about their aspirations?

b) Are they mobile?c) Are they willing to make personal sacrifices and trade-offs required in more senior

leadership roles?

3. An individual you would stake your reputation on that they’ll perform really well in bigger, more complex, unfamiliar leadership rolesa) It’s your judgment of how they’ll perform in bigger, more complex, unfamiliar

leadership rolesb) You are trying to predict if the person would know what to do in a situation in which

they have never been in before.

YOUR JUDGMENT

EXPERIENCES

Variety

Diversity

Adversity

Intensity

INTELLECTUALHORSEPOWER

1. How quickly does this person get to a

sound POV on a complex issue?

2. Do they make the complex simple:

When they explain things, how easy

are they to understand?

WILL THEY EXCEL INUNFAMILIAR LEADERSHIP ROLES?

1. Have you regularly put her in VERY unfamiliar

situations and has she beat the odds and figured

out what to do?

2. How does this person deal with ambiguity? Is she

comfortable when things are up in the air and the

environment is very grey?

3. Is she really “smooth” with people? Can she size up

people quickly? Is she comfortable walking in to a

“hornet’s nest” and finding common ground?

4. Does she thrive on change? Does she create broad

and deep followership during times of change?

5. Does she always gets results against all odds? Is she

resourceful? Does she inspire others?

A TYPICAL P X P GRID

POTENTIAL TO ADVANCE

Well placed for next

# years

Up # level in

the next # years

Up # levels in the

next # years

PE

RF

OR

MA

NC

E D

UR

ING

PA

ST

3 Y

EA

RS

To

p #

%M

idd

le #

%L

ow

er

#%

My Group’s Talent Needs During

the Next Three Years

1.

2.

3.

My Group’s

Most Pressing Talent Issues

1.

2.

Defined as the ability to move up in

the organization at a certain pace

Average over 3

years presents more

accurate view of

actual capabilities

No labels in

the boxes & no

definitions!

THE PXP GRID: ELIMINATE COMPLEXITY

Use a Performance & Potential (P x P) Grid

• Keep the PxP Grid Simple

• Assess Potential to Advance

• Assess Performance over Time

Talent Assessment

POTENTIAL FOR ADVANCEMENTStewart Griffin Ricardo Acelero Mary Jo Reilly

Joyce Turner Lauren Bissy

HIGH

20%

PER

FOR

MA

NC

E IN

RO

LE

Chloe Kitton Christina Richards

Robert Smith Sue Smith

Alissa Oliver John Rider

MEDIUM Robbie Lucas Avery Childs

60% George Jones

William Schmidt

LOW

20%

LOW MEDIUM HIGH

STEP 1: INFORM AND TRAIN MANAGERS

• Introductory Meeting

• Communication from the top

• Inform about the process

• Train on the tool

• Come back together in about

2 weeks to 1 month

Talent Assessment

POTENTIAL FOR ADVANCEMENT

HIGH

20%

PER

FOR

MA

NC

E IN

RO

LE

MEDIUM

60%

LOW

20%

LOW MEDIUM HIGH

STEP 2: CONDUCT THE CALIBRATION MEETING

• Calibration Meeting #1

• Invite all managers from one department

• Each manager comes having assessed their

direct reports

• Discuss each manager’s PxP grid

• Candidate conversations amongst all

managers

• Agree on key development activities

• Each department to identify their top 3

talent issues

• Review the overall grid for the group

Talent Assessment

POTENTIAL FOR ADVANCEMENTStewart Griffin Ricardo Acelero Mary Jo Reilly

Joyce Turner Lauren Bissy

HIGH

20%

PER

FOR

MA

NC

E IN

RO

LE Chloe Kitton Christina Richards Brett Canfield

Robert Smith Sue Smith Joan Right

Alissa Oliver John Rider

MEDIUM Robbie Lucas Avery Childs

60% George Jones

William Schmidt Jennifer Jackson

LOW

20%

LOW MEDIUM HIGH

TOP 3 TALENT ISSUES

Need for additional High performing sales talent

Jan’s upcoming retirement

Susie has the ability to take on more. Identify her next role.

ASK THE CHALLENGING QUESTIONS

For those initially rated highest potential . . .

• Would you stake your corporate success on this person?

• What job would you put them into in # years?

• How do they compare to the others in this category?

For those who are medium potential . . .

• What one thing could most quickly move them in the high potential category?

For those who are in your “average” category . . .

• What can we do to move them up or over?

• Are they consistently in the bottom half of average?

• How easy would it be to find similar Talent at a similar price outside?

19

CALIBRATION MEETING RESULTS

• Box 9: Prime Talent – Ensure there

is a strong development plan

• Box 4: Expert Talent – Use as a

mentor

• Box 6: Budding Talent – Usually

newer employees with lots of

potential who need time and

opportunity to shine.

• Box 1: Mismatched Talent –

mismatch within the role or the

organization. Needs PIP and action.

