Millennial Workforce and Succession Planning

HCUL - May 17, 2018

Lisa SuttonSVP, Human Resources

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Millennial Workforce

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“The future promise of any nation can be directly measured by the present prospects of its youth”

- John F. Kennedy

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Generations Defined

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Millennials: Deeper Dive

Who are they?

What makes them different?

How to attract and retain them?

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Common Millennial Myths

Lazy

The Me

Generation

Too Connected to

Technology

Expect

Too Much

Job Hoppers

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Too ConnectedWhen it comes to communication about their career plans and progress, 96% of Millennials wants to talk face to face just as 95% of their non-Millennial counterparts do.

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Millennials are Lazy Actually, competition is “what gets them up in the morning”

58% of Millennials admit to comparing their performance to peers vs. 48% of workers in other generations

Millennials are equally committed to their work as their more senior colleagues

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Millennials Expect MoreMillennials have grown up not expecting their employers to meet all of their needs, including job security, and don’t see themselves working for one company for their entire career.

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Millennials are the “Me Generation”

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Millennials Are Job Hoppers…or are they “experience” hoppers?

53% believe that internal job opportunities are desirable, nearly the same as other generations.

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Millennial Truths

Well-Traveled More Diverse

Socially

Connected

Purpose Matters

Technology

Smart

Learners

Well-Educated

Work-life

Alignment

Untethered

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What Millennials Want Most Purpose

Development and advancement

Ongoing feedback and coaching

Flexible work schedules

Managers who care about and appreciate them

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Purpose Linkage to “People Helping People”

NCUF’s Leveraging the CU Difference

Provide time off for volunteer opportunities

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Development and Advancement

Provide broadening experiences

Discuss career aspirations

Consider rotational assignments

Invest in their development

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On-Going Feedback and Coaching

Revisit annual appraisal process

Daily, weekly, monthly conversations

Positive coaching

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Flexible Work Schedules

Revisit PTO allowance for competitiveness

Identify core hours, flex on start and end times

Support work at home or work during non-traditional times

Leverage technology

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Managers Who Care and Appreciate

Show that you care about them as individuals

Learn who they are, their causes, their dreams

Find out what engages them most

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Questions?

Succession Planning

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Agenda

Board Succession

Succession Plan Process

Tools and Best Practices

Assessing Current State

Internal Succession

Succession Plan Process

Talent Review Process

Individual Development Plans

Tools and Take Aways

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Board Succession

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Assessing Your Current State

Required Skills

Outside Influences

Managing Gaps

Diversity

Culture

Does each Board member

understand the strategic &

regulatory shifts affecting

the organization in near term?

What skills &

competencies does the

Board need to best oversee the

organization’s challenges?

Does the Board

represent diverse

membership?

Does the Board have an

effective & ongoing

evaluation process to

assess the full Board &

individual directors?

Are there action plans &

timelines in place to manage

& close identified gaps?

Performance Management

Has the Board assessed its

culture & is this a key

consideration in recruiting &

selecting new directors?

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Board Composition Matrix

Director AChair/CEO

Director B

Director C

DirectorD

DirectorE

DirectorF

DirectorG

DirectorH

DirectorI

GAPS/ Average

FUNCTIONAL EXPERTISERecent Large Company CEO • • • •Recent Large Company CFOLed Major Business Unit • • • • • • • •M&A Transactions • • • • •Data & Analytics •Technology • • • •Qualified Financial Expert •Regulatory/Compliance •Financial Services/Cards • • • • •INDUSTRY EXPERIENCEInsurance • •Asset ManagementConsumer/B2C Digital • •Automotive OEMBOARD SERVICEOther Industry Boards 0 0 3 1 3 0 2 3 0Gender M F F M F M M F M 55% MAge 56 51 59 60 60 61 63 67 68 60.5Board Tenure 6.5 0.3 4.9 4.9 9.9 3.9 9.9 20.9 11.9 8.1

Significant Gap (0-1)Knowledge Covered (2-3) Considerable Strength (4+)

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Board Succession Planning Process

Determine Position Needs

Identify Skills & Competencies

Plan for Retirements &

Timing

Select PotentialInternal

Successors

Assess Candidates

Select & Onboard New

Directors

Create & Execute Development

Plans

Evaluate Succession Plan Succession planning is an

ongoing process & should be evaluated frequently

Recruit directors with a focus on essential skills & competencies

Onboarding & training is as important as recruiting process for a successful term

Board Succession Process

Key Takeaways

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Board Succession Slate

Role Chair Vice Chair Treasurer Secretary Board Member

Incumbent J. Smith S. Jones L. Quinn P. Hollis M. Reed

Ready Now(Any skill gaps can be closed in new role)

S. Jones - - - -

Ready in 1 – 2 years(Can be “ready now” with 1

year of targeted development in current

role)

M. Reed - M. Reed - -

Ready in 3 – 5 years(Will require at least 2 years

targeted development in current role to be “ready

now”)

