Management Continuity And Talent Management

mAgneto consulting spc

Management Continuityand Growth

by Karl Icelli


Context

• Maintaining management continuity is an important determiner of future success.

• To be successful, organizations must anticipate and manage its management depth (numerically and qualitatively).

• What got you here, will not take you there..


Sponsorship and accountability

• The CEO is responsible for the management continuity of the overall organization.

• Each executive reporting to the CEO has the responsibility for the management continuity and growth for his/her organizational unit.

• The Human Resources Function provides technical and administrative assistance to the CEO and each executive reporting to the CEO.


Workforce planning tool supporting strategic and operational goals


Program objectives

• Inventory the management “bench”

• Review the quality of management

• Designate high potential individuals

• Establish and track management development plans and priorities


Level and frequency

• Review at least two reporting levels below each cognizant executive.

• Annually or after a major re-organization

• With quarterly updates and revisions


Components

• Review of previous year’s plans• Identify strategic issues with management talent

Implications• Prepare management continuity plan• Identify high potential candidates (including their

development needs)• Summarize and action plan for the current year


Reviewing previous year’s plans

• Structural changes, if any• Key personnel moves and promotions, if any• Retention of high potentials • Utility of development plans• Accuracy of forecasts• Ideas for improvement


Reviewing the organization(clarity, agreement, fit)

• Mission & key objectives• Market served (including customer

requirements)• Driving force for the business• Scope of products & services• Key capabilities


Strategic business issues

• Business expansion or contraction• Consolidation or divestiture• Poor profit performance• New ventures or acquisitions• New technologies or changes in operating

methods• Organizational changes• New product introductions


HR implications

– Shortages, surpluses, blockages– Staff reductions, outplacement– Employee cost containment– Competitiveness of reward system– Training or re-training– Loss of key talent– Need for differential reward systems


A Four-Step Approach

• Analyze the business requirements

• Readiness assessment

• Development planning

• Replacement planning


Assessment

• The building block for the whole program

• Example criteria:– Personal characteristics– Managerial competencies– Leadership competencies

• Recommend the 16 competencies of the Extraordinary Leader program by ZF

– Technical competencies

• Validation


Desired outputs

• Assess the overall quantity and quality of management resources (performance, promotability and issues of underutilization/marginal performance)

• Highlight positions with surpluses and shortages • Designate positions where there is a replacement

urgency or need• Identify grooming positions currently blocked or

where bottlenecks may occur• Prepare appropriate development actions


The management continuity plan

– For each key position:• Performance levels• Back –up promotability readiness• Replacement urgency• Development plans

– For high potential individuals:• Development plans

– For organizational unit:• Development plans


Footnotes

• Insurance candidates: Temporary fill and emergency back-up

• Development Plans– Select 3-5 objectives– Separate short from long term development– Concrete actions– Focus on strengths– Encourage lateral transfers (rotation)


Career Development

– Employee aspirations for the short and long term

– Self-assessment of personal strengths and development needs

– Identification of specific development actions

– Willingness or capability to make geographic moves, if required

– Consideration of individual capabilities and potential


Evaluation

• Review program results annually– Follow-through with development actions

– Fulfillment of career aspirations

– Management perceptions of the overall process

• Check for succession decisions’ accuracy– Were the replacement tables accurate?

– If not, why not?

– What other criteria might have surfaced?

• Adjust the implementation


STEP III: DEVELOPMENT PLANNING

Blocks Others

DevelopmentNeeded

OtherTrainingRotationsCoaching

Management Continuity Planning

Flow Chart

Yes

Yes

No

STEP II: READINESS ASSESSMENTS

Re-Assign

Redeploy?

High Potential

Ready Now

Ready 1-3 Yr.

Not Ready

Surplus

Co

mp

eten

cies

Car

eer

Pla

ns

OutplaceTransfer

Yes No

STEP IV: CONTINUITY PLANNING

Recruitment

ContinuityPlans

None in Pool

STEP I: BUSINESS ISSUES

StrategicPlan

HumanResource

Plans

PositionRequirements

No


Management Continuity Review Definition and Color Code Summary

PERFORMANCE SUMMARY(An overall assessment of results.) Color

Code

PROMOTABILITY-READINESS(is a prediction of a person’s Time of Readiness to assume the most reasonable next position).