STEP 3: DEVELOPMENTAL ACTIVITIES

• Identify the key individuals in

each department.

• Create developmental plans for

these individuals.

• Add value with opportunity

• Record the division’s top talent

needs and work on an action plan

DEEP

EXPERIENCE XCAREER

GROWTH=BROAD

EXPERIENCE

GEOGRAPHY

MANAGEMENT

LIFE-CYCLE

FUNCTION

THE BEST OPPORTUNITIES CONTAIN 2 OR 3 DIFFERENT TYPES OF EXPERIENCES

You are brilliant at

what you do

You can succeed in a variety

of challenging situations

EXPERIENCE, UNDER DIFFERENT CHALLENGES

22

THE DEVELOPMENT FORMULA

SO IS THIS THE RATIO OF DEVELOPMENT EFFORTS AT YOUR COMPANY? ARE EXPERIENCES THE “LANGUAGE” OF DEVELOPMENT?

70% of learning occurs through experiences (projects, assignments, etc.)

20% of learning occurs through others (feedback and targeted coaching)

10% of learning occurs through formal education

ADDING VALUE

Talent Assessment

POTENTIAL FOR ADVANCEMENT

Compensation targets: Compensation targets: Compensation targets:

Base 50%; Bonus 75% Base 50%; Bonus 75% Base 60%; Bonus 90%

Development investment: Development investment: Development investment:

HIGH 1.5X average 2x average 5x average

20% Hi-Po Program: No Hi-Po Program: consider Hi-Po program: YesP

ERFO

RM

AN

CE

IN R

OLE

CEO/board Exposure: Maybe CEO/Board Exposure: Yes CEO/Board Exposure: Yes

Relocation: no Relocation: Yes Relcoation: Yes

Special projects: Yes Special projects: Yes Special projects: Yes

Compensation targets: Compensation targets: Compensation targets:

Base 50%; Bonus 50% Base 50%; Bonus 50% Base 60%; Bonus 60%

Development investment: Development investment: Development investment:

MEDIUM .50x average Average 2x average

60% Hi-Po Program: No Hi-Po Program: no Hi-Po program: consider

CEO/board Exposure: NO CEO/board exposure: Maybe CEO/Board Exposure: Yes

Relocation: no Relocation: Consider Relocation: Yes

Special projects: No Special projects: Yes Special projects: Yes

Compensation targets:

Base 25%; Bonus 0%

Development investment:

LOW none

20% Hi-Po Program: No

CEO/board exposure: No

Relocation: no

Special projects: no

LOW MEDIUM HIGH

• Compensation targets• Developmental

investment• Hi-Potential Program• CEO/Board Exposure• Relocation

Opportunities• Special Projects

COACHING

25

2 + 2 Coaching• Quarterly with all directs• 15 minutes each• 2 comments about goals –

reinforce or redirect• 2 things to do more or do less

of going forward

Coaching Follow-up• 100% Transparency on

expectations• 1 question audit• “Have you had a quality

coaching conversation with your manager in the past 3 months?”

FINDINGS ON DEPARTMENT HR KEY ISSUES

• Department A: 1) Shortage on experienced personnel in light of new

business and terminations, 2) Performance issues Joe

• Department B: 1) Need for additional high performing sales team

members, 2) Joann’s future retirement/replace identified, 3) Giving Sue

additional responsibilities

• Department C: 1) Jan’s future retirement, 2) Retaining Jill, 3) George’s

inability to travel

• Department D: 1) Management training for identified individuals, 2)

Promotion discussion regarding 2 top candidates for Service Supervisor,

3) Change of role for Sara, 4) Ways to combat poor attendance

• Department E: 1) Need for sales talent – added Frank, Kyle, and Jamie, 2)

Need for service talent – added Heather, John, Braden, Collins, 3) Better

communication of division’s vision and career pathing

• Department F: 1) Back-up Doctors, 2) Supervisor Transitions, 3)

Analytical person

• Department G: 1) Amy potential ASR supervisor, 2) Plan to get Joan out

of management, 3) Kara wanting elevated role

• Department H: 1) Need for more Sales Leadership – identified Andy,

Thomas and Helen, 2) Need for more Service Leadership – to discuss at

next meeting, 3) Need for more sales talent

• Add additional staff

• Performance plans

• Retirements/Transition plans

• Individual Development Plans

• Management Training candidates

• Promotion candidates

• General employee relations –attendance, morale, communication

STEP 4: TRACKING AND FOLLOW UP

• Hold Calibration Meetings 2x/year

• Calibration Meeting #2- Record new employees on the grid- Discuss who has moved?- Follow up on developmental activities- What progress has been made on the

top talent issues?

