SUCCESSION PLANNING: ENSURING LEADERSHIP FOR … · SUCCESSION PLANNING BEST PRACTICES . ......
Transcript of SUCCESSION PLANNING: ENSURING LEADERSHIP FOR … · SUCCESSION PLANNING BEST PRACTICES . ......
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SUCCESSION PLANNING: ENSURING LEADERSHIP FOR THE FUTURE
Presented by:
Margaret Resce Milkint, Managing Partner
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Current Talent
Landscape
Succession Planning
Best Practices
Leadership
Development
Strategies
AGENDA
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CURRENT TALENT LANDSCAPE
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Insurance industry labor market is expected to grow at 13.2 percent.
Source: Bureau of Labor Statistics
Total U.S. Employment
Claims
Computer Systems Analysts
Agents
Customer Service Representatives
Accountants
INDUSTRY JOB GROWTH: 2008-18
Actuaries C-Level Claims Underwriters
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INDUSTRY JOB GROWTH
Source: The Jacobson Group/Ward Group July 2010 Insurance Labor Market Study
Increase Revenue61.4%
Flat Growth19.7%
DecreaseRevenue 13.4%
Don't Know 5.5%
Increase Staff39.4%
Maintain Staff45.7%
Decrease Staff15.0%
12-Month Revenue Plan
12-Month Staffing Plan
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Workers older than 40 currently
make up half of the workforce,
a 33 percent increase since
1980.
Workers older than 55 are
anticipated to make up 13
percent of workforce by 2020.
Millennials are anticipated to
account for 47 percent as early
as 2014.
Source: Jeanne C. Meister, The 2020 Workplace: How Innovative Companies Attract, Develop, and Keep Tomorrow’s Employees Today
SHIFTING WORKFORCE DYNAMICS
Millennials 10%
GenXers 40%
Baby Boomers 45%
Traditionalists 5%
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SHIFTING WORKFORCE DYNAMICS
About half of the industry’s
workforce will retire within the
next 15 years.
There is a scarcity of employees
between 30 to 40 years of age.
Source: Jeanne C. Meister, The 2020 Workplace: How Innovative Companies Attract, Develop, and Keep Tomorrow’s Employees Today
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Never in the modern world have there been four—much
less, five—generations in the workplace; all bring vastly
different beliefs, expectations and values.
Never has a generation entered the workplace using
technologies so far ahead of those adopted by its employers.
Never has it been possible to acquire, use and seamlessly
integrate talent from around the world.
Never has technology made it so easy to connect anyone,
anywhere for collaboration.
Never before has society put as much pressure on
organizations to be socially-responsible.
SHIFTING WORKFORCE DYNAMICS
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ASSUMPTIONS
Social media is creating a
generation of
hyper-connected workers.
There is increasing
pressure to overhaul
approach and execution of
talent management.
Managers must strive to
understand what drives
the different generations of
workers.
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MANAGE A MULTI- GENERATIONAL WORKFORCE
Respect that diversity of generations in
the workplace offers a diversity of ideas
and approaches.
Fully understand the differences that
exist between generations.
Embrace generational differences to
increase productivity and added value.
Create career development strategies to
meet all of the generations’ motivations,
desires and needs.
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THE CREATIVE CLASS
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THE CREATIVE CLASS
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SUCCESSION PLANNING BEST PRACTICES
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The overriding objective is to sustain growth and prosperity.
OBJECTIVE
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Planned leadership changes
Contingency
SCENARIOS FOR SUCCESSION PLANNING
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BENEFITS OF PLANNED APPROACH
Disciplined analysis of corporate needs and required executive competencies
Accountability
Retention tool
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IMPORTANCE OF LEADERSHIP IN PLANNING
Current Performance
Key Business Objectives
Barriers Leadership Future Performance
Vision:
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Assess
Design a response Execute Measure
SUCCESSION PLANNING PROCESS
Approach and deliveries may be adjusted slightly,
but the essential components are similar to any
other challenge:
This approach provides for thoughtful transition,
meaningful consideration of future needs and the
intentional development of talent.
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ASSESSMENT
Assess the organization’s wants and needs.
Review the surplus and gaps in human capital
relative to the organization’s strategic
execution of business.
Identify and define highly-valuable attributes
and behaviors.
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ASSESSMENT
What are the anticipated triggers requiring an enterprise response in leadership?
What are the unanticipated triggers?
What is the overall level of readiness?
How do we evaluate individual readiness?
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Clear mission, vision and values
Forward-looking view
Leadership competencies
Clearly-defined job descriptions
Evaluation metrics
– Incumbents
– Internal candidates
– External candidates
FIRST THINGS FIRST
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Smart
Results-oriented
Unwavering ethics
Financial acumen
Quick study
Values diversity
Passionate
WHAT DOES YOUR ORGANIZATION LOOK FOR IN A LEADER?