Color

Code

REPLACEMENT URGENCY(an assessment of the Probability of a Position becoming vacant in a specific time period.)

Distinguished: The highest rating, marked by excellence. Exceptional and extraordinary accomplishments that far exceed the highest standards of performance in all key responsibility areas. Performance at this level is extremely rare. Those who perform at this excellence level are clearly recognized by others. The highest level of performance is seldom equaled by others who hold positions of comparable scope and responsibility.

PROMOTABLE NOW (0-1)Ready, fully prepared and capable to assume a new position now or within a year.

1. Replacement required within 1 year.

2. Replacement required within 1-3 years.

3. Replacement requirement NOT foreseen at this time.

Commendable: Performance goes beyond meeting reasonable position requirements and exceeds objectives especially in the key, critical responsibility areas. The individual consistently demonstrates noteworthy achievements above required performance. This level of superior performance should describe only those who number among the best.

PROMOTABILITY SOON (1-2)Should be ready for increased responsibility within the next 1-2 years. Needs some preparation, requires additional time in current position/level.

BRIEF DEFINITIONS

INCUMBENT The current position holder

SUCCESSORMost qualified to assume the designated position.

INSURANCE CANDIDATEEmergency Fill-In-Use Asterisk (*)

HIGH-POTENTIALDemonstrated ability, talent, and performance to advance to key management specialist positions.

Competent: Demonstrated performance clearly meets all the expected results criteria of the position. Although minor deviations may occasionally occur, the overall level of performance consistently meets and sometimes exceeds major position requirements.

PROMOTABLE FUTURE (2+)Promotable on a long-term basis (over 2 years.) Has capacity for advancement and additional responsibility for 2+ years. Further development is required.

Needs Improvement: Performance somewhat below performance standards. Accomplishments fall short of fully achieving all position accountabilities. The need for further development and improvement is obvious and is clearly recognized.

STABLE (Stay)Individual is considered to be well placed and is unlikely to advance beyond this position at this time.

AGEUse current calendar year.

YEARS-- Service with Company

-- In present PositionMarginal: Lowest performance level. It includes noticeably less than acceptable performance which is obviously well below minimum position requirements. Situation requires immediate review and action. Significant and immediate performance improvement is required in a short period of time.

Too Soon to Evaluate: Used only for individuals with six months or less in their current position.


Basic FormatPERFORMANCE CODE

Distinguished

Commendable

Competent

Needs Improvement

Marginal

Too Soon To Evaluate

Promotable Now (within 12 months)

Promotable Soon (1 to 2 years)

Promotable Future (over 2 years)

Stable

PROMOTABILITY CODE

POSITION TITLE

Name of Incumbent (age)

Yrs of Svc/Yrs in Position REPLACEMENT URGENCY

A. Within 1 year

B. 1 to 3 years

C. Not foreseen at this time

PRIMARY SUCCESSOR (age)

Yrs of Svc/Yrs in Prison

2nd SUCCESSOR (age)


3rd SUCCESSOR (age)


Code

Performance

Promotability

Code


{Leadership issuesPerformance Results the “what”

exceeds expectations

meets expectations

does not meet expectations

{ Key talent

{ Top-grading opportunities

does not meet expectations

meets expectations

exceeds expectations

Management Behaviors the “how”

Identifying Potential


High Performance

(High/Low)

Strategy

Continual Knowledge/Skill Training

and Job Enrichment/Redesign

High Potential

(High/Low)

Strategy

Continual Challenges and Development

High Potential

(High/Low)

Strategy

Behavior Modification or Removal

Problem People

(Low/High)

Strategy

Job Reassignment, Heavy Coaching,

Remedial Action

Development Planning

Pe

rfo

rma

nc

e

Promotability

High

High

Low

Low


Development Needs

• Understanding finance and accounting basics

• Broadening of Business perspective• Fundamentals of managing-planning, organizing, controlling.• Multi-Management disciplines

• Management awareness/style• Management of people• Interpersonal effectiveness• Manage change

• Not comfortable in making presentations• Needs to be persuasive• Use organizational/ visual aids appropriately

Developmental Actions

Fundamentals of Finance for Non-

Financial Managers

Management Development

Programs

Implementing Strategies through People

Persuasive Presentations

Linking needs with actions


thank you..

advancing, not oscillating.. | 25 10 2009

Documents

Management Continuity And Talent Management