• Create a master grid for the organization

Talent Discussion Tracking

Intro Meeting Calibration Meeting #1 Calibration Meeting #2

Department Scheduled Attended Scheduled Attended Scheduled Attended

Department A 03/21/2017 X 05/01/2017 X 10/28/2017 X

Department B 03/01/2017 X 04/01/2017 X 11/15/2017 X

Department C 03/01/2017 X 05/01/2017 X 10/28/2017 X

Department D 03/27/2017 X 05/01/2017 X 10/28/2017 X

Department E 03/04/2017 X 05/25/2017 X 10/28/2017 X

Department G 03/14/2017 X 05/01/2017 X 11/13/2017 X

Department H 03/01/2017 X 04/29/2017 X 10/28/2017 X

Department I 02/21/2017 X 04/01/2017 X 11/13/2017 X

Department J 02/25/2017 X 04/01/2017 X 10/28/2017 X

Department K 03/13/2017 X 05/07/2017 X 11/15/2017 X

Department L 03/04/2017 X 04/03/2017 X 11/13/2017 X

Department M 03/20/2017 X 04/23/2017 X 11/15/2017 X

FLAWLESS FOLLOW-UP

• It sounds easy, but many large companies fail this step

• The most basic tracking sheet can be effective

• Record every decision in the meeting

• Agree on who will be responsible for follow up (Hint: It’s you)

• HR checks against progress on monthly or quarterly basis

• Status chart presented at next Talent review

Status (use drop down menu choices)

Area/Sub Area

Person Activity/Action Due Date Responsible Actions/Notes

In process RiskCecilia Smith

Refocus portfolio 1/5 Susan

28

STEP 5: THE TRANSPARENCY DEBATE

~40% tell: Unchanged over 15 years

When companies don’t tell:

• 62%: We're concerned about engagement of individuals who find out that they

are not currently rated as high potential

• 60%: We're concerned that they will develop outsized/unrealistic expectations

about their future movement and/or treatment

• 60%: Our managers can't effectively communicate this message

THESE ARE EASILY SOLVABLE ISSUES AND THEREFORE POOR REASONS FOR NOT TELLING EVERYONE WHERE THEY STAND!

29

CREATE TRANSPARENCY AND ACCOUNTABILITY

To Tell or Not to Tell

• Hold discussions during annual review time

• Ensure that high potential employees know that

they have high potential

• Discuss commitment and investment, not labels

• Balance the conversation

• Tell everyone else too

The Organization’s Responsibility

• Managers must tell the employee his/her

results of the talent reviews

• Managers must follow up on developmental

steps

ONE COMPANY’S RESULTS

Department• Each department maintained their own department grid

• Each department identified their future promotions

• Departments got to work on performance improvement plans for their lowest performing employees

• Planning took place for pending retirements

• Opened up more communication between departments and HR on issues and solutions

Corporate:

• Created one grid for the entire company. “The Talent Belongs to the Entire

Organization.”

• Identified 25 employees for an emerging leadership development program

• Identified 5 individuals for future division leadership roles and created personalized

specific leadership development plans

EMERGING LEADER PROGRAM

• There was a need to create a

training program for future and

current supervisors

• Identified the competencies and

skills

• Hired external trainer

• Enrolled 25 employees

• Year long program held monthly

Training Topics Overview

Hiring Process Characteristics sought, Interviewing Techniques used, Assessing talent, Decision Making

Employee Performance Process

How to write and deliver a performance review and pay change. Best practices.

Improvement Process Determining when to use an Improvement plan, drafting one, communicating and follow through.

Termination Documentation, decisions impacting unemployment, and the termination meeting

Running a Team Meeting Take a look at some best practices on how to run an effective team meeting. Agendas, 5 minute meeting planner, ownership, and follow-up.

One-on-One Meetings What does an effective one-on-one meeting look like and how can you make your meetings more productive. Agendas, Accountability, Follow through.

Time Off Learn the fundamentals of Vacation, EA, Bereavement, FMLA, STD, LTD, and Unpaid Time off. Learn the time and attendance system Unitime.

HR Legal Basics FLSA, Overtime, Unemployment, Temporary Help, Exempt/NonExempt Classification

Emotional Intelligence and Addressing Difficult Personal Situations with Empathy

Best Practices when an employee is going through a difficult situation. How to find website resources and how to gently recommend services available.

FUTURE DIVISION LEADERS

The current leadership team:

• Rewrote Senior Leader job description

(Practice Leader).

• Identified the Knowledge, Skills and Abilities

necessary to be a Practice Leader.

• Knowledge: 2 areas

• Skills: 10 attributes

• Leadership Ability: 4 E’s model

• Created a current competency evaluation

form for the individuals.

• Selected 5 individuals that we believed could

be a future Practice Leader

• Created specific development plans for these

5 individuals

WHERE ARE YOU IN THE SUCCESSION PLANNING CONTINUUM?

Thank you!

Today’s Presenter:

Nicole Pfeiffer

npfeiffer@cottinghambutler.com

563-587-5208