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Strengths and weaknesses
– Experience
– Skills and Characteristics
– Inherent
– Taught
Interest level
Commitment
IDENTIFY INTERNAL CANDIDATES
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EXPERIENCE
Done Seen Heard
So what?
This is only of value if you can apply what you’ve done in today’s environment.
How does your experience transition to today’s world?
…and how does “living in the past” limit you?
So what?
Anyone can get information. This doesn’t differentiate you
So what?
What wisdom have you gained? How does this wisdom help you make good decisions?
How do we use information to make good decisions?
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SKILLS
Physical Skills Thinking Skills Soft/People
Skills
Physical activities such as walking, talking, typing, seeing, hearing
Problem-solving skills such as project management skills, process development skills
People management skills such as listening skills, communication skills
LIMITATION: Mostly learned behavior… and most people at the CPCU-level have skills.
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TALENT
Who? What? How? Why?
Interaction
Focuses on serving others
Collaborates
Inspires others
Analysis
Highly perceptive
Good judgment
Fortitude to initiate ideas
Implementation
Performance
Team-building
Boldness
Insight
Takes cues from own beliefs
Is enthusiastic and optimistic
Knows they don’t know it all
Talent can’t be taught. It is unique and what people REALLY bring that’s different to any situation.
” “
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Additional responsibilities
Diverse opportunities
Role creation
Training and education
DEVELOP INTERNAL CANDIDATES
Create a balance between today’s work and tomorrow’s development needs.
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Outlines an orderly short-term approach to dealing with a leadership gap
CONTINGENCY PLANNING
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Define roles and responsibilities.
– Length of time
– Proportional responsibilities
Identify interim executive roles.
Document the plan.
Regularly re-assess and make adjustments.
BEST PRACTICES
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CEO manages the process.
HR documents the process.
Board conducts annual or semi-annual check-ups.
WHO IS ACCOUNTABLE?
” “ Leadership has to be a top priority and the
CEO must hold others in the organization accountable for developing succession leaders at all levels.
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LEADERSHIP DEVELOPMENT STRATEGIES
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No longer considered separate from succession planning
Not part of performance management process
Must be cultural
– Formal
– Actionable
– Supported by the organization, driven by the employee
Long-term preparation for a grow-from-within approach
TALENT DEVELOPMENT
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Getting the right people in the right jobs.
Giving them the tools to do their best work.
Setting clear expectations!
Putting them in charge of development.
Removing roadblocks and barriers.
If you are a manager, this is your job!
SUCCESSION PLANNING MEANS…
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If most managers do not have a clear understanding of
theirs or their team members’ job
responsibilities,
how can the larger workforce find
clarity?
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Source: David H. Maister, Practice What You Preach: What Managers Must Do to Create a High Achievement Culture
GROW AND PROSPER THROUGH EMPLOYEES
A 10-15 percent increase in employee
satisfaction will result in a 42 percent
increase in profits.
” “
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MAXIMIZE YOUR TALENT
25% improvement can take us from good to great!
100% improvement just gets us to average.
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It takes an average of 10 years
to become an expert in any field.
At the same time, knowledge is
doubling every three years.
Do you have the experts on staff to maintain a competitive advantage?
Source: Malcolm Gladwell, The Outliers
GROW LEADERSHIP CAPACITY
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GROW LEADERSHIP CAPACITY
On the Job 70%
Feedback 20%
Formal Programs 10%
” “ Leaders grow best by growing others.
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Create intentional action designed to increase leadership capacity.
– Must start at the top.
– Must be principle based and interactive.
– Must be simple: easy to teach, easy to learn, easy to apply.
– Must incorporate knowledge transfer.
– Must be able to engage multiple generations.
Use tools to reinforce learning and execution:
User-initiated learning and development content
Reverse mentoring
Team-learning exercises
GROW LEADERSHIP CAPACITY
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GROW LEADERSHIP CAPACITY
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Increased Value Real Profit
Increase
Sustainable Growth
Loyal Customers
Engaged Employees
Great Managers
The Right Fit Identify
Strengths
GROW AND PROSPER THROUGH LEADERSHIP
Source: Marcus Buckingham, First, Break All the Rules
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THE PATH TO LONG-TERM GROWTH AND PROSPERITY
Source: Marcus Buckingham, First, Break All the Rules
Increased Value Real Profit
Increase
Sustainable Growth
Loyal Customers
Engaged Employees
Great Managers
The Right Fit Identify
Strengths
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QUESTIONS?
Contacts: Margaret Resce Milkint
Managing Partner
(800) 466-1578, ext. 410
THANKS!