- L. Quinn - - -

Emergency Replacement(Seasoned leader – chosen

only if no “ready now” candidate is available)

S. Jones M. Reed P. Hollis M. Reed -

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Effective Board Framework

Strategic Alignment

Culture

People & Composition

Key Elements of Board Leadership

Strive for strategic alignment of the Board’s goals & those of the organization

Identify desired state, diversity targets, etc.

for optimal composition; with the right people

Identify behaviors, dynamics & environment that

support the Board’s desired culture

Establish structure, supporting committees, agenda & meetings as well as

interim information flow in a documentedprocess

Structure & Process

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Assessing Board Culture

Source: Russell Reynolds Associates Board Culture & Behaviors Survey

Prepared & Engaged

Current & Open

Builds Trust & Respect

Investor Savvy

Independent & Avoids Groupthink

Asks the Right Questions

Sound Business Judgement

Constructively Challenges

Character & Courage

Foundational BehaviorsBase behaviors exhibited by the most effective Boards

Differentiating BehaviorsDistinguishing behaviors exhibited by the most effective directors

Identifying Leadership Behaviors Demonstrated by the Most Effective Directors

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Best Practices & Tools

Formalize your succession planning strategy

Develop matrix to assess future needs

Develop succession slates

Revisit term limits & exit clauses

Evaluate Board & individual effectiveness(assessments)

Address gaps

Increase diversity

Establish ongoing training & development for directors

Consider sponsorshipof high-potential candidates

Incubator for developing next directors

Structure & Process People & Composition Culture

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Internal Succession

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PSCU’s Succession and Hi-Potential Strategy

VISION:• An organization that is confident in its pipeline of employees, with high

potential to grow into people-leadership roles, to deliver today and strategically position PSCU for tomorrow.

MISSION:• Identify and develop employees with high-potential to grow into people-

leadership roles in order to retain & engage top talent and feed our succession pipeline.

STRATEGY:

• We will enable the growth of identified high-potential employees in ways that promote opportunity for individual, organizational, cross-functional and industry-specific development.

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Internal Succession Planning Process

Conduct Talent Review

Identify & Assess High Potentials

Identify Potential

Successor Roles

Identify Key Roles, Skills & Competencies

Slot Successors Against Key

Positions

Determine Successor Readiness

Create & Execute IDPs

Check Progress & Repeat

Succession planning is an ongoing process & should be conducted every 12-18 months

Accelerate and heavily invest in development of high potential talent

IDPs should focus on 2-3 competencies and key experiences

Progress against IDP goals needs to be measured

Internal Succession

Process

Key Takeaways

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Talent Review 9-Box

Performance

Po

ten

tial

Budding TalentDemonstrates high potential

but not performing well in

current role

Mismatched TalentDemonstrates low

performance and limited

potential OR new to role

Accomplished TalentDemonstrates satisfactory

performance but lacks

potential to advance

Valued TalentDemonstrates satisfactory

performance with moderate

potential to advance over

time

Rising TalentDemonstrates high potential

with satisfactory

performance

Prime TalentConsistently demonstrates

high performance & potential

Versatile TalentDemonstrates high

performance with moderate

potential to advance

Expert TalentDemonstrates consistent

high performance with

limited potential for upward

mobility

Unconfirmed TalentLimited potential to advance

and has not fully met

performance expectations

in current role

15 12/14/16

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Internal Succession Slate

Role SVP, IT SVP, Sales SVP, MarketingSVP Service

DeliverySVP,

Operations

Incumbent D. Smith N. Jameson C. Cook J. Davis L. Jones

Ready Now(Any skill gaps can be closed in new role)

T. Jones - M. McDaniel - -

Ready in 1 – 2 years(Can be “ready now” with 1

year of targeted development in current

role)

P. King B. Scott - P. King S. Ride

Ready in 3 – 5 years(Will require at least 2 years

targeted development in current role to be “ready

now”)

J. Thompson N. Davidson F. Saunders J. Thompson J. Thompson

Emergency Replacement(Seasoned leader – chosen

only if no “ready now” candidate is available)

L. Jones C. Cane B. Scott L. Jones J. Davis

Leadership Competencies

Agility Development X

Service Collaboration

Acumen X Savvy

Drive Courage

9-Box Placement

B. Scott: Individual Development Plan - 2018

PROGRAM Y/N TO DO

360̊

CHOICES

ESCI Y

D2L

ADVANCED DEGREE

MENTOR

WILLING TO RELOCATE?

Identified as Successor on Slate?

Potential Successor Role(s)

SVP, XYZ

Successor Development Area

Successor Development Activities

Developing Others (Development)

Complete the Executive Leadership Portfolio 360 degree assessment, and select at least one area from “Building Commitment” to further develop

Assess and prepare IDPs for all direct reports and actively coach for success

Acumen Participate in CU Principles and Philosophies Course and GAC.

X

YES NO

XN

Y

N

Y

N

Y

Y

N

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Questions or need more information?

lsutton@pscu.